Lerner New York, CBP Settle Customs Spat Over Ladies' Knitted Tops

CBP and Lerner New York reached a settlement over the proper classification of two types of ladies' knitted tops. Filing a stipulated judgment on an agreed statement of facts at the Court of International Trade Aug. 1, the parties settled on a Harmonized Tariff Schedule subheading for the tops, dropping the duty rate from 17% to 10.9%. The dispute concerned ladies' knitted tops of over 90% cotton and less than 10% spandex with a built-in shelf bra and ladies' knitted tops of manmade fibers with a built-in shelf bra (Lerner New York v. U.S., CIT #05-00412).

CBP liquidated the tops under subheading 6109.10.00, which provides for "T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton," dutiable at 17%. Lerner and CBP agreed to reliquidate the tops under subheading 6114.20.00, which provides for "Other garments, knitted or crocheted: Of cotton," dutiable at 10.9%. CBP said it would pay all refunds with interest. The case was originally filed in 2005.