Leather, Apparel Groups Seek Changes to Heading 9802 Treatment

The United States Hide, Skin and Leather Association and the American Apparel and Footwear Association called for changes to the 9802 program, in an opinion piece in The Hill on Oct 14. Those groups say the value of a hide sent from America to China to be made into shoes should be deducted from the value subject to tariffs when a U.S. firm imports the shoes. Similarly, nylon yarn that will be made into fabric in India should be deducted from the value. "If a company uses a U.S. component that is further processed abroad before it is assembled into an article, it is disqualified," they explained, which means that yarn doesn't count, since it is made into fabric, nor do hides, which must be tanned before they're made into leather. There are no more tanneries in the U.S., so hides that will be in shoes, furniture or clothing are sent offshore unprocessed.