Celestaire, Inc. v. United States

20 Ct. Int'l Trade 619, 928 F. Supp. 1174, 20 C.I.T. 619, 18 I.T.R.D. (BNA) 1833, 1996 Ct. Intl. Trade LEXIS 85
CourtUnited States Court of International Trade
DecidedMay 24, 1996
DocketCourt No. 93-02-00081
StatusPublished
Cited by4 cases

This text of 20 Ct. Int'l Trade 619 (Celestaire, 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
Celestaire, Inc. v. United States, 20 Ct. Int'l Trade 619, 928 F. Supp. 1174, 20 C.I.T. 619, 18 I.T.R.D. (BNA) 1833, 1996 Ct. Intl. Trade LEXIS 85 (cit 1996).

Opinion

OPINION

I

Introduction

Wallach, Judge:

Plaintiff, Celestaire, Inc., challenges the classification of marine sextants imported into the United States from the People’s Republic of China. The Customs Service classified the product under the Harmonized Tariff Schedule of the United States (“HTSUS”) as other “optical navigational instruments [subheading 9014.80.10]” which carries a tariff of 5.6% ad valorem.

Celestaire asserts that any optical feature of the sextant is subsidiary to its primary function and that accordingly the product should be classified as “other non-optical navigational instruments [heading 9014.80.50] ”, and thus free of duty. In the alternative it argues that Customs was bound not to change, without prior notice, its alleged uniform and established practice (“UEP”) of classifying sextants as non-optical navigational instruments.

The parties have submitted competing motions for summary judgment. Celestaire’s chief argument is that the sextant’s optical elements are solely subsidiary, and that consequently it should be classified as a non-optical navigational instrument. Because the Court finds that at least one optical element of the navigational sextants here at issue is not incorporated solely for purposes subsidiary to the purpose of the imported instruments, Celestaire’s motion on the classification issue is denied, and the government’s motion is granted.

The Government claims the sextants are optical instruments since they incorporate optical elements. Plaintiff claims the optical elements are subsidiary. There is no real question that the sextant is used for navigation, though it has other uses as well. Rather, the central issue here is interpretation of Additional US Note 3 to Chapter 90 which excludes instruments in which optical elements “are solely for viewing a scale or some other subsidiary purpose.” The question in this case is whether any of the sextant’s optical elements are for something other than a subsidiary purpose.

Based upon its examination of the statute’s ambiguous language and its legislative and judicial history the Court has determined that the [620]*620four part test of whether an optical element is subsidiary found in Engis Equip. Co. v. United States, 62 Cust. Ct. 29, 294 F. Supp. 964 (1969), as later modified and expanded, is consistent with the HTSUS. Application of that test, as well as additional relevant factors, to the uncontroverted facts before this Court demonstrates that at least one optical element (the split-image mirror) of the sextant is not employed in a manner subsidiary to its other components, that at least that mirror is essential to the sextant’s purpose, as imported, that the mirror and other optical elements act upon, deal with and route rays of light, and that those optical elements aid human vision.

Celestaire also argues that Customs was bound by its alleged uniform and established practice (“UEP”) of classifying sextants as non-optical instruments. Because Plaintiff is limited to arguing the existence of only a de facto UEP1, and because it has failed to submit any evidence sufficient to support that allegation, its claim on that basis must also fail. If a UEP existed, Customs was bound by 19 U.S.C. § 1315(d) (1988) to publish notice in the Federal Register of any change. Since no notice was published if a UEP existed any change in classification would be void. See, 19 CFR§ 177.10(c)(1).

While the absence of a published ruling is not fatal to Plaintiffs claim of a UER the totality of the circumstances surrounding prior classification of the merchandise here at issue are insufficient to establish any de facto practice necessary to create a UEP in the absence of publication. Plaintiffs strenuous arguments notwithstanding, it has failed in its burden of proof on this issue and it will not be permitted to conduct discovery after the fact to prove what it should have established before its Motion was filed.

Accordingly, Plaintiffs Motion For Summary Judgment is denied and Defendant’s Motion for Summary Judgment is granted.

A

Jurisdiction Lies Pursuant to 28 U.S.C. § 1581(a)

The Customs Service liquidated the products at issue between June 7, 1991 and July 24,1992. Celestaire filed a timely protest on September 5, 1991. 19 U.S.C. § 1514(c)(2) (1988). The Customs Service denied the protest on August 11, 1992. Celestaire filed its summons timely on February 4, 1993. 28 U.S.C. § 2636(a) (1988). These jurisdictional prerequisites having been satisfied, this Court has jurisdiction pursuant to 28 U.S.C. § 1581(a) (1988).

B

Summary Judgment is Appropriate Because There is No Genuine Issue of Material Fact

The Court may grant a motion for summary judgment “if the pleadings* * * and admissions on file * * * show that there is no genuine issue [621]*621as to any material fact and that the moving party is entitled to a judgment as a matter of law.” USCIT R. 56(d). Here, the parties have stipulated to the material facts, and the court finds no genuine material issue of fact has been placed in dispute by the parties.

The meaning of tariff terms is a question of law, while their application to a particular product is a question of fact. E.M. Chem. v. United States, 9 Fed. Cir. (T) 33, 35, 920 F.2d 910, 912 (1990) (Citations omitted).

Pursuant to 28 U.S.C. § 2639(a)(1), the Customs Service classification in this case is entitled to a presumption of correctness of its factual determinations, and the burden of proof that it is not correct lies with Celestaire. As to Customs’ legal interpretations, this Court is legally mandated to find the correct result de novo. Semprit Industrial Products, Inc. v. United States, 18 CIT 578, 586, 855 F. Supp. 1292, 1299 (1994). The Court “must consider whether the government’s classification is correct, both independently and in comparison with the importer’s alternative.” Jarvis Clark Co. v. United States, 2 Fed. Cir. (T) 70, 75, 733 F.2d 873, 878, reh’g denied, 2 Fed. Cir. (T) 97, 739 F.2d 628 (1984). See, generally, Anval Nyby Powder Co. v. United States, SLIP OP. 96-80 (1996).

II

Material Facts

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Bluebook (online)
20 Ct. Int'l Trade 619, 928 F. Supp. 1174, 20 C.I.T. 619, 18 I.T.R.D. (BNA) 1833, 1996 Ct. Intl. Trade LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/celestaire-inc-v-united-states-cit-1996.