DOJ, Importer Settle Customs Cases on Classification of Fake Fignernails

The U.S. and importer Pacific World reached a settlement regarding the classification of artificial nails, Michael Roll, counsel for the importer, confirmed to Trade Law Daily. The settlement led to the dismissal of 15 cases at the Court of International Trade that were suspended pending resolution of a test case, also brought by Pacific World, which was resolved in 2016.

Pacific World sought to classify the goods under Harmonized Tariff Schedule subheading 3304.30.0000 as manicure prep parts, free of duty, while the U.S. said the proper home was HTS subheading 3926.40.0000, dutiable at 5.3%, which covers articles of plastic. Roll said that the importer received some money back for the imports, but that the scrap over the remaining suspended cases following resolution of the test case was a slog due to the thousands of different nail parts at issue.

Roll added that following these cases there remain "open questions on whether Customs still thinks today" the goods should be classified under HTS heading 3926 or 3304 (Pacific World Corp. v. United States, CIT #08-00151, -00152, -00437, 09-00047, -00048, -00049, -00167, -00168, -00169, -00466, 10-00128, -00314, 11-00290, 13-00342, 14-00186).