Justia International Trade Opinion Summaries

The imported back-mounted packs, used for outdoor activities and athletics, allow the user to drink without interrupting activity. U.S. Customs and Border Protection liquidated and classified the merchandise under subheading 4202.92.30, HTSUS, as "Trunks, . . . traveling bags, insulated food or beverage bags, . . . knapsacks and backpacks, . . . sports bags . . . and similar containers . . . of textile materials: . . . With outer surface of sheeting of plastic or of textile materials: . . . travel, sports and similar bags" at a rate of duty of 17.8%. The company argued that the insulated beverage bag established essential character and that the items were properly classified as either "insulated food and beverage bags . . . whose interior incorporates only a flexible plastic container of a kind for storing and dispensing potable beverages through attached flexible tubing" (4202.92.04) or "insulated food and beverage bags . . . other" (4202.92.08), dutiable at 7%. The Court of International Trade affirmed. The Federal Circuit reversed and remanded. The item is a composite product that includes features substantially in excess of those within the common meaning of "backpack." The essential character of the item is a disputed question of fact. View "Camelbak Prods, LLC v. United States" on Justia Law

Plaintiff imported the LCD monitors and entered them under a subheading of the Harmonized Tariff Schedule of the United States for "Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: Input or output units, whether or not containing storage units in the same housing: Other: Display units: Other: Other." The Bureau of Customs and Border Protection classified and reliquidated the monitors under a subheading, dutiable at 5% ad valorem, for: "Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: video monitors: Color: With a flat panel screen: Other: Other. " The Court of International Trade upheld the designation. The Federal Circuit vacated and remanded because the Court of International Trade expressly did not reach the issue of the adequacy of the evidence for either a principal use or principal function.

The company filed a claim under the Tariff Act of 1930, 19 U.S.C. 1337, asserting infringement of its patents on microchip encapsulation innovations. The ITC found no violation. The Federal Circuit affirmed. Substantial evidence supported the finding of no infringement of one patent by 17 of 18 defendants. The court also affirmed the ITC's determination that the patent was not anticipated and its finding of patent exhaustion with respect to the eighteenth defendant. The claims with respect to other patents, which have expired, are moot.

Dell manufactures and sells secondary batteries for laptop computers, which may be packaged with new computers, at the option of the customer. The batteries at issue were admitted separately from computers into Dellâs Foreign Trade Sub-Zone (âFTZâ) in Nashville with ânon-privileged foreign status,â meaning that they had not been cleared by Customs and would be appraised for tariff purposes at the time of their formal entry into the United States. Dell proposed to classify secondary batteries that were packaged with computers as duty-free âportable digital automatic data processing [âADPâ] machines,â the ordinary classification for laptop computers. Customs classified the batteries as "other storage batteries," not âgoods put up in sets for retail saleâ with the computers. The Court of International Trade upheld the designation. The Federal Circuit affirmed, noting that the computer and battery may be packaged and shipped to the customer together, but are not packaged as a single unit for retail sale. There is nothing anomalous about classification of an article depending on the manner in which it is combined or associated with other related articles that are imported with it.

In 2003 the Department of Commerce, responding to a petition by the domestic wheat industry, found that Canadian wheat had been sold in the United States at less than fair value and issued an anti-dumping order. A North American Free Trade Agreement (NAFTA) binational panel remanded and Commerce found that the dumping had not materially injured the domestic industry. The NAFTA panel affirmed. Revocation of the anti-dumping order stated ârevocation does not affect the liquidation of entries made prior to January 2, 2006â and instructed Customs to liquidate earlier entries at the rate in effect at the time of entry. The Trade Court granted an injunction against liquidation of those duties and held that the Canadian Wheat Board was entitled to return of deposited unliquidated anti-dumping duties. The Federal Circuit affirmed, first holding that the Trade Court had jurisdiction under 28 U.S.C. 1581. The case did not involve unauthorized review of a NAFTA panel decision, but Commerce's implementation of the decision. Characterizing the decision to not return anti-dumping duties as "bizarre and unfair," the court stated that retaining the duties cannot be valid if the underlying order is invalid. Return of the duties does not constitute a retroactive remedy.