Recent Court Decisions Affecting International Trade
CAFC reverses CIT & rules that certain hardwood flooring is plywood.In Boen Hardwood Flooring, Inc. v. U.S., the Court of Appeals for the Federal Circuit (CAFC) ruled that certain hardwood flooring, which consists of laminated floor panels that are composed of three layers, is classifiable under HTS 4412.29 as other plywood.
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The CAFC cited several definitions of plywood and determined that there are three common characteristics in each of the definitions: (1) there must be at least three layers, (2) each layer must be arranged at a right angle to its adjacent layer, and (3) the layers must be bonded together. Taking into account these definitions the CAFC determined that the hardwood flooring at issue is in fact plywood, as "plywood" encompasses a product whose middle layer is composed of slats or strips with minor spacing between them.
As a result, the CAFC reversed the Court of International Trade's (CIT's) finding that the hardwood flooring should be classified under HTS 4412.29.50 as veneered panels. (See ITT's Online Archives or 01/14/03 news, 03011425, for BP summary of the CIT's decision.) (CAFC No. 03-1287, dated 02/02/04, available at http://www.fedcir.gov/opinions/03-1287.doc)
CIT Rules Against Customs' Classification of Certain Animal-Feed Additives.In Vanetta U.S.A. Incorporated v. U.S., the Court of International Trade (CIT) examined the classification of menadione sodium bisulfite, menadione sodium bisulfite complex, menadione dimethylpyrimidinol bisulfite, and menadione nicotinamide bisulfite (animal feed additives which after ingestion converts their menadione component to a form of vitamin K2, specially, K2(20)).
According to the CIT, these products are not natural vitamins or natural provitamins, nor can the CIT find that they are reproduced by synthesis of natural vitamins or natural provitamins. In determining the appropriate classification for these items, the CIT examined three subheadings, HTS 2936.10, 2936.21 and 2936.90, and concluded that the additives should be classified in HTS 2936.90.00 (1994) in accordance with Headnote 3 to Chapter 29, which states that goods which could be included in two or more of the headings of the Chapter are to be classified in the heading which occurs last in numerical order. (Slip Op. 04-8, dated 01/29/04, available at http://www.cit.uscourts.gov/slip_op/Slip_op04/slip-Op04-8.pdf)