Holiday Classification Madness: Christmas, Costumes & Chapter 95 with Hal Berman

Episode: 403
Hosts: Andy Shiles — LinkedIn. & Lalo Solorzano — LinkedIn. (linkedin.com)
Guest(s): Hal Berman — LinkedIn. (linkedin.com)
Published: November/December 2025
Length: ~44 minutes
Presented by: Global Training Center

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🧾 Festive Classifications: When Is That Ornament Really a “Holiday” Item?

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.

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🗝️ Key Takeaways

• 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.

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🎯 Resources & Mentions

(embedded links for quick access)

• TradeInsight AI — Hal’s company / classification resource.

• Harmonized Tariff Schedule (HTSUS) — primary tariff schedule & search. (Harmonized Tariff Schedule)
  https://hts.usitc.gov/

• Global Training Center

• CBP / Rulings / Classification guidance — useful for checking rulings and prior decisions.
  https://www.cbp.gov/

• 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).
  https://rulings.cbp.gov/

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

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📌 Credits

• Hosts: Andy Shiles — LinkedIn. (linkedin.com)
  Lalo Solorzano — LinkedIn. (linkedin.com)

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

• Produced by: Global Training Center

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