ABB, Inc. v. United States

346 F. Supp. 2d 1357, 28 Ct. Int'l Trade 1444, 28 C.I.T. 1444, 26 I.T.R.D. (BNA) 2327, 2004 Ct. Intl. Trade LEXIS 111
CourtUnited States Court of International Trade
DecidedSeptember 2, 2004
DocketSlip op. 04-112; Court 03-00183
StatusPublished
Cited by2 cases

This text of 346 F. Supp. 2d 1357 (ABB, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ABB, Inc. v. United States, 346 F. Supp. 2d 1357, 28 Ct. Int'l Trade 1444, 28 C.I.T. 1444, 26 I.T.R.D. (BNA) 2327, 2004 Ct. Intl. Trade LEXIS 111 (cit 2004).

Opinion

*1358 OPINION

RESTANI, Chief Judge.

INTRODUCTION

Plaintiff ABB, Ine. imported three underwater cables into the United States in connection with the Cross Sound Project, which links the New England power grid with the Long Island power grid along the bottom of the Long Island Sound. The United States Customs Service 1 classified two of the cables, both high voltage electrical cables, under subheading 8544.60.40 of the Harmonized Tariff Schedule of the United States (“HTSUS”), 19 U.S.C. § 1201 (2000), and classified the other, a fiber optic cable, under subheading 8544.70.00. ABB challenges these classifications on the grounds that, because the three cables were bound together with steel straps after importation, the cables were imported as unassembled parts of a single fiber optic cable “assembled with electrical conductors.” Such a cable would be classified under 8544.70.00, duty free.

ABB’s administrative protest was denied pursuant to 19 U.S.C. § 1515(a). The court has jurisdiction over this civil action pursuant to 28 U.S.C. § 1581(a). Both ABB and the Government move for summary judgment. Summary judgment is appropriate when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. CIT R. 56. The court finds that no genuine issues of material fact remain. Because the three fully-manufactured, functioning cables were fastened together after importation through a project-specific bundling process, they cannot be classified as the unassembled parts of a single fiber optic cable or composite machine. Accordingly, the Government’s motion for summary judgment is granted and ABB’s motion is denied.

BACKGROUND

I. The Harmonized Tariff Schedule Provisions In Issue

The relevant HTSUS provisions are Heading 8544 and certain of its subheadings:

8544 Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors:
8544.60 Other electric conductors, for a voltage exceeding 1,000 V:
8544.60.40 Other:
Of copper
8544.70.00 Optical fiber cables
Heading 8544, HTSUS.

II. The Merchandise in Issue

The three articles in issue consist of two high voltage direct current (“HVDC”) submarine cables and one fiber optic submarine cable. ABB entered the cables as three separate articles, with each HVDC cable entering under subheading 8544.60.40 at a duty rate of 3.5% of the cable’s value and the fiber optic cable en *1359 tering under subheading 8544.70.00, duty free. Customs classified the articles as entered. After final liquidation, ABB protested the classification, alleging that the three cables were unassembled parts of a single article properly classified under 8544.70.00. Customs denied this protest on April 14, 2003.

A. The HVDC Cables

The HVDC cables are manufactured by ABB High Voltage Cables AB, in Karlsk-rona, Sweden. Def.’s Stmt, of Facts at ¶ 2; Pl.’s Resp. to Def.’s Stmt, of Facts at ¶ 11. Each HVDC cable consists of a copper conductor surrounded, in succeeding order, by plastic insulation, water sealing tape, a metallic shield, an inner jacket, tensile armoring, and an outer jacket. Def.’s Stmt, of Facts at ¶ 9; Pl.’s Resp. to Def.’s Stmt, of Facts at ¶ 9; Aff. of Jan Lindhe, ABB Project Installation Manager for the Cross Sound Project, at ¶ 8 [hereinafter Lindhe Aff.]. The HVDC cables have no other use except to transmit direct current electricity. Lindhe Aff. at ¶ 10. The HVDC cables were entered and classified under HTSUS subheading 8544.60.40 at duty rate of 3.5% of their value. Pl.’s Stmt, of Facts at ¶ 6; Def.’s Stmt, of Facts at ¶ 26.

B. The Fiber Optic Cable

The fiber optic cable was manufactured by Ericsson Network Technologies AB, Hudiksvall, Sweden. Lindhe Aff. at ¶ 9. At the center of the cable are optical fibers individually sheathed with acrylate and arranged around a slotted polyethylene core. Id.; Ericsson Fiber Optic Cable Product and Order Information, Def.’s Resp. Br., Ex. C [hereinafter Ericsson Fiber Optic Cable Information]. The arrangement of optical fibers is protected by an inner polyethylene jacket, a water-proof copper tube, a double layer of steel wire armor, and an outer polyethylene jacket. Def.’s Stmt, of Facts at ¶ 16; Pl.’s Resp. to Def.’s Stmt, of Facts at ¶ 16; Ericsson Fiber Optic Cable Information, Def.’s Resp. Br., Ex. C. The fiber optic cable was classified under subheading 8544.70.00, HTSUS, duty free. PL’s Stmt, of Facts at ¶ 5; Def.’s Stmt, of Facts at ¶ 27.

C.The Cross Sound Project

The submarine cables were imported for the Cross Sound Project, which links the New England power grid with the Long Island power grid to provide electricity to Long Island and improve the reliability of the power supply in Connecticut and New England. Defi’s Stmt, of Facts at ¶ 4. The cables connect HVDC substations in New Haven, Connecticut and Brookhaven, New York.

1. The State of the Cables Upon Entry

Each cable was fully-manufactured and functional upon leaving its manufacturing plant. PL’s Resp. to Def.’s Stmt, of Facts at ¶¶ 12, 13, & 15 (HVDC cables); id., at ¶¶ 18, 19, 20, 21 (fiber optic cable). After manufacture, the three cables were loaded in Sweden onto a special cable laying vessel, the Sea Spider. Def.’s Stmt, of Facts at ¶ 23; PL’s Resp. to Def.’s Stmt, of Facts at ¶ 23. The two HVDC cables were loaded simultaneously in individual compartments in a rotating turntable on the deck of the ship. Lindhe Aff. at ¶ 7. The fiber optic cable was then loaded onto the ship into a circular container known as a “static coil.” Id.; YDS Cable bv Project Quality Manual, Sec. 6.4.3.6, PL’s Op. Br., Ex. 1. The cables did not undergo further processing prior to the arrival of Sea Spider in the Long Island Sound. Lindhe Aff. at ¶ 14. The Sea Spider crossed the Atlantic Ocean and made its first port of call in New Haven, where the United States *1360 Coast Guard inspected the vessel and Customs cleared the cargo. After the ship received clearance from Customs, the Cross Sound Project’s installation team arrived on the vessel and made preparations to lay the cables.

3. The Bundling and Laying of the Cables

As the cables were laid in the Long Island Sound, they were bundled together with metal straps.

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Bluebook (online)
346 F. Supp. 2d 1357, 28 Ct. Int'l Trade 1444, 28 C.I.T. 1444, 26 I.T.R.D. (BNA) 2327, 2004 Ct. Intl. Trade LEXIS 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abb-inc-v-united-states-cit-2004.