[Federal Register: November 13, 2003 (Volume 68, Number 219)]
[Notices]
[Page 64358-64359]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13no03-66]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Notice of a Decision of the United States Court of Appeals for
the Federal Circuit Reversing the Decision of the Court of
International Trade To Sustain a Domestic Party Petition Concerning the
Classification of Textile Costumes
AGENCY: Customs and Border Protection, Department of Homeland Security.
ACTION: Notice of the decision of the United States Court of Appeals
for the Federal Circuit in the matter of Rubie's Costume Company v.
United States, Appeal No. 02-1373 (decided August 1, 2003), reversing
the decision of the Court of International Trade which sustained a
domestic party petition seeking classification of textile costumes as
wearing apparel of chapters 61 or 62 of the Harmonized Tariff Schedule
of the United States (HTSUS).
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SUMMARY: On August 1, 2003, the United States Court of Appeals for the
Federal Circuit (CAFC) issued its decision in the matter of Rubie's
Costume Company v. United States, Appeal No. 02-1373, reversing the
Court of International Trade (CIT) in Rubie's Costume Company v. United
States, 196 F. Supp 2d 1320 (Ct. Int'l Trade 2002). The CIT had ruled
that the textile costumes before it were ``fancy dress'' of textile and
therefore classifiable as wearing apparel of chapter 61, HTSUS. In
reversing the CIT, the CAFC upheld the earlier classification
determination of Customs and Border Protection (CBP), which classified
textile costumes of a flimsy nature and construction, lacking in
durability, and generally recognized as not being normal articles of
apparel, as ``festive articles'' of chapter 95, HTSUS. This document
provides notice of the CAFC decision and informs the public that
imported textile costumes, which CBP determines to be of a flimsy
nature and construction, lacking in durability and generally recognized
as not being normal articles of wearing apparel, are to be classified
and assessed duty in accordance with the CAFC decision as ``festive
articles'' of chapter 95, HTSUS.
EFFECTIVE DATE: CBP began liquidating suspended entries and classifying
incoming entries of merchandise in accord with the decision in the
matter of Rubie's Costume Company v. United States as of October 31,
2003.
FOR FURTHER INFORMATION CONTACT: For questions regarding operational
issues, contact Janet Labuda, Textile Enforcement and Operations
Division, Office of Field Operations, 202-927-0414; for legal
questions, contact Rebecca Hollaway, Textiles Branch, Office of
Regulations and Rulings, 202-572-8814.
SUPPLEMENTARY INFORMATION:
Background
On February 19, 2002, the Court of International Trade (CIT) issued
a decision in Rubie's Costume Company v. United States, 196 F. Supp 2d
1320 (Ct. Int'l Trade 2002), in which the court ruled that certain
imported textile costumes before it were classifiable as wearing
apparel of chapter 61 of the Harmonized Tariff Schedule of the United
States (HTSUS). The decision sustained the position of a domestic
interested party under the provisions of section 516, Tariff Act of
1930, as amended (19 U.S.C. 1516). Pursuant to 19 U.S.C. 1516(f) and 19
CFR 175.31, CBP published notice of the court's decision in the Federal
Register, 67 FR 9504, on March 1, 2002, and notified the public that,
effective the day after publication of the notice in the Federal
Register, CBP would classify merchandise of the character of the
merchandise at issue, which was entered for consumption or withdrawn
from warehouse for consumption, in accordance with the court's
decision. See ``Notice of Decision of the United States Court of
International Trade Sustaining Domestic Interested Party Petition
Concerning Classification of Textile Costumes,'' 67 FR 9504 (March 1,
2002) for detailed background of the domestic interested party
petition.
On August 1, 2003, the Court of Appeals for the Federal Circuit
(CAFC) reversed the decision of the CIT. The
[[Page 64359]]
court held that the CBP classification ruling on the textile costumes
at issue is persuasive and must be granted deference under Skidmore v.
Swift & Co., 323 U.S. 134 (1944). The court concluded that ``textile
costumes of a flimsy nature and construction, lacking in durability,
and generally recognized as not being normal articles of apparel, are
classifiable as `festive articles.' '' The court reversed the decision
of the CIT holding the merchandise at issue to be classifiable as
``wearing apparel.'' (The court's decision may be viewed on the court's
Web site at http://www.fedcir.gov).
Under 19 CFR 175.31, CBP is not required to publish notice to the
public of a decision of the CAFC reversing a cause of action before the
CIT under the provisions of section 516, Tariff Act of 1930, as amended
(19 CFR 1516). However, due to the length of the controversy of the
classification of textile costumes and the significant interest in this
issue, CBP believes notice to the public of the reversal of this
decision of the CIT is warranted. CBP will take no action on entries
subject to this case until the appeal period has run. See 19 CFR
176.31(b).
Dated: November 7, 2003.
Michael T. Schmitz,
Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 03-28409 Filed 11-12-03; 8:45 am]
BILLING CODE 4820-02-P