Court of International Trade Decisions
CIT Rules in Favor of CBP's Classification of Frozen, Unbaked Danish. In Schulstad USA, Inc. v. U.S., the Court of International Trade (CIT) ruled in favor of the U.S. Customs and Border Protection (CBP) finding that certain frozen, unbaked danish products were properly classified under HTS 1901.90.90 (6.4%) as other food preparations of flour, etc., not elsewhere specified or included.
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The plaintiff had contended that the frozen, unbaked danish should have been classified under HTS 1905.90.1041 (duty-free) as other frozen pastries, cakes and similar sweet baked products; puddings. Among other considerations, the plaintiff argued that the words "and similar baked articles" do not exclude unbaked pastries.
The CIT stated that while the frozen, unbaked danish enter the U.S. possessed of all their essential ingredients, it is the last step of baking which imparts the essential character of the danish, and that the frozen, unbaked danish cannot be classified with baked articles if it has not been baked before freezing. As a result, the CIT entered judgment in favor of the U.S. (Slip Op. 02-144, decided 12/09/02, available at http://www.cit.uscourts.gov/slip_op/Slip_op02/slip-op02-144.pdf)
CIT Determines Certain Stainless Steel Scrap is Not Eligible for TSUS 806.30. In Washington International Insurance Co. v. U.S., the CIT denied the plaintiff's claims for Tariff Schedules of the U.S. (TSUS) 806.30 duty benefits for imports of stainless steel sheets, plates and strips (stainless steel) produced overseas from scrap prepared in the U.S.
According to the litigants, the crux of this controversy is whether or not the scrap was 'manufactured' in the U.S. or subjected to a 'process of manufacture' in the U.S., within the meaning of TSUS 806.30 and that all other conditions of that tariff number were met.
The CIT found that the unaltered facts are that scraps of stainless steel entered the scrap yards and scraps of stainless steel exited those premises, without a 'process of manufacture' occurring as required by TSUS 806.30. (Slip Op. 03-100, decided 08/08/03, available at http://www.cit.uscourts.gov/slip_op/Slip_op03/slip-op100.pdf)