On August 9, 2010, the parties to the CIT case, Berwick Industries Inc. v. the United States, entered into a joint stipulated judgment in which CBP acknowledged that it misclassified decorative bows that were imported into the United States from China from September to December 1997. When the bows were imported, CBP classified them as “other articles of plastic” under HTSUS heading 3926 and “other made-up textile articles” under HTSUS heading 6307, and assessed duties at rates of 5.3 percent and 7 percent ad valorem, respectively.

CBP acknowledged that the bows were “sufficiently associated with a particular holiday” and should have received duty-free treatment as part of their proper classification under HTSUS heading 9505. As part of the stipulated judgment, CBP agreed to refund duties on the bows, with interest.