Determining the Composition of Uppers of FootwearMemorandum D10-14-37

ISSN 2369-2391 Ottawa, June 18, 2015 This document is also available inPDF (389 KB)[help with PDF files] 1. The editing revisions made to this memorandum do not affect or change any of the existing policies or procedures. 2. Appendices have been modified in order to add an explanation of "waterproof footwear" of Heading 64.01. This memorandum explains the administrative policy used by the Canada Border Services Agency (CBSA) to determine the composition of uppers in respect of footwear of Chapter 64 of theCustoms TariffSchedule.

Customs Tariff Section  11Chapter 64 – Headings 64.01 to 64.05, Notes 3 and 4Explanatory Notes to the Harmonized Commodity Description and Coding SystemGeneral Explanatory Note (D) to Chapter 64

1. As stated in Section 11 of theCustoms Tariff, in interpreting the headings and subheadings, regard must be given to the Explanatory Notes to the Harmonized Commodity Description and Coding System. 2. "Waterproof Footwear" is classified in heading 64.01. SeeAppendix Afor a detailed description of qualifying waterproof footwear of heading 64.01. 3. Much of footwear produced today has rubber or plastic outer soles and uppers made solely of plastic (woven fabric with an external layer of plastics being visible to the naked eye), leather or textile. This footwear is classified under headings64.02,64.03and64.04. 4. Footwear with natural leather uppers are classified in heading 64.03. Footwear with composition or imitation leather uppers are classified in heading 64.05. Synthetic and artificial footwear look and feel like leather, but are not genuine leather. The classification of these goods is explained in detail inAppendix B. 5. The upper is the portion of the footwear above the sole. The sole includes the outer sole, midsole, insole and anything in between, including stiffeners. Insoles that are removable and that resemble liners are also considered to be part of the sole. Please note that, in complex footwear, the demarcation between the sole and the upper is not always apparent from the exterior of the footwear. In some instances, the insole may appear to extend up the sides of the footwear, such as in the instep and/or heel areas of the foot. The demarcation line between the sole and the upper is to be determined by where the top edge of the insole meets the side of the footwear, projected horizontally through to the exterior of the footwear. [seeAppendix C (1)and(2)]

6. If the uppers are composed of different materials, the external component having the greatest surface area determines the classification. Accessories or reinforcements such as ankle patches, protective or ornamental strips or edging, or other ornamentation (e.g. tassels, pompons or braid), buckles, tabs, eyelet stays, laces or slide fasteners are not included in this calculation. 7. The surface areas of components having the same exterior composition are combined and considered together. Where different components are joined in overlapped seams (such as by sewing or gluing), the line formed by the edge of the outermost component will define the edge of the respective surfaces. Accordingly, the line of stitches in an overlapped sewn seam will not define the edge of the respective components [seeAppendix C (3)and(4)]. 8. The tongue is considered to be an accessory. In lace-up footwear, the tongue is typically made of the same material as the upper; however, exceptions are common. The Explanatory Notes to Chapter 64 do not address how the tongues of footwear are to be treated in determining the material of the upper having the greatest surface area. For CBSA purposes, the external surface area of the tongue below an imaginary line drawn through the middle of the bottom eyelet is included when determining the predominant material of the upper. The remaining portion of the tongue above this imaginary line is excluded. In the case of footwear with Velcro® closures, the external surface area of the tongue below the closed lowest Velcro® strap is included [seeAppendix C (5)]. 9. Overlays are accessories or reinforcements stitched or glued on existing portions of the external surface of the upper. They provide ornamentation or reinforcement to add strength and possibly stiffness to the upper. They often serve as stays to anchor the shoelace eyelets and as protectors in the toe and heel areas.

10. Much of the lace-up footwear produced today is constructed of different components with different functions. In some footwear, reinforcements and decorations may cover a large part of the upper. As a result, the upper may only be visible in small areas. For this type of footwear, the construction may only become evident after taking it apart. 11. In accordance with General Explanatory Note (D) to Chapter 64, accessories or reinforcements, including the overlays described above, are not included when determining the external surface area of the upper. 12. Illustrations of footwear constructed with accessories or reinforcements, including overlays, are contained inAppendix C (6)to (8) — the overlays have been labelled for ease of reference.Appendix C (8)illustrates footwear where the toe covering appears to be an overlay, but it is in fact attached at the top edge to the upper and is part of the external surface area of the upper. 13. Since footwear construction varies considerably, it can be difficult to determine the surface area of the different components and whether they are accessories or reinforcements. In some cases, the footwear will need to be taken apart. 14. Representative samples should be analyzed in the following cases: (a)when the footwear construction is not clearly evident;(b)when it is difficult to determine whether the footwear upper is made of leather; or(c)to determine the surface area of uppers composed of different materials.

15. For certainty regarding the tariff classification of a product, importers may request an advance ruling for tariff classification. Details on how to make such a request are found inMemorandum D11-11-3,Advance Rulings for Tariff Classification. 16. For more information, call contact theCBSABorder Information Service(BIS):Calls within Canada & the United States (toll free):1-800-461-9999Calls outside Canada & the United States (long distance charges apply):1-204-983-3550 or 1-506-636-5064 TTY:1-866-335-3237 Contact Us online(webform)Contact Usat the CBSA website

For tariff classification purposes, "water footwear" of heading 64.01 is footwear that keeps the foot dry. The outer soles and uppers of rubber or of plastic must be assembled in such a way as to prevent seepage of water through the shoe. Such assembly methods do not include stitching, riveting, nailing, screwing, plugging or similar processes. The uppers of waterproof footwear of heading 64.01shall cover both sides and top of the foot, such that water cannot penetrate the surface below the upper rim, regardless of the height of the upper rim. For footwear to be considered waterproof, it must keep the interior dry when submerged in water for 24 hours. Waterproof footwear of heading 64.01 will not have an upper which simply consists of straps or thongs (for example, sandals) because they do not prevent the foot from getting wet.

This appendix provides further information on leather and imitation or artificial leather used for uppers in footwear. Many imitation leathers cannot be distinguished from natural leathers without chemical analysis. Some artificial or synthetic leathers are of high quality and are so similar to real leather in feel, texture, smell and appearance that they too cannot be distinguished without chemical analysis. In fact, some have wear characteristics superior to real leather and may have been treated with leather finishing agents to give them the odour of real finished leather. Uppers of footwear that have the appearance and feel of leather may be made from:

(1) Interior of shoe as viewed from rear. (2) Illustration in 3 photos of a shoe cut in half showing its interior as viewed from rear. (3) Drawing of a shoe describing components that overlaps. (4) Illustration in 2 photos of a shoe sideways showing that component A isnotlasted to the sole; it is stitched to component B. (5) Drawing of shoe with a description of the tongue. (6) Drawing describing reinforcements and overlays. (7a) Illustration of shoe sideways with numbered descriptions (1 to 5). Components listed from the outer-most layer to the inner-most layer: outer-most overlay (reinforcing)overlay (reinforcing)overlay (reinforcing)overlay (reinforcing)UPPER - textile material (knitted fabric) (7b) Illustration of unstitched shoe sideways. (8) Illustration of shoe with overlay at the toe.