[Federal Register Volume 67, Number 41 (Friday, March 1, 2002)]
[Notices]
[Pages 9504-9505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4945]


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DEPARTMENT OF THE TREASURY

Customs Service

[T.D. 02-09]


Notice of Decision of the United States Court of International 
Trade Sustaining Domestic Interested Party Petition Concerning Tariff 
Classification of Textile Costumes

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of a decision of the United States Court of 
International Trade sustaining domestic interested party petition 
concerning tariff classification of textile costumes.

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SUMMARY: On February 19, 2002, the United States Court of International 
Trade (CIT) issued the decision in Rubie's Costume Company v. United 
States which held that imported costumes are fancy dress of textile 
and, therefore, classifiable as wearing apparel. This decision 
sustained the petition of a domestic interested party under the 
provisions of section 516, Tariff Act of 1930, as amended (19 U.S.C. 
1516). This document provides notice of the court decision and informs 
the public that imported textile costumes of the character covered by 
the Customs decision published in the Federal Register on December 4, 
1998, will be subject to classification and assessment of duty in 
accordance with the CIT decision.

EFFECTIVE DATES: Imported textile costumes of the character covered by 
the Customs decision published in the Federal Register on December 4, 
1998, which are entered for consumption or withdrawn from warehouse for 
consumption after March 1, 2002, are to be classified when entered as 
wearing apparel in accordance with the CIT decision in Rubie's Costume 
Company v. United States. The Committee for the Implementation of 
Textile Agreements (CITA) intends to apply quota and visa requirements 
to these goods exported on and after April 1, 2002.

FOR FURTHER INFORMATION CONTACT: For questions regarding operations, 
Dick Crichton, Office of Field Operations, (202) 927-0162; for legal 
questions, Rebecca Hollaway, Office of Regulations and Rulings, (202) 
927-2394.

SUPPLEMENTARY INFORMATION:

Background

    On June 2, 1997, in response to a domestic manufacturer's request, 
Customs issued a decision, Headquarters Ruling (HQ) 959545, determining 
that four costumes and their accessories would be classified under 
subheading 9505.90.6090, Harmonized Tariff Schedule of the United 
States (HTSUS), which provides for ``Festive carnival or other 
entertainment articles, including magic tricks and practical joke 
articles; parts and accessories thereof; Other: Other: Other.'' This 
provision provided for duty-free entry under the general column one 
rate of duty. (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 contended that virtually identical costumes to those 
manufactured by petitioner were being imported into the United States 
and some of these textile costumes were being erroneously classified by 
Customs, duty-free, under subheading 9505.90.6090, HTSUS. The 
petitioner claimed that all imported textile costumes should be 
classified as wearing apparel in Chapters 61 or 62, HTSUS, are 
therefore dutiable, and may be subject to quota and visa restraints. 
Petitioner asserted 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 27, 1997 (62 FR 66891). After 
reviewing comments submitted in response to the notice that were 
supportive of and opposed to Customs classification position, Customs, 
in HQ 961447, dated July 22, 1998, denied the petition and affirmed the 
classification determination set forth in HQ 959545. The decision 
rejected the domestic interested party petition's argument that all 
imported costumes made of textiles should be classified under Chapters 
61 and 62, HTSUS, as items of apparel.
    On July 23, 1998, the domestic manufacturer filed written notice of 
its desire to contest Customs decision in HQ 961447 (19 U.S.C. 1516(c); 
19 CFR 175.23). Subsequently, Customs published in the Federal Register 
(63 FR 67170; December 4, 1998) a notice of its classification decision 
and of the domestic manufacturer's desire to contest the decision. On 
June 25, 1999, Customs notified the domestic manufacturer that an entry 
of a costume had been liquidated in accordance with HQ 961447 on that 
date (19 U.S.C. 1516(c); 19 CFR 175.25(h)). On June 29, 1999, the 
domestic manufacturer commenced an action in the United States Court of 
International Trade (CIT) to challenge Customs classification decision.
    The CIT, in Rubie's Costume Company v. United States, No. 99-06-
00388, Slip Op. 02-14, (CIT Feb. 19, 2002), ruled, on a motion for 
summary judgment decided in favor of plaintiff domestic manufacturer, 
that the costumes constitute ``fancy dress'' and are thus excluded from 
classification in Chapter 95, HTSUS, by virtue of Note 1(e) to Chapter 
95, HTSUS. Thus, the court held that the costumes are wearing apparel 
classifiable in Chapter 61, HTSUS. (To view the court's decision, go to 
http://www.uscit.gov. Note also that the Rubie's decision will be 
published in the Customs Bulletin issued on March 6, 2002.)
    By publication of this notice in the Federal Register, Customs 
notifies the public, in accordance with 19 U.S.C. 1516(f) and 19 CFR 
175.31, of the court's decision in Rubie's. Customs also informs the 
public that, effective on the day after publication of this notice

[[Page 9505]]

in the Federal Register, merchandise of the character covered by the 
Customs decision published in the Federal Register on December 4, 1998, 
which is entered for consumption or withdrawn from warehouse for 
consumption will be subject to classification in accordance with the 
court's decision. Also, as tariff subheadings under Chapters 61 and 62, 
HTSUS, are subject to quota and visa restraints, Customs notes that 
CITA intends to apply applicable quota and visa requirements to 
merchandise of the character covered by the Customs decision published 
in the Federal Register on December 4, 1998, that is exported on and 
after April 1, 2002.

    Dated: February 26, 2002.
Douglas M. Browning,
Acting Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 02-4945 Filed 2-26-02; 3:01 pm]
BILLING CODE 4820-02-P