Customs Rules on Classification of Costumes

February 2002

In a decision that overturned Customs' treatment of Halloween-type costumes, the Court of International Trade decided on February 19, that such costumes fall into an exception to the duty-free treatment accorded to festive articles and are correctly classified in chapters 61 or 62, Harmonized Tariff Schedule of the United States ("HTSUS").

The festive articles provision of the HTSUS, found in heading 9505, provides duty-free treatment to "festive, carnival or other entertainment articles, including magic tricks and practical joke articles." However, Note 1(e) to Chapter 95 (Toys, Games, and Sports Equipment; Parts and Accessories Thereof) excludes from duty relief " … fancy dress, of textiles, of chapters 61 or 62." Customs had previously limited the definition of "fancy dress" to tuxedos and elaborate stage costumes, but had declined to extend the definition to include flimsy Halloween-type costumes. A U.S. manufacturer of costumes challenged this limited definition.

The CIT based its decision on an analysis of the language in the chapter note: "fancy dress, of textiles, of chapters 61 or 62". First, by examining a number of dictionary definitions, it found that "'fancy dress' signifies 'costume' as worn at Halloween or other similar events." It also pointed out the incongruity of a reference merely to tuxedos and ball gowns in a chapter that covers "Toys, Games, and Sports Equipment." It therefore extended the definition of "fancy dress" to less elaborate costumes such as the ones worn on Halloween.

The Court also concluded that the costumes belonged in Chapters 61 or 62, as articles of clothing, albeit not articles that may be worn on a daily basis. However, given the expansive definition of "wearing apparel", the Court found that the key to classification as such was "whether [the costume] could be worn at a particular time." Because costumes fit this definition, the Court ruled that costumes are correctly classified as "articles of clothing."

The new classification of costumes will have implications on Customs compliance in the area of classification, payment of duties, and quotas and visas. If you have any questions about the importation of costumes, contact your customs Counsel.