Rollerblade, Inc. v. U.S.

• Decision Date: 05 March 2002
• Docket Number: No. 01-1049.,01-1049.
• Citation: 282 F.3d 1349
• Parties: ROLLERBLADE, INC., Plaintiff-Appellant, v. UNITED STATES, Defendant-Appellee.
• Court: U.S. Court of Appeals — Federal Circuit

282 F.3d 1349

ROLLERBLADE, INC., Plaintiff-Appellant, v. UNITED STATES, Defendant-Appellee.

No. 01-1049.

United States Court of Appeals, Federal Circuit.

DECIDED: March 5, 2002.

Steven P. Florsheim, Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP, of New York, NY, argued for plaintiff-appellant. With him on the brief was Stacy L. Weinberg.

Amy M. Rubin, Attorney, Commercial Litigation Branch, Civil Division, Department of Justice, International Trade Field Office, of New York, NY, argued for defendant-appellee. With her on the brief were Stuart E. Schiffer, Deputy Assistant Attorney General, and David M. Cohen, Director. Of counsel on the brief was Sheryl A. French, Office of Assistant Chief Counsel, United States Customs Service, of New York, NY.

Before NEWMAN, Circuit Judge, FRIEDMAN, Senior Circuit Judge, and RADER, Circuit Judge.

RADER, Circuit Judge.

Rollerblade, Inc. (Rollerblade) appeals from a summary judgment of the United States Court of International Trade affirming the United States Customs Service (Customs) classification of imported in-line roller skating protective gear under subheading 9506.99.6080 (99.6080) of the Harmonized Tariff Schedules of the United States (HTSUS).^* Rollerblade, Inc. v. United States, 116 F.Supp.2d 1247 (CIT 2000). Because Customs correctly classified the imports, this court affirms.

I.

The imports in this case are in-line roller skating protective gear, such as knee pads, elbow pads, and wrist guards. Customs classified the imported protective gear as residual "other" sports equipment under subheading 99.6080 of the HTSUS, which carries a duty rate of 4% ad valorem:

9506 Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including tabletennis) or outdoor games, not specified or included elsewhere in this chapter; swimming pools and wading pools; parts and accessories thereof:

...

9506.99 Other

...

9506.99.60 Other

...

9506.99.6080 Other

Rollerblade appealed to the Court of International Trade, arguing that Customs should have classified the protective gear as "accessories" under subheading 9506.70.2090 ("70.2090"). HTSUS subheading 70.2090 carries a 0% duty rate:

9506 Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including tabletennis) or outdoor games, not specified or included elsewhere in this chapter; swimming pools and wading pools; parts and accessories thereof:

...

9506.70 Ice skates and roller skates, including skating boots with skates attached; parts and accessories thereof:

9506.70.20 Roller skates and parts and accessories thereof

...

9506.70.2090 Other

Rollerblade sought this "accessory" classification because the protective gear was designed, tested, manufactured and marketed solely for use with in-line roller skates. Because the protective gear bore no direct relationship to roller skates, the Government argued that the imports were not accessories to that defining article.

The Court of International Trade affirmed the Customs classification based primarily on its interpretation of the dictionary meaning of the term "accessory." Rollerblade, 116 F.Supp.2d at 1253. According to the trial court, an accessory under subheading 70.2090 must be "of" or "to" the article (roller skates) listed in the heading, not "of" or "to" the activity (roller skating) for which the article is used. Id. The trial court found that the protective gear had a direct relationship to the activity of roller skating, but not to the HTSUS heading, namely roller skates. Hence, the trial court affirmed Custom's refusal to classify Rollerblade's protective gear under subheading 70.2090 as an "accessory" to roller skates. Id. at 1254-55. Moreover, on summary judgment, the Court of International Trade concluded that Customs properly classified the protective gear under the residual "other" [sports equipment] subheading 99.6080. Id. at 1257.

Rollerblade timely appealed to this court, which has exclusive appellate jurisdiction. 28 U.S.C. § 1295(a)(5) (1994). Rollerblade argues that the protective gear constitutes "parts" to the roller skates because it contributes to the safe and effective operation of the in-line roller skates.

II.

This court reviews summary judgment "for correctness as a matter of law, deciding de novo the proper interpretation of the governing statute and regulations as well as whether genuine issues of material fact exist." Texaco Marine Servs., Inc. v. United States, 44 F.3d 1539, 1543 (Fed.Cir.1994) (quoting St. Paul Fire & Marine Ins. Co. v. United States, 6 F.3d 763, 767 (Fed.Cir.1993)). In the context of this case, however, this court defers to the contested Customs classification. Although not entitled to Chevron deference (see Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984)), a Customs classification receives some deference in accordance with Skidmore v. Swift & Co., 323 U.S. 134, 65 S.Ct. 161, 89 L.Ed. 124 (1944). United States v. Mead Corp., 533 U.S. 218, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001). Furthermore, under 28 U.S.C. § 2639(a)(1), "a classification of merchandise by Customs is presumed to be correct." Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 (Fed.Cir.1994). Thus, "the burden of proof is upon the party challenging the classification." Mita Copystar Am., 21 F.3d at 1082 (citing Jarvis Clark Co. v. United States, 733 F.2d 873, 876 (Fed.Cir.1984)).

Classification of goods under the HTSUS entails both ascertaining the proper meaning of specific terms in the tariff provision and determining whether the merchandise subject to tariffs comes within the description of those HTSUS terms. Sports Graphics, Inc. v. United States, 24 F.3d 1390, 1391 (Fed.Cir.1994). The meaning accorded HTSUS terms presents a question of law, which this court reviews without deference. Rocknel Fastener, Inc. v. United States, 267 F.3d 1354, 1356 (Fed. Cir.2001). When reviewing whether the imports fit within those terms, this court uses a clear error standard. Universal Elecs., Inc. v. United States, 112 F.3d 488, 491 (Fed.Cir.1997).

When the HTSUS does not define a tariff term, the term receives its "common and popular meaning." E.M. Chems. v. United States, 920 F.2d 910, 913 (Fed.Cir.1990). This court presumes the common meaning of a term used in commerce to be the same as its commercial meaning. Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 (Fed.Cir.1989). To determine a term's common meaning, a court may consult "dictionaries, scientific authorities, and other reliable information sources." C.J. Tower & Sons v. United States, 69 C.C.P.A. 128, 673 F.2d 1268, 1271 (1982).

The General Rules of Interpretation (GRI) of the HTSUS govern the classification of goods within HTSUS. The GRI bases proper classification under HTSUS on the heading or subheading terms. GRI 1 provides: "[f]or legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes." Similarly, GRI 6 states: "[C]lassification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related notes and, mutatis mutandis, to the above rules."

In this case, subheading 70.2090 recites "[r]oller skates and parts and accessories thereof" (emphasis added), and not "roller skating and accessories thereof." In other words, subheading 70.2090 refers to an article (roller skates), not to an activity (roller skating). The subheading also covers parts of that article, such as wheels or laces for the skates. Thus, the subheading language specifically addresses roller skates and their parts and accessories. The language does not embrace every accessory associated with the broader activity of roller skating.

Like the trial court, this court also observes that HTSUS offers no definition for the term "accessory." Thus, the trial court correctly consulted the common (dictionary) meaning of the term. See E.M. Chems., 920 F.2d at 913. As the Court of International Trade found, dictionary definitions indicate that an "accessory" must bear a direct relationship to the primary article that it accessorizes. In this case, under subheading 70.2090, the article accessorized is roller skates, not the general activity of roller skating. Moreover, as found by the trial court, the protective gear lacks a direct relationship to the roller skates. The protective gear does not directly act on the roller skates at all. Unlike a roller skate part or accessory, the protective gear does not directly affect the skates' operation. Thus, based on the common meaning of "accessory" and the language of subheading 70.2090, this court sustains the trial court's conclusion that Rollerblade's imported protective gear is not a roller skate accessory.

Before the Court of International Trade, Rollerblade contended solely that their protective gear was an accessory to roller skates. Rollerblade now argues for the first time that the protective gear is, alternatively, "parts" of the roller skates. Rollerblade would classify the protective gear as roller skate parts because it contributes to the safe and effective operation of the skates and functions by design solely with the skates. Because the terms "parts" and "accessories" appear in the same phrase under subheading 70.2090, this court, in its discretion, entertains this new argument. See Singleton v. Wulff, 428 U.S. 106, 121, 96 S.Ct. 2868, 49 L.Ed.2d 826 (1976); Nat'l Ass'n of Mfrs. v. Dep't of Labor, 159 F.3d 597, 605-06 (D.C.Cir.1998).

A "part" is "an essential element or constituent; integral portion which can be separated, replaced, etc." Webster's New World Dictionary 984 (3d College Ed. 1988). Thus, based on the common meaning, the term "part," like the term "accessory," must have a direct relationship to the primary article, rather than to the general activity in which the primary article...