On October 31, 2017, Mark A. Barnett, issued his opinion in RUBIES COSTUME CO., Plaintiff, v. UNITED STATES, Defendant. (See Customs Bulletin Vol. 51 No. 46. pages 69-96.)
"In this case, the court addresses the issue of the proper classification of a Santa Claus costume. Is it a 'festive article' entitled to duty free treatment, or is it fancy dress, of textile, akin to wearing apparel, dutiable at the rates applicable to the particular parts of the costume? Application of classification principles in this case (the General Rules of Interpretation, which direct the court to apply the terms of the Harmonized Tariff Schedule, and relevant judicial precedent) leads to a finding that, while flimsy and non-durable costumes (whether for Halloween, Christmas, or any other holiday) generally receive duty free treatment as festive articles, and non-flimsy, durable Christmas sweaters may also receive duty free treatment as festive articles (because they are not fancy dress), a relatively well-made, durable, dry clean only Santa Claus costume constitutes fancy dress, of textile, and is, therefore, excluded from classification as a festive article."
There is quite a bit at stake in this case, as Rubie's suggested classification would have resulted in zero import duty, while the court's opinion, if it stands, will result in import duties as high as 32%.
Rubie Costume and the U.S. government have been arguing over classification of Hallowe'en and other seasonal costumes for at least 20 years. Clients of Agathon Associates can read more at http://www.agathonassociates.com/textile-pri/festive-articles/index.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.
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