Importing silk textiles into the United States can be a complex process, as many laws and regulations apply to these products
The textile industry is considered highly trade-sensitive, and as a result, is highly regulated by the U.S. government.
One of the most crucial tasks when importing silk textiles is to determine their classification number and duty rate. These are outlined in the U.S. Trade Commission's Harmonized Tariff Schedule (HTS).
The HTS is a comprehensive list of duties and taxes applied to imported items, and it is used to classify the correct HTS code for each type of product. The HTS code for silk textiles will depend on the specific type and composition of the product, and it is important to ensure that you classify the products accurately to avoid any issues with customs.
Silk textiles can be classified in many different ways, depending on the material and composition of the product. For example, silk garments can be classified as raw silk, silk waste, silk yarn, or yarn or wool that is spun from silk waste. The classification of silk textiles can also be affected by factors such as the percentage of the textile that is composed of silk and the size of the silk garment itself.
It is common for companies to hire import specialists to assist them in determining the correct classification number and duty rate for silk textiles, as the process can be complex and confusing. It is important to ensure that you classify your silk textiles accurately, as this will determine the number of duties and taxes that you will need to pay on the imported products.
Understanding the Classification Process
The Harmonized Tariff Schedule (HTS) is a comprehensive list of duties and taxes applied to imported items in the United States. It is used to classify the correct HTS code for each type of product, and it is important to ensure that you classify your products accurately to avoid any issues with customs.
The HTS provides a database (http://hts.usitc.gov/) that extensively outlines the classifications for each type of product, along with its duty rates and special duty exemptions under trade agreements. For example, Chapter 50 of the HTS outlines the different classifications of silk, including raw silk, silk waste, silk yarn, and woven fabrics of silk or silk waste.
The HTS code for silk products is determined by the specific type and composition of the product. For example, the first four digits of the HTS code for the major categories of silk products are:
- 5001 — Silkworm cocoons suitable for reeling
- 5002 — Raw silk (not thrown)
- 5003 — Silk waste (including cocoons unsuitable for reeling, yarn waste, and garnetted stock)
- 5004 — Silk yarn (other than yarn spun from silk waste) not put up for retail sale
- 5005 — Yarn spun from silk waste, not put up for retail sale
- 5006 — Silk yarn and yarn spun from silk waste, put up for retail sale; silkworm gut
- 5007 — Woven fabrics of silk or silk waste
Products consisting of silk are classified differently, depending on the type of apparel, footwear, etc. It is important to refer to the HTS database to identify the correct HTS code for your specific product.
Several regulations apply to the importation of silk textiles into the United States. The Committee for Implementation of Textile Agreements (CITA) regulates a majority of textile imports under Section 204 of the Agricultural Adjustment Act. When importing silk, it is important to comply with quota restraints and visa requirements, submit a U.S. Customs Country-of-Origin Declaration, and comply with entry invoice and labeling requirements.
Quota restraints and visa requirements for silk textiles are outlined in the Multi-Fiber Arrangement provisions of Section 204 of the Agricultural Adjustment Act. Bilateral agreements may impose restrictions or quotas on products that mix silk and other fibers. It is important to contact the International Trade Administration's Office of Textiles and Apparel to ensure that you are aware of the current quotas, as they can change regularly.
Silk textiles must also be labeled with information specifying the material and content (fiber content and fiber name), the percentages in weight for all the component fibers, and instructions for care.
The label must also specify the country of origin, and if that information cannot be put on the label, it must be placed in a location where the ultimate purchaser can see it. Silk scarves, mufflers, shawls, etc. are considered accessory articles and are exempt from the labeling requirements under 19 U.S.C. 1304 a) and b).
In addition to the labeling requirements, silk textile products imported into the United States must also contain certain information on the invoice as required by the Textile Fiber Products Identification Act (TFPIA).
This information includes the generic names and percentages, by weight, of the product's fibers that constitute more than 5% of the product, the name of the manufacturer or the Federal Trade Commission name or registered identification number of the entity importing the textile fiber product, and the name of the country where the product was processed.
Finally, silk textile products for consumer use must meet the flammability standards adopted and enforced by the Consumer Product Safety Commission (CPSC) under the Flammable Fabrics Act (FFA). If a product fails to meet the flammability standards, it may be possible to alter the product to meet the standards through further processing, as outlined in FFA Section 11c.
Many special trade agreements in place provide exemptions to duty rates for countries with preferential or free trade agreements with the United States. These exemptions are outlined in the Harmonized Tariff Schedule (HTS) database, along with the typical duty rates and fees.
It is important to follow the regulations regarding the rule of origin and tariff classifications when importing silk textiles into the United States and to provide valid documents for the import declarations filed for textile shipments or deliveries. The U.S. Customs and Border Protection (CBP) has strict standards for import rules and regulations to minimize tactics such as under-invoicing.
Due to the high level of scrutiny involved in importing silk textiles, many companies hire a local point of contact within the United States to serve as a liaison between the CBP and the overseas importer. This can help to ensure that the import process goes smoothly and that all applicable regulations are followed.