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Duty Savings Opportunity for Leather Handbag Importers

Importers of leather handbags may have the opportunity to reduce their duty rate on some styles by more than half by reclassifying their products.

The Harmonized Tariff Schedule distinguishes between leather handbags (dutiable at a rate of 9% ad valorem) and tote bags (4.5% ad valorem).  U.S. Customs has outlined certain distinguishing criteria between the two types of bags, such as carrying capacity and size.  A bag may meet the tote bag criteria even if it still enjoys other traditional handbag features like shoulder straps, outside pockets and closures.  If the tote criteria are satisfied, a U.S. importer is eligible not only for duty savings on future shipments, but also duty refunds on past shipments.  For further information, please contact Christina Leonard at mailto:cleonard(at) This e-mail address is being protected from spambots. You need JavaScript enabled to view it or (212) 973-7769

Compliments of Grunfeld, Desidero, Lebowitz, Silverman & Klestadt LLP – a member of the EACCNY