Recent Court of International Trade Cases
CIT rules in favor of Customs' classification of deodorizer distillate. In Cargill,Inc. v. U.S., the Court of International Trade (CIT) ruled in favor of Customs' classification of deodorizer distillate under the basket provision HTS 3824.90.2800 (6.5%) as "other mixtures containing 5% or more by weight of one or more aromatic or modified aromatic substances" rather than Cargill's classification claim of HTS 3823.19.4000 (3.2%) which provides for, among other things, "other industrial monocarboxylic fatty acids."
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According to the CIT, the deodorizer distillate does not fall within the common meaning of the tariff terms "industrial monocarboxylic fatty acids" because its essential character is not of the same class or kind as those industrial monocarboxylic fatty acids encompassed by HTS 3823. The deodorizer distillate also differs from the above-described fatty acids as it is imported and used as a source material for its other components (e.g. tocopherols and sterols), not for its fatty acid content. Accordingly, the CIT ruled that Customs properly classified the subject merchandise under HTS 3824.90.2800. (Slip Op. 04-25, dated 03/18/04, available at http://www.cit.uscourts.gov/slip_op/Slip_op04/04-25.pdf)
CIT rules against Customs' classification of "pad folios." In Avenues in Leather, Inc. v. U.S., the CIT ruled in favor of Avenues that certain "pad folios" are classified under HTS 4820.10.2020 (duty-free) as articles of stationary, specifically "memorandum pads, letter pads and similar articles."
The subject pad folios were described as vinyl- or plastic-covered paperboard and plastic foam that measure 11" x 13" x 1" when closed. Each has a carrying handle, permanently affixed three-ring metal binder and solar-powered calculator, a pad of 3-hole 8 " by 11" paper, loops for writing instruments, slots for computer disks, zippered and other pockets and sleeves, etc.
Customs had argued that the pad folio is a form of briefcase, and is therefore classifiable in HTS 4202.12.20 (20%) which provides "trunks, suitcases, vanity cases, attach cases, briefcases, school satchels, and similar containers, with an outer surface of plastics."
However, the CIT agreed with Avenues and determined that the pad folio's primary purpose is to facilitate the taking of notes as well as aid the organization of print and other visual flat materials capable of being bound by its metal binder or fit within its pockets. The CIT also found that the testimony of witnesses, etc. appears to favor classifying this item pursuant to GRI 3(b), with the memorandum pad (HTS 4820.10.2020) providing the essential character. (Slip Op. 04-41, decided 04/26/04, available at http://www.cit.uscourts.gov/slip_op/Slip_op04/04-41.pdf)