CSMS Message: 01-000427

TO: ALL ABI BROKERS.

FROM: YIN-YEE CHAN

SUBJECT: WATER RESISTANT WEARING APPAREL INTERVENTION

DATE: 04/04/2001

THE NEW YORK STRATEGIC TRADE CENTER (NYSTC) HAS INITIATED AN
INTERVENTION ON THE CLASSIFICATION OF WATER RESISTANT WEARING APPAREL
FOR THE TEXTILE AND WEARING APPAREL PRIMARY FOCUS INDUSTRY (PFI).
ORDER TO ENSURE THAT IMPORTATIONS OF WATER-RESISTANT WEARING APPAREL
ARE PROPERLY CLASSIFIED, THIS INTERVENTION IS COMPOSED OF TWO STAGES:
INFORMED COMPLIANCE MAILING AND MEASUREMENT.

THE TOP IMPORTERS OF HTS 6201.92.1500, 6201.93.3000, 6202.93.4500,
6203.43.3500, AND 6204.63.3000, AND NON-COMPLIANT IMPORTERS OF THE
SUBHEADINGS FROM THE PAST FISCAL YEAR WILL RECEIVE AN INFORMED
COMPLIANCE LETTER. IMPORTERS OF THESE SUBHEADINGS WHO ARE PART OF
NATIONAL/PORT ACCOUNT PROGRAM (NAM/PAM) ARE INCLUDED IN THE INFORMED
COMPLIANCE MAILING.

THE LETTER DISCUSSES PATTERNS OF NON-COMPLIANT TRANSACTIONS BEING
FOUND NATIONWIDE, ADDRESSES CLASSIFICATION ISSUES WITH AN EMPHASIS ON
LABORATORY TESTING REQUIREMENTS FOR WATER RESISTANCE AS DEFINED IN
HTSUS, AND URGES THE IMPORTERS TO ENSURE THAT THEIR INDIVIDUAL
TRANSACTIONS ARE FREE FROM ERROR. THE LETTER ALSO ADVISES IMPORTERS
TO DISCUSS THE LETTER CONTENT WITH THEIR BROKERS/FILERS AS WELL AS
FOREIGN SUPPLIERS, TO FURTHER INFORM ALL INVOLVED PARTIES.

A COMPLIANCE MEASUREMENT REVIEW OF THE TARGETED MERCHANDISE WILL BE
CONDUCTED FROM JULY THROUGH SEPTEMBER 2001, OR 90 DAYS AFTER THE
INFORMED COMPLIANCE MAILING, IN ORDER TO ALLOW SUFFICIENT LEAD TIME
FOR IMPORTERS TO ACT ON THE INFORMATION PROVIDED IN THE LETTER.
ADDITIONAL INFORMATION WILL BE FORTHCOMING.

THE FOLLOWING IS THE INFORMED COMPLIANCE LETTER:

DEAR SIR OR MADAM:

THE PURPOSE OF THIS LETTER IS TO CALL YOUR ATTENTION TO A PATTERN
OF DISCREPANCIES AND NON-COMPLIANCE INVOLVING THE CLASSIFICATION OF
WATER-RESISTANT GARMENTS WITHIN THE TEXTILE AND WEARING APPAREL
PRIMARY FOCUS INDUSTRY (PFI). THIS MERCHANDISE IS CLASSIFIED UNDER
SUBHEADINGS 6201.92.1500 (ANORAKS), 6201.93.3000 (ANORAKS),
6202.93.4500 (ANORAKS), 6203.43.3500 (TROUSERS) AND 6204.63.3000
(TROUSERS) OF THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
(2000 HTSUS). THESE DISCREPANCIES HAVE LED TO COMPLIANCE RATES OF
76-86% FOR THE PAST FOUR YEARS (BASED ON U.S. CUSTOMS LABORATORY
FINDINGS) WHICH IS BELOW THE 95% COMPLIANCE GOAL ESTABLISHED BY THE
U.S. CUSTOMS SERVICE. THIS LETTER IS BEING SENT TO ALL HIGH VOLUME
IMPORTERS, IMPORTERS WITH PAST VIOLATIONS, AND NEW IMPORTERS FILING
ENTRIES UNDER THE ABOVE FIVE SUBHEADINGS. THE PURPOSE OF THIS LETTER
IS TO INFORM YOU OF OUR CONCERNS AND THE CURRENT TREND OF
DISCREPANCIES. IN ADDITION, WE ALSO WANT TO REMIND YOU THAT YOUR FIRM
HAS THE RESPONSIBILITY UNDER THE CUSTOMS LAWS OF THE UNITED STATES TO
PRESENT YOUR ENTRIES CORRECTLY, AND IN THE PROPER FORMAT. IN ORDER TO
CLARIFY ANY MISUNDERSTANDINGS THAT MAY EXIST IN THE TRADE REGARDING
THE DEFINITION OF "WATER-RESISTANT," THE FOLLOWING IS AN OVERVIEW OF
THE RELEVANT ISSUES INVOLVED.

U.S. CUSTOMS' RECORDS FOR FY 2000 IDENTIFY YOUR FIRM AS AN IMPORTER OF
RECORD FOR APPAREL UNDER THE ABOVE FIVE HTSUS SUBHEADINGS. UNDER 19
U.S.C. 1484, IT IS THE RESPONSIBILITY OF THE IMPORTER OF RECORD TO
EXERCISE "REASONABLE CARE" AND PRESENT THEIR CUSTOMS ENTRIES WITH
PROPER DECLARED VALUE, CLASSIFICATION AND RATE OF DUTY AND TAKE ALL
STEPS NECESSARY TO ENSURE COMPLIANCE. IMPORTERS SHOULD NOT RELY
EXCLUSIVELY ON THEIR CUSTOMS BROKER TO PROCESS THEIR IMPORTS.
ACCORDING TO THE "REASONABLE CARE CHECKLIST" PUBLISHED IN THE FEDERAL
REGISTER (VOL. 62 PAGE 48340, DATED SEPTEMBER 15, 1997), IF THE ENTRY
DOCUMENTATION IS PREPARED OUTSIDE OF YOUR ORGANIZATION, YOUR COMPANY
SHOULD HAVE A RELIABLE SYSTEM IN PLACE WHICH ENSURES THAT:
* COPIES OF INFORMATION SUBMITTED TO U.S. CUSTOMS ARE RECEIVED BY
OFFICE;
* INFORMATION SUBMITTED TO U.S. CUSTOMS IS REVIEWED FOR ACCURACY;
* CUSTOMS IS TIMELY APPRISED OF ANY NEEDED CORRECTIONS.

NON-COMPLIANCE OFTEN RESULTS WHEN AN IMPORTER FAILS TO HAVE A
RESPONSIBLE AND KNOWLEDGEABLE INDIVIDUAL WITHIN THE IMPORTER'S
ORGANIZATION REVIEW THE CUSTOMS DOCUMENTATION PREPARED ON BEHALF OF
THE IMPORTER BY THEIR CUSTOMS BROKER.

ADDITIONAL U.S. NOTE 2, CHAPTER 62, HARMONIZED TARIFF SCHEDULE OF
UNITED STATES ANNOTATED (HTSUSA), GOVERNS THE CLASSIFICATION OF
GARMENTS UNDER SUBHEADINGS IN CHAPTER 62 WHICH SPECIFICALLY PROVIDES
FOR "WATER RESISTANT" GARMENTS. THAT NOTE PROVIDES, IN PERTINENT
PART:

(T)HE TERM "WATER RESISTANT" MEANS THAT GARMENTS
CLASSIFIABLE IN THOSE SUBHEADINGS MUST HAVE A WATER
RESISTANCE (SEE ASTM DESIGNATIONS D 3600-81 AND D 3781-79)
SUCH THAT, UNDER A HEAD PRESSURE OF 600 MILLIMETERS, NOT
MORE THAN 1.0 GRAM OF WATER PENETRATES AFTER TWO MINUTES
WHEN TESTED IN ACCORDANCE WITH AATCC TEST METHOD 35-1985.
THIS WATER RESISTANCE MUST BE THE RESULT OF A RUBBER OR
PLASTICS APPLICATION TO THE OUTER SHELL, LINING OR INNER
LINING.

THE TEST REQUIRED BY NOTE 2 IS MADE ON AN EIGHT INCH (PER SIDE) SQUARE
OF FABRIC. THE FABRIC WHICH CONTAINS A PLASTICS APPLICATION IS FIRST
TESTED IN ITS CONDITION AS FOUND IN THE GARMENT (INCLUDING SEAMS,
MINUS ANY PADDING IF THE FABRIC IS QUILTED). SEAMS (AND QUILTING
STITCHING) ARE NOT SUBJECT TO THE TEST REQUIRED BY NOTE 2 UNLESS THE
GARMENT IN QUESTION CONTAINS A HIGHLY UNUSUAL AMOUNT OF SEAMS (OR
QUILTING STITCHING). IF IT IS DETERMINED BY THE RESPONSIBLE CUSTOMS
IMPORT SPECIALIST THAT THERE IS A QUESTION WHETHER A PARTICULAR
GARMENT QUALIFIES UNDER NOTE 2 FOR CLASSIFICATION AS A "WATER
RESISTANT" GARMENT, AND AN EIGHT INCH SQUARE PIECE OF FABRIC WITHOUT
SEAMS (OR QUILTING STITCHING) CANNOT BE OBTAINED FROM THE GARMENT,
THEN CUSTOMS WILL ACCEPT AND TEST A SEPARATE SWATCH OF IDENTICAL
FABRIC (SUBJECT TO VERIFICATION BY THE CUSTOMS LABORATORIES).

A "SWATCH OF IDENTICAL FABRIC" APPLIES PRIMARILY TO GARMENTS WHICH
UNDER NORMAL CONDITIONS, DO NOT CONTAIN AN ADEQUATE AMOUNT OF UNSEWN
(OR UNQUILTED) FABRIC TO CONDUCT THE TESTS REQUIRED BY ADDITIONAL
NOTE 2. THESE GARMENTS ARE, IN PARTICULAR, CHILDREN'S APPAREL, AND
OTHER APPAREL WHICH, DUE TO SIZE, DO NOT CONTAIN A SUFFICIENT AREA OF
FABRIC TO BE TESTED. THE PHRASE "A HIGHLY UNUSUAL AMOUNT OF SEAMS"
REFERS TO MULTIFABRIC (USUALLY OF DIFFERENT COLORS) GARMENTS. INSTEAD
OF JACKETS HAVING THE NORMAL FIVE TO SEVEN MAIN OUTER SHELL COMPONENTS
(INCLUDING SLEEVES), THEY MAY HAVE 8 TO 12 OR MORE. IN THESE
MULTIFABRIC OUTER SHELLS, MANY OF THE FABRICS ARE TOO SMALL TO TEST
EVEN ON THE LARGER ADULT SIZES.

IF YOU ARE FILING YOUR ENTRIES CORRECTLY, AND HAVE THE IMPORTED
MERCHANDISE PROPERLY CLASSIFIED AT THE TIME OF IMPORTATION, THEN NO
FURTHER ACTION IS REQUIRED. HOWEVER, IF YOUR COMPANY'S INDIVIDUAL
IMPORT TRANSACTIONS ARE NOT FREE FROM THESE ERRORS, AND YOU DO NOT
TAKE IMMEDIATE CORRECTIVE ACTION DESIGNED TO FOSTER COMPLIANCE, YOUR
COMPANY COULD FIND ITSELF SUBJECT TO INCREASED ENTRY REVIEWS AND/OR
CARGO EXAMINATIONS, PENALTIES, OR OTHER REMEDIAL ACTION.

WE ARE ALSO REQUESTING THAT YOU ADVISE EACH OF THE CUSTOMS BROKERS
FILERS ACTING ON YOUR BEHALF, AS WELL AS THE FOREIGN SUPPLIERS FROM
WHOM YOUR COMPANY SOURCES THESE ITEMS, OF THE ABOVE REQUIREMENTS. WE
SUGGEST YOU REQUIRE PROOF OF WATER-RESISTANT COMPLIANCE, SUCH AS A
CERTIFICATE OF ANALYSIS, FROM THE FOREIGN SUPPLIER. THE TEST RESULTS
MAY BE SUBJECT TO VERIFICATION BY THE CUSTOMS LABORATORIES. THE
INVOICE SHOULD EXPLICITLY STATE THAT THE GARMENT HAS BEEN TREATED
COATED) WITH AN APPLICATION OF RUBBER (OR PLASTICS) ON THE SHELL
(AND/OR LINING). YOUR FIRM MAY FIND IT ADVANTAGEOUS TO MEET WITH
BROKER OR FILER AND DISCUSS THE NON-COMPLIANCE ISSUES IDENTIFIED IN
THIS LETTER TO ENSURE THAT YOUR INDIVIDUAL IMPORT TRANSACTIONS ARE
FREE FROM THESE TYPES OF ERRORS.

ADDITIONAL INFORMED COMPLIANCE INFORMATION ON THE TEXTILES AND WEARING
APPAREL PFI, IS AVAILABLE VIA THE CUSTOMS INTERNET WEBSITE
(WWW.CUSTOMS.GOV).

FOR FURTHER INFORMATION CONCERNING THIS MATTER, PLEASE CONTACT
INTERNATIONAL TRADE SPECIALIST YIN-YEE CHAN AT THE NEW YORK STRATEGIC
TRADE CENTER AT (212) 637-7736, THE IMPORT SPECIALISTS AT YOUR PORT
ENTRY, OR YOUR NATIONAL ACCOUNT MANAGER/PORT ACCOUNT TEAM (IF
APPLICABLE).

SINCERELY,

MARJORIE DELOACH
ACTING DIRECTOR
NEW YORK STRATEGIC TRADE CENTER