Sports Graphics, Inc. v. US

Citation806 F. Supp. 268
Decision Date20 October 1992
Docket NumberConsol. Court No. 88-08-00656.
PartiesSPORTS GRAPHICS, INC., Plaintiff, v. UNITED STATES, Defendant.
CourtU.S. Court of International Trade

Adduci, Mastriani, Meeks & Schill, Jeffrey A. Meeks, Ralph H. Sheppard, and Lisa Levaggi Borter, Washington, D.C., for plaintiff.

Stuart M. Gerson, Asst. Atty. Gen., Joseph I. Liebman, Attorney-in-Charge, International Trade Field Office, Commercial Litigation Branch, Civ. Div., U.S. Dept. of Justice, Nancy M. Frieden, Washington, D.C., and (Arlene Klolzko, U.S. Customs Service, of counsel), for defendant.

OPINION AND JUDGMENT

CARMAN, Judge:

Plaintiff, Sports Graphics, Inc., contests the classification and liquidation of its merchandise, vinyl soft-sided coolers, pursuant to section 515 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1515(a) (1988).

This Court has jurisdiction under 28 U.S.C. § 1581(a). After careful examination of the evidence presented at trial, the arguments of the parties, the tariff schedules, the case law, and other relevant authorities, this Court holds that the United States Customs Service (Customs) improperly classified the subject merchandise as "Luggage ... Of other material ... Other ... Other" under 706.62, Tariff Schedules of the United States (TSUS), at 20% ad valorem and finds the correct classification to be item 772.15 or 772.16, TSUS,1 "Articles chiefly used for preparing, serving, or storing food or beverages, or food or beverage ingredients ... of rubber or plastics.... Other" at 4% ad valorem or 3.4% ad valorem.

BACKGROUND

The imported merchandise consists of soft-sided "Chill" coolers in various sizes imported from Taiwan by the plaintiff during the period from 1986 through 1988. The imported merchandise includes the following models: "Big Chill" with dimensions of approximately 12 inches × 18 inches × 7.5 inches and capacity of approximately 19 quarts, "Sport Chill" with dimensions of approximately 10 inches × 12 inches × 6.5 inches and capacity of approximately 11 quarts, "L'il Chill" with dimensions of 9 inches × 7 inches × 6 inches and capacity of approximately 5 quarts, and "Snack Chill" with dimensions of approximately 9 inches × 7 inches × 3.75 inches.

The "Chill" is used during trips away from home, picnics at home or away from home, in the home and on the property of the user, and at spectator and participation events. The "Chill" is portable and can be conveniently carried by the handle and/or adjustable straps. The component material of chief value of the "Chill" is plastic. The various size "Chill" coolers have in common the following characteristics: an outer shell of a vinyl-coated nylon material; an insulating core of approximately ½ inch thick polymer-based closed cell foam; a top secured by a zippered interlocking flap; an inner liner of vinyl; a handle or shoulder strap of nylon webbing and plastic fixtures as a means of carrying the merchandise; and exterior pockets secured by velcro or zippered closures.

All forms of the imported merchandise were classified by Customs under item 706.62, TSUS, "Luggage and handbags, whether or not fitted with bottle, dining, drinking, manicure, sewing, traveling, or similar sets; and flat goods: Of reinforced or laminated plastics: ... Of other material: ... Other" at a rate of 20% ad valorem. Plaintiff filed timely protests pursuant to 19 U.S.C. § 1514(a) (1988) contesting Customs' classification. Customs denied the protest pursuant to 19 U.S.C. § 1514(a) and plaintiff subsequently filed a timely summons and complaint leading to the instant action. Prior to the filing of the summonses all liquidated duties were timely paid.

CONTENTIONS OF THE PARTIES

Plaintiff contends that its merchandise, soft sided "Chill" coolers in various sizes, should be reclassified under TSUS item 772.15 or 772.16 as "articles chiefly used for preparing, serving, or storing food or beverages, or food or beverage ingredients; and household articles not specially provided for; all the foregoing of rubber or plastics." Plaintiff argues the imported goods are neither luggage nor items that are ejusdem generis with those items listed as exemplars under Headnote 2(a)(ii), TSUS. While plaintiff agrees with defendant that the containers are designed to be carried and are used to transport food, beverages and other items, plaintiff contends that the "Chill" coolers are chiefly used to prepare, serve or store food or beverages.

Defendant contends that the "Chill" coolers should be classified under TSUS item 706.62 as luggage. Defendant supports its contention that the coolers should be classified as luggage by arguing that the imported merchandise is designed to contain personal effects during travel, is to be carried with the person, and is like the items enumerated in Headnotes 2(a)(i) and 2(a)(ii) of Schedule 7, Part 1, Subpart D, which provide the tariff definitions of luggage. Defendant asserts that the chief use of the merchandise cannot be defined merely as storing or serving food or beverages since the transportation or portability function is neither incidental nor secondary to the merchandise.

The following are the pertinent provisions of the Tariff Schedule:

Customs' Classification

Schedule 7, Part 1, Subpart D:

Headnote:
2. For the purposes of the tariff schedules —
(a) the term "luggage" covers —
(i) travel goods, such as trunks, hand trunks, lockers, valises, satchels, suitcases, wardrobe cases, overnight bags, pullman bags, gladstone bags, traveling bags, knapsacks, kitbags, haversacks, duffel bags, and like articles designed to contain clothing or other personal effects during travel; and
(ii) brief cases, portfolios, school bags, photographic equipment bags, golf bags, camera cases, binocular cases, gun cases, occupational luggage cases (physicians', sample, etc.), and like containers and cases designed to be carried with the person, except handbags as defined herein ...
Luggage and handbags, whether or not fitted with bottle, dining, drinking, manicure, sewing, traveling, or similar sets; and flat goods:
Of reinforced or laminated plastics:
Of other material:
Other:
                706.62  Other ................... 20% ad val
                

Plaintiff's Claimed Classification

Schedule 7, Part 12, Subpart C:

Articles chiefly used for preparing, serving, or storing food or beverages, or food or beverage ingredients; and household articles not specially provided for; all the foregoing of rubber or plastics:
                772.15 (772.16) Other .......... 4% (3.4%) ad val
                

DISCUSSION

Presumption of Correctness

As with all customs classification cases, the government's classification decision is presumed to be correct and the party challenging the decision has the burden of overcoming this statutory presumption. 28 U.S.C. § 2639(a)(1). When determining whether plaintiff has overcome the statutory presumption, the Court "must consider whether the government's classification is correct, both independently and in comparison with the importer's alternative." Jarvis Clark Co. v. United States, 2 Fed.Cir. (T) 70, 75, 733 F.2d 873, 878, reh'g denied, 2 Fed.Cir. (T) 97, 739 F.2d 628 (Fed.Cir. 1984).

Ejusdem Generis

Where statutory construction is at issue, the starting point of any analysis must be the language employed by Congress. Where the statutory language is unclear, rules of statutory construction are useful for interpretation. One such rule is known as ejusdem generis. The doctrine of ejusdem generis has been described as follows:

Where there is an enumeration of specific words of description ... followed by a general term ... the rule of ejusdem generis aids in statutory interpretation. ... Under the rule of ejusdem generis, which means "of the same kind," where an enumeration of specific things is followed by a general word or phrase, the general word or phrase is held to refer to things of the same kind as those specified.

DRI Indus., Inc. v. United States, 11 CIT 97, 102, 657 F.Supp. 528, 532, aff'd, 832 F.2d 155 (Fed.Cir.1987) (quoting Izod Outerwear v. United States, 9 CIT 309, 313, 1985 WL 25770 (1985) (citations omitted)).

In order to be classified as luggage under Headnote 2(a) of TSUS Schedule 7, Part 1, Subpart D, TSUS item 706.62, an article must either be specifically enumerated in one of the categories of goods or be like those articles. "As applicable to customs classification cases, ejusdem generis requires that the imported merchandise possess the essential characteristics or purposes that unite the articles enumerated eo nomine in order to be classified under the general terms." Nissho-Iwai Am. Corp. v. United States, 10 CIT 154, 157, 641 F.Supp. 808, 810 (1986). The Court, therefore, looks to the language and enumerated exemplars of Headnote 2(a) and determines whether the soft-sided Chill coolers possess common characteristics or purposes similar to "luggage" as described and listed in the tariff schedules.

Applying the ejusdem generis rule of construction, the Customs' Court construed Headnote 2(a)(i) in Adolco Trading to encompass "all articles customarily used for travel, which can be closed and usually locked." Adolco Trading Co. v. United States, 71 Cust.Ct. 145, 154 (1973). The Court, relying on a narrow view of the term "travel" in Headnote 2(a)(i), held that the plastic shopping bags in issue were not classifiable as luggage. The bags before the Adolco Court could not be locked or even closed securely. Based on this lack of closure, the Court found that the "bags were not designed or suitable for carrying clothing or personal effects during travel." Id. The Court stated, "the provision does not embrace all containers and cases designed to be carried with the person, but only those ejusdem generis with those enumerated." Id.

Subsequent to Adolco, the Customs Court examined Headnote 2(a)(i) and determined that insulated plastic picnic bags with handles and zippered enclosures fell under the statutory definition of luggage. Prepac, Inc. v. United...

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