HS 410692 In the dry state (crust)

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What products does HS 410692 cover?

This subheading covers hides and skins of sheep or lambs, in the dry state (crust), not further prepared than tanned. According to the World Customs Organization's Harmonized System Nomenclature, "crust" refers to leather that has been tanned but not yet finished, meaning it has not undergone processes like dyeing, buffing, or plating. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm this scope, focusing on the state of preparation after tanning but before final finishing treatments.

What falls outside HS 410692?

The following products are excluded from HS 410692: hides and skins that are not in the dry state, such as wet-salted or pickled hides, and those that have undergone further finishing processes beyond crusting, such as dyed or embossed leathers. Also excluded are hides and skins of other animals not specified in heading 4106, and those that have been split, shaved, or otherwise mechanically altered after tanning but before the crust stage. For example, fully finished sheepskin rugs would be classified elsewhere.

What are common classification mistakes for HS 410692?

A common error is misinterpreting the "dry state (crust)" condition. Importers may incorrectly classify wet-tanned hides or fully finished leathers under this subheading. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the headings and any relative section or chapter notes. If a product has undergone further processing, such as dyeing or buffing, it would likely fall under a more specific subheading within 4114, rather than remaining as crust leather under 410692.

How should importers classify products under HS 410692?

The correct procedure for classifying products under HS 410692 involves a thorough examination of the physical state of the sheep or lamb hides. Importers and customs brokers must verify that the hides have been tanned and are in a dry, crust condition, meaning they have not undergone any further finishing operations like dyeing, buffing, or surface coating. Reviewing the supplier's technical specifications and product descriptions is crucial to ensure accurate classification according to the WCO HS nomenclature.

How is the duty calculated for products under HS 410692?

A shipment of 100 kilograms of sheep crust leather, declared at a customs value of $1,500 USD, would attract a US duty of $150.00. This is calculated using the Most Favored Nation (MFN) duty rate of 10% ad valorem, applied to the declared customs value ($1,500 USD × 10% = $150.00). This calculation is based on the duty rate published in the USITC Harmonized Tariff Schedule for subheading 4106.92.0000.

Which trade agreements reduce duties for HS 410692?

Several free trade agreements may reduce the applicable duty rate for HS 410692. For instance, under the United States-Mexico-Canada Agreement (USMCA), originating sheep crust leather from Canada or Mexico can enter the US duty-free. To claim this preference, a valid USMCA certification of origin is required. Similarly, preferential rates may apply under other agreements, such as the Generalized System of Preferences (GSP) for certain developing countries, often requiring a GSP Form A.

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