USITC Institutes Investigation on Modifying HTSUS for Festive Articles

September 20, 2010

The U.S. International Trade Commission (USITC) has instituted investigation 1205-9, Certain Festive Articles: Recommendations for Modifying the Harmonized Tariff Schedule of the United States (HTSUS), for the purpose of making recommendations on amending the HTSUS relating to certain utilitarian articles that incorporate a festive design, decoration, emblem or motif.  Interested parties may file written comments on this issue by October 22, 2010.  The USITC expects to send its recommendations to the President no later than November 29, 2010.  These changes would then go into effect 60 legislative days (days when Congress is in session – so it excludes the holiday period when Congress is in recess) after the President signs the Proclamation. 

Under the new proposed tariff provision (9817.95.02), the three-dimensional requirement would be dropped and duty–free festive articles treatment would be opened up for the following types of merchandise incorporating holiday symbols or motifs.

• Tableware, kitchenware or toilet articles classified:
  • Chapter 39 (plastics);
  • Chapter 69 (ceramics); and
  • Chapter 70 (glassware).
• Carpets and floor coverings of Chapter 57.
• Apparel of Chapters 61 and 62 (covers almost all apparel).
• Textile articles of Chapter 63 (towels, blankets, placemats, etc.).

There is some debate within and between the USITC, Customs and the U.S. Trade Representative as to how retroactive these changes will be.  What seems clear, however, is that Customs may have no authority to issue duty refunds on liquidated entries of this type of holiday merchandise that are not protested absent an act of Congress.  Therefore, it is imperative that importers of the holiday merchandise described above act quickly to protect their rights to duty refunds.    

Should you have any questions or wish to submit comments concerning these proposed changes, please contact Alan Goggins in our New York office.  Alan can be reached at (212) 725-0200 ext 118 or via email at agoggins@barnesrichardson.com.