MIME-Version: 1.0 Content-Location: file:///C:/F11D2689/HolidayThemedGoodsMayPayDuty082709(3).htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Some Holiday-Themed Goods Re-Classified; No Longer Duty-Free

TRADE ALERT

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Some Holiday-Themed Goods= Re-Classified; No Longer Duty-Free

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(August 25, 2009)

 

US Customs and Border Protection has issued revised guidance on the classifica= tion of holiday-themed, functional articles.&nb= sp; This revision is the result of a decision made by the Court of International Trade (CIT) in Michael Simon Design, Inc. v. United States= .  In July, the CIT dismissed the importer’s challenge to a Harmonized Tariff Schedule Chapter 95 amend= ment (Note 1(V) of Explanatory Note 95.05) which excludes festive utilitarian articles from duty-free treatment.  Such articles include tab= leware, kitchenware, toilet articles, carpets, apparel; bed, table, toilet, and kit= chen linens, and other festive articles with a utilitarian function.  This updated guideline supersedes instructions previously published, as recently as December 8, 2008.

 

In part, the decision states:

  • Costumes, imitation jewelry, and preparatory articles are not included in the ruling.  Their classifica= tion is controlled by precedence set by Rubie’s Costume Company v. U.S. (2003) and Russ Berrie & Company, Inc. v. U.S. (2004).
  • Baking pans, cookie cutters, cook= ie stamps and presses, and similar articles with festive designs are also= not included pending litigation in CIT involving Wilton Industries, Inc.
  • For articles that have a festive = design and utilitarian function (such as those listed in Note 1(v)), made on = or after February 3, 2007, which are unliquidated or the liquidation is not yet final, CBP requires that importers class= ify articles according to their constituent material. However, CBP is revi= sing its subsequent instructions to state that such classification may be affected if the July 20, 2009 CIT decision is appealed.
  •   Additio= nal liquidation extensions may also be requested.
  •   However, CBP’s guidance on the classification of purely decorative articles in HTS 95= 05 has been edited to list additional court factors to consider.

 

CBP states that a provision will be created in Chapter= 98 that ensures certain articles continue to receive duty-free treatment if th= ey are closely associated with a holiday and their use outside of the holiday season would be abnormal.  The= August 18th, 2009 CBP memorandum can be viewed online.  For more information, please conta= ct your Deringer representative.

 

 

About Deringer

A.N. Deringer, Inc. is a leading provider of international logistics services including Freight Forwarding, Warehousing & Distribution, Cust= oms Brokerage, Logistics Consulting, Cargo Insurance, Duty Drawback, and Meat Inspection. Deringer combines over 30 US offices with a global agen= cy network to facilitate the movement of cargo throughout the world.