President Signs 1205 Proclamation

The President signed the 1205 Proclamation October 31, 2011. Proclamation 8342 was published in the Federal Register November 3, 2011, meaning that the changes impacting the use of the fabric outsole are effective as to footwear entered, or withdrawn, for consumption on and after December 3, 2011.  We now understand that the International Trade Commission will not post a new version of Chapter 64 on its until on or about the effective date.

The changes in Chapter 64 require revisions to the so-called Interim Footwear Invoice (IFI).

FDRA has written to Customs and Border Protection ("CBP") for clarification of how the changes will impact completion of the ISF and how the agency will deal with the inevitable errors caused by the changes.   CBP has started issuing this letter and returning samples in response to ruling requests submitted seeking CBP advice on whether or not the underlying footwear meets the Note 5 durability standard. More specifically, CBP states, "at this time, CBP is considering the interpretation of the note and the best method of communicating its proposed interpretation of the note. Such a determination will be made in the near future." 

At present, certain footwear classified in HTS subheading 6405.20.30 is eligible for reduced duty treatment under MTB subheadings 9902.13.91 and 9902.13.92.  The changes created by the 1205 proceeding do not include changes in the MTB subheadings, meaning that reduced duty treatment will not be available as of December 3, 2011 unless the footwear qualifies for classification in subheading 6405.20.30 after  new Additional U.S. Note 5 is applied.

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