Episode: 403

In this holiday special, Andy and Lalo sit down with Hal Berman (TradeInside AI) to unpack the tricky — and often surprising — rules for classifying festive and holiday goods under the HTSUS. Hal walks us through the three-part “festive article” test used by Customs: (1) used to celebrate a holiday, (2) recognizably unique to that holiday, and (3) not usable for a non-holiday purpose. We discuss everything from ugly Christmas sweaters and branded promotional mugs to Halloween costumes, tamales, tote bags, toy ornaments, and novelty items like frozen-turkey-bowling (yes, really). The episode also covers practical steps importers and compliance teams should take to avoid costly mis-classifications and how AI is already helping speed up large SKU reviews — while reminding listeners that 10-digit HTS validation still needs a human-in-the-loop.

Three-part test for 9505 (festive articles): celebration use + recognizable holiday motif + non-utilitarian.

Chapter 95 items can enjoy unconditional duty-free treatment when they meet the test — a major cost difference vs. usual tariffs.

Not everything with a holiday motif is 9505 — jewelry, mugs, durable tote bags, and many toys are classified elsewhere under regular headings (and GRI-1 applies).

AI helps scale reviews (flag likely festive vs. non-festive) but human review remains required when filing and for 10-digit HTS submission.

Practical advice: build a robust classification workflow, document intended use, and be conservative when descriptions are ambiguous.

Refunds / litigation note: discussion about ongoing litigation and refund strategies (e.g., Costco case) — watch for rulings and plan for data-level readiness.

(embedded links for quick access)

TradeInsight AI — Hal’s company / classification resource.

Harmonized Tariff Schedule (HTSUS) — primary tariff schedule & search. (Harmonized Tariff Schedule)

Global Training Center

CBP / Rulings / Classification guidance — useful for checking rulings and prior decisions.

Example case references & historical notes on festive classification (referenced in ep): judicial and CIT rulings, and WCO explanatory notes (see HTS/CIT rulings and customs rulings database).

(Optional) Want to dig deeper into classification law? USITC HTS info and HTS user guides are very helpful. (USITC)

Hosts: Andy Shiles — LinkedIn. (linkedin.com)

Guest: Hal Berman — LinkedIn. (linkedin.com)

Produced by: Global Training Center

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