Hudson Jeans excused from increased tax tariff in the UK

British fans of Los Angeles brand Hudson Jeans may

soon be paying less for their made in USA denim jeans, as Hudson Clothing LLC won a ruling this week from the UK's customs and tax department which exempts its women's blue jeans from a 200 percent European tariff increase that was imposed last spring.

Sandler, Travis & Rosenberg, the firm who represented Hudson, stated that the EU tariff that upped the tax on women denim pants made in the USA from 12 percent to 38 percent should not have been applicable to Hudson Jeans. Elise Shibles, the representative attorney from Sandler, Travis & Rosenberg argued that the blue jeans made by Hudson fall under a tariff provision that is not part of the increased tax procurement.

Shibles explains her argument in a press release sent out today: “We were able to convince Her Majesty’s Revenue and Customs that the jeans should fall under the tariff classification for cotton women’s trousers other than denim or corduroy and, as such, should be exempt from the increased tariff. Hudson jeans are definitely made of denim as the term is used in the apparel industry but they don’t fall within the legal definition of denim within the Harmonized Tariff Schedule. They are properly classified in the EU under Tariff Code 6204.62.3990, which means they are not the type of garments subject to the tax hike.”

The ruling could foreshadow following cases for other manufacturers whose imports into the European Union were imposed with the 38 percent retaliatory tax rate. Tom Travis, ST&R managing partner believes that the UK ruling is “a step in the right direction” against the retaliation tariffs imposed by the European Union's last spring.

Last spring, US-based blue denim manufacturers were shocked by the European Union's ruling to raise tariffs on selected US made items, which included high end women's denim jeans made in renewed Californian garment factories, effective from May 1st 2013. Travis adds that the company is currently “working with Hudson and other west coast blue jeans companies to seek refunds for overpayment of taxes and obtain rulings on other items that should have been exempt from the tax all along.”