HS 420221 Handbags, whether or not with shoulder strap, including those without handle

Import duty rates for HS code 420221, which covers handbags whether or not with shoulder strap, including those without a handle, vary significantly by importing country and the origin of the goods. For example, under the United States Harmonized Tariff Schedule (USHTS), the Most Favored Nation (MFN) rate is typically 10%. However, preferential rates under Free Trade Agreements (FTAs) can be lower or even free. For instance, goods originating from Australia (AU) or South Korea (KR) may benefit from preferential duty rates. The EU's TARIC system and the UK's Trade Tariff also list specific rates, which can range from 2.00% to 35% depending on the material and origin. Always consult the specific tariff schedule of the importing country for the definitive rate.

The duty is typically calculated on an ad valorem basis, meaning it's a percentage of the declared value of the goods. For example, if a handbag valued at $100 is imported into the US and subject to the MFN duty rate of 10%, the import duty would be $100 (value) * 10% (duty rate) = $10. Some countries may also apply specific duties based on weight or unit, but for 420221, ad valorem is most common. It is crucial to use the correct customs value, which usually includes the cost of the goods, insurance, and freight (CIF) up to the point of importation.

HS code 420221 specifically applies to handbags. Key classification criteria include the item's primary function as a container for personal effects, its construction (e.g., made of leather, plastics, textiles), and its design features such as the presence or absence of a shoulder strap or handle. The World Customs Organization (WCO) and national tariff authorities provide explanatory notes that clarify these criteria. For instance, items primarily designed for other purposes (like travel bags or backpacks) would be classified elsewhere. The material of the outer surface is also a critical factor in determining the final classification and applicable duty rate.

Several trade agreements can provide preferential duty rates for goods classified under HS 420221. For example, the United States has FTAs with countries like South Korea (US-Korea Free Trade Agreement) and Australia (though currently not a comprehensive FTA covering all goods, specific provisions may apply), which can reduce or eliminate duties on handbags originating from these nations. The EU has numerous Association Agreements and Economic Partnership Agreements with countries worldwide, and the UK, post-Brexit, maintains its own set of preferential trade arrangements. Importers must verify the Rules of Origin under the relevant trade agreement to confirm eligibility for preferential treatment and ensure compliance.

Standard import documentation for HS code 420221 includes a commercial invoice detailing the value, quantity, and description of the handbags; a packing list; and a bill of lading or air waybill. Depending on the country of origin and destination, a certificate of origin may be required to claim preferential duty rates under trade agreements. For certain materials, such as leather, specific declarations or certifications regarding sourcing or treatment might be necessary to comply with environmental or animal welfare regulations. Customs brokers play a vital role in ensuring all required documentation is accurate and complete to facilitate smooth customs clearance.