Jewelpak Corp. v. United States

297 F.3d 1326, 24 I.T.R.D. (BNA) 1353, 2002 U.S. App. LEXIS 14329, 2002 WL 1549432
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 16, 2002
Docket01-1300
StatusPublished
Cited by24 cases

This text of 297 F.3d 1326 (Jewelpak Corp. 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
Jewelpak Corp. v. United States, 297 F.3d 1326, 24 I.T.R.D. (BNA) 1353, 2002 U.S. App. LEXIS 14329, 2002 WL 1549432 (Fed. Cir. 2002).

Opinions

Opinion for the court filed by Circuit Judge MICHEL. Dissenting opinion filed by Circuit Judge GAJARSA.

MICHEL, Circuit Judge.

This appeal involves a decision by the United States Customs Service (“Customs”) to reclassify appellant Jewelpak Corporation’s (“Jewelpak”) so-called “presentation boxes” as “jewelry boxes” under subheading 4202.92.90 of the Harmonized Tariff Schedule of the United States (“HTSUS”). Following a two-day bench trial, the United States Court of International Trade entered judgment for the United States, affirming Customs’ classification. Jewelpak Corp. v. United States, 131 F.Supp.2d 100 (Ct. Int’l Trade 2001) (“Jewelpak III”). For reasons explained further below, we affirm.

I

Jéwelpak is an importer of various types of “presentation boxes,” plastic or metal boxes covered with either textile materials or plastic sheeting that are used to ship, store, and display items of jewelry. Under the Tariff Schedule of the United States (“TSUS”), Jewelpak’s boxes were classified as “packaging” according to their component of chief value. During the late 1980s, however, the Harmonized System Committee (“HSC”) had begun to consider amending-the Explanatory Note of the Harmonized Tariff Schedule (“Notes”) to modify the definition of “jewelry boxes” under Heading 4202.1 When the HTSUS supplanted the TSUS on January 1, 1989, no amendment had been made; accordingly, the boxes at issue and those of similar ilk continued to be classified by Customs as “packaging,”, according to the material that provided their essential character, for at least a year.2 The HSC eventually hammered out an amendment to the Note, redefining “jewelry boxes” as follows:

[1329]*1329The term ‘jewellery [sic throughout] boxes’ covers not only boxes specially designed for keeping jewellery, but also similar lidded containers of various dimensions (with or without hinges or fasteners) specially shaped or fitted to contain one or more pieces of jewellery and normally lined with textile material, of the type in which articles of jewellery are presented and sold and which are suitable for long-term use.

Amended Explanatory Note to Heading 4202 (emphasis added).

This amendment became effective on January 1, 1990, exactly one year after the effective date of the HTSUS. According to the government, from 1990 through 1993, Customs “classified most containers similar to those at issue here as ‘jewelry boxes’ under heading 4202, with only a few exceptions.” Not surprisingly, two of those exceptions were rulings issued to Jewelpak by Customs Headquarters — on January 2, 1990, and July 26, 1991, respectively.

The first, Ruling HQ 086186, was a response to an inquiry from Jewelpak regarding the proper classification of the “presentation boxes” in light of the newly amended Note. Customs concluded that the boxes at issue were not “jewelry boxes” within the nomenclature of the HTSUS because they did not appear to be designed or specially fitted for holding and storing jewelry, and because they did not appear to be suitable for repeated, long-term use. Notably, Customs expressly declined Jewelpak’s invitation to issue a binding ruling on the matter: “Twelve samples were included in your inquiry-. A precise description of the materials used in each item was not provided in your letter Without information as to the component materials of the containers in this case, we are unable to provide a binding ruling as to the classification.” ' '

The second, Ruling HQ 089830, was responsive to yet another request by Jewelpak for a binding classification ruling. This time, however, Jewelpak included a letter providing a breakdown of the boxes’ component materials by weight and by value that was missing before. Customs, determining that the submitted samples were composite goods that should be classified according to the textile or metal that gave the box its essential character, concluded that the boxes could be imported duty-free. The issue was resolved, but the resolution was fleeting.

By letter dated January 27, 1992, Customs issued notice to Jewelpak that it was considering revoking Rulings HQ 086186 and HQ 089830; it granted Jewelpak a 30-day period within which to submit comments regarding the contemplated revocation. Jewelpak submitted two letters opposing revocation and thereafter met with officials of the Office of Regulations and Rulings to present its case. Unpersuaded, Customs revoked the two earlier rulings and concluded that the presentation boxes were properly classifiable as jewelry boxes subject to a 20% ad valorem duty rate. In a thorough, nine-page letter, Customs explained that the Explanatory Notes, “the official interpretation of the tariff system at the international level ... mak[e] it clear that cases used in the presentation and sale of jewelry are included in the term ‘jewelry boxes’ in heading 4202.” And because the boxes imported by Jewel-pak satisfy the definition of “jewelry boxes” in the Amended Explanatory Note to heading 4202, Customs revoked the earlier rulings:

The presentation cases classified in HRL 089830 ... are classifiable instead under subheading 4202.92.9020, HTSU-SA. The duty rate is 20% ad valorem .... This notice to you should be considered a revocation of HRL’s 086186 and 089830 under 19 CFR 177.9(d)(1). It is [1330]*1330not to be applied retroactively to HRL’s 086186 and 089830 (19 CFR 177.9(d)(2)) and will not, therefore, affect past transactions for the importation of your clients’ merchandise under those rulings. However, for the purposes of future transactions in merchandise of this type, these rulings will not be valid precedent.

Ruling HQ 951028, March 3, 1993 at 8. After a July 1993 shipment of the subject merchandise imported by Jewelpak was assessed the duty rate prescribed by HTSUS subheading 4202.92.90, in accordance with Customs’ ruling letter, Jewepak filed a complaint in the United States Court of International Trade.

II

Jewelpak asserted three causes of action before the Court of International Trade, and each is pressed again before us. The first cause of action alleged that Customs’ reclassification was improper because the imported merchandise fell outside the common meaning of the term “jewelry box,” which purportedly controls its classification. The second cause of action asserted that because-Customs had changed its official position with regard to the meaning of the term “jewelry boxes,” it therefore violated its own regulations — 19 C.F.R. § 177.10(c)(2) — by reclassifying Jewelpak’s merchandise without first publishing notice in the Federal Register and providing a notice-and-comment period for interested parties. Finally, the third cause of action alleged that Customs, having at once classified the imported merchandise as packaging even after the Explanatory Note became effective, was thereafter estopped from altering the duty rate until the President, at the recommendation of the International Trade Commission (“ITC”), made modifications to the previously existing duty rates under 19 U.S.C. § 3005.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kent International, Inc. v. United States
17 F.4th 1104 (Federal Circuit, 2021)
Kent Int'l, Inc. v. United States
466 F. Supp. 3d 1361 (Court of International Trade, 2020)
Schlumberger Technology Corp. v. United States
845 F.3d 1158 (Federal Circuit, 2017)
Specialty Commodities Inc. v. United States
190 F. Supp. 3d 1277 (Court of International Trade, 2016)
Williamson v. Murray (In Re Murray)
586 F. App'x 477 (Tenth Circuit, 2014)
In re Witt
481 B.R. 468 (N.D. Indiana, 2012)
Citizen Watch Co. of America, Inc. v. United States
724 F. Supp. 2d 1316 (Court of International Trade, 2010)
Kahrs International, Inc. v. United States
645 F. Supp. 2d 1251 (Court of International Trade, 2009)
Totes-Isotoner Corp. v. United States
580 F. Supp. 2d 1371 (Court of International Trade, 2008)
Former Employees of BMC Software, Inc. v. United States Secretary of Labor
519 F. Supp. 2d 1291 (Court of International Trade, 2007)
Value Vinyls, Inc. v. United States
31 Ct. Int'l Trade 1209 (Court of International Trade, 2007)
Wilton Industries, Inc. v. United States
493 F. Supp. 2d 1294 (Court of International Trade, 2007)
Wilton Indus., Inc. v. United States
2007 CIT 94 (Court of International Trade, 2007)
Forest Laboratories, Inc. v. United States
476 F.3d 877 (Federal Circuit, 2007)
Degussa Corp. v. United States
452 F. Supp. 2d 1310 (Court of International Trade, 2006)
Warner-Lambert Company v. United States
343 F. Supp. 2d 1315 (Court of International Trade, 2004)
Len-Ron Manufacturing Co. v. United States
334 F.3d 1304 (Federal Circuit, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
297 F.3d 1326, 24 I.T.R.D. (BNA) 1353, 2002 U.S. App. LEXIS 14329, 2002 WL 1549432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jewelpak-corp-v-united-states-cafc-2002.