CBP's FAQ on Agreed China Quotas, Etc. (Part V - Final)
U.S. Customs and Border Protection (CBP) has posted to its Web site a document entitled "U.S.- China MOU Frequently Asked Questions" in order to provide guidance to CBP field personnel and the trade community regarding the agreed quotas imposed on certain textile and apparel articles from China, and other related issues.
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This is Part V, the final part of a multi-part series of summaries of what is now the February 16, 2006 version of this FAQ. Part V highlights one of six sections in the FAQ - babies' socks and booties.
Babies Socks/Booties Are Subject to China Sock Quota if Classified in 3Tariff Numbers
According to CBP, China origin babies' socks and booties classified under HTS numbers 6111.20.6050, 6111.30.5050, and 6111.90.5050 are subject to the agreed China sock quota. CBP states that the classification of these items has raised issues with respect to parts of certain sets.
(CBP sources caution that due to the complications involved in classifying sets, an importer should consider obtaining a binding ruling for his/her specific circumstances. In addition, subscribers should note that the information in CBP's FAQ and this summary are not a substitute for obtaining a binding ruling.)
Babies' Socks and Booties are Classified in These 3 Tariff Numbers (and Subject to China Sock Quota) if Imported Separately or as Part of a GRI 3 Set
Babies' socks and booties imported separately. CBP states that China origin babies' socks and booties imported separately are expected to be classified under HTS 6111.20.6050, 6111.30.5050 or 6111.90.5050 and subject to the agreed China quota for 332/432/632-T (plus baby socks and booties) and its sublimit 332/432/632-B (plus baby socks and booties).
CBP notes that babies' booties with applied soles, e.g. with soles glued, sewn or otherwise affixed or applied to the upper, are classified in HTS 6405.20.90, and as a result are not subject to the China sock quota.
Babies' socks and booties that are part of a GRI 3 set. CBP states that babies' socks and booties classified as part of a set under GRI 3 (goods prima facie classifiable under two or more headings) are required to be identified separately on the CF-7501 under the HTS number that would have applied had the article(s) been imported separately.
(The sock and/or bootie components would require a "v" prefix to the HTS number identifying the item.)
As a result, if China origin babies' socks or booties are part of a GRI 3 set, and are identified separately under HTS 6111.20.6050, 6111.30.5050 or 6111.90.5050, they are subject to the China sock quota.
For example, CBP states that if a babies' sweater and booties combination is classified as a GRI 3 set requiring the booties to be identified with a "v" prefix, the booties would be subject to the China sock quota as they are required to be identified as if they had been imported separately.
Babies' Socks/Booties Classified as Part of a Failed Babies' Set Are Quota-Free
According to the FAQ, clothing accessories, such as booties, gloves, mittens and scarves, disqualify what might be an otherwise qualifying set1 [of two or more garments and/or headwear] from classification as such under its own distinct tariff number.
As a result, babies' socks and booties cannot be correctly classified under a babies' set tariff number.
However, failed babies' sets, e.g, an otherwise qualifying babies' set that has clothing accessories such as socks or booties, are also specifically provided for under their own distinct tariff numbers as "imported as parts of [babies'] sets."
Therefore, any booties or socks classified as part of a failed babies' set are quota-free (as they are not classified under the three tariff numbers listed above).
Category Designation and Unit of Measure
CBP states that babies' socks and booties in HTS numbers 6111.20.6050, 6111.30.5050 and 6111.90.5050 will be counted in dozen pairs for quota and Electronic Visa Information System (ELVIS) purposes. Although CBP states it only requires a category 239 ELVIS transmission, CBP notes that China may in fact transmit the designation 239/332/432/632T or B, as applicable, which will also be accepted. (See ITT's Online Archives or 01/31/06 news, 06013105, for earlier BP summary on designation 239/332/432/632T or B.)
(See the FAQ for various examples, of failed "babies' sets". Also, CBP's Informed Compliance Publication entitled "Classification of Children's Apparel" contains additional details on babies' sets, etc.)
1 According to HTS Chapters 61 and 62, Additional U.S. Note 1, for purposes of HTS 6111 and 6209 at the eight digit level, the term "set" means two or more different garments of headings 6111, 6209, or 6505 (headwear), imported together, of corresponding sizes and intended to be worn together by the same person.
(See ITT's Online Archives or 02/10/06, 02/13/06, 02/16/06, and 02/21/06 news, 06021000, 06021305, 06021615, and 06022100, for Parts I-IV.)
CBP FAQ on U.S.-China MOU (most recent version dated 02/16/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/china_mou/china_mou_faq.ctt/china_mou_faq.doc
BP Note
Note that two questions on babies' socks and booties were added by CBP in its February 13, 2006 version of the FAQ, that were not in its initial February 7, 2005 version of the FAQ.