Toy Biz, Inc. v. U.S.

• Decision Date: 03 January 2003
• Docket Number: Court No. 96-10-02291.,SLIP OP. 03-2.
• Citation: 248 F.Supp.2d 1234
• Parties: TOY BIZ, INC., Plaintiff, v. UNITED STATES, Defendant.
• Court: U.S. Court of International Trade

248 F.Supp.2d 1234

TOY BIZ, INC., Plaintiff, v. UNITED STATES, Defendant.

SLIP OP. 03-2.

Court No. 96-10-02291.

United States Court of International Trade.

January 3, 2003.

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Singer & Singh, New York City (Sherry L. Singer, Indie K. Singh), for Plaintiff.

Robert D. McCallum, Jr., Assistant Attorney General, United States Department of Justice; John J. Mahon, Acting Attorney in Charge, International Trade Field Office; (Mikki Graves Walser), Civil Division, United States Department of Justice, Commercial Litigation Branch; Beth C. Brotman, Attorney, Office of Assistant Chief Counsel, International Trade Litigation, United States Customs Service, for Defendant, of counsel.

Before: Judge JUDITH M. BARZILAY.

OPINION

BARZILAY, Judge.

I. INTRODUCTION

This is the fourth and final opinion for this Court in a case involving the classification of dozens of action figures from various Marvel Comics series. See Toy Biz, Inc. v. United States, 26 CIT ___, ___, 219 F.Supp.2d 1289 (2002) ("Toy Biz III"); 25 CIT ___, ___, 132 F.Supp.2d 17 (2001) ("Toy Biz II"); 2A CIT ___, ___, 123 F.Supp.2d 646 (2000) ("Toy Biz I"). The legal issue presented in this case involves the construction of the "dolls" provision vis a vis the "other toys" provision. This issue was an historically contentious one ¹ under the former classification scheme, the Tariff Schedules of the United States ("TSUS"), and this case presents an issue of first impression² under the Harmonized Tariff Schedule of the United States ("HTSUS") adopted by the United States in 1989. This court holds that, first, the change in language from the TSUS to the HTSUS with respect to the "dolls" and "other toys" provisions reflects a change in law; second, to be properly classifiable as a "doll" under the HTSUS, a toy figure must clearly represent a human being; third, the action figure playthings at issue here are not properly classifiable as "dolls" under the HTSUS by virtue of various non-human characteristics they exhibit; and finally, the item "Jumpsie" is properly classifiable as a "doll" under the HTSUS.

II. BACKGROUND

Plaintiff Toy Biz, Inc. ("Toy Biz") brings this action to challenge the tariff classification by the United States Customs Service ("Customs" or "Defendant") of various items imported from China and entered at the ports of Seattle and Los Angeles in 1994.³ The items are action figures from various Marvel Comics series, including the "X-Men," "Spider-Man," and the "Fantastic Four," and an additional item called "Jumpsie," which is not an action figure. The items are packaged in boxes or blister packs attached to colorful cardboard backing covered with printed illustrations and writing. The packaging of a number of items includes small accessories, such as weapons and other equipment.⁴ Customs classified the items as "Dolls representing only human beings and parts and accessories thereof: Dolls whether or not dressed: Other: Not over 33 cm in height," under subheading 9502.10.40 of the HTSUS (1994), dutiable at 12% ad valorem.⁵ Toy Biz contends that the action figures at issue are properly classifiable as "Toys representing animals or other non-human creatures (for example, robots and monsters) and parts and accessories thereof: Other," under subheading 9503.49.00, HTSUS (1994),⁶ dutiable at 6.8% ad valorem.⁷ Toy Biz further contends that "Jumpsie" should be classified as a "toy set," under HTSUS (1994) subheading 9503.70.80, dutiable at 6.8% ad valorem.⁸

Customs further classified the trading cards, included in the packaging of the action figures and which picture and describe other action figures (other than the one with which they are included), separately under HTSUS (1994) subheading 4911.99-6000 as "Other printed matter, including printed pictures and photographs'. Other: Other: Other: Printed on paper in whole or in part by a lithographic process," dutiable at 0.4% ad valorem.⁹ Plaintiff disputes the separate classification of the trading cards. See PI. `s Mem. in Supp. of Mot. for Summ. J. at 15 ("Pl.'s Br."). Both parties have stipulated to the material facts and have filed motions for summary judgment pursuant to USCIT R. 56.¹⁰ The court has jurisdiction pursuant to 28 U.S.C. § 1581(a).

II. SUMMARY JUDGMENT AND STANDARD OF REVIEW

This court may decide classification cases on summary judgment when it is appropriate. See Bausch & Lomb, Inc. v. United States, 148 F.3d 1363, 1365 (Fed. Cir.1998); Ero Indus., Inc. v. United States, 24 CIT ___, ___, 118 F.Supp.2d 1356, 1359 (2000). "The fact that both parties have moved for summary judgment does not mean that the court must grant judgment as a matter of law for one side or the other; summary judgment in favor of either party is not proper if disputes remain as to material facts." Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1391 (Fed.Cir.1987) (citation omitted). Summary judgment is appropriate "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." USCIT R. 56(c). "It is the function of the court to determine whether there are factual issues that are material to resolution of the action." Ero Indus., 118 F.Supp.2d at 1359 (citing Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) and Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). In classification actions, "summary judgment is appropriate when there is no genuine dispute as to ... what the merchandise is ... or as to its use." Id. at 1359-60. When there are no factual issues in the case, the "propriety of the summary judgment turns on the proper construction of the HTSUS, which is a question of law," subject to de novo review.¹¹ Clarendon Marketing, Inc. v. United States, 144 F.3d 1464, 1466 (Fed. Cir.1998); Nat'l Advanced Sys. v. United States, 26 F.3d 1107, 1109 (Fed.Cir.1994); see also 28 U.S.C. § 2640 (1994). Here, the parties cross-moved for summary judgment, stipulated to material facts, and submitted affidavits.¹² No genuine issues of material fact remain as to the nature of the merchandise or its use. The items at issue are various playthings for children, classifiable either as "dolls" or "other toys" under the HTSUS. The only remaining question is the proper scope of those classification provisions of the HTSUS, which is a question of law. Accordingly, a grant of summary judgment for either side, based on pleadings and supporting documents, is appropriate.

III. DISCUSSION

"The proper classification of merchandise entering the United States is directed by the General Rules of Interpretation (`GRIs') of the HTSUS and the Additional United States Rules of Interpretation." Orlando Food Corp. v. United States, 140 F.3d 1437, 1439 (Fed.Cir. 1998). "The HTSUS scheme is organized by headings, each of which has one or more subheadings; the headings set forth general categories of merchandise, and the subheadings provide a more particularized segregation of the goods within each category." Id. Under GRI 1, "[a] classification analysis begins, as it must, with the language of the headings." Id. at 1440. GRI 1 states in pertinent part "classification shall be determined according to the terms of the headings and any relative section or chapter notes." "[T]he other GRI provisions may be consulted only if headings and notes `do not otherwise require' a particular classification." Mita Copystar Am. v. United States, 160 F.3d 710, 712 (Fed.Cir.1998) (quoting GRI 1). If a subheading is at issue, "[f]or legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to" the other GRIs. GRI 6, HTSUS.

The "proper scope of a classification in the HTSUS is an issue of statutory interpretation." Bauerhin Techs. Ltd. P'ship v. United States, 110 F.3d 774, 776 (Fed.Cir.1997). "It is a general rule of statutory construction that where Congress has clearly stated its intent in the language of the statute, a court should not inquire further into the meaning of the statute." Pillowtex Corp. v. United States, 171 F.3d 1370, 1373 (Fed.Cir.1999) (citation omitted). If "statutory language of [a] tariff classification is ambiguous," the court may use various "aids in construing the statute and disclosing legislative intent." Celestaire, Inc. v. United States, 20 CIT 619, 623, 928 F.Supp. 1174, 1178 (1996) (citation omitted). Among such aids are "standard canons of statutory construction [or] legislative ratification of prior judicial construction." Id. (citations omitted). Additionally, the court may construe HTSUS terms "according to their common and commercial meaning" if such construction would not contravene legislative intent. JVC Co. of Am., Div. of U.S. JVC Corp. v. United States, 234 F.3d 1348, 1352 (Fed.Cir.2000) (citation omitted); see also John S. James A/C The Consol. Packaging Corp. v. United States, 48 C.C.P.A. 75, 77 (1961) ("it is incumbent upon [the court] to assume that Congress attributed to the words their common meaning unless the evidence or some other factor indicates otherwise"). "A court may [also] rely upon its own understanding of the terms used, lexicographic and scientific authorities, dictionaries, and other reliable information." JVC, 234 F.3d at 1352. Finally, "a court may refer to the Explanatory Notes of a tariff subheading, which do not constitute controlling legislative history but nonetheless are intended to clarify the scope of HTSUS subheadings and to offerguidance in interpreting subheadings." Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 (Fed.Cir.1994) (citation omitted).

Here, Customs...