The U.S. Court of Appeals for the Federal Circuit on Nov. 20 affirmed a lower court decision on the classification of Roche Vitamin’s BetaTab beta-carotene mixture as a provitamin, rather than as a food preparation (here). The government had appealed the Court of International Trade’s June 2013 ruling (see 13062701), arguing that stabilizers added to the mixture precluded classification as general provitamins because they made the mixture more suitable for a specific use. The Federal Circuit took issue with CIT’s interpretation of the applicable tariff provision, but nonetheless found nothing was added to the mixture that changed the beta-carotene’s suitability for general use.
The U.S. Court of Appeals for the Federal Circuit affirmed on Nov. 18 a lower court decision classifying the hybrid packaging material used in U.S. Army “Meals Ready to Eat” (MREs) as plastic, and not aluminum foil (here). Following in the footsteps of the Court of International Trade, the Appeals Court found Alcan Food Packaging’s “Flexalcon” material to have the essential character of plastic, notwithstanding its inclusion of an aluminum foil layer.
International Trade Today is providing readers with some of the top stories for Oct. 14-17 in case they were missed.
The U.S. Court of Appeals for the Federal Circuit on Oct. 16 ruled that “shelf-top camisoles” with bust support features are not classifiable as “similar articles” to brassieres, affirming two Court of International Trade decisions. CAFC found that covering features of the shelf-top camisoles mean they are not "similar" to bras, and have to be classified in a residual tariff provision. At issue in the case was not only the tariff classification of textiles, but also the proper interpretation of the phrase “and similar articles” in the HTS. Circuit Judge Jimmie Reyna dissented, arguing that the majority’s interpretation of “similar articles” will “create unnecessary confusion in future classification cases and a high degree of unpredictability in the marketplace.”
The Court of International Trade on Oct. 6 again rejected a new framework from the Commerce Department for conducting antidumping and countervailing duty scope rulings on products included in “mixed media” sets. Tasked by the U. S. Court of Appeals for the Federal Circuit in 2013 with setting out criteria for deciding whether nails included in a tool set imported by Target should be subject to the AD duty order on steel nails from China, Commerce came up with a four-part test that failed to comply with CAFC’s order, said the trade court.
Coil rod used for casting and moving precast concrete sections is not covered by the antidumping duty order on steel threaded rod from China (A-570-932), ruled the U.S. Court of Appeals for the Federal Circuit Sept. 22 as it reversed a Commerce Department scope ruling. The court found that steel coil rod imported by A.L. Patterson meets the physical description of the scope in some respects, but is sold through different channels and was not covered by the original dumping and injury investigations.
The Court of Appeals for the Federal Circuit affirmed a Court of International Trade ruling in Trek Leather that said corporate officers can be liable for negligent misstatements on entry documentation in a Sept. 16 decision. The ruling marks an apparent change of heart for the CAFC, which reviewed the question of corporate officer liability in the case as part of an en banc rehearing (see 14030601). The Appeals Court previously ruled against the CIT and found that Trek Leather's owner, Harish Shadadpuri, was not liable for his company’s undervaluation of entries of men’s suits (see 13073025). Customs lawyers said the case should be the source of serious concern for corporate compliance executives who may face new risk as a result of the finding.
Importers of goods subject to antidumping duties from non-market economy countries like China and Vietnam must pay at the exporter’s rate, and not the producer’s, said the U.S. Court of Appeals for the Federal Circuit on Sept. 10 as it affirmed a lower court ruling. Contrary to the situation in market economy countries, where many exporters aren’t assigned a rate and importers can therefore enter merchandise at the producer’s rate, in NME countries all companies get a rate, even if it’s as part of the China- or Vietnam-wide entity. Because Commerce prefers exporter rates to producer rates, those China- or Vietnam-wide exporter rates must be used, said CAFC.
Importers will no longer be able to use protests to claim duty preferences under free trade agreements and trade preference programs after liquidation, said CBP in a letter to ports dated Aug. 11. Instead, importers will only be able to claim duty preferences after importation through 1520(d) post-importation claims for some FTAs, and by filing post-summary corrections (PSCs) or post-entry amendments (PEAs) for all others, including preference programs like the African Growth and Opportunity Act (AGOA) and Generalized System of Preferences (GSP). CBP is making the policy change to comply with recent court decisions, it said.
Use can be considered when interpreting “eo nomine” tariff provisions, said the U.S. Court of Appeals for the Federal Circuit on Aug. 4 as it vacated a lower court ruling on the classification of screws. The Court of International Trade had found screws imported by GRK Canada to be “self-tapping screws” instead of “wood screws”, in part because the description “wood screws” refers to a type of screw by name, and not to the intended use of the screws. But without reaching a verdict on where GRK’s screws should be classified, CAFC found that wood screws means “screws for use in wood,” and ordered CIT to reconsider its decision under the new interpretation.