>> 00:00:00.000 --> 00:00:10.830
>> OK Hello everybody, it's 130 good afternoon.
I'm Stacy Calkins, the NIS 247 for the footwear shoe lady.
>> 00:00:12.040 --> 00:00:20.640
>> I could be reached via email at Stacy Dot,
Calkins at CBP dot DHS dot Gov.
>> 00:00:21.420 --> 00:00:25.910
>> I'll probably tell you that email address later on
in the presentation also.
>> 00:00:27.140 --> 00:00:28.210 >> OK.
>> 00:00:32.480 --> 00:00:37.980
>> Today I'll talk to you about some current footwear issues.
We're seeing lately.
>> 00:00:38.930 --> 00:00:42.300
>> Uh some of them are ongoing some of them are brand new.
>> 00:00:47.190 --> 00:00:50.660
>> At first I have to show you a couple of required slides.
>> 00:01:05.810 --> 00:01:10.740
>> And that cute little footwear is shoes, I hope you guys understood that.
>> 00:01:12.230 --> 00:01:13.050 >> Alright.
>> 00:01:36.790 --> 00:01:39.550
>> The first topic will be the footwear coverings.
>> 00:01:41.900 --> 00:01:51.070
>> And he how we have some examples of them, they cover.
Part of the leg and part of the shoes or boots usually part of a costume.
>> 00:01:53.930 --> 00:02:01.750
>> And there have been many rulings issued about costumes
whether it be festive costumes, or other costumes.
>> 00:02:02.590 --> 00:02:17.160
>> But most recently headquarters ruling and 014873 from August
that was changed as well as a few others that were affected
by the latest headquarters ruling.
>> 00:02:18.150 --> 00:02:19.530
>> I in >> 00:02:20.260 --> 00:02:23.360
>> that ruling a well made Santa Claus costume.
>> 00:02:24.090 --> 00:02:35.500
>> Consisted of age top a shirt pants a hat beard wig and leather coverings
and in that ruling.
They referred to the leg coverings as boot covers.
>> 00:02:36.120 --> 00:02:37.500 >> Belt and gloves.
>> 00:02:38.280 --> 00:02:45.410
>> And CBP reviewed that and found it to be an error
regarding the tariff classification of the leg coverings.
>> 00:02:46.650 --> 00:02:54.740
>> So that and 11 other rulings
with substantially similar plastic leg coverings was modified.
>> 00:02:57.490 --> 00:03:06.250
>> And H 249097 the decision concerned only the leg coverings,
not the other pieces of the costumes.
>> 00:03:07.340 --> 00:03:10.550
>> In the original ruling on some of the ones that.
>> 00:03:11.730 --> 00:03:12.310 >> Of this.
>> 00:03:13.140 --> 00:03:30.210
>> Excuse me let me start over in the original ruling,
the cellular plastic leg coverings were classified in subheading 95 O 596,
6000, which provided for a festive carnival,
or other entertainment articles.
>> 00:03:31.270 --> 00:03:39.770
>> The issue at this was whether the leg coverings are classified
as Gators leggings and similar articles under.
>> 00:03:40.390 --> 00:03:47.180
>> Heading 6406 or as festive articles under heading 9505.
>> 00:03:51.010 --> 00:04:01.720
>> Now to competing headings.
We're looking at our 6406, which covers parts of footwear, including uppers,
whether or not attached to soles other than outer soles.
>> 00:04:02.620 --> 00:04:11.940
>> A heel cushions removable insoles, but it also includes Gators leggings
and similar articles and parts thereof.
>> 00:04:13.170 --> 00:04:19.620
>> The competing heading was 9505 for festive carnival,
or other entertainment articles.
>> 00:04:22.680 --> 00:04:29.950
>> And the explanatory notes to 6406 provide for Gators leggings
and similar articles and parts thereof.
>> 00:04:30.650 --> 00:04:36.940
>> And these articles are designed to cover the whole or part
of the leg and in some cases part of the foot.
>> 00:04:37.790 --> 00:04:39.930
>> Specifically, the ankle and instep.
>> 00:04:40.580 --> 00:04:46.010
>> They differ from socks and stockings in that they do not cover
the entire foot.
>> 00:04:47.030 --> 00:04:55.010
>> And they may be of any material leather canvas
felt knitted crocheted fabrics, Etcetera, but not asbestos.
>> 00:04:56.430 --> 00:05:05.970 >>
They also include Gators, legging spats putties mountain stockings
without feet leg warmers, and similar articles.
>> 00:05:08.260 --> 00:05:14.210
>> They can incorporate a strap or Lastic Band, which fits under the arch
of the foot.
>> 00:05:15.240 --> 00:05:19.980
>> And this heading also covers identifiable parts
of the above articles.
>> 00:05:21.780 --> 00:05:29.510
>> The explanatory notes for Chapter 95 provide for festive carnival,
or other entertainment articles.
>> 00:05:30.180 --> 00:05:35.030
>> Which in view of their intended use are generally made
of non durable material?
>> 00:05:35.960 --> 00:05:51.870
>> They include articles of Flint fancy dress masks full.
Sears noses wigs false beards and mustaches not being articles
of pastiche heading 676404 and proper hats.
>> 00:05:53.020 --> 00:05:56.170
>> But it excludes fancy dress of textile materials.
>> 00:05:59.300 --> 00:06:03.280
>> Now heading 6406 providing for Gators and leggings.
>> 00:06:03.920 --> 00:06:07.850
>> The terms Gators and leggings are not defined in the tariff.
>> 00:06:08.700 --> 00:06:24.230
>> But headquarters 088454 from October of 91 defines the Gator
as a leather or heavy cloth covering for the legs, extending from the insect
to the ankle or knee.
>> 00:06:25.410 --> 00:06:35.000
>> And from the dictionary, we have a definition ankle high shoe
with elastic sides, and an overshoe with a cloth top.
>> 00:17:34.220 --> 00:17:48.470
>> So headquarters believes that both of the above styles were suitable
for athletic activity they met the definition
of tennis shoes basketball basketball shoes gym shoes training shoes
and the like.
>> 00:17:49.570 --> 00:17:56.590
>> And they provide that athletic footwear does not have to be used
for athletic games or purposes.
>> 00:17:58.790 --> 00:18:02.740
>> And the embroidery on the footwear at issue in the above rulings.
>> 00:18:04.200 --> 00:18:08.960
>> Clearly, not be used at all in a sporting activity.
>> 00:18:10.530 --> 00:18:14.220
>> And it features that would preclude their use as athletic.
>> 00:18:16.900 --> 00:18:27.220
>> Headquarters also concluded the Treasury decision definition requires
the footwear to be such that it could clearly not be used at all
in sporting activity.
>> 00:18:27.910 --> 00:18:33.550
>> And that embroidery alone does not preclude footwear from being classified.
>> 00:18:34.210 --> 00:18:36.290 >> As Athletic footwear.
>> 00:18:39.710 --> 00:18:47.140
>> And it concluded that the footwear at issue was classified under 64 O 41190.
>> 00:18:47.940 --> 00:18:49.520 >> As Athletic footwear.
>> 00:18:53.140 --> 00:18:59.970
>> And here we have another example these
so these would no longer be precluded just for the.
>> 00:19:00.660 --> 00:19:02.650 >> Uh embroidery.
>> 00:19:03.510 --> 00:19:10.400
>> If it has all the features of athletic footwear,
it could now be classified as athletic footwear.
>> 00:19:12.780 --> 00:19:15.400
>> You have any questions on that section.
>> 00:19:18.040 --> 00:19:22.460
>> Now wait a few seconds see if I see anything in the chat box.
>> 00:19:40.880 --> 00:19:45.030
>> Our next topic is leather flocking issues.
>> 00:19:46.270 --> 00:19:48.250
>> Leather flocking hmm.
>> 00:19:50.930 --> 00:20:04.830
>> Why are there leather?
Why is there leather flocking?
Why is some footwear imported with leather materials incorporated
into the external surface area of the outer soles that are in contact
with the ground.
>> 00:20:06.610 --> 00:20:17.320
>> Well, because while ago there was an additional US.
Note 5 to Chapter 64 and several subheadings
that were added to the tariff.
>> 00:20:18.100 --> 00:20:45.650
>> Addressing the addition of textile fibers added to the bottoms
of the outer soles of some footwear and that was done
to provide a more advantage duty rate to some of the footwear.
If it had regular rubber or plastic outer soles
the duty rate was quite high so.
>> 00:20:46.520 --> 00:20:51.540
>> To combat that, the additional US note 5 was added and.
>> 00:20:52.830 --> 00:20:57.630
>> Additional subheadings about 18 or 20 of them, however.
>> 00:21:02.540 --> 00:21:07.550
>> Some types of footwear were not included in this special advantage.
>> 00:21:09.810 --> 00:21:21.840
>> And basically waterproof footwear was not included
or did not have the option to be classified
in subheadings that used note 5.
>> 00:21:24.320 --> 00:21:41.790
>> The footwear with rubber and plastic uppers
and leather outsoles are classified in 6405 at lower duty rates.
So to qualify for these lower duty rates.
Many sought to turn their rubber and plastic outer soles
into leather outer soles.
>> 00:21:42.880 --> 00:21:51.310
>> But how would one modify a rubber and plastic outer sole
to become classifiable as a leather outer sole.
>> 00:21:53.520 --> 00:21:59.960
>> There are several ways,
the applications usually took the form of just.
>> 00:22:00.950 --> 00:22:07.180
>> Sheets of leather attached to the bottoms or the majority
of the external surface area of the outer soles.
>> 00:22:07.960 --> 00:22:17.880
>> Uh they took the form of composition,
leather or bonded leather specifically designed
to imitate real natural leather.
>> 00:22:18.900 --> 00:22:26.150
>> Leather fiber and leather dust were added to the bottoms of the outer soles.
>> 00:22:27.700 --> 00:22:57.590
>> Now we have to understand what the difference is between these substances
to get some idea of their character now.
What is leather chapter 64 Note 3 B says leather refers to goods described
in tariff.
Headings 41 O 741124114 and these provisions apply
to tanned hides of animals with the hair or fur removed.
>> 00:22:58.180 --> 00:23:05.110
>> Whether or not split usually from bovine goat sheep lambs swine, reptiles.
>> 00:23:06.300 --> 00:23:08.650
>> These are this is considered leather.
>> 00:23:10.520 --> 00:23:20.280
>> What is not considered leather material would be tanned animal skins
with the fur hair wool feathers or down still attached?
>> 00:23:21.520 --> 00:23:31.010
>> Any leather coated with laminated coated
or laminated with a very thick layer
of plastic, giving it the essential character of plastic.
>> 00:23:32.060 --> 00:23:41.660
>> Composition leather uh which has been found to be not plausible.
Upper material because years back.
It wasn't considered as strong as regular leather.
>> 00:23:42.610 --> 00:23:49.940
>> I which is usually made from small pieces of fibers agglomerated
with a binder or by compression.
>> 00:24:08.390 --> 00:24:12.040
>> And the composition leather mimics the real leather.
>> 00:24:12.820 --> 00:24:19.300
>> And the pieces of waste and dust are held together with adhesives.
>> 00:24:20.050 --> 00:24:20.790 >> And.
>> 00:24:21.560 --> 00:24:26.230
>> The composition whether has the basis of leather in other words,
it has to be mostly leather.
>> 00:24:29.030 --> 00:24:48.270
>> What is leather flock leather flock consists of tiny particles
of leather applied to the outer surface for creating a texture or pattern.
That's what it's usually used for flocking is the process
of adding small particles to a surface for the sake of texture.
>> 00:24:49.160 --> 00:24:52.460
>> Or, a material textured in this way.
>> 00:24:56.340 --> 00:25:08.860
>> The dust that is product of a variety of tanning operations
and some mechanical operations is collected
and buffing is also a major source of dust.
>> 00:25:09.600 --> 00:25:18.860
>> This leather dust can contain both fibers and grains
and they can vary from 30 to 1200 microns in length.
>> 00:25:19.510 --> 00:25:23.550
>> And from 30 to 10 to 30 microns in diameter.
>> 00:25:24.230 --> 00:25:28.280
>> And the greens are usually less than 10 microns in diameter.
>> 00:25:30.470 --> 00:25:36.650
>> And here we have an example of a boot that is flocked with.
>> 00:25:37.920 --> 00:25:41.880
>> Leather looks like fibers or grains or dust.
>> 00:25:42.840 --> 00:25:43.270 >> Umm.
>> 00:25:45.370 --> 00:25:55.410
>> Now, if the sample or a lab report confirms that the majority
of the surface area coming in contact with the ground.
>> 00:25:56.080 --> 00:26:03.100
>> Is substantially covered with leather material and the footwear has a rubber
and plastic upper?
>> 00:26:03.950 --> 00:26:07.480
>> It's classified in heading 6405.
>> 00:26:08.290 --> 00:26:11.260
>> In other words, If it has a really thick.
>> 00:26:12.660 --> 00:26:15.890
>> Layer and it really looks like leather.
>> 00:26:23.320 --> 00:26:51.850
>> And if upon review of the sample.
It is determined that the outer sole is covered with an uneven application
or if microns, thin layer of flocking or dust.
It should be disregarded for tariff classification purposes pursuant
to note 4 B to Chapter 64, which talks about ignoring the application.
>> 00:26:51.950 --> 00:26:55.690
>> And it being thought of as an accessory or reinforcement.
>> 00:26:56.540 --> 00:26:57.160 >> Umm.
>> 00:27:00.910 --> 00:27:14.740
>> So the bottom line is if you have a very thick layer
or a substantial enough layer of leather flocking whether it be a slab
or a fibers.
>> 00:27:15.340 --> 00:27:20.650
>> Umm it would be classified and 6405.
>> 00:27:22.630 --> 00:27:24.680 >> If it is Micron thin.
>> 00:27:27.680 --> 00:27:39.280
>> It should be treated as a similar attachment and it should be disregarded
and it would be classified as whatever the material underneath
is usually rubber and plastic.
>> 00:27:40.440 --> 00:28:00.100
>> So the classification of footwear with the outer soles manufactured
with leather flocking or dust should be made on a case by case basis.
So you have to see whether it's evenly applied.
If they have missing areas.
Can you see through to the bottom of the rubber room plastic out of sole?
>> 00:28:00.800 --> 00:28:04.110 >> Iron areas or is it sufficiently covered.
>> 00:28:06.290 --> 00:28:08.120 >> Any questions on this section.
>> 00:28:12.540 --> 00:28:16.830
>> OK, it looks like we're going to be answering a lot via email.
>> 00:28:19.690 --> 00:28:43.430
>> Now finally you have a question in the toolbox ohh OK.
What should the thickness be hmm.
Well, yes, it is subjective, but under magnification.
Well, first of all if it's visible and tactile on the outer surface.
That's one hurdle.
The second thing is under magnification do you see it evenly applied?
>> 00:28:44.200 --> 00:28:50.560
>> Is it sufficiently thick enough that it has the character
of a leather outer sole?
>> 00:28:51.760 --> 00:29:00.090
>> Those are all the things we take under consideration,
but the thicker the better the more likely.
It is to be have the character of leather.
>> 00:29:00.780 --> 00:29:03.670 >> And considered a leather outer sole.
>> 00:29:05.900 --> 00:29:09.960 >> So our next last uh.
>> 00:29:11.390 --> 00:29:15.320
>> Final shoot issue is wearable technology.
>> 00:29:16.910 --> 00:29:40.060
>> Now, when technology is incorporated into clothing or footwear.
It's considered wearable and it can be used to track data collect
and interpret it in meaningful ways to improve athletic performance
improve the quality of life of physically impaired users
and has many other uses.
>> 00:29:42.630 --> 00:29:43.480 >> Now.
>> 00:29:45.170 --> 00:29:50.980
>> In April of 2021 headquarters looked at and ruled on.
>> 00:29:51.170 --> 00:29:53.770 >> A uh Nike.
>> 00:29:54.570 --> 00:30:13.440
>> Product called the Nike Adapt BB and it consisted of 5 main components.
It had a Bluetooth system on chip.
It had a sensor pack consisting of a Gyrich Gyroscope
and accelerometer a capacitive sensor.
>> 00:30:14.240 --> 00:30:23.170
>> A system and subsystem components, including 3 microcontroller
unit processors flash memory.
>> 00:30:23.880 --> 00:30:30.490
>> And wireless power receiver and auto lacing platform
with the DC motor.
>> 00:30:31.270 --> 00:30:35.240 >> And a performance basketball shoe housing.
>> 00:30:36.350 --> 00:30:38.160 >> Did everything except make toast?
>> 00:30:50.950 --> 00:30:58.460
>> It also came with a wireless charging pad a USB cable
with the wall charger combo.
>> 00:30:59.170 --> 00:31:04.140
>> And an operating manual and it was all packaged together for retail sale.
>> 00:31:06.930 --> 00:31:10.460
>> Now what is the classification of this item?
>> 00:31:13.140 --> 00:31:29.090
>> Well, we have to go through the GI 's and GRID.
One provides that it should be determined.
According to the terms of the headings of the tariff schedule
and any relative section or chapter notes.
>> 00:31:30.750 --> 00:31:44.100
>> And in the event that the goods cannot be classified solely
on the basis of these you do not otherwise require the remaining GRID
may be applied in appropriate order.
>> 00:31:45.620 --> 00:31:56.940
>> So then Nike adapt with their multiple components
and functions is really not described under any one chapter provided
in the tariff.
>> 00:31:58.340 --> 00:32:03.560 >> And so to split them out.
Uh we're looking at different headings.
>> 00:32:04.360 --> 00:32:14.460
>> The footwear would have been classified in 6404,
the Bluetooth classified heading in 8517.
>> 00:32:15.140 --> 00:32:15.860 >> The system.
>> 00:32:16.240 --> 00:32:22.710
>> Technologies specifically the data processing part
of it would be under 8542.
>> 00:32:24.150 --> 00:32:31.240
>> The autofit technology would be 8501 the wireless charging pad 8504.
>> 00:32:31.900 --> 00:32:51.800
>> The memory 8523, the sensors, hitting 9031, you get the idea everywhere
through the tariff.
So the GRID 's.
If say that if a good is consisting of different materials and made up
of different components.
>> 00:32:52.620 --> 00:33:04.480
>> And it cannot be classified under any single provision.
We turned to DRI 2 and that one states that the classification consists
of more than one material or substance.
>> 00:33:05.420 --> 00:33:10.210
>> It should be classified according to principles of GRI 3.
>> 00:33:11.630 --> 00:33:15.690
>> So for instance, when the application of Rule 2 B.
>> 00:33:17.810 --> 00:33:28.860
>> The goods can't be classified under that it should be affected using Rule 3
and Rule 3, says the heading which provides the most specific description.
>> 00:33:29.670 --> 00:33:34.010
>> Shall be preferred to Headings, providing more general description.
>> 00:33:35.350 --> 00:33:36.250 >> So.
>> 00:33:37.010 --> 00:33:44.070
>> And also when the 2 or more headings refer to part only of the materials
or substances contained.
>> 00:33:44.600 --> 00:33:47.500 >> Uh like for instance, a composite good.
>> 00:33:48.550 --> 00:34:04.760
>> Or to part only of the items of a set put up for retail sale.
Those headings are to be regarded as equally specific in relation
to those goods even if one of them gives a more complete or precise description.
>> 00:34:06.690 --> 00:34:08.970 >> So when we have a composite good.
>> 00:34:09.720 --> 00:34:11.730 >> Uh different materials.
>> 00:34:12.950 --> 00:34:18.330
>> And put up for retail sale, which cannot be classified by reference to 3.
A.
>> 00:34:19.270 --> 00:34:27.290
>> It should be classified as if they consisted of the material or component,
which gives them their essential character.
>> 00:34:28.500 --> 00:34:33.430
>> And when it can't be classified by 3 or 3 B.
>> 00:34:34.550 --> 00:34:40.090
>> They can be classified under the heading which occurs last
in numerical order.
>> 00:34:42.760 --> 00:34:44.600 >> So here we have.
>> 00:34:45.600 --> 00:34:58.630
>> Whenever possible we follow the GRID and 3 B states that in all these cases.
The goods are to be classified if they consisted of the material or component,
which gives them their essential character.
>> 00:34:59.540 --> 00:35:07.140
>> And the essential character will vary it may be determined by the nature
of the material or component.
>> 00:35:07.840 --> 00:35:17.660 >> It's bulk it's quantity.
It's weight.
It's value or by the role of the constituent material
in relation to the use of the goods.
>> 00:35:18.770 --> 00:35:41.640
>> And for the purposes of this rule, the composite goods made up
of different components shall be taken to mean not only those
in which the components are attached to each other
to form a practically inseparable whole but also those
with separable components provided these components are adapted one
to the other and are mutually exclusive.
>> 00:35:45.650 --> 00:35:59.820
>> So Nike maintained that the item could not be classified solely
by the application of GRID one and they contended that the essential character
of the adapts footwear.
>> 00:36:00.890 --> 00:36:11.740
>> Was imparted by the Bluetooth transceiving subsystem
and argued that it was designed for use as a wearable electronic device?
>> 00:36:12.570 --> 00:36:21.340
>> And recommended a classification under subheading 85176200.
>> 00:36:22.970 --> 00:36:52.620
>> Well, we disagreed because CBP has historically classified footwear
with electronic modules components batteries.
Messaging messaging mechanisms.
Light lights heating and sound emitting capabilities as footwear.
In Chapter 64 and some examples of how we've classified footwear with.
>> 00:36:53.500 --> 00:36:59.510
>> Or composite footwear with all of these wonderful things inside them are.
>> 00:37:00.590 --> 00:37:08.500
>> From 2006 we saw our ruling that concerns slippers incorporating lights
and weight sensors in them.
>> 00:37:09.490 --> 00:37:10.330 >> And.
>> 00:37:11.390 --> 00:37:20.520
>> It even had bulbs in each slipper that when angled upwards
and it illuminated an area of 20 to 25 feet in front of the wear.
>> 00:37:21.940 --> 00:37:28.470
>> But each Slipper was powered by 2 lithium batteries and contained
in a compartment on the medial side.
>> 00:37:29.150 --> 00:37:32.040 >> Yet that was still classified as footwear.
>> 00:37:32.770 --> 00:37:34.440 >> In Chapter 64.
>> 00:37:37.540 --> 00:37:49.710
>> In 2013, 2010, we saw examples classified in Chapter 64 as footwear,
even though they contain batteries and bulbs.
>> 00:37:50.900 --> 00:38:02.790
>> And in 2017, we had an one
that contained electronics batteries novelty shoes
and contained a speaker and a circuit board that emitted sounds.
>> 00:38:04.250 --> 00:38:09.930
>> In 2007, we had slippers that contained electrical heating units.
>> 00:38:11.110 --> 00:38:15.450
>> And it could even be charged plugged in to recharge.
>> 00:38:16.430 --> 00:38:19.420 >> In 2011, we saw a hiking boot.
>> 00:38:20.540 --> 00:38:23.050 >> That was still classified as footwear.
>> 00:38:24.860 --> 00:38:36.060
>> Now, under GRI 3 B the composite good must be classified according
to the material component that imparts the article
with its essential character.
>> 00:38:36.930 --> 00:38:44.480
>> That, which is indispensable to the structure core or condition
of the article in other words, what it is.
>> 00:38:45.390 --> 00:39:00.790
>> Although the adapt may enable the wearer to enhance his
or her experience via smartphone or other device,
the user must actually wear them and use them as footwear.
>> 00:39:01.930 --> 00:39:24.490
>> If the wearer chooses to enable some or many
of the additional features like gathering the data or tracking
how far you've walked or or run and subsequently transmitting that data
to your phone.
That's his or her option and however you must use the adapt as footwear.
>> 00:39:27.840 --> 00:39:40.440
>> So while it was clear that the basketball shoe is indispensable
for the engagement of all the experience options offered
by the additional components.
>> 00:39:41.220 --> 00:39:56.290
>> Umm the footwear predominated in size and weight
and function and deliver the experience of walking running
and training as compared with the ancillary uses
of the technological features.
>> 00:39:58.230 --> 00:40:07.590
>> Now, unlike the wrist wrist wearing smart devices whose value
to the user comes from the information they convey.
>> 00:40:08.340 --> 00:40:18.390
>> The adapt serves a utilitarian function that provides the value
to the user while the information conveyed supplements that usefulness.
>> 00:40:19.290 --> 00:40:26.150
>> As such, the adapt is an article of footwear classifiable under 6404.
>> 00:40:28.400 --> 00:40:43.390
>> So bottom line is the essential character
of the Nike Adapt BB was imparted
by the footwear, rather than the expensive components
of the Bluetooth Transceiver.
>> 00:40:46.990 --> 00:40:53.430
>> So that was the whole thing by GRI 3 B it's classified.
>> 00:40:54.030 --> 00:40:57.410 >> Umm under subheading 640411.
>> 00:40:58.380 --> 00:41:10.440
>> As footwear without our souls of rubber and plastics leather
or composition leather and upwards of textile materials.
Tennis shoes basketball shoes gym shoes training shoes and the like.
>> 00:41:13.410 --> 00:41:15.380 >> So the bottom line is.
>> 00:41:16.830 --> 00:41:22.300
>> Wearable Smart Technology is a growing sector of the marketplace and.
>> 00:41:23.000 --> 00:41:34.180
>> These types of merchandise will require individual or case
by case analysis in order to determine their essential character
and ultimate classification.
>> 00:41:37.220 --> 00:41:40.010
>> So do we have any questions on this section?
>> 00:41:42.050 --> 00:41:53.190
>> I'll wait a few seconds if not, I'll tell you my email address again.
Stacey dot KALKINES.
>> 00:41:54.240 --> 00:42:04.620
>> At CBP Dot DHS Dot Govi welcome your questions and hope to get back to you
in a reasonable amount of time.
>> 00:42:08.880 --> 00:42:13.570
>> You know just wait a few seconds more to see if we have any questions.
>> 00:42:15.230 --> 00:42:18.100
>> I guess everybody's saving up for their emails.
>> 00:42:22.490 --> 00:42:27.890
>> And just to reiterate Sandra said that the recording will be provided.
>> 00:42:34.560 --> 00:42:39.910
>> OK, yes, we have so many people that the questions are just flying by.
>> 00:42:42.330 --> 00:42:51.530
>> So, please put them in an email question to me, Stacey dot KALKINES.
>> 00:42:53.720 --> 00:42:55.990 >> At a question to you.
>> 00:42:57.590 --> 00:43:07.420
>> There was one that was asking about whether uppers of PU leather
or polyurethane leather vegan leather fall into Chapter 6403 or 6405.
>> 00:43:08.690 --> 00:43:13.180
>> OK so vegan leather would not be from a cow.
>> 00:47:45.750 --> 00:47:58.150
>> OK So what question what slide did you want me
to do that there's also a question to see 41 and 47?
Maybe before we go all the way up to the 70s so slide 41.
>> 00:47:59.140 --> 00:48:00.750 >> It just wanted to view that again.
>> 00:48:04.000 --> 00:48:11.340
>> Slide 41 OK this is example of athletic footwear
with heavy heavy embroidery.
>> 00:48:13.100 --> 00:48:19.800
>> So heavy embroidery being unlike the sequins probably won't come off
when you're using them.
>> 00:48:20.940 --> 00:48:26.550
>> So they could still be considered athletic and what other number like 47.
>> 00:48:27.490 --> 00:48:28.760 >> 47.
>> 00:48:33.700 --> 00:48:36.390 >> OK, yes, this is the example that.
>> 00:48:36.840 --> 00:48:41.950
>> Umm waterproof footwear that was not included.
>> 00:48:43.170 --> 00:48:48.800
>> In the new sub headings that addressed additional US note 5.
>> 00:48:49.560 --> 00:49:13.990
>> Umm so these would not get a chance to get a reduced duty rate.
If textile was applied to the bottoms.
So that's why people started considering applying leather fibers and trying
to get them in as full blown leather outer soles, but again,
it has to be thick enough.
>> 00:49:14.870 --> 00:49:16.840 >> To qualify as leather?
>> 00:49:18.710 --> 00:49:19.810 >> What's the next number?
>> 00:49:21.420 --> 00:49:27.430 >> Is arzal which slide?
Was it that you wanted?
Was it 76 or 783070?
>> 00:49:28.550 --> 00:49:28.940 >> Sorry.
>> 00:49:29.570 --> 00:49:35.730 >> 7979.
Thank you OK here, I go travelling up to 79.
>> 00:49:39.560 --> 00:49:41.100 >> Going to stop way before.
>> 00:49:50.620 --> 00:49:52.040 >> That's a good one bottom line.
>> 00:49:53.450 --> 00:49:55.620
>> It'll probably not the one that you wanted.
>> 00:50:04.120 --> 00:50:07.480 Then I guess I didn't miss it.
Thank you OK.