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DOJ, Flowers Exporter Mostly Agree to Product Styles Under HTS Subheading in Customs Case

Canadian botanical goods exporter Second Nature Designs reached an agreement with the Department of Justice on 835 product styles that fall within the Harmonized Tariff Schedule subheading under dispute in a customs case brought by the importer in the Court of International Trade. According to a May 5 joint status report, the two parties agreed to the product styles under HTS subheading 0604.90.3000 for "foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared: Other: dried or bleached," but the sides have more styles in dispute.

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Second Nature Designs initially brought the case in a 2017 complaint disputing the classification of its dried or bleached botanicals. More styles could be under the subheading in dispute because CBP still has other styles for which it is "seeking internal government authorization to assert counterclaims [for underpaid duties] regarding the appropriate classification for these styles." Where the parties continue to differ, though, is on the question of CBP's intent to further depose Second Nature Designs on the complete universe of subject styles at issue in the case. Second Nature argues that CBP will require leave of the court to hold a further deposition. The next joint status report is required by May 19.