The Court of International Trade ruled Aug. 13 that seven models of imported string lights are properly classified as lighting sets of a kind used for Christmas trees under HTSUS 9405.30.00 (8 percent duty).
This case involves 162 LED lamp products across seven categories, including string lights, candles, table lamps, and artificial Christmas trees. All of the products at issue emit light via an LED light source and all are used for utilitarian or decorative illumination in or around the home. The products are either solar-powered, battery-powered, and/or powered through an external power source by use of a wire with an electrical power connector.
The importer argued that these products should be classified under (1) HTSUS 8543.70.70 (2 percent duty), which pertains to electrical machines and apparatus with individual functions, because the string lights are electrical devices with distinct functions, or (2) HTSUS 8539.50 (duty-free), which provides for electric filament or discharge lamps, including LED lamps, because amendments to this heading in 2017 expanded its scope to include self-contained, independently-functioning LED lighting products.
The U.S. government countered that the subject goods are decorative lighting sets suitable for household use and thus fall squarely within HTSUS heading 9405. The government emphasized that heading 8543 was not intended to cover all electric lamps simply because they use electricity and instead applies to machines and apparatus designed to carry out specific functions, not general-purpose lighting. The government also argued that the amendments to heading 8539 did not alter the scope to include decorative string lights, which are more appropriately classified under heading 9405.
The CIT sided with the government, citing precedent from the Court of Appeals for the Federal Circuit’s decision in Gerson Co. v. United States, which clarified that heading 8543 should not be interpreted so broadly as to encompass every electric lamp. The CIT added that heading 9405 includes lamps that are independently used, suitable for household use, and decorative in nature, criteria that the subject string lights met.
The importer also attempted to reclassify the string lights under HTSUS 9405.40.80, which covers other electric lamps, rather than HTSUS 9405.30.00, which is reserved for lighting sets of a kind used for Christmas trees. The importer argued that its products were corded in non-traditional colors and came in lengths unsuitable for tree decoration. However, the CIT found that the importer failed to provide sufficient evidence to show that the lights were not principally used for Christmas trees, noting among other things that the importer’s own witness was unable to clearly distinguish between string lights intended for Christmas trees and those used for other purposes.
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