Airflow Technology, Inc. v. United States

524 F.3d 1287, 30 I.T.R.D. (BNA) 1065, 2008 U.S. App. LEXIS 9165, 2008 WL 1848654
CourtCourt of Appeals for the Federal Circuit
DecidedApril 28, 2008
Docket2007-1384
StatusPublished
Cited by31 cases

This text of 524 F.3d 1287 (Airflow Technology, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Airflow Technology, Inc. v. United States, 524 F.3d 1287, 30 I.T.R.D. (BNA) 1065, 2008 U.S. App. LEXIS 9165, 2008 WL 1848654 (Fed. Cir. 2008).

Opinion

DYK, Circuit Judge.

This customs case concerns the proper classification of Sperifilt filter media (“Sperifilt”), a product used to filter dirt and other particles from circulating air. Airflow Technology, Inc. (“Airflow”) appeals the grant of summary judgment by *1289 the United States Court of International Trade, holding that the merchandise at issue was properly classified under subheading 5911.40.00 of the Harmonized Tariff Schedule of the United States (“HTSUS”). Airflow Tech, Inc. v. United States, 483 F.Supp.2d 1337 (Ct. Int’l Trade 2007). Because we disagree with the Court of International Trade’s interpretation of subheading 5911.40.00, and, under the correct interpretation, Sperifilt falls outside the scope of 5911.40.00, we reverse and remand.

BACKGROUND

Sperifilt is manufactured by Speritex S.P.A. in Brusnengo, Italy, and imported into the United States by Airflow. Speri-filt is used in air filtration mechanisms to filter dust and other particles out of the air supply circulated within industrial paint spray booths. Air filtration ensures a high-quality paint finish, and is used primarily in connection with paint spray booths for painting automobiles, aircraft, and commercial furniture and equipment.

Sperifilt is made up of several layers of uniform sheets of polyester fibers, which are thermally bonded together and impregnated with an adhesive-type tackifying substance. In operation, Sperifilt captures large dust particles within circulated air in its entry layers of polyester fibers, and, as the air further streams through the filter, captures progressively smaller dust particles in its increasingly dense web of fibers made up of the subsequent layers. Particles small enough to pass entirely through Sperifilt’s layers of fiber sheets are eventually trapped in the filter’s tackifying substance, which acts as a final safeguard. The finished product is manufactured and packaged in rolls that are approximately 66 feet long and between 22 and 81 inches wide.

In 1998 and 1999, Airflow imported twenty-one distinct entries of Sperifilt through the Port of Chicago. The U.S. Customs Service (“Customs”) liquidated these twenty-one entries under subheading 5911.40.00 of the HTSUS, which is directed to “[s]training cloth of a kind used in oil presses or the like,” at a duty rate of 11 % ad valorem in 1998 and 10.5% ad valorem in 1999. Airflow filed a protest with Customs. Customs denied that protest, and Airflow timely challenged Customs’ classification in the Court of International Trade.

Before the Court of International Trade, Airflow maintained that Sperifilt was not properly classifiable under subheading 5911.40.00. Airflow’s main contention was that subheading 5911.40.00 applies only to products that are used to separate solids from liquids, and not to products that are used to separate solids from gases, such as air. Airflow reasoned that the term “straining cloth” was limited by the phrase “of a kind used in oil presses or the like,” which it argued must be read to include only types of presses that separate solids from liquids using a pressure differential— the essential characteristic of an oil press. It also set forth uncontroverted evidence that Sperifilt can only be used for purposes of air filtration, and cannot be used for purposes of liquid filtration (to separate solids from liquids) without being damaged beyond repair.

Airflow contended that Sperifilt should be classified instead under heading 5603, directed to “[njonwovens, whether or not impregnated, coated, covered or laminated,” and specifically under the language “other” in subheading 5603.94.90 — a duty-free provision. To support its position, Airflow relied on the Explanatory Note to heading 5603, which provides:

This heading covers nonwovens in the piece, cut to length or simply cut to *1290 rectangular (including square) shape except where they are covered more specifically by other headings in the Nomenclature. They include: ... sheets for filtering liquids or air ....

J.A. at 219 (emphasis added).

The government did not dispute that Sperifilt is prima facie classifiable under heading 5603. Instead, it argued that Sperifilt was also prima facie classifiable under the more specific subheading 5911.40.00. The government relied primarily on the Explanatory Note to heading 5911, which states that “[s]training cloth ... [used] for gas cleaning or similar technical applications in industrial dust collecting systems” is included. J.A. at 354. Since the Explanatory Note to heading 5603 provides that merchandise is excluded from that heading if it is “covered more specifically by other headings,” J.A. at 219, the government argued that Sperifilt belonged in the more specific subheading 5611.40.00.

The Court of International Trade held that the term “straining cloth” in subheading 5911.40.00 was not limited to filters used to separate solids from liquids. In doing so, it relied on its earlier decision in GKD-USA, Inc. v. United States, 931 F.Supp. 875 (Ct. Int’l Trade 1996), for a definition of the term “straining cloth.” In the earlier GKD opinion, the court determined that the term “straining cloth” was not defined in the statute or in the legislative history, and therefore looked to the common meaning of the term. Id. at 879-80. Looking to the common usage of the term, the court found that “straining cloth” was generally referred to as “filter cloth,” and that the ordinary meaning of the latter term applied equally to the former term. Id. at 880.

The court also held that the phrase “oil presses and the like” did not limit “straining cloth” to types of products that are used to separate solids from liquids, but that instead the phrase was properly construed broadly as “oil presses and other filtering mechanisms,” including filtering mechanisms that filtered solids from gases. Airflow Tech., 483 F.Supp.2d at 1345. The court held that under its interpretation of subheading 5911.40.00, Customs correctly classified Sperifilt under that subheading.

Airflow timely appealed. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(5).

DISCUSSION

We review the grant of summary judgment by the Court of International Trade without deference. Structural Indus., Inc. v. United States, 356 F.3d 1366, 1368 (Fed.Cir.2004); Russell Stadelman & Co. v. United States, 242 F.3d 1044, 1048 (Fed.Cir.2001). The interpretation of the headings and subheadings of the HTSUS is a question of law, which we review without deference. MetChem, Inc. v. United States, 513 F.3d 1342, 1345 (Fed.Cir.2008).

The sole issue on appeal is the proper interpretation of “straining cloth of a kind used in oil presses or the like” — the language of subheading 5911.40.00. The HTSUS provides:

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524 F.3d 1287, 30 I.T.R.D. (BNA) 1065, 2008 U.S. App. LEXIS 9165, 2008 WL 1848654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/airflow-technology-inc-v-united-states-cafc-2008.