Gerson Company v. United States
Gerson Company v. United States, 898 F.3d 1232 (2018)
Winning Party
United States
Key Issue
Tariff Classification Dispute
Case Type
CIVIL
Facts
•
Gerson argued the candles should be classified under subheading 8543.70.70, which imposes a 2% ad valorem duty rate.
•
U.S. Customs and Border Protection classified the candles under HTSUS subheading 9405.40.80, which imposes a 3.9% ad valorem duty rate.
•
Unlike ordinary candles, Gerson’s candles use battery-operated LEDs.
•
The imported merchandise consists of finished decorative candle and tea light lamps made of plastic and/or wax.
•
Gerson’s candles serve both decorative and illuminative functions.
•
The Gerson Company imported LED candles.
•
The lamps are designed to resemble ordinary candles, such as votive, pillar, taper, or tea light candles.
Explore this Case with AI
Ask about this case, find precedent, analyze legal issues, or draft provisions. Powered by all precedential U.S. cases (10M+)
No credit card required
Key Holdings
•
Gerson’s LED candles are properly classified under HTSUS subheading 9405.40.80, covering “[l]amps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included.”
Citations
Gerson Company v. United States, 898 F.3d 1232 (2018)
Legal Reasoning
The court reasoned that heading 9405 covers lamps not elsewhere specified or included, while heading 8543 covers electrical machines and apparatus not specified or included elsewhere in that chapter. The court found that Gerson's candles are finished, standalone electric lamps used in the home, which are more akin to the lamps described in chapter 94 than the unfinished lamps used in conjunction with other electrical equipment described in chapter 85. The court also noted that classifying Gerson's candles under heading 8543 would unduly narrow the scope of heading 9405 and effectively remove electric searchlights and spotlights from heading 9405, even though those devices are expressly provided for in that heading.
Outcome
The Federal Circuit affirmed the Trade Court's decision, holding that Gerson's LED candles are properly classified under HTSUS subheading 9405.40.80.
Want to Learn More About StrongSuit?
StrongSuit has advanced legal AI tools for deep insights & comprehensive analysis
No credit card required
Copyright 2026 StrongSuit AI, Inc. | All Rights Reserved