HS 988042 Classified in Chapter 42

HS code 988042 is a special or statistical code, not a product-specific Harmonized System code. It typically indicates items classified under Chapter 42 of the Harmonized System, which covers articles of leather; saddlery and harness; travel goods, handbags and similar containers; and articles of animal gut (other than silk-worm gut). Duty rates for products falling under Chapter 42 vary significantly by importing country and the specific product. For example, in the United States, the Most Favored Nation (MFN) duty rate for many leather handbags (often falling under Chapter 42) can range from 0% to 17% ad valorem, depending on the specific material and construction. In the European Union, rates under the Combined Nomenclature (CN) for similar items might range from 0% to 4.5% ad valorem, with potential for additional duties or quotas. It is crucial to consult the specific tariff schedule of the destination country for precise rates. The US International Trade Commission (USITC) provides U.S. tariff data, while the EU's TARIC database and the UK's Trade Tariff offer comprehensive information for those regions.

HS code 988042 signifies that the goods are classified within Chapter 42 of the Harmonized System. This chapter broadly covers: 1. Articles of leather, composition leather, or sheeting of plastic or textile materials (e.g., saddlery, harness, travel bags, handbags, wallets, cases for tools, musical instruments, firearms, etc.). 2. Articles of animal gut (other than silk-worm gut). The primary classification criteria revolve around the material of manufacture (leather, composition leather, plastic sheeting, textile materials) and the function or type of the article. For instance, a handbag made primarily of leather will be classified under Chapter 42, whereas a handbag made primarily of woven synthetic fabric might fall under Chapter 63. Importers must ensure the product's primary material and intended use align with the definitions within Chapter 42 to justify this classification.

When importing goods classified under Chapter 42, standard international trade documentation is required, along with any specific requirements related to the product's material or origin. Essential documents typically include a commercial invoice detailing the description, quantity, value, and country of origin of the goods; a packing list; and a bill of lading or air waybill. Depending on the importing country and the specific product, additional documentation may be necessary. This could include certificates of origin to claim preferential duty rates, import licenses, or specific health and safety certificates if the materials used are subject to such regulations (e.g., certain dyes or treatments). For leather goods, proof of compliance with regulations concerning endangered species (CITES) might be required if exotic leathers are used. Customs brokers play a vital role in ensuring all necessary documentation is accurate and complete.

Import duties for goods classified under Chapter 42 are typically calculated based on either an ad valorem rate (a percentage of the declared value of the goods) or a specific rate (a fixed amount per unit of quantity, such as per piece or per kilogram), or a combination of both. The method depends on the specific HS code assigned to the product within Chapter 42 and the importing country's tariff schedule.

For example, let's assume a shipment of 100 leather wallets is imported into the United States. The applicable MFN duty rate for these wallets is found to be 8% ad valorem. The declared customs value of the shipment is $5,000 USD.

Calculation: Duty Amount = Ad Valorem Rate × Declared Value Duty Amount = 8% × $5,000 USD Duty Amount = 0.08 × $5,000 USD Duty Amount = $400 USD

In this scenario, the total import duty would be $400 USD. If there were also a specific duty component, it would be calculated separately and added to the ad valorem duty.

Yes, major trade agreements can significantly impact duty rates for products classified under Chapter 42. For instance, under the United States-Mexico-Canada Agreement (USMCA), many goods originating from Canada or Mexico that fall within Chapter 42 may benefit from duty-free treatment or reduced rates, provided they meet the rules of origin specified in the agreement. Similarly, the European Union has numerous Free Trade Agreements (FTAs) with countries worldwide, which can lead to preferential or zero duties on goods from Chapter 42 originating in partner countries, subject to origin rules. The UK also has its own set of FTAs post-Brexit. To benefit from these preferential rates, importers and customs brokers must obtain and present a valid Certificate of Origin or other acceptable proof of origin as stipulated by the specific trade agreement. Consulting the relevant trade agreement text and the destination country's customs authority is essential to determine eligibility and requirements.