On June 14, 2010, CIT Judge Richard K. Eaton entered final judgments in three cases involving classification of certain lyocell garments imported by Quiksilver Inc. As part of a settlement agreement, the US Government will pay over US$160,000 in refunds to end the dispute. For its part, Quiksilver agreed not to challenge the classification of lyocell imports in further trade proceedings.  

On June 15, 2010, Liz Claiborne settled one of its cases at the CIT against the US Government regarding the classification of garments made with lyocell. Liz Claiborne challenged CBP’s classification of lyocell as an artificial fiber, which resulted in duty rates ranging from 16.5 percent to 29.9 percent. Instead, the retailer argued, the proper classification should have been within a range from 2.9 percent to 7.6 percent. Under the terms of the settlement agreement, the US Government agreed to pay Liz Claiborne $190,700.41, and in exchange Liz Claiborne agreed not to challenge the classification of lyocell in further trade proceedings.  

For more information about a previous settlement between Liz Claiborne and the US Government over lyocell garments, please see the February 2010 issue of this newsletter.