Diachem Industries Ltd. v. United States

22 Ct. Int'l Trade 889
CourtUnited States Court of International Trade
DecidedSeptember 4, 1998
DocketCourt No. 96-05-01386
StatusPublished

This text of 22 Ct. Int'l Trade 889 (Diachem Industries Ltd. 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
Diachem Industries Ltd. v. United States, 22 Ct. Int'l Trade 889 (cit 1998).

Opinion

Opinion

Barzilay, Judge:

Plaintiff, Diachem Industries Ltd. (“Diachem”), commenced this action challenging the classification of its imported merchandise by the United States Customs Service (“Customs”). This Court has jurisdiction under 28 U.S.C. § 1581(a) (1994). The parties have cross-moved for summary judgment. Based upon the papers submitted, the Court finds the following material facts are not in dispute.

Background

DIAQ is an aqueous dispersion of Anthraquinone and other ingredients: small amounts of DOWFAX 2A1, sodium, hexametaphosphate, xanthan gum and soda ash. PI. ’s Stat. Mat. Facts at ¶ 11. Anthraquinone is a separately defined organic compound and is used as a catalyst in the púlp and paper industry in kraft pulping, a step in the paper-making process. Id. at ¶ 3. Anthraquinone is an aromatic substance as it is a derivative of anthracene, a component of coal tar. PI. ’s Attach. B at ¶ 10. See also Def.’s Mem. Supp. Mot. Sum. J. at 16, n.8 (“Defs Mem.”). An-thraquinone is poorly soluble in water and it is formulated in DIAQ along with other ingredients to help sustain the Anthraquinone particles throughout the mixture. Compl. at ¶¶ 17, 25. Though Anthraqui-[890]*890none in solid form can be used as a catalyst by the pulp and paper industry, an aqueous dispersion such as DIAQ is easier to use because dispersions are fluid and can be transported through pipes by pumping and can be readily applied and metered. Compl. at ¶ 20. DIAQ is a catalytic preparation, compl. at ¶ 14, and a reaction accelerator. Def.’s Stat. Addit. Mat. Facts at ¶ 48. It is a redox (oxidation-reduction) catalyst preparation used as a reaction accelerant in kraft pulping. Def.’s Mem. at Ex.2 (Diachem’s response, dated October 12,1994, to U.S. Customs’ Request for Information pursuant to 19 CFR 151.11, 152.2, (CF 28)). DIAQ is not a supported catalyst. Def.’s Stat. Addit. Mat. Facts at 149.

Customs classified DIAQ under subheading 3815.90.50, Harmonized Tariff Schedule of the United States (“HTSUS”), as a reaction initiator, reaction accelerator and catalytic preparation. Diachem claims that DIAQ should be classified as Anthraquinone under HTSUS 2914.61.00. For the reasons set out in the opinion which follows, the Court denies Diachem’s motion for summary judgment and grants Customs’ motion for summary judgment upholding its classification of the merchandise. The relevant statutes, including headnotes, are set out below.

Relevant Statutes

Harmonized Tariff Schedule of the United States (1995):

Chapter 29
Notes
1. Except where the context otherwise requires, the headings of this chapter apply only to:
(a) i.Separate chemically defined organic compounds, whether or not containing impurities;
(b) Mixtures of two or more isomers of the same organic compound (whether or not containing impurities), except mixtures of acyclic hydrocarbon isomers (other than stereoisomers); whether or not saturated (Chapter 27);
(c) The products of heading 2936 to 2939 or the sugar ethers and sugar esters, and their salts, of heading 2940, or the products of heading 2941, whether or not chemically defined;
(d) Products mentioned in (a), (b) or (c) above dissolved in water;
(e) products mentioned in (a), (b) or (c) above dissolved in other solvents provided that the solution constitutes a normal and necessary method of putting up these products adopted solely for reasons of safety or for transport and that the solvent does not render the product particularly suitable for specific use rather than for general use;
(f) The products mentioned in (a), (b), (c), (d) or (e) above with an added stabilizer (including an anticaking agent) necessary for their preservation or transport;
(g) The products mentioned in (a), (b), (c), (d), (e) or (f) above with an added antidusting agent or a coloring or odoriferous substance added to facilitate their identification or for safety reasons, provided that the additions do not render the product [891]*891particularly suitable for specific use rather than for general use;
(h) The following products, diluted to standard strengths, for the production of azo dyes; diazonium salts, couplers used for these salts and diazotizable amines and their salts.
Heading/Subheading Article Description
2914 Ketones and quiñones whether or not with other oxygen function, and their halogenated, sul-fonated, nitrated or nitrosated derivatives;
* * * # * * sK
Quinones:
2914.61.00 Anthraquinone
Chapter 38
3815 Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included:
Supported catalysts:
3815.11.00 With nickel or nickel compounds as the active substance
3815.12.00 3815.19.00 With precious metal or precious metal compounds as the active substance. Other
3815.90 Other:
Consisting wholly of inorganic substances: Of bismuth, of tungsten or of vanadium
3815.90.20 Of mercury or of molybdenum
3815.19.30 Other
3815.90.50 Other:

Contentions of the Parties

Diachem contends that the heading “Anthraquinone” is an eo nomine designation and that it should be read to include all forms of the product, so long as the form bears any essential resemblance to the one described. Thus, Diachem asserts that DIAQ is a form of Anthraquinone and that it is classifiable under tariff item 2914.61.00.

Diachem admits that DIAQ is not a separate chemically defined compound or chemical solution as described in Headnotes 1(a) and (d) of Chapter 29, but claims that because DIAQ is an aqueous dispersion of Anthraquinone, an organic compound, and a liquid made up mostly of Anthraquinone, it is Anthraquinone. Diachem argues that Anthraqui-none defines the essential character of DIAQ and that the minor constituents in DIAQ do not play a direct role in the principal function of Anthraquinone. Moreover, Diachem contends that the minor ingredients are not present in DIAQ in quantities sufficient to be significant for tariff purposes. Diachem also contends that Headnotes 1(d) and 1(e) to Chapter 29 require classification of DIAQ under 2914.61.00. With re[892]

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Bluebook (online)
22 Ct. Int'l Trade 889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diachem-industries-ltd-v-united-states-cit-1998.