A recent ruling by UK's customs and tax department could pave the way for US-made high-end women's denim jeans to avoid a tariff hike imposed by the European Union (EU) earlier this year. This ruling applies to all 28 EU member states, which will be required to accept the alternative classification of the jeans. The UK's ruling is currently only binding to Hudson Clothing and women's jeans of chief weight cotton, 3-thread or 4-thread warp faced twill made of true indigo fugitive (not colourfast) dye in the warp and filling yarns unbleached, bleached, dyed grey or coloured a lighter shade of the colour of the warp yarns.

The 200 per cent hike saw tariffs on women's or girls' cotton denim trousers jump from 12 per cent to 38 per cent from May 1. However, the EU has now conceded that while the jeans in question are made of denim as the term is used in the apparel industry, they fall under a tariff provision not covered by the increased tax.

The duty rate hike on jeans and other US exports was authorised by the World Trade Organization (WTO) in retaliation for US failure to fully comply with a ruling against the Continued Dumping and Subsidy Offset Act of 2000.