Santa Claus suits imported by Rubies Costume Company are classifiable in the tariff schedule as wearing apparel, not festive articles, the Court of International Trade said in an Oct. 31 decision. Though they may be festive articles because they are used only during the Christmas season, the Santa Claus suits are “fancy dress” excluded from duty free classification in Chapter 95 because they are durable items that will survive multiple wearings and cleanings, CIT said.
Court of International Trade
The United States Court of International Trade is a federal court which has national jurisdiction over civil actions regarding the customs and international trade laws of the United States. The Court was established under Article III of the Constitution by the Customs Courts Act of 1980. The Court consists of nine judges appointed by the President and confirmed by the Senate and is located in New York City. The Court has jurisdiction throughout the United States and has exclusive jurisdictional authority to decide civil action pertaining to international trade against the United States or entities representing the United States.
The following lawsuits were filed at the Court of International Trade during the week of Oct. 23-29:
Increased Customs Enforcement, More AD/CVD Cases Increasing Workload at Understaffed CIT, Judge Says
The Court of International Trade is dealing with an increased case load, in part because of the executive branch’s newfound emphasis on trade enforcement, CIT Judge Leo Gordon said at an event hosted by the Case Western Reserve University law school on Oct. 27. The trade court is “seeing an uptick in the number of civil penalty and enforcement cases that are being brought at the court,” which, combined with an ever-increasing number of antidumping and countervailing duty orders, is putting a strain on the court’s resources, Gordon said.
Mario Toscano has been appointed clerk of the Court of International Trade, CIT confirmed in an email. Toscano had been “acting” clerk since July (see 1707170015), after Tina Potuto Kimble left the position (see 1705250022). Toscano was previously chief deputy clerk.
The Court of International Trade's Rules Advisory Committee is considering a "format" for transmitting business proprietary information from CBP to CIT related to Enforce and Protect Act (EAPA) investigations, said Justin Miller, Justice Department senior trial counsel, during a panel discussion at an Oct. 27 Case Western Reserve University Law School event on enforcement of customs laws. "Some of the items they've discussed is something similar to what we would see in an AD/CV proceeding," Miller said. There's been some concern about the treatment of confidential information within an EAPA proceeding (see 1703100012).
The following lawsuits were filed at the Court of International Trade during the week of Oct. 16-22:
Fiber optic telecommunications network equipment is classifiable as optical instruments of chapter 90 of the Harmonized Tariff Schedule of the United States (HTSUS), the Court of International Trade said in an Oct. 18 decision. ADC Telecommunications argued CBP should have classified its “value added modules” as data transmission equipment in a duty fee provision of heading 8517. But CIT held that optical equipment includes fiber optic cables that transmit non-visible light, confirming CBP’s liquidation as “other optical appliances and instruments” in heading 9013.
The following lawsuits were filed at the Court of International Trade during the week of Oct. 9-15:
Sterling Footwear is liable for gross negligence related to unpaid customs duties due to misclassification on hundreds of footwear entries, the Court of International Trade ruled in a Oct. 12 decision. CIT Judge Mark Barnett specifically avoided a decision on the liability of Sterling's CEO and majority shareholder, Alex Ng. The Justice Department sought a summary judgment on Ng's culpability but because some of the facts involved remain in dispute, Barnett didn't decide that issue.
The Court of International Trade on Oct. 10 ordered a now-defunct Florida importer to pay more than $130,000 in penalties and unpaid duties for misclassification and undervaluation of its dairy products. Chavez Import & Export (CIE), which was dissolved in 2008, misclassified its “soft dairy express” and “white cheese,” resulting in underpayment of AD duties, and declared duty preferences under the Caribbean Basin Economic Recovery Act (CBERA) despite preferences not being available under the correct classification, CIT said. The company also undervalued some entries so they could be processed as informal without surety bonds, and “did not provide meaningful descriptions of the products” on entry documentation. CIE did not defend itself in the case, so CIT automatically took the government’s allegations as true and found CIE committed negligent violations of 19 USC 1592. CIT had already ordered the company’s vice president, Juan Chavez, to pay a penalty in 2016 for the same violations (see 1603280014).