Apex Universal, Inc. v. United States

22 Ct. Int'l Trade 465
CourtUnited States Court of International Trade
DecidedMay 21, 1998
DocketCourt No. 95-03-00330
StatusPublished

This text of 22 Ct. Int'l Trade 465 (Apex Universal, 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
Apex Universal, Inc. v. United States, 22 Ct. Int'l Trade 465 (cit 1998).

Opinion

Memorandum Opinion

DiCarlo, Senior Judge:

This action is before the court on cross-motions for summary judgment. Plaintiff challenges the United States Customs Service tariff classification of ceramic raised pavement markers under the Harmonized Tariff Schedule of the United States (“HTSUS”) subheading 6908.90.00 as “Glazed ceramic flags and paving, hearth or wall tiles * * *: Other” subject to a duty rate of 19 percent ad valorem. HTSUS § XIII, ch. 69 (Supp. 1 1993 & Supp. 2 1994).

Plaintiff seeks summary judgment under U.S. Ct. Int’l Trade R. 56(a) in favor of its claimed classification of the markers under HTSUS subheading 6905.90.00 as “Roofing tiles * * * and other ceramic constructional goods: Other” at 4.9 percent ad valorem, or, in the alternative, under subheading 6909.19.50 as “Ceramic wares for laboratory, chemical or other technical uses * * *: Other: Other” at 8 percent ad valorem, or, in a second alternative, under subheading 6914.90.00 as “Other ceramic articles: Other” at 8 percent ad valorem. Id.

Defendant moves for summary judgment sustaining Customs’ classification.

The Court has jurisdiction under 28 U.S.C. § 1581(a) (1994).

Background

1. Subject Merchandise:

Apex Universal, Inc. (“Apex”) imports ceramic raised pavement markers from Taiwan through the port of Los Angeles. The pavement markers range in base size and shape from 4-inch diameter circular to 4-inch by 6-inch rectangular with either pyramidal or rounded upper surfaces. All markers are less than 3.2 centimeters in thickness. They are made of clay or a mixture of clay and other ceramic materials, with a glazed face, and fired above red heat to a temperature sufficiently high to produce specific physical properties and characteristics, includingthe ability to withstand weights of 1,000 pounds or more. The finished markers are cemented to road surfaces at fixed intervals to demarcate lanes, cross walks, turn lanes and shoulders. The markers are designed to alert drivers to roadway boundaries.

[466]*4662. Parties’ Claims:

The tiles at issue are commonly known in trade or commerce as “Bott’s dots” (named after their inventor) or “pavement markers.” As there is no HTSUS provision for ceramic pavement markers, Customs classified the tiles as ceramic paving tiles. The parties disagree on the meaning of the term “paving tile” and whether the imported markers fit within the meaning of the term as used in the HTSUS.

Plaintiff argues that the markers are not paving tiles because 1) they are not used to cover a surface, but are placed at intervals along the edge of roadway lanes; and 2) they are not thin and flat, but are convex or spheroidal in shape. Plaintiff claims that, because the markers become part of the roadway surface, they should be considered “constructional goods.” In the alternative, plaintiff argues that the markers should be classified as “ceramic wares for technical uses” because they serve a safety function in keeping drivers alert and aware of roadway boundaries. In a second alternative, plaintiff argues that the markers should be classified in the basket provision for “other ceramic articles.”

Defendant responds that 1) tiles need not cover a surface in its entirety and 2) it is the function of the tiles that governs their classification, not their shape. Defendant argues that the pavement markers were correctly classified as “ceramic paving tiles” because they are consistent with the HTSUS definition of paving tiles in terms of size, shape, manufacture, and function.

3. Relevant HTSUS Provisions:

Apex imported the merchandise in 1993 and 1994. The relevant HTSUS provisions in effect during that time read as follows:

Customs’ classification:

6908 Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes and the like, whether or not on a backing:
6908.90.00 Other.19%

Plaintiff s alternatives:

6905 Roofing tiles, chimney pots, cowls, chimney liners, architectural ornaments and other ceramic constructional goods:
6905.90.00 Other. 4.9%
6909 Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods: Ceramic wares for laboratory, chemical or other technical uses:
6909.19.50 Other: Other . 8%
[467]*4676914 Other ceramic articles:
6914.90.00 Other.8%

HTSUS § XIII, ch. 69 (Supp. 1 1993 & Supp. 2 1994).

Classification of merchandise under the HTSUS is carried out in accordance with the General Rules of Interpretation. HTSUS General Rule of Interpretation 1 provides that “classification shall be determined according to the terms of the headings and any relative section or chapter notes[.]” Id., Gen. R. Interpretation 1.

The term “tile” is not fully defined in the tariff schedule. The HTSUS specifies only the thickness of the article to be classified: “ [flor the purposes of headings 6905,6907 and 6908, the term “tiles” does not include any article 3.2 cm or more in thickness.” Id. § XIII, ch. 69 Additional Note 4. The parties do not dispute the fact that the pavement markers are less than 3.2 cm thick.

The Harmonized Commodity Description and Coding System Explanatory Notes, which are the official interpretation of the Harmonized System by the Customs Co-operation Council (now the World Customs Organization), state the following descriptions for heading 69.07:

[Cjeramic flags and tiles * * * commonly used for paving or for facing walls, hearths, etc * * *.
Flags and paving, hearth or wall tiles are thinner in relation to their surface dimensions than are building bricks. * * * [Fjlagsand tiles are more especially intended for fixing by cement, adhesive or by other means to the surface of existing walls, etc. They * * * are usually flat and * * * are designed to be placed side by side without overlapping. Flags are larger than tiles and are usually rectangular; tiles maybe of other geometric shapes (hexagonal, octagonal, etc.). Tiles are mainly used for facing walls, mantelpieces, hearths, floors and paths * * *.
Certain ceramic tiles are used solely for paving; unlike bricks, they are usually cubic or in the form of truncated pyramids. * * *
The classification of goods in this heading is therefore determined by their shape and size, rather than by their composition * * *
sk *{» H* sfc sk
Subject to the above conditions, the heading also includes:
(1) Bordering, capping, skirting, frieze, angle, corner or other fitting tile pieces employed for finishing off the facing, paving, etc., work.

3 Customs Co-operation Council,

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22 Ct. Int'l Trade 465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apex-universal-inc-v-united-states-cit-1998.