New York-- The U.S. Court of International Trade ("CIT") decided in May 2001 that certain table linens were within the scope of the term "festive articles" for the purposes of classification under the Harmonized Tariff System of the Unites States. According to Meeks & Sheppard, HFPA Counsel, the case was brought by Park B. Smith, Ltd., who requested that the table linens be classified under various subheadings under HTS heading 9505, which provides for duty free treatment.

The court's decision broadens Customs' current definition of "festive articles" and may be appealed on a number of grounds by Customs. Companies that import, or plan to import, home fashion articles associated with a particular holiday or festive occasion should carefully review their classifications to determine the opportunities for duty free treatment.

The judge in the case determined that certain dhurries, placemats, napkins and table runners were closely associated with a festive occasion, were displayed and used by the consumer only during the festive occasion, and the design styles incorporated "festive symbols and color schemes." For example, the court held that the linens with a red and green color scheme (and no other colors) are closely associated with Christmas and are entitled to be entered duty free as festive articles.