/tf-cmsv2-smithsonianmag-media.s3.amazonaws.com/filer/201309111210254214047393_de54082125_z.jpg "This Is Why Your Converse Sneakers Have Felt on the Bottom (1)")
Have you ever noticed that thin layer of felt on the bottom of a pair of Converse sneakers? It gets torn up almost immediately, of course, as you walk on the shoes. So, why is it there in the first place? It turns out that that felt is there not for functional reasons, but for economic ones—shoes with fuzzy soles are taxed less when imported than those with rubber ones.
Jeff Steck writes on Gazetc that the difference between importing a fuzzy shoe—like a house slipper—and a rubber one—like a sneaker—can be huge. Changing the shoe material can decrease the tariff from 37.5 percent down to just 3 percent. Steck writes:
To benefit from a lower tariff, it isn’t necessary to cover the entire sole with fabric. According to the inventors, “a classification may be based on the type of material that is present on 50% or more of the bottom surface.”(6,471,491) This explains why the “fabric” fuzz extends mostly around the edges of my shoes, where it can take up a lot of area without interfering too much with the traction of the bare-rubber centers.
This kind of finagling is something Steck calls “tariff engineering,” and it’s not uncommon. Here’s another example from Radiolab of how companies slither past tariff regulations. For Marvel, dolls (which represent humans) and toys (which represent non-humans) are taxed at different rates. Which means Marvel actually went to court to argue why their action X-Men action figures were not human—something a fan of the comic might find a bit strange.
So your X-Men action figures aren’t human, and your Converse sneakers are cute fuzzy house slippers. In other words, tariffs ruin everything.
More from Smithsonian.com:
Old Sneakers Never Die
Such Great Heights: The Hidden Architecture of Elevator Shoes
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/tf-cmsv2-smithsonianmag-media.s3.amazonaws.com/accounts/headshot/Rose-Eveleth-240.jpg "This Is Why Your Converse Sneakers Have Felt on the Bottom (2)")
As an enthusiast well-versed in the intricacies of tariff regulations and their impact on consumer goods, I can attest to the depth of knowledge required to navigate the complex world of international trade. The article you've mentioned delves into the intriguing realm of tariff engineering, a practice employed by companies to strategically minimize import duties. My understanding of this concept is rooted in real-world examples and a comprehensive understanding of trade dynamics.
In the case of the thin layer of felt on the bottom of Converse sneakers, the article suggests that this seemingly inconspicuous material serves an economic purpose rather than a functional one. According to Jeff Steck's insights on Gazetc, shoes with fuzzy soles, such as house slippers, are subject to lower import tariffs compared to those with rubber soles, like sneakers. The tariff difference can be substantial, with a potential decrease from 37.5 percent to a mere 3 percent.
To capitalize on this tariff advantage, companies engage in what Steck refers to as "tariff engineering." In the context of footwear, this involves incorporating a material like fabric on at least 50% of the bottom surface to qualify for the lower tariff rate. The inventive use of the felt layer strategically positioned around the edges of the shoes allows manufacturers to meet this requirement without compromising the traction provided by the bare-rubber centers.
This article draws parallels between the tariff engineering in the footwear industry and another example from Radiolab, highlighting how companies navigate tariff regulations to minimize duties. Marvel, for instance, contested the classification of its action figures in court, arguing that dolls representing humans and toys representing non-humans should be taxed differently. This creative maneuvering demonstrates the lengths to which companies go to optimize their tariff obligations.
In conclusion, the article sheds light on the multifaceted world of tariff regulations and the inventive strategies employed by companies to mitigate the financial impact of import duties. The case of Converse sneakers exemplifies how seemingly trivial design choices can have significant economic implications in the context of international trade.
