Blakley Corp. v. U.S., Slip Op. 98-94.
| Decision Date | 02 July 1998 |
| Docket Number | Court No. 92-10-00670.,Slip Op. 98-94. |
| Citation | 15 F.Supp.2d 865 |
| Parties | BLAKLEY CORPORATION, Plaintiff, v. UNITED STATES, Defendant. |
| Court | U.S. Court of International Trade |
Neville, Peterson & Williams (John M. Peterson and George W. Thompson), New York City, for Plaintiff.
Frank W. Hunger, Assistant Attorney General of the United States; Joseph I. Liebman, Attorney in Charge, International Trade Field Office, Commercial Litigation Branch, Civil Division, United States Department of Justice (John J. Mahon); Chi S. Choy, Office of Assistant Chief Counsel, International Trade Litigation, United States Customs Service, of counsel, Washington, DC, for Defendant.
This matter is before the Court on cross-motions for summary judgment pursuant to U.S. CIT R. 56. In its Motion for Summary Judgment, plaintiff asserts Customs should have classified and liquidated certain artificial stone floor and wall components imported by plaintiff under subheading 6810.19.50, HTSUS, dutiable at 4.9% ad valorem. Plaintiff requests this Court order Customs to reliquidate the protested entries under subheading 6810.19.50, HTSUS, and refund all excess duties plus interest as provided by law. Defendant counters Customs properly classified the merchandise at issue under subheading 6810.19.10, HTSUS, dutiable at 21% ad valorem.
This Court has jurisdiction to review this matter pursuant to 28 U.S.C. § 1581(a) (1994). For the reasons which follow, the Court denies plaintiff's Motion for Summary Judgment and grants defendant's Cross-Motion for Summary Judgment.
This matter involves the proper classification of artificial stone floor and wall components which plaintiff imported from Italy. The components are manufactured by agglomerating chips and dust of natural stones in a cement binder. The mixture is then cut into squares and the top surface is polished. The sides of the merchandise are not rounded or beveled, but rather retain a rough edge to facilitate its installation as tiling or veneer. The finished product is in the shape of a square, approximately twelve inches per side, with a thickness of either 1.2 or 2 centimeters (cm). The merchandise is intended for use as indoor flooring and in certain instances may be used for wall covering or bordering material.
At issue are four entries imported into the United States between August 31 and November 17, 1989. Upon entry Customs classified the merchandise at issue under subheading 6810.19.10, HTSUS, as "Articles of cement, of concrete or of artificial stone, whether or not reinforced: Tiles, flagstones, bricks and similar articles: Other: Floor and wall tiles", dutiable at 21% ad valorem. The four entries at issue were liquidated between January 12 and March 16, 1990, under subheading 6810.19.10, HTSUS. Plaintiff filed protests on March 19 and April 30, 1990, contending the merchandise is classified properly as "slabs" under subheading 6810.19.50, HTSUS, providing for "other" articles of cement, of concrete or of artificial stone, whether or not reinforced: tiles, flagstones, bricks and similar articles, dutiable at 4.9% ad valorem. Customs denied plaintiff's protests on September 10 and December 30, 1992, respectively. Plaintiff filed two actions contesting Customs denial of its protests, and these two actions were consolidated by an order of the Court issued on April 7, 1997.
The parties agree the merchandise at issue is classified properly within Heading 6810 of the HTSUS,2 but dispute the appropriate subheading. Plaintiff contends the merchandise should be classified under heading 6810.19.50, HTSUS, while defendant asserts Customs properly classified the merchandise at issue under heading 6810.19.10, HTSUS. The statute, in relevant part, provides:
6810 Articles of cement, of concrete or of
artificial stone, whether or not reinforced
Tiles, flagstones, bricks and
similar articles
6810.11.00 Building blocks and
bricks................. 4.9%
6810.19 Other
6810.19.10 Floor and wall
tiles............ 21%
6810.19.50 Other............. 4.9%
Additionally, the parties have different positions regarding the applicability of Additional U.S. Notes 1 and 2 to Chapter 68 of the HTSUS (Note 1 and Note 2). The relevant Additional U.S. Notes to Chapter 68 of the HTSUS provide:
1. For the purposes of heading 6802, the term "slabs" embraces flat stone pieces, not over 5.1 cm in thickness, having a facial area of 25.8 cm2 or more, the edges of which have not been beveled, rounded or otherwise processed except such processing as may be needed to facilitate installation as tiling or veneering in building construction.
2. For the purposes of heading 6810, the term "tiles" does not include any article 3.2 cm or more in thickness.
Plaintiff raises two principal arguments in support of its contention that the merchandise at issue is classified properly under subheading 6810.19.50, HTSUS. First, plaintiff asserts Additional U.S. Notes 1 and 2 to Chapter 68, HTSUS, establish specific and distinct definitions of the statutory terms "slabs" and "tiles", respectively, making reference to the common and commercial meaning of those terms inappropriate. Plaintiff maintains the merchandise at issue falls only with the specific definition of "slabs" contained in Note 1. According to the plaintiff, the language of Note 1 defines "slab" by reference to (Br. in Supp. of Pl.'s Mot. for Summ. J. (Pl.'s Br.) at 11.) Plaintiff also argues "[t]here is no question that, for purposes of HTSUS heading 6802, `slabs', on the one hand, and `tiles' and other articles, on the other hand, have been defined by Congress in a mutually exclusive manner." (Id. at 15.) According to the plaintiff, because "slabs" and "tiles" are defined as mutually exclusive articles and because the merchandise at issue is classified properly as "slabs", the subject merchandise cannot properly be classified as "tiles" under heading 6810.19.10, HTSUS, but rather must be classified under the "other" category in heading 6810.19.50, HTSUS.
Plaintiff's second principal argument contends the definition of "slabs" contained in Note 1 is relevant in determining the proper classification of goods throughout Chapter 68 in its entirety. Plaintiff argues although Note 1 specifically defines the term "slabs" "[f]or the purposes of HTSUS heading 6802", this limitation should be disregarded, and the definition of "slabs" contained in Note 1 "should be applied with respect to all merchandise classified under Chapter 68 of the HTSUS." (Id. at 5.)
Defendant challenges the arguments made by plaintiff, contends Customs properly classified the merchandise at issue under heading 6810.19.10, HTSUS, and asserts this Court should sustain Customs' classification decision. Defendant first argues Note 1, by its own terms, is inapplicable in determining the proper classification of merchandise within heading 6810, HTSUS. The defendant's brief notes "[t]he language [in Note 1] specifically states that the note applies only to heading 6802, HTSUS: `For the purposes of heading 6802....'" (Def.'s Br. in Supp. of Cross-Mot. For Summ. J. and in Opp'n to Pl.'s Mot. for Summ. J. (Def.'s Br.) at 6-7 (emphasis omitted).) Therefore, defendant argues, the description of "slabs" properly classifiable under heading 6802, HTSUS, contained in Note 1 is not relevant to determining the proper classification of the merchandise at issue under heading 6810, HTSUS.
Alternatively, defendant argues even if the description of "slabs" in Note 1 is applicable to heading 6810, HTSUS, and the merchandise at issue falls within the statutory description of "slabs", Customs still properly classified the merchandise as "tiles" under subheading 6810.19.10, HTSUS. Defendant asserts that while (Id. at 10.) With respect to the merchandise at issue in this matter, defendant contends "even if [they] meet the conditions for `slabs' set forth in Additional U.S. Note 1 to Chapter 68, HTSUS, ... these `slabs' ... are `tiles' properly classifiable as `tiles' in subheading 6810.19.10, HTSUS." (Id.)
Finally, defendant points to an inconsistency resulting from plaintiff's interpretation of the statute. Defendant notes that in contrast to plaintiff's argument that Note 1 requires articles with a surface area greater than 25.8 cm2 be classified as "slabs" throughout the entire HTSUS, another provision within heading 6802, HTSUS, classifies articles with a surface area of 49 cm2 as "[t]iles". Thus, defendant asserts, plaintiff's position yields inconsistent results that this Court's precedent directs it to avoid. (See Def.'s Br. at 24 (...
To continue reading
Request your trial
-
Kahrs Intern., Inc. v. U.S.
...is before the Court on a motion for summary judgment, the statutory presumption of correctness is irrelevant." Blakley Corp. v. United States, 15 F.Supp.2d 865, 869 (CIT 1998) (citing Universal Elecs., Inc. v. United States, 112 F.3d 488, 492 (Fed.Cir. 16. Parties Stipulation of Facts Not i......
-
Toy Biz, Inc. v. U.S.
...the Court on a motion for summary judgment, the statutory presumption of correctness is irrelevant." Blakley Corp. v. United States, 22 CIT 635, 639, 15 F.Supp.2d 865, 869 (1998); see also JVC Co. of Am., Div. of U.S. JVC Corp. v. United States, 23 CIT 523, 527, 62 F.Supp.2d 1132, 1136 (199......
-
American Bayridge Corp. v. U.S., Slip Op. 98-166.
...presented with a question of law in a proper motion for summary judgment, that presumption does not apply. Blakley Corp. v. United States, ___ CIT ___, 15 F.Supp.2d 865, 869 (1998), (quoting Universal Electronics Inc. v. United States, 112 F.3d 488, 492 (Fed.Cir.1997) ("[b]ecause there was ......
-
Len-Ron Mfg. Co., Inc. v. U.S., Slip Op. 00-116.
...is before the Court on a motion for summary judgment, the statutory presumption of correctness is irrelevant." Blakley Corp. v. United States, 15 F.Supp.2d 865, 869 (CIT 1998) (citing Universal Elecs., Inc. v. United States, 112 F.3d 488, 492 (Fed.Cir. 27. In this case, Customs has not prom......