HS 540831 Other woven fabrics

The Most Favored Nation (MFN) duty rate for HS code 5408.31 is typically 8.00% ad valorem. However, preferential rates under various Free Trade Agreements (FTAs) can significantly reduce or eliminate these duties. For example, goods originating from countries like Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), Israel (IL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), Singapore (SG), and others may enter duty-free. It is crucial to consult the specific tariff schedule for the importing country and verify the origin of the goods to determine the applicable duty rate. Always refer to official sources such as the US International Trade Commission (USITC) for US rates, the EU's TARIC database for European Union rates, or the UK's Trade Tariff for UK rates.

When a duty rate is expressed as a combination of a specific rate per unit and an ad valorem rate (e.g., 48.5¢/kg + 68.5% ad valorem), the total duty is the sum of both components. For instance, if a shipment of 100 kilograms of fabric under HS 5408.31 has a declared value of $500 USD, the duty calculation would be: (100 kg * $0.485/kg) + (68.5% of $500 USD). This equals $48.50 + $342.50, resulting in a total duty of $391.00. Importers and customs brokers must accurately determine the net weight of the goods and their customs value to apply these combined rates correctly. This type of calculation is common for certain textile categories and requires careful attention to both weight and value.

HS code 5408.31 falls under Chapter 54, which covers 'Man-made filaments; strip and the like of man-made textile materials.' Specifically, 5408 covers 'Woven fabrics of artificial filament yarn.' The 'Other' designation in 5408.31 means it applies to woven fabrics of artificial filament yarn that are not specifically classified under preceding subheadings (e.g., those of artificial staple fibers or specific types of artificial filament fabrics). Key classification criteria include: 1. Material: The fabric must be woven and primarily composed of artificial filament yarn (e.g., rayon, viscose, modal, lyocell, acetate). 2. Construction: It must be a woven fabric, not knitted, crocheted, or felted. 3. Exclusion: It should not meet the criteria for more specific subheadings within 5408 or other chapters. Verification often involves checking the fabric's composition, weave type (e.g., plain weave, twill, satin), and the nature of the filament yarn used. Consulting the Explanatory Notes to the Harmonized System is essential for detailed guidance.

When importing woven fabrics of artificial filament yarn under HS code 5408.31, standard import documentation is required. This typically includes: 1. Commercial Invoice: Detailing the seller, buyer, description of goods, quantity, unit price, total value, and currency. 2. Packing List: Providing specifics on the packaging, weight, and dimensions of the shipment. 3. Bill of Lading (Ocean) or Air Waybill (Air): Serving as the contract of carriage and receipt of goods. 4. Certificate of Origin (COO): Crucial for claiming preferential duty rates under FTAs. This document must be properly completed by the exporter and, if required, certified by an authorized body in the country of origin. 5. Textile Declaration: Some countries may require specific declarations regarding the origin and composition of textile goods. 6. Import License/Permit: Depending on the importing country's regulations for textile products. Customs brokers should ensure all documentation is accurate, complete, and aligns with the declared HS code and origin to avoid delays or penalties.

Several trade agreements can offer preferential duty rates for HS code 5408.31. Examples include the United States-Mexico-Canada Agreement (USMCA), agreements with countries like South Korea (KORUS FTA), Australia, Chile, and numerous others listed in the first FAQ. Eligibility is typically determined by the 'Rules of Origin' stipulated within each specific trade agreement. To verify eligibility, importers and customs brokers must: 1. Obtain a Certificate of Origin (COO): This document, issued by the exporter and often certified by a Chamber of Commerce or government agency in the exporting country, attests that the goods meet the origin requirements of the FTA. 2. Review the FTA's Rules of Origin: These rules specify the criteria goods must meet to be considered originating, which often involves a change in tariff classification (CTC), a regional value content (RVC) requirement, or a combination thereof. 3. Consult Official Tariff Databases: The importing country's customs authority (e.g., USITC, EU TARIC, UK Trade Tariff) provides detailed information on applicable FTAs and their rules of origin. Accurate completion and submission of the COO are paramount for claiming preferential treatment.