CBP Issues Revised Classification/Protest Guidance on Textile and Non-Textile Festive Articles
U.S. Customs and Border Protection (CBP) has issued revised guidance on the classification of festive articles due to its recent decision to limit the court decisions in the case Park B. Smith, Ltd., vs. U.S.(Park) to the litigated entries only, i.e., the specific cotton woven table linen and cotton woven dhurry rug entries before the courts in that litigation.
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(See ITT's Online Archives or 04/13/06 news, 06041310 for BP summary of CBP's notice on this decision, which took effect April 5, 2006. See ITT's Online Archives or 09/27/05 news, 05092705 for BP summary of CBP's earlier classification/protest guidance.)
Utilitarian/Functional Articles Should Not be Classified as Festive Articles
CBP states that the ports should continue to process entries as set out in the original June 2005 guidance. Utilitarian or functional articles, such as table linens, apparel, mugs, china, etc., should not be classified in HTS Chapter 95.
Purely Decorative Articles May be Classified as Festive Articles
In addition, the ports may accept classification and liquidate purely decorative articles, not otherwise excluded from Chapter 95 or heading 9505, as festive articles if the articles meet the following two-step test: (1) the articles are "closely associated" with a festive occasion and (2) the articles are displayed and used by the consumer only during the festive occasion (use at any other time would be aberrant).
(CBP's revised guidance and CBP sources indicate that this two-step test is from Midwest of Cannon Falls, a court ruling which CBP has stated it continues to follow.)
Functional Merchandise for Which Importers Have Binding HTS 9505 Ruling
In addition, CBP states that the ports are to classify and liquidate in HTS 9505, functional merchandise for which importers have binding rulings or for which importers are able to show that a ruling issued to another party applies to their merchandise.
CBP to Issue No Rulings on Merchandise That Would Be Impacted by Pending Court Cases
Due to other pending litigation in the Court of International Trade (CIT) involving the classification of various types of merchandise as "festive articles" of HTS 9505, CBP states it will not issue classification rulings with regard to any merchandise which would be impacted by the decisions in these other cases (see below for partial list).
Importers Seeking Classification as "Festive Articles" for Merchandise Which Falls Within Pending Court Cases May Request Suspension of Liquidation/File Protests
CBP indicates that importers seeking classification as "festive articles" in HTS 9505 for merchandise which falls within the pending court cases may request suspension of liquidation of their entries or may file protests against liquidation of their merchandise in provisions of the tariff schedule other than as "festive articles" of HTS 9505.
June 2005 Guidance Had Listed Seven Court Cases as Pending
In its original June 2005 Guidance, CBP had stated that there were seven court cases pending before the CIT which involved the classification of various articles as "festive." CBP now notes that additional cases involving other commodities have been filed.
As of June 2005, CBP had listed the seven pending court cases and merchandise as follows:
LTD Commodities v. U.S. CBP had stated that this case involves paper-mache boxes, mugs, plates, table linens, basket sets, wooden baskets, porcelain handle baskets, oven mitts, potholders, cheese spreaders, flatware set, burner covers, bottle huggers, wood wall plaques, coasters and cozies, wooden reindeer, shelf sitters, breeze blockers, gift bag sets, candle and holder, jar lamps, boxes, pins, lawn signs, cornucopia or gourds, centerpieces, flags, wired ribbon, candleholder with shade, shade with base for use with candles, porcelain bisque votives and musical clock, lanterns, printed fabric and metallic boxes.
Nidico Group, Inc. v. U.S. According to CBP, this case involves jacquard placemats.
Michael Simons Designs, Inc. v. U.S. CBP had noted that this case involves ladies' and girls' knit and woven sweaters and blouses.
Berwick Industries, Inc. v. U.S. CBP had stated that this case involves assorted plastic and textile bows (regular and oversized).
Waterford Wedgwood USA, Inc. v. U.S. CBP had noted that this case involves crystal glassware, ceramic tableware, ornamental ceramic articles, lighting fixtures, table knives, music boxes, wood marquetry, etc. (e.g. bowls, platters, plates, mugs, cups, dinnerware place settings, figurines, bells, cake knives, candle holders, nativity backdrops, and display sets)).
Cuthbertson Imports Inc. v. U.S. CBP had stated that this case involves earthenware dinnerware (plates, bowls, teacups, saucers, cereal dishes, teapots, coffee pots, serving platters, oven-proof casseroles, rectangular baker-lasagna, etc.).
Wilton Industries, Inc. v. U.S. CBP had stated that this case involves cake and baking pans, cookie cutters, stamps and presses, cake bases, toppers, stands, pillars, ornaments, and cake separator plates, floral bouquets, candle caps and pins, and magnets.)
| Alice Wong (general) | (646) 733-3026 |
| John Leonard (entry summary/protest) | (202) 344-2687 |
| Susan Thomas (textile operational issues) | (202) 344-3719 |
CBP Revised Guidance (dated 04/14/06) available at http://www.cbp.gov/linkhandler/cgov/import/cargo_summary/festive_articles/update_festive_articles.ctt/update_festive_articles.doc