Raw Wool (Grease Wool)

🐑 Raw Wool (Grease Wool)

🌐 HS Code Reference & Customs Clearance Guide | 2026 Latest Tariff Analysis | Professional Clearance Strategy
📌 I. Product Definition & Classification: Do You Really Understand "Raw Wool"?

Raw Wool, specifically in its grease (unwashed) state, is the unprocessed fleece sheared directly from sheep. In international trade, this raw material is categorized not just by its origin, but by its physical preparation status (oily vs. scoured vs. brushed). The critical distinction lies in whether the wool retains its natural lanolin (grease) and whether it has undergone mechanical processing like combing or carding.

Key Distinction Criteria:
- "Grease Wool" / "Scoured Wool": Contains natural oils or has been washed but remains in its raw, unprocessed fiber state.
- "Unwashed" / "Uncleaned": Contains dirt, sweat salts, and lanolin; minimal processing.
- "Carded/Combed": Mechanical fiber alignment (excluded from the specific codes below if processed further, but often overlaps with "grease" if only lightly processed).

⚠️ Critical Classification Point:
- If the wool is unwashed, contains oil/grease, or is in its natural scoured state → It falls under 5101.11.
- If it is washed and cleaned to a high degree or carded/combed for spinning preparation → It may fall under different subheadings (not covered in the provided data, but crucial to avoid misclassification).
- Note: The provided data explicitly lists "Unwashed" and "Grease" wool under the same code, indicating they share the same tariff treatment in this context.

📦 II. HS Code Classification Details (2026 Latest Tariff Authority Match)

Based strictly on the provided <DATA> and <TAX> content, here is the precise classification for Raw Wool (Grease Wool):

🔍 Important Note on Data Discrepancy:
- The data shows 5101.11.20.00 used for both "Raw wool, unwashed" and "Wool, not sorted, grease".
- 5101.11.40.00 is specifically for "Wool, not sorted, containing grease" and "Wool, not carded/combed".
- Practical Advice: If your wool is heavily oiled/greasy or explicitly described as "scoured but not processed", 5101.11.40.00 is the safer, more specific classification. If it is simply "unwashed" or "raw", 5101.11.20.00 applies.

💰 III. 2026 Latest Tariff Rate Breakdown (Including Surtaxes & Policy Add-ons)

✅ Applicable Country: United States (US)
✅ Origin: China (CN)
✅ Effective Date: November 10, 2025 onwards (for subsequent imports)

🎯 1. All Raw Wool Codes Listed (5101.11.20.00 & 5101.11.40.00)

📌 Interpretation:
- "Base Tariff 0%": Raw wool has a low base duty to encourage raw material imports.
- "Section 301 25%": This is the standard retaliatory tariff on Chinese goods.
- "Section 122 10%": A newer addition targeting specific Chinese agricultural/textile raw materials, including wool.
- Total 35%: This is a significant cost driver. Importers must budget for this 35% levy on top of freight and insurance.
- No De Minimis: Unlike electronics, raw wool shipments cannot use the $800 de minimis rule to avoid customs duties. All shipments are subject to formal entry and full tariff payment.

🛠️ IV. Customs Clearance Practical Advice (Avoiding Pitfalls)

✅ 1. Required Documentation Checklist (Mandatory)

⚠️ Warning: Without a valid Phytosanitary Certificate and Animal Health Certificate, the shipment will be rejected or returned by US Customs and Border Protection (CBP) and USDA.

✅ 2. Classification Strategy (Key Mnemonic)

🔥 "Grease = 5101.11, Unwashed = 5101.11, 35% Tax, No De Minimis!"

📌 Tip: If your wool is synthetic (e.g., "wool-like" acrylic), do NOT use 5101.11. It will be misclassified. Use the correct synthetic fiber code.

✅ 3. Special Situations & Handling

🌍 V. Global Market Comparison (2026 Latest)

📌 Conclusion:
- The US market is the most expensive for Chinese raw wool due to the 35% combined tariff.
- EU and UK offer 0% duty for raw wool, making them more attractive for resale markets if sourcing from China.
- Always verify origin. If wool is from Australia/NZ, US tariffs may be lower or exempt (check current FTAs).

📌 VI. Common Errors & Pitfalls (Lessons Learned)

❌ Error 1: Using "De Minimis" for small wool samples
👉 Consequence: Package seized by CBP, back taxes + penalties imposed.
✅ Fix: Declare formally, pay 35% tax.

❌ Error 2: Misclassifying synthetic wool as "Raw Wool"
👉 Consequence: Incorrect HS code, potential fraud allegations, delay.
✅ Fix: Use correct synthetic fiber codes (e.g., 5509, 5510).

❌ Error 3: Missing Phytosanitary Certificate
👉 Consequence: Shipment rejected/destroyed by USDA.
✅ Fix: Ensure Chinese supplier provides valid certificate before shipment.

❌ Error 4: Assuming "Scoured" Wool is Exempt from Sec 122
👉 Consequence: Underpayment of 10% Sec 122 tariff.
✅ Fix: "Scoured" wool is still subject to 35% total if from China.

🎯 VII. Conclusion: Professional Clearance, Save Time & Money

🎯 Remember the Rules:

🔹 "Raw Wool from China = 35% Tax"
🔹 "No De Minimis, No Exceptions"
🔹 "Phytosanitary & Animal Health Certificates are Mandatory"

📌 Pro Tip:
If you are importing raw wool into the US, consider:
1. Pre-clearance: Work with a licensed customs broker to pre-verify classification.
2. Supply Chain Diversification: Source wool from Australia or New Zealand to avoid Section 301/122 tariffs (check current FTAs).
3. Budget Planning: Factor in the 35% tariff in your landed cost calculations from day one.

📣 Immediate Action Required:

📞 Contact a licensed US customs broker
📄 Request Phytosanitary & Animal Health Certificates from supplier
📦 Verify HS Code: 5101.11.20.00 or 5101.11.40.00
💰 Prepare for 35% duty payment

✨ Professional Customs Clearance Starts with Accurate Classification!
💼 Every dollar of tax saved is pure profit!