Blue Sky the Color of Imagination, LLC v. United States

698 F. Supp. 3d 1243, 2024 CIT 42
CourtUnited States Court of International Trade
DecidedApril 10, 2024
Docket21-00624
StatusPublished
Cited by3 cases

This text of 698 F. Supp. 3d 1243 (Blue Sky the Color of Imagination, LLC 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
Blue Sky the Color of Imagination, LLC v. United States, 698 F. Supp. 3d 1243, 2024 CIT 42 (cit 2024).

Opinion

Slip Op. 24-

UNITED STATES COURT OF INTERNATIONAL TRADE

BLUE SKY THE COLOR OF IMAGINATION, LLC,

Plaintiff, Before: Jane A. Restani, Judge v. Court No. 21-00624 UNITED STATES,

Defendant.

OPINION

[In a Customs classification matter, judgment issued declaring classification other than as claimed by the parties.]

Dated: April 10, 2024

Christopher J. Duncan and Elon A. Pollack, Stein Shostak Shostak Pollack & O’Hara, LLP, of Los Angeles, CA, argued for the plaintiff, Blue Sky the Color of Imagination, LLC.

Monica P. Triana, International Trade Field Office, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of New York, NY argued for the defendant. With her on the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, Patricia M. McCarthy, Director, Justin R. Miller, Attorney-In-Charge, and Aimee Lee, Assistant Director. Of counsel on the brief was Fariha B. Kabir, Office of Assistant Chief Counsel, International Trade Litigation, U.S. Customs and Border Protection of New York, NY.

Restani, Judge: Before the court are cross-motions for summary judgment. Pl.’s Mot. for

Summ. J., ECF No. 20 (Aug. 23, 2023) (“Blue Sky MSJ”); Def.’s Mem. in Supp. of Cross-Mot.

for Summ. J. and Opp’n to Pl.’s Mot. for Summ. J., ECF No. 25 (Nov. 17, 2023) (“Gov. MSJ”).

Plaintiff Blue Sky the Color of Imagination, LLC (“Blue Sky”) challenges the United States

Customs and Border Protection’s (“Customs”) classification of certain paper products under Court No. 21-00624 Page 2

subheading 4820.10.40.00 of the Harmonized Tariff Schedule of the United States (“HTSUS”).

At issue, as framed by the parties, is whether certain notebooks containing calendars are classified

instead as calendars of any kind or “[o]ther” paper products for tariff purposes. See Blue Sky MSJ

at 3. The United States (“Government”) asks that the court sustain Customs’ classification. Gov.

MSJ at 15. For the reasons laid out below, the court concludes that neither classification is correct,

and the paper products are diaries classified in subheading 4820.10.20.10, HTSUS.

I. Background

A. Procedural Background

There are no material factual disputes in this case. Gov. MSJ at 15; Blue Sky MSJ at 22.

On December 2, 2021, Blue Sky imported ten models of desk calendars and planners and, upon

import, classified all ten models of desk calendars and planners as “[c]alendars of any kind” under

heading 4910, HTSUS. Blue Sky MSJ at 6. At liquidation, Customs reclassified all ten models

of desk calendars and planners as “[o]ther” under subheading 4820.10.40.00, HTSUS. Blue Sky

MSJ at Ex. 4. Blue Sky timely protested Customs’ reclassification. Id. Customs denied Blue

Sky’s protest, and Blue Sky brought this case before the court. Blue Sky MSJ at 7, Ex. 4. Since

this case was initiated, Customs has settled with Blue Sky as to several models of the subject

merchandise; the sole remaining issue before this court is the classification of four models of Blue

Sky weekly/monthly planners. Blue Sky MSJ at 4.

B. Description of Subject Merchandise

The subject merchandise consists of four paper products that have variously been called

“planners” and “planning calendars” by the parties. Gov. MSJ at 3; Blue Sky MSJ at 3. The

subject merchandise consists of four different “weekly/monthly” models. Gov. MSJ at 3; Blue

Sky MSJ at 3. Although the sizes vary among the models, all four models include full page month Court No. 21-00624 Page 3

calendars followed by weekly sections that include space to write notes. Gov. MSJ at Ex. A; Blue

Sky Reply to Gov. Mot. for Summ. J. at 8–9, ECF No. 26 (Dec. 22, 2023). The subject

merchandise has the term “planner” on the front. Gov. MSJ at Ex. F; Blue Sky MSJ at Ex. 8.2.

The subject merchandise is “used to note future appointments.” Blue Sky MSJ at 13; see Gov.

MSJ at 27. They are spiral bound as notebooks are and contain a few additional pages for addresses

and phone numbers. Gov. MSJ at Ex. A; Blue Sky MSJ at Ex. 13.

II. Jurisdiction and Standard of Review

The court has jurisdiction under 28 U.S.C. § 1581(a). The court will grant summary

judgment if “there is no genuine dispute as to any material fact and the movant is entitled to

judgment as a matter of law.” USCIT R. 56(a). Summary judgment is appropriate in tariff

classification cases where “there is no genuine dispute as to the nature of the merchandise and the

classification turns on the proper meaning and scope of the relevant tariff provisions.” Deckers

Outdoor Corp. v. United States, 714 F.3d 1363, 1371 (Fed. Cir. 2013) (citation omitted). The court

decides classification de novo. See 28 U.S.C. § 2640(a)(1) (2018); Telebrands Corp. v. United

States, 36 CIT 1231, 1234, 865 F. Supp. 2d 1277, 1279–80 (2012).

III. Discussion

A. Legal Framework

The meaning of a tariff term is a question of law, and whether subject merchandise falls

under any given tariff term is a question of fact. See Wilton Indus. v. United States, 741 F.3d

1263, 1265–66 (Fed. Cir. 2013) (citations omitted). The plaintiff has the burden of establishing

that the government’s classification of the subject merchandise was incorrect but does not bear the

burden of establishing the correct classification; instead, it is the court’s independent duty to arrive

at “the correct result, by whatever procedure is best suited to the case at hand.” Jarvis Clark Co. Court No. 21-00624 Page 4

v. United States, 733 F.2d 873, 878 (Fed. Cir. 1984). In making this determination, the court “must

consider whether the government’s classification is correct, both independently and in comparison

with the importer’s alternative.” Id.

In order to determine the meaning of and apply a tariff term to the facts at hand, the court

relies on the General Rules of Interpretation (“GRIs”) and, if applicable, the Additional U.S. Rules

of Interpretation. Wilton, 741 F.3d at 1266. The court applies the GRIs in numerical order, and

only proceeds to each subsequent GRI if a previous GRI alone cannot classify the goods. Id. The

first GRI, GRI 1, requires classification to “be determined according to the terms of the headings

and any relative section or chapter notes . . . .” GRI 1, HTSUS. HTSUS chapter and section notes

are considered binding statutory law. See BenQ Am. Corp. v. United States, 646 F.3d 1371, 1376

(Fed. Cir. 2011).

Tariff terms are generally adopted from the Harmonized System (“HS”), an international

product nomenclature that the U.S. implements as the HTSUS. See Marubeni Am. Corp. v. United

States, 35 F.3d 530, 532–33 (Fed. Cir. 1994) (describing the adoption of the HTSUS system). The

HS is the product of a treaty, the International Convention on the Harmonized Commodity

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