Tag Fundamentals

The HTS Nerd Battles Confuzo and his Mind Erasing Ray

The HTS Nerd Leave a comment

Blog Superhero 04The final day of HTS Boot Camp arrived for the team of HTS Cadets. After timidly tiptoeing through the mid-point exam, we drilled the basics even more. By the time they got to the final exam, my cadets blasted through the questions, filled with the knowledge they needed to zoom through with confidence. Nothing warms an HTS superhero’s heart like seeing the team take command of the General Rules of Interpretation and start classifying complex items with ease.

As the team settled back in for one last deep dive into the topic of their choice (footwear), we started with a pair of boys’ tennis shoes with rubber outsoles and uppers of pigskin leather.

Right before my eyes, the cadets were suddenly afflicted with group amnesia, forgetting many of the basics they had just mastered. The idea of classifying footwear became terrifying to them, and Chapter 64 of the HTSUS seemed like another language (well, technically it was, but you, dear reader, get the idea).

The team was getting bogged down in and overwhelmed by a myriad of details that kept them going through the chapter in circles. One kept insisting we needed to know the value of the shoes. Another kept insisting we needed to know if the pair had foxing or foxing-like banding.

“What about the insoles?” cried a cadet who had curled up in a fetal position in one corner of the room. “For the love of all that is good, what about the insoles?!?!?!?!”

This could only be the work of Confuzo and his cursed ray that blocks the minds of even the most skilled classifiers, leaving only muddled confusion where there was once clarity.

There is but one defense against such a nefarious weapon – simplicity.

STEP 1: Break the chapter down to its most basic legal element – the headings.

In this case, Chapter 64 consists of only six different headings, so start your focus there and only there. Begin with the first heading and making your way from there, eliminating the possibilities as you go.

6401 – Waterproof footwear with outer soles and uppers of rubber or plastics, the uppers of which are neither fixed to the sole or assembled by stitching, riveting, nailing, screwing, plugging, or similar processes

Since the example we were reviewing was not waterproof, we automatically exclude this heading as a possibility. One heading down, five to go.

6402 – Other footwear with outer soles and uppers of rubber or plastics

Our example had an outer sole of rubber, but the upper was made of leather. Since it was not an upper of rubber or plastic, another possible heading was eliminated. Two headings down, four to go.

6403 – Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather

Bingo! At the most simple terms, it would appear we have arrived at the correct heading. It accounts for our outer sole of rubber with an upper of leather.

But just to be sure, let’s take a quick look at the remaining three headings of this chapter:

6404 – Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials

Our upper is made of leather, so this heading is also out.

6405 – Other footwear

This heading would only be applicable if our example does not fall into one of the previous headings. Since the legal language of 6403 describes our immediate product, 6405 is therefore also eliminated.

6406 – Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable insoles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof

Since our example is a complete article of footwear, this heading is also eliminated. By exploring the chapter at the heading level only before examining any other detail, we’ve taken 40 pages of HTS classifications and whittled it down to only 7.

But we can still do better than that.

STEP 2: Move your focus onto the subheadings, but don’t forget to check the section and chapter notes!

Within heading 6403, we have only seven subheadings to consider:

6403.12 – Sports footwear
6403.20 – Footwear with outer soles of leather, and uppers which consist of leather straps across the instep and around the big toe
6403.40 – Other footwear, incorporating a protective metal toe-cap
6403.51 – Other footwear with outer soles of leather
6403.59
6403.91 – Other footwear
6403.99

Chapter 64 Subheading Note 1 provides definition for “sports footwear”, applying the term only to footwear designed for a sporting activity and has (or has provisions for the attachment of) spikes, sprigs, cleats, stops, etc., or skating boots, ski-boots and others listed Subheading Note 1(b).

Tennis shoes do not meet that definition, so 6403.12 is eliminated. We can also eliminate the next four subheadings on their language alone.

STEP 3: Continue to the next level of indentation and focus only on the relevant details.

We have two possible subheadings left:

6403.91 – Other footwear: Covering the ankle
6403.99 – Other footwear: Other

So do our tennis shoes cover the ankle? The Informed Compliance Publication on Footwear provides a clarification of what “covering the ankle” means:

If the shoe upper extends upward to cover at least half of the lateral (outside) ankle bone, the shoe covers the ankle. If the shoe upper does not extend upward to cover at least half of the lateral ankle bone, the shoe does not cover the ankle.

Here is where it becomes necessary to do further analysis beyond just the information that we had at the beginning. After further examination of the shoe’s design, the cadets were able to verify that our example does cover the ankle.

Thus, having eliminated 6403.99, we’re left with 6403.91 – and only one page in the HTSUS of possible classifications. But don’t just throw the previous steps out the window – it’s important to maintain your focus on the most basic elements.

Beyond the subheading of 6403.91, we move to the next level of indentation (tariff rate) which has just four options:

6403.91.11 – Covering the ankle: Footwear made on a base or platform of wood, not having an inner sole or a protective metal toe cap
6403.91.30 – Covering the ankle: Other: Welt footwear
6403.91.60 – Covering the ankle: Other: For men, youths and boys
6403.91.90 – Covering the ankle: Other: For other persons

Our sample does not contain any wood content, base or otherwise, so the first option is eliminated. The second option is eliminated by Chapter 64 Additional U.S. Note 1(a). And as our sample meets the criteria of Additional U.S. Note 1(b) for footwear for men, youths and boys, we do not need to go beyond 6403.91.60.

All that remains is determining the statistical tracking portion of our 10-digit classification. Chapter 64 Additional U.S. Note 2 provides relevant clarification:

For the purposes of this chapter, the term “tennis shoes, basketball shoes, gym shoes, training shoes and the like” covers athletic footwear other than sports footwear (as defined in subheading note 1 above), whether or not principally used for such athletic games or purposes.

From there, arriving at a classification of 6403.91.6050 seemed so simple. Suddenly the details on price, foxing, insoles and so on did not matter to the sample at hand, and with that, Confuzo’s ray no longer had any effect on my cadets.

But heed this warning. Confuzo is still out there, though, and inevitably every classifier from the newest cadet to the experienced guru will come up against that blasted ray of his. Just remember to keep it simple, and you too will overcome it.

The HTS Nerd vs. The Ruling Jumper (#HTSNerdAdventures)

The HTS Nerd 2 Comments

HTS Nerd - Superhero 08International travel is not always about seeing the sites or trying the local cuisine, especially for a classification superhero. Sometimes, a nefarious foe will rear its head and you’ll find yourself battling for the mind of an HTS cadet.

I began the HTS Boot Camp with my new cadets in pretty much the same manner I usually do – by going back to the very basics. I have to make sure that my students have a good working knowledge of the most basic HTS fundamentals. We go over what it is, how it was developed, the structure of the HTSUS, and then start an intensive deep dive into the General Rules of Interpretation.

As my class of global HTS cadets discussed the resources available to help in determining a classification, one cadet said, “I just go to CROSS and use the part name to look for a ruling. I go with the first one I find at the top of the list.”

Although in the guise of this new cadet, I immediately recognized my old foe – the Ruling Jumper. As one of the 7 Deadly Classification Sins, the Ruling Jumper is a spirit that searches out for desperate cadet classifiers who are most susceptible to possession, usually when they find themselves struggling with a particularly difficult determination. It’s in that moment of frustration the Ruling Jumper can get in. He becomes that quiet voice in your mind whispering, “Just go to CROSS… just go to CROOOOOSSSSSSSS…” Before you know it, you’re disregarding all of your training and instead quickly scanning for the first ruling that might have some bearing.

Preying on a cadet’s eagerness to get a hard product classification out of the way and move on to the next, the Ruling Jumper guides the cadet’s fingers to the keyboard and types the most basic part name possible in CROSS to get the most results at once. Which is rather irrelevant because the Ruling Jumper just goes to the first listing that pops up and uses that HTS.

This isn’t my only time I’ve faced off against the Ruling Jumper. I admit – before that fateful paper cut from a radioactive HTSUS that transformed me into a classification superhero, I once fell prey to the Ruling Jumper. Fortunately, I’ve developed a tool that always weakens his hold – education. I know if I successfully educate this young cadet to sharpen his classification skills, the Ruling Jumper no longer has a foothold, and is forced to flee in search of a new host.

The list of reasons one should not jump to the rulings in CROSS are numerous, so let me share the top 3:

Number 1: They do not provide a complete picture.

The requesting company may not have included all of the details… perhaps even leaving something out intentionally in order to obtain a more favorable ruling.

In comparing someone else’s ruling to your product, you often have to make assumptions. There may be additional details that the CBP commodity specialist may not have included, so always keep in mind that the absence of detail in a binding ruling does not mean the detail does not exist.

Number 2: Rulings often change. 

Upon further review, Customs may re-determine their classification in a ruling, usually in the form of an HQ ruling. And unless you are the requesting party, you won’t receive direct notification of an update.

Additionally, if you are not frequently following up on every ruling that you reference in your classification’s reasonable care documentation, chances are that at some point you’ll miss an update.

Number 3: Rulings themselves may contain errors.

Believe it or not, you may come across a ruling in CROSS that contains some kind of error.

For example, let’s say you’re searching for a ruling on a musical Christmas wreath. You enter the product name and look at the first thing that pops up:

HTS - Ruling Jumper 01

If you just went by the search results, your classification 9505.90.6000 would end up being incorrect. Diving further into the ruling letter itself, you would find that the ruling actually concluded that the item is classified under 9505.10.2500 instead.

And, by looking further, you can see directly below that CBP issued a correction letter to rectify this mistake. Unless you were specifically looking for it, though, you might overlook it.

Believe it or not, this is more commonplace than you might think. That in no way is meant to disparage the hard-working folks in the National Commodity Specialists Division – it just means that sometimes mistakes do happen (they are human, too).

Looking out over the classification landscape, I can see that many of you out there have experienced this at some point during a classification. You’re now wondering to yourself, “Was I possessed by the spirit of the Ruling Jumper? Does he have a foothold in my classification process even now?”

Perhaps, my dear HTS cadet, perhaps. But there is hope.

The first step to any 12-step HTS recovery program is admitting you have a problem, and then seeking guidance from a higher power… such as the HTS Nerd. Joking aside, there are lots of opportunities to get that additional training you may need – just take that first step, and soon you’ll be rid of the Ruling Jumper and the other six Deadly Classification Sins.

Random Question – Update

The HTS Nerd Leave a comment

A few days ago, I posed a question:

When it comes to HTS classification, what additional training or education would the international trade community most benefit from?

It’s a question that’s been on my mind a lot lately as I prepare to step into a new role. I’ve wondered…

  • Is there an area of classification that is lacking guidance or direction?
  • Is there a topic that doesn’t receive enough education?
  • Is there a section or chapter of the HTS that has been overlooked but screams out for attention?
  • Are there areas where the international trade community could simply use a refresher?

Personally, I love a good classification puzzle… there’s nothing like the exhilaration of finding that one specific detail that pulls the entire picture into focus (and that is, in part, why yours truly is a classification nerd). Having spent the last four years of my career classifying aerospace technology that often was not even out of the research and development stage, I’ve certainly had my share of those moments!

Although not a complete shock, the answers I received on LinkedIn, Twitter, email, instant messaging and other forums surprised me a little. I expected more diversity and complexity in how others would reply. Instead, one common thread ran through every message:

Let’s get back to the basics.

It turns out what people in this industry want most, be it for themselves or for the community in general, is a focus on the fundamentals of classification. And in retrospect, it actually does make sense.

I recently had the honor of participating in an educational conference panel discussion on the topic of classification. I asked the audience how many of them determine classifications for their company, and about half of the room raised their hands. I then asked how many of them read the chapter and section notes every time they are determining a classification. Only a few remained up as I watched most of the hands drop.

To those who had their hands still raised, I said that I applaud them for doing so. To those who dropped their hands, I asked them to share their secrets of memorization because the only reason I could think of that someone would not do so is simply they must have those portions of the HTS completely committed to memory. Otherwise, how could they be sure they accounted for all possible inclusions, exclusions, notes, definitions or instructions pertaining to the items classified therein?

In the weeks and months ahead, I’ll be doing a deep dive into the basics of classification and sharing some tips and tricks along the way. And if there is a specific area where I can help you or your company, reach out – I am sure that the team I am joining later this month has a solution for you!