CSMS Message: 02-000370

TO : ALL ABI BROKERS.
FROM : CHERIE B ZZ-PARSONS

SUBJECT : RUBIE

DATE : 03/13/2002

CMP-1 FO:TP:TEO:TO CP

MARCH 11, 2002

TO: DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS

SUBJECT: QBT-2002-010-01 - TBT- 02-009-01 CLARIFICATION OF
GRACE PERIOD ON EXPORT VISA AND QUOTA
REQUIREMENTS FOR CERTAIN TEXTILE COSTUMES

BACKGROUND:

ON FEBRUARY 19, 2002, THE COURT OF INTERNATIONAL TRADE (CIT)
ISSUED A DECISION IN RUBIE'S COSTUME COMPANY V. UNITED STATES
WHICH HELD THAT CERTAIN IMPORTED COSTUMES ARE CLASSIFIABLE AS
WEARING APPAREL UNDER CHAPTER 61 OR CHAPTER 62 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). THIS DOCUMENT PROVIDES NOTICE OF THE COURT
DECISION AND INFORMS THE PUBLIC THAT IMPORTED TEXTILE COSTUMES
OF THE CHARACTER COVERED BY THE CUSTOMS DECISION PUBLISHED IN
THE FEDERAL REGISTER ON DECEMBER 4, 1998, WILL BE SUBJECT TO
CLASSIFICATION AND ASSESSMENT OF DUTY IN ACCORDANCE WITH THE CIT
DECISION. IN THE DECISION, CERTAIN COSTUMES PREVIOUSLY
CLASSIFIED UNDER HEADING 9505 ARE NOW TO BE CLASSIFIED UNDER
CHAPTERS 61 AND 62 AND ARE SUBJECT TO APPLICABLE VISA QUOTA
REQUIREMENTS. THERE IS NO CHANGE FOR THOSE COSTUMES NORMALLY
CLASSIFIED UNDER CHAPTERS 61 AND 62.

ACTION:

PURSUANT TO A DIRECTIVE ISSUED BY THE COMMITTEE FOR THE
IMPLEMENTATION OF TEXTILE AGREEMENTS (CITA) DATED FEBRUARY 28,
2002, A GRACE PERIOD HAS BEEN ESTABLISHED TO ALLOW ENTRY FOR
CERTAIN COSTUMES WHICH WOULD BE SUBJECT TO VISA AND QUOTA
REQUIREMENTS WITHOUT MEETING THESE REQUIREMENTS FOR A LIMITED
TIME PERIOD. COSTUMES FORMERLY CLASSIFIED UNDER 9505 THAT ARE
NOW CLASSIFIED UNDER CHAPTERS 61 AND 62 EXPORTED PRIOR TO APRIL
1, 2002, AND ENTERED INTO THE U.S. PRIOR TO JUNE 1, 2002, WILL
NOT BE SUBJECT TO VISA QUOTA REQUIREMENTS. IN ADDITION, IT
SHOULD BE NOTED ALL ITEMS CONTAINED IN A COSTUME SET FORMERLY
CLASSIFIED UNDER 9505 AND NOW CLASSIFIED IN CHAPTER 61 OR
CHAPTER 62 BASED ON GRI 3 (B) ARE ALSO EXEMPT FROM VISA
REQUIREMENTS AND QUOTA DURING THE GRACE PERIOD. THUS, SUCH A
COSTUME SET CONTAINING AN ITEM OF APPAREL THAT WOULD NOT BE
CLASSIFIED UNDER CHAPTER 61 OR 62 (I.E. HEADWEAR OF CHAPTER 65)
WOULD STILL BE EXEMPT OF VISA REQUIREMENTS AND QUOTA. THIS GRACE
PERIOD DOES NOT AFFECT COSTUMES OR COSTUME SETS THAT WERE
PREVIOUSLY CLASSIFIED UNDER CHAPTER 61 AND 62. THESE GOODS IF
CLASSIFIED IN CHAPTER 61 OR CHAPTER 62 ARE STILL SUBJECT TO ANY
APPLICABLE VISA QUOTA REQUIREMENTS. ALL COSTUME APPAREL ENTERED
AFTER JUNE 1, 2002, WILL BE SUBJECT TO THE REQUIRED VISA QUOTA
REQUIREMENTS.

FOR MERCHANDISE COVERED BY THIS DECISION, THE FILER MUST FILE A
NON-ABI ENTRY SUMMARY USING ENTRY TYPE CODE "01" DURING THE
60-DAY GRACE PERIOD. IF VISA QUOTA MERCHANDISE IS MIXED WITH
COSTUMES SUBJECT TO THIS DECISION, THE FILER MUST MAKE SEPARATE
ENTRIES, AN ENTRY TYPE 01 FOR THE MERCHANDISE THAT CONTAINS
COSTUMES EXEMPT FROM VISA QUOTA REQUIREMENTS AND AN ENTRY TYPE
02 FOR THE MERCHANDISE THAT IS SUBJECT TO VISA QUOTA
REQUIREMENTS. THIS PROCEDURE WILL BE IN EFFECT UNTIL JUNE 1, 2002.

INFORMATION:

PLEASE PASS THIS INFORMATION TO PORT DIRECTORS, ASSISTANT PORT
DIRECTORS, IMPORT SPECIALISTS, INSPECTORS, ENTRY SPECIALISTS,
BROKERS AND IMPORTERS.

IF THERE ARE ANY QUESTIONS OR PROBLEMS WITH THE FILING OF
ENTRIES, PLEASE CONTACT THE QUOTA BRANCH AT (202) 927-5850.

IF THERE ARE ANY QUESTION ON THE SCOPE OF THE COVERAGE BASED ON
THE COURT DECISION, PLEASE CONTACT REBECCA HOLLAWAY, OFFICE OF
REGULATIONS AND RULINGS, (202) 927-2394.

IF THERE ARE ANY QUESTIONS ON OPERATIONAL ISSUES, PLEASE CONTACT
CHERIE PARSONS AT (202) 927-7002 OR ROBERT ABELS AT (202)
927-1959.

\S\ JANET L. LABUDA FOR
ELIZABETH G. DURANT

CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS
OFFICE OF REGULATIONS AND RULINGS, TEXTILE BRANCH