Target and Totes-Isotoner File CIT Cases Alleging Gender and Age Bias in U.S. Tariff Rates
According to various press releases, Target Corp. and its affiliate, Associated Merchandising Corp. (Target), and Totes-Isotoner Corp., have filed complaints with the U.S. Court of International Trade accusing the U.S. of gender and age discrimination in the tariffs it imposes on similar items of apparel, footwear, and gloves.
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Target Alleges Gender/Age Discrimination in U.S. Tariffs for Apparel, Etc.
In May 2007, Target filed complaint with the CIT to recover customs duties assessed against the company on the basis of gender or age, accusing the U.S. of discrimination in the tariffs it imposes on over 40 HTS subheadings classifying apparel, footwear, and gloves. (See ITT's Online Archives or 05/17/07 news, 07051799 1, for previous BP summary of Target's filing of the CIT complaint.)
Target and its affiliate are seeking refunds of the alleged discriminatory duties paid over the last two years (or for such longer period as may be provided by law.)
Examples of Target's complaints include the rate for men's woven wool suits of 17.5%, which is 3.5% higher than for women's suits, and the tariff rate on silk shirts which is 6.9% for women, but only 1.1% for men. Similarly, the tariff rate for certain women's footwear is 10%, but only 8.5% for men's footwear in five identical categories at the eight-digit level of the HTS.
Totes-Isotoner Alleges Gender/Age Discrimination in U.S. Tariff Rates for Gloves
In January 2007, Totes-Isotoner filed a complaint with the CIT to recover customs duties assessed against the company on the basis of gender or age, alleging that the higher U.S. tariff rate for certain men's seamed leather gloves was unconstitutional. Totes-Isotoner is suing to recover duties paid on the men's gloves over the past two years (or such longer period as may be provided by law) as well as those paid until the case is resolved.
When imported for men, the gloves are classified under Harmonized Tariff Schedule (HTS) 4203.29.30 at a duty rate of 14%. However, when not imported for men, the gloves are classified under HTS 4203.29.40 at a duty rate of 12.6%.
Target and Totes-Isotoner Asking That Duties be Equalized at Lower Rate
Both Totes-Isotoner and Target are asking that the duties be equalized at the lower tariff rate. Since the U.S.'s current tariff rates are "bound" under the World Trade Organization (WTO) agreement (i.e., committed at an agreed level that can not be raised without compensating the affected parties), the lawyers representing the companies imply that lawmakers would be unlikely to resolve the disparate rates by simply averaging separate duty rates into one common rate. Instead, if gender bias is found, they are counting on the tariffs being equalized at the lower rate.
Target Corporation v. U.S. available via email by emailing documents@brokerpower.com
Totes-Isotoner v. U.S. available via email by emailing documents@brokerpower.com
Neville Peterson LLP Totes-Isotoner press release (dated 01/05/07) available at http://www.npwtradelaw.com/hot/01052007.pdf
Journal of Commerce "Unisex suit" article (dated 05/28/07) www.joc.com
Kentucky World Trade Center Target press release (dated 05/14/07) available at http://www.kwtc.org/enews/2007%20enews/051807/nine.html