Home Depot U.S.A., Inc. v. United States
| Decision Date | 26 March 2020 |
| Docket Number | Slip Op. 20-40,Court No. 14-00061 |
| Citation | 435 F.Supp.3d 1311 |
| Parties | The HOME DEPOT U.S.A., INC., Plaintiff, v. UNITED STATES, Defendant. |
| Court | U.S. Court of International Trade |
Wm. Randolph Rucker, Drinker Biddle & Reath LLP for Plaintiff The Home Depot U.S.A., Inc.
Edward F. Kenny, Trial Attorney, Civil Division, Commercial Litigation Branch, U.S. Department of Justice, Aimee Lee, Assistant Director, and Justin R. Miller, Attorney-in-Charge, International Trade Field Office. With them on the brief were Joseph H. Hunt, Assistant Attorney General and Jeanne Davidson, Director, Commercial Litigation Branch and Offices of Foreign Litigation and International Legal Assistance.
PUBLIC VERSION
This case is before this court pursuant to a remand ordered by the U.S. Court of Appeals for the Federal Circuit ("CAFC") to determine the proper classification of the imported merchandise. Home Depot U.S.A., Inc. v. United States , 915 F.3d 1374 (Fed. Cir. 2019). The dispute concerns the tariff classification of door entry devices imported by Plaintiff Home Depot U.S.A., Inc. ("Plaintiff"). Plaintiff challenges the classification by United States Customs and Border Protection ("Defendant" or "Customs") of the subject merchandise under subheading 8301.40.60 of the Harmonized Tariff Schedule of the United States ("HTSUS"), which covers door locks, specifically key-operated locks, and carries a 5.7 percent ad valorem duty. Plaintiff argues that the subject merchandise is properly classified under subheading 8302.41.60 of the HTSUS, which covers door mountings, including door knobs, and carries a 3.9 percent ad valorem duty. The question presented is whether the subject merchandise is properly classified in Heading 8301 of the HTSUS as locks or in Heading 8302 as knobs.
The parties filed cross-motions for summary judgment addressing the proper classification of the imported merchandise. See Pl.'s Mem. of Law in Supp. Of Pl.'s Mot. for Summ. J., ECF No. 79 ("Pl. Br."); Mem. in Opp. to Pl.'s Mot. For Summ. J. and in Supp. of Def. Cross-Mot. for Summ. J., ECF No. 84 ("Def. Br."). This court has jurisdiction over this action under 28 U.S.C. § 1581(a).
For the reasons set forth below, the court determines that the subject merchandise is properly classified in Heading 8302.
Lewis Carroll's Alice's Adventures in Wonderland and Through the Looking Glass opens with Alice falling "down, down, down" a rabbit hole in pursuit of a White Rabbit.1 Once she lands, 2
In Walt Disney's 1951 movie adaptation, Alice in Wonderland , Alice enacts the scene through a conversation with a doorknob:
I. Material Facts Not in Dispute
USCIT Rule 56(a) requires that the court grant summary judgment if a moving party can show that "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Movants should present material facts as short and concise statements, in numbered paragraphs and cite to "particular parts of materials in the record" as support. USCIT Rule 56(C)(1)(A). The opponent must, in response, "include correspondingly numbered paragraphs responding to the numbered paragraphs in the statement of the movant." USCIT Rule 56.3(b).
The Parties submitted separate statements of facts simultaneously with their respective summary judgment motions. See generally Pl.'s Statement of Material Facts Not in Issue ( ), ECF No. 79; Def.'s Statement of Undisputed Material Facts ( ), ECF No. 84-3. The responses to these statements contained mixtures of disputed and undisputed terms, phrases, or sentences within a numbered paragraph. See generally Def.'s Resp. to Pl. Stmt. Facts, ECF No. 84-2; Pl.'s Resp. to Def. Stmt. Facts, ECF No. 89-1. The court reviewed each Party's separate submissions of facts to determine the undisputed facts. Upon review of Parties' respective statements of facts and supporting documents, the court finds the following undisputed and material facts regarding the subject merchandise.4
During the period July 2012 through December 2012, Plaintiff imported the subject merchandise into the United States through five different ports of entry. Pl. Stmt. Facts ¶ 2; Def.'s Resp. to Pl. Stmt. Facts ¶ 2. The subject articles are keyed entry devices used typically on exterior doors of residential structures but that are also used on interior doors such as basements or important storage spaces. Def. Exhibit ("Ex.") 1, Glass Deposition ("Dep.") at 49.5 The subject merchandise is comprised of: (1) an exterior knob assembly; (2) an interior knob assembly; (3) a latch assembly; (4) a flanged strike plate; (5) a key cylinder; (6) two keys on a ring; and, (7) mounting hardware. See Pl. Stmt. Facts ¶ 27; Def.'s Resp. to Pl. Stmt. Facts ¶ 27. There are no material facts at issue regarding the nature of the subject merchandise. Pl. Br. at 9; Def. Br. at 15. See also Def.'s Resp. to Pl. Stmt. Facts. ¶ 27.
The keyed entry devices are available in four different finishes: stainless steel (SKU 154644); polished brass (SKU 154709); antique brass (SKU 154733); and, satin nickel (SKU 881996). Pl. Stmt. Facts ¶ 3; Def.'s Resp. to Pl. Stmt. Facts ¶ 3. These decorative variations have identical components, operate in the same manner, have equivalent functions, and are made by the same manufacturer. Def. Stmt. Facts ¶ 6; Pl.'s Resp. to Def. Stmt. Facts. ¶ 6.
The exterior and interior knob assemblies of the subject merchandise include the door knobs and escutcheons (protective and decorative trims around the door handles). Pl. Br. at 15; Def. Br. at 8. These knob assemblies provide the grasping ability for opening and closing the door. Pl. Stmt. Facts ¶ 29; Def.'s Resp. to Pl. Stmt Facts ¶ 29. The exterior knob assembly provides a keyhole into which an individual can insert a key to lock and unlock the door. The interior knob incorporates a thumb turn to lock and unlock the door from the inside. Def. Stmt. Facts ¶ 19; Pl.'s Resp. to Def. Stmt. Facts ¶ 19. The key cylinder contains a keyway and a tumbler mechanism. The exterior knob incorporates the key cylinder into its assembly. The keys fit into the cylinder. Pl. Ex. 1, Pl. First Resp. to Def.'s Interrog. ¶ 7. The flanged strike plate is a metal plate attached to the door frame with two screws. Pl. Br. at 16; Def. Br. at 9. The latch assembly contains a beveled latch bolt that projects out of the side of the door into the strike plate when the door is closed. Pl. Stmt. Facts ¶ 30 ; Def.'s Resp. to Pl. Stmt. Facts ¶ 30. The flat end of the beveled latch bolt also contains a deadlocking latch bolt that does not project into the strike plate when the door is closed. Def. Stmt. Facts ¶ 14; Pl.'s Resp. to Def. Stmt. Facts ¶ 14. The use of the knobs while unlocked retracts the latch bolt. Def. Stmt. Facts ¶ 15; Pl.'s Resp. to Def. Stmt. Facts ¶ 15.
Plaintiff is a home improvement retailer that sells a variety of door hardware, including deadbolts, the subject merchandise and three related door devices: viz., "privacy," "passage," and "dummy" devices. Pl. Stmt. Facts ¶¶ 9, 18; Def.'s Resp. to Pl. Stmt. Facts ¶¶ 9, 18. Only the keyed entry device6 is at issue in this case.
The characteristics of the related door devices, although not at issue in this case, provide helpful comparisons to keyed entry devices.7 Each of the related door devices contains exterior and interior knob assemblies. Pl. Stmt. Facts ¶ 18; Def.'s Resp. to Pl. Stmt. Facts ¶ 18. A privacy device has a latching mechanism along with a lock mechanism on the interior side. Pl. Stmt. Facts ¶ 18; Def.'s Resp. to Pl. Stmt. Facts ¶ 18; Pl. Ex. 10, Mounted Door Hardware Ex. The interior lock mechanism is typically in the form of a thumb turn where an individual can manually lock and unlock the door by hand. Pl. Ex. 10, Mounted Door Hardware Ex; Transcript of Oral Argument at 20. The exterior knob of a privacy device contains an emergency release that can override the interior lock with a coin or other similarly shaped device. Id. Bathroom and bedroom doors typically use a privacy device. Pl. Stmt. Facts ¶ 18; Def.'s Resp. to Pl. Stmt. Facts ¶ 18. A passage device has a latching mechanism, but no locking mechanism. Pl. Stmt. Facts ¶ 18; Def.'s Resp. to Pl. Stmt. Facts ¶ 18. This device may be used for closet, hall, bedroom or basement doors. Pl. Stmt. Facts ¶ 18; Def.'s Resp. to Pl. Stmt. Facts ¶ 18. A dummy device has knob components but no latching or locking mechanism. Closet doors typically incorporate a dummy device. Pl. Stmt. Facts ¶ 18; Def.'s Resp. to Pl. Stmt. Facts ¶ 18.
In Home Depot's internal database, keyed entry, privacy, passage and dummy devices are categorized in the same group. Pl. Stmt. Facts ¶ 19; Def.'s Resp. to Pl. Stmt. Facts ¶ 19. Privacy and passage devices are classified in Heading 8302. See Pl. Br. at 13; Def. Br. at 31. Because dummy devices have no latching mechanism, the court will not include them in the comparative analysis.
The court also compares keyed entry devices to deadbolts. The primary function of a deadbolt is to lock and secure a door; however, a deadbolt does not have a handle or knob with which to open and close a...
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