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

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