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Keywords

plaintifftariff

plaintiffdefendanttariff

Related Cases

Dow Chemical Co. v. U.S., 10 C.I.T. 550, 647 F.Supp. 1574, 8 ITRD 1152

Facts

The plaintiff imported pyrolysis gasoline from Spain in May 1980, which was classified under item 403.90, TSUS, as a mixture of products provided for in Schedule 4, Part 1, Subpart B. The plaintiff sought to reclassify the merchandise under various other items, arguing that it should be classified as 'light oil' or naphtha. The court examined the composition of the gasoline and the relevant tariff provisions to determine the appropriate classification.

Plaintiff challenges the United States Customs Service (Customs) classification of pyrolysis gasoline imported from Spain (merchandise). The merchandise was entered in May, 1980 and classified under item 403.90, Tariff Schedules of the United States (TSUS), as a mixture in part of products provided for in Schedule 4, Part 1, Subpart B, covering TSUS items 403.02 through 403.90.

Issue

Whether the pyrolysis gasoline was properly classified under item 403.90, TSUS, or if it should be classified under other proposed items such as 'light oil' or naphtha.

The questions to be decided are (1) whether item 401.44, TSUS is an eo nomine provision covering light oil which contains products not found naturally in coal tar, and (2) whether item 401.80, TSUS, covering mixtures 'wholly of' products named in Schedule 4, Part 1, Subpart A, applies to merchandise consisting in part of products not listed in Subpart A.

Rule

An imported article is classifiable in the provision that most specifically describes it, and a superior heading cannot be enlarged by inferior headings but can be limited by them.

General Interpretative Rule 10(c)(i), TSUS, reads: (c) an imported article which is described in two or more provisions of the schedules is classifiable in the provision which most specifically describes it; but, in applying this rule of interpretation, the following considerations shall govern: (i) a superior heading cannot be enlarged by inferior headings indented under it but can be limited thereby.

Analysis

The court analyzed the composition of the pyrolysis gasoline and determined that it did not meet the requirements for classification as 'light oil' under item 401.44, TSUS, because it contained products not found naturally in coal tar. The court also found that the merchandise was a mixture 'in part of' the products provided for in Subpart B, thus justifying its classification under item 403.90, TSUS.

The Court finds that the following products have not been shown to be found naturally in coal tar light oil: styrene, ethylbenzene, alkylbenzenes other than toluene and xylene, cyclopentadeine, piperylene, isoprene and pentene. These products comprise over 12% of the merchandise by weight. The Court does not agree.

Conclusion

The court concluded that the merchandise was properly classified under item 403.90, TSUS, and affirmed the classification.

The Court holds that the merchandise is not classifiable as 'light oil' within item 401.44, TSUS, since it contains products not 'found naturally in coal tar' within the meaning of the superior heading.

Who won?

The United States prevailed in the case because the court upheld the classification of the pyrolysis gasoline as proper under item 403.90, TSUS.

The Court finds without merit defendant's argument that an established and uniform practice 'only tangentially effects [sic] the classification and rate of duty,' brief for defendant at 43, and relates solely to the liquidation of the merchandise.

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