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Potential Duty Refunds
January 30, 2007

POTENTIAL REFUNDS ON POSSIBLE DISCRIMINATORY CLASSIFICATIONS

A case recently filed at the U.S. Court of International Trade (CIT) regarding the constitutionality of gender-based duty rates may require the U.S. Customs & Border Protection (CBP) to refund duties paid on a host of imported merchandise.

The case involves imports of men’s leather gloves, which are subject to a 14% ad valorem duty. However, similar gloves imported for persons other than men, i.e., children or women, are subject to an ad valorem duty rate of only 12.6%. The plaintiff alleges that different duty rates, based on gender and age, violate the U.S. Constitution’s Fifth and Fourteenth Amendments guaranteeing equal protection for all. As such, the plaintiff asks the CIT to find that the duty rates are null and void, and to order that CBP refund the entire amount paid, with interest.

Aside from leather gloves, many other products in the apparel and footwear categories (e.g. coats, capes, anoraks, etc.; suits, tracksuits, jackets, blazers, trousers, etc.; pajamas, robes; certain lingerie; swimwear; certain footwear; women’s hat forms) have different duties depending on the gender and age of the end user. Duties on these products may equally be subject to refunds in the event of a favorable outcome to the case.

Importers seeking to preserve their rights to any future potential refunds must file a protective summons at the CIT.