CSMS Message: 02-000408

DATE: 03/21/2002
AMENDED AMENDED AMENDED AMENDED

TO: DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS

SUBJECT: QBT-2002-010-002 - TBT-02-009-02 CLARIFICATION
OF GRACE PERIOD ON EXPORT VISA AND QUOTA
REQUIREMENTS FOR CERTAIN TEXTILE COSTUMES

REF: QBT-2002-010 - TBT-02-009

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 MARCH 18,
2002, A GRACE PERIOD HAS NOW BEEN EXTENDED EFFECTIVE MARCH 22,
2001, TO ALLOW ENTRY FOR CERTAIN COSTUMES WHICH WOULD BE SUBJECT
TO VISA AND QUOTA REQUIREMENTS WITHOUT MEETING THESE
REQUIREMENTS FOR AN ADDITIONAL TIME PERIOD. COSTUMES FORMERLY
CLASSIFIED UNDER 9505 THAT ARE NOW CLASSIFIED UNDER CHAPTERS 61
AND 62 EXPORTED PRIOR TO JUNE 1, 2002, AND ENTERED INTO THE U.S.
PRIOR TO AUGUST 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 AUGUST 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 THIS
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 AUGUST 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 QUOTA REPORTING FOR
THESE 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