HS 580421 Mechanically made lace

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What products does HS 580421 cover?

This subheading covers mechanically made lace, specifically that produced by machines such as bobbin-lace machines or needle-lace machines. According to the World Customs Organization's Harmonized System Nomenclature, this category encompasses lace fabrics and articles thereof, excluding hand-made lace. The USITC Harmonized Tariff Schedule and the EU TARIC system define this as lace manufactured through mechanical processes, distinguishing it from hand-crafted items. This includes lace in the piece, in strips, or in motifs.

What falls outside HS 580421?

The following products are excluded from HS 580421: hand-made lace, which is classified under HS 580410. Additionally, knitted or crocheted fabrics of lace-like appearance, even if produced on specialized machines, are typically classified under Chapter 60. Embroidered fabrics that are not of lace construction, or where the embroidery is the primary characteristic rather than the lace structure, are also excluded and would fall under Chapter 5808 or Chapter 6304 depending on their nature.

What are common classification mistakes for HS 580421?

A common error is misclassifying machine-made lace that has undergone significant embroidery. If the embroidery becomes the dominant feature, the item may be classified under HS 5808 (embroidery in the piece, in strips or in motifs) or HS 6304 (other furnishing articles). Furthermore, confusing machine-made lace with knitted or crocheted fabrics of a lace-like appearance, which fall under Chapter 60, is another frequent mistake, often requiring careful examination of the manufacturing process as per General Rule of Interpretation 1.

How should importers classify products under HS 580421?

The correct procedure for classifying products under HS 580421 involves a detailed examination of the manufacturing method. Importers and customs brokers must ascertain whether the lace was produced by mechanical means, such as bobbin-lace or needle-lace machines, as opposed to being hand-made. Reviewing product specifications, manufacturing origin information, and consulting the WCO HS Explanatory Notes or national tariff schedules like the USITC HTS or EU TARIC is crucial for accurate classification.

How is the duty calculated for products under HS 580421?

A shipment of 100 kilograms of polyester mechanically made lace fabric, declared at a customs value of $5,000 USD, would attract a US duty of $1,000.00. This is calculated using the Most Favored Nation (MFN) duty rate of 20% ad valorem, as published in the USITC Harmonized Tariff Schedule (HTS) for subheading 5804.21.10. The calculation is: 20% × $5,000 USD = $1,000.00.

Which trade agreements reduce duties for HS 580421?

Several free trade agreements may reduce the applicable duty rate for HS 580421, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating goods from Canada or Mexico can enter the US duty-free. To claim this preference, a self-certified origin statement is required. Additionally, the Generalized System of Preferences (GSP) may offer reduced or free entry for originating goods from certain developing countries, requiring a GSP Form A. The EU also has preferential agreements with various countries, often requiring an EUR.1 movement certificate.

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