[Federal Register Volume 63, Number 233 (Friday, December 4, 1998)]
[Notices]
[Pages 67170-67171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32322]


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DEPARTMENT OF THE TREASURY

Customs Service


Denial of Domestic Interested Party Petition; Petitioner's Desire 
to Contest Decision Concerning Tariff Classification of Textile 
Costumes

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of petitioner's desire to contest decision on domestic 
interested party petition.

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SUMMARY: In July 1997 a petition was filed by a domestic manufacturer 
of textile costumes regarding the tariff classification of imported 
textile costumes. The petition was filed pursuant to section 516, 
Tariff Act of 1930, as amended, seeking to have all textile costumes 
classified as wearing apparel in chapters 61 and 62 of the Harmonized 
Tariff Schedule of the United States (HTSUS).
    On July 22, 1998, Customs denied the Domestic Interested Party 
Petition and affirmed that the four textile costumes in question were 
classified as festive articles in subheading 9505.90.6090 (now 
9505.90.6000), HTSUS, because they were found to be flimsy, nondurable, 
and not normal articles of wearing apparel. Pursuant to 19 CFR 175.24, 
Customs is now providing notice of this decision and also providing 
notice of the receipt of petitioner's desire to contest this decision.

DATES: December 4, 1998.

FOR FURTHER INFORMATION CONTACT: Ann Segura Minardi, Textiles Branch 
(202-927-1009).

SUPPLEMENTARY INFORMATION:

Background

Classification of Costumes

    Classification under the Harmonized Tariff Schedule of the United 
States (HTSUS) is made in accordance with the General Rules of 
Interpretation (GRIs). GRI 1 provides that classification shall be 
determined according to the terms of the headings and any relative 
section or chapter notes. Merchandise that cannot be classified in 
accordance with GRI 1 is to be classified in accordance with subsequent 
GRIs taken in order. The Explanatory Notes (ENs) to the Harmonized 
Commodity Description and Coding System, which represent the official 
interpretation of the tariff at the international level, facilitate 
classification under the HTSUS by offering guidance in understanding 
the scope of the headings and GRIs.
    Heading 9505, HTSUS, includes articles which are for ``Festive, 
carnival, or other entertainment.'' However, Note 1(e), chapter 95, 
HTSUS, excludes articles of ``fancy dress, of textiles, of chapter 61 
or 62'' from chapter 95. The ENs to 9505, state, among other things, 
that the heading covers:
    (A) Festive, carnival or other entertainment articles, which in 
view of their intended use are generally made of non-durable material. 
They include:
* * * *
    (3) Articles of fancy dress, e.g., masks, false ears and noses, 
wigs, false beards and moustaches (not being articles of postiche-
heading 67.04), and paper hats. However, the heading excludes fancy 
dress of textile materials, of chapter 61 or 62.
    On November 15, 1994, Customs issued HQ 957318, stating that it had 
determined to classify as festive articles in subheading 9505.90.6090, 
HTSUS, costumes of a flimsy nature and construction, lacking in 
durability, and generally recognized as not being normal articles of 
apparel.

Filing of Domestic Interested Party Petition

    On June 2, 1997, in response to the domestic manufacturer's 
request, Customs issued a decision, Headquarters Ruling (HQ) 959545, 
determining that four costume sets and their accessories would be 
classified under subheading 9505.90.6090, HTSUS, which provides for 
``Festive, carnival or other entertainment articles, including magic 
tricks and practical joke articles; parts and accessories thereof: 
Other: Other: Other'' (effective August 1, 1997, the provision was 
amended and now reads as follows: 9505.90.6000, HTSUS, ``Festive, 
carnival or other entertainment articles, including magic tricks and 
practical joke articles; parts and accessories thereof: Other: Other,'' 
which provides for duty-free entry under the general column one rate of 
duty).
    In July 1997, and in accordance with the procedures of 19 U.S.C. 
1516, and 19 CFR Part 175, a domestic interested party petition was 
filed on behalf of an American manufacturer of textile costumes. The 
petitioner contends that virtually identical costumes to those 
manufactured by petitioner are being imported into the United States 
and some of these textile costumes are being erroneously classified by 
Customs under subheading 9505.90.6090, HTSUS, as ``Festive, carnival or 
other entertainment articles, including magic tricks and practical joke 
articles; parts and accessories thereof: Other: Other: Other.'' The 
provision is duty free under the general column one rate. The 
petitioner claims that all imported textile costumes should be 
classified as wearing apparel in chapters 61 or 62, HTSUS, and are 
therefore dutiable and may be subject to quota and visa restraints. 
Petitioner asserts that all textile costumes are excluded from 
classification under subheading 9505.90.6090, HTSUS, pursuant to Note 
1(e), Chapter 95.
    Notice of the domestic interested party petition was published in 
the Federal Register on December 22, 1997 (62 FR 66891). The notice 
invited written comments on the petition from interested parties. The 
comment period closed on February 20, 1998, and Customs received 767 
comments.
    Of the comments received against Customs position, 128 followed a 
form letter where the individual identified herself or himself as a 
member of the domestic costume industry. There were 625 comments 
submitted by individuals on various form letters. The comments

[[Page 67171]]

received in support of Customs position were submitted on behalf of 
several trade associations and various U.S. importers of Halloween 
costumes, non-seasonal dress-up sets, toys, gifts, housewares, or 
novelties.

Decision on Petition and Notice of Petitioner's Desire To Contest

    In HQ 961447, dated July 22, 1998, Customs denied the Domestic 
Interested Party Petition and affirmed the classification 
determinations set forth in HQ 959545, dated June 2, 1997, in which 
four textile costumes were classified as festive articles in subheading 
9505.90.6090 (now 9505.90.6000), HTSUS, because they were found to be 
flimsy, nondurable, and not normal articles of wearing apparel. HQ 
961447 rejected the arguments contained in the 516 Petition that all 
imported costumes made of textiles should be classified under Chapters 
61 and 62, HTSUS, as items of apparel.
    In correspondence dated July 23, 1998, the domestic manufacturer 
filed written notice of the desire to contest Customs decision in HQ 
961447. The notice to contest Customs decision also designated ports at 
which the merchandise is being imported into the United States and at 
which the petitioner desires to protest.

Authority

    This notice is published in accordance with section 175.24, Customs 
Regulations (19 CFR 175.24), and 19 U.S.C. 1516.

Drafting Information

    The principal author of this document was Ann Segura Minardi, 
Textiles Branch, Office of Regulations and Rulings, U.S. Customs 
Service. However, personnel from other Customs offices participated in 
its development.

Raymond W. Kelly,
Commissioner of Customs.
    Approved: November 4, 1998.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 98-32322 Filed 12-3-98; 8:45 am]
BILLING CODE 4820-02-P