Analysis
HTS 6404.20.40 covers valued over $2.50/pair under heading 6404 (footwear with outer soles of rubber, plastics, leather or composition leather and uppers…). US Customs collects import statistics for it under 3 ten-digit suffixes, reported in pairs.
Rates on the nearby lines range from 15% to 37.5%. The costliest confusion would be with 6404.20.60 (footwear with outer soles of leather or composition leather: other) at 37.5%, a difference of 27.5 points on the customs value.
Goods that qualify under the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, AGOA, and 12 others can enter duty-free instead of paying 10%. It is also eligible under GSP, the developing-country programme, which Congress has to renew; check whether GSP is in force on the entry date.
The column 2 rate, for countries without normal trade relations, is 35%, 3.5 times the general rate.
The general duty rate is 10% of the customs value, which is in the middle of the rates in chapter 64 (55th percentile of 131 lines with an ad valorem rate). On a shipment valued at $10,000 that is $1,000 in duty before any Chapter 99 additions or preference claims.
Statistical suffixes
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 6404.20.20 | Valued not over $2.50/pair | 15% |
| 6404.20.60 | Footwear with outer soles of leather or composition leather: other | 37.5% |