Proposed Revocation of One Ruling Letter and Proposed Revocation of Treatment Relating to The Tariff Classification of Inflatable Olaf Figure with Holly Berry Motif

In Custum Bulletin Vol. 57, No. 19, beginning on page 7, Proposed Revocation of One Ruling Letter and Proposed Revocation of Treatment Relating to The Tariff Classification of Inflatable Olaf Figure with Holly Berry Motif.

In NY N325599, CBP classified an inflatable lawn ornament in the form of Olaf that has a stocking hat and a snowflake pattern scarf that has three holly leaves and three red berries on it in subheading 6307.90.98, HTSUS. The lawn ornament is marketed and used as a lawn decoration used for decoration for the Christmas holiday season.

CBP has reviewed NY N325599, and has determined the ruling letter is in error. CBP now proposes to classify the lawn ornament in NY N325599 in subheading 9505.10.40, HTSUS, which provides for “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof: Other: Of plastics.”

Through the years there have been several rulings, reversals of rulings, and even litigation around the question of when is merchandise a textile article, typically subject to import duty, or a "festive article," typically duty-free. It is unusual for CBP to reverse a ruling that imposed the textile tariff.