Rocknel Fastener, Inc. v. United States

118 F. Supp. 2d 1238, 24 Ct. Int'l Trade 900, 24 C.I.T. 900, 22 I.T.R.D. (BNA) 1949, 2000 Ct. Intl. Trade LEXIS 112
CourtUnited States Court of International Trade
DecidedAugust 29, 2000
DocketSLIP OP. 00-112; 97-10-01702
StatusPublished
Cited by2 cases

This text of 118 F. Supp. 2d 1238 (Rocknel Fastener, 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
Rocknel Fastener, Inc. v. United States, 118 F. Supp. 2d 1238, 24 Ct. Int'l Trade 900, 24 C.I.T. 900, 22 I.T.R.D. (BNA) 1949, 2000 Ct. Intl. Trade LEXIS 112 (cit 2000).

Opinion

OPINION

GOLDBERG, Judge.

This matter is before the Court on cross-motions for summary judgment. Plaintiff, Rocknel Fastener Inc. (“plaintiff’), challenges the United States Customs Service’s (“Customs”) classification of certain fasteners as screws “[hjaving *1239 shanks or threads with a diameter of 6 mm or more” under subheading 7318.15.80 of the Harmonized Tariff Schedule of the United States (1997) (“HTSUS”). Plaintiff claims the imported fasteners should instead be classified as “[bjolts and bolts and their nuts or washers” under HTSUS subheading 7318.15.20.

The Court exercises jurisdiction over this matter pursuant to 28 U.S.C. § 1581(a) (1994). For the reasons that follow, the Court grants defendant’s motion for summary judgment and denies plaintiffs motion for the same.

I.

BACKGROUND

The merchandise at issue consists of 56 1 different industrial, externally threaded fasteners from Japan. See Pl.’s Mem. of Law in Supp. of its Mot. for Summ. J. (“Pl.’s Br.”), at 1; Def.’s Mem. in Supp. of its Cross-Mot. for Summ. J. and in Opp’n to Pl.’s Mot. for Summ. J. (“Def.’s Br.”), at 1. The fasteners are fabricated from metal alloys, see Pl.’s Br., at 1; Def.’s Br., at 1, and are designed to hold or fasten components of a finished product together. See Pi’s Statement of Material Facts to Which There Is No Genuine Triable Issue (“Pl.’s Stmt. Mat’l Facts”), at ¶ 17; Def.’s Resp. to Pl.’s Statement of Material Facts as to Which There Are No Genuine Issues to Be Tried (“Def.’s Resp. to Pl.’s Facts”), at ¶ 17.

The fasteners are rod- or pin-shaped, and are threaded on one end. See Pl.’s Stmt. Mat’l Facts, at ¶ 10, ¶ 12; Def.’s Resp. to PL’s Facts, at ¶ 10, ¶ 12. The diameter of each fastener’s threads measures six millimeters or more. See PL’s Stmt. Mat’l Facts, at ¶ 9; Def.’s Resp. to PL’s Facts, at ¶ 9.

The fasteners also have a “head” on the end of the pin opposite the threads. See PL’s Stmt. Mat’l Facts, at ¶ 11; Def.’s Resp. to PL’s Facts, at ¶ 11. The fasteners were designed to be, and are installed by, torquing these heads. See Def.’s Statement of Additional Material Facts as to Which There Are No Genuine Issues to Be Tried (“Def.’s Stmt. Add’l Facts”), at ¶ 32, ¶ 33; PL’s Resp. to Def.’s Statement of Material Facts Not in Issue (“PL’s Resp. to Def.’s Facts”), at ¶ 32, ¶ 33.

Plaintiff entered the subject fasteners into the United States between March 14, 1997 and May 7, 1997. On August 1, 1997, Customs liquidated the fasteners under 7318.15.80 at a rate of 8.9% ad valorem. On August 21, 1997, plaintiff filed a protest, claiming the fasteners should have been classified under 7318.15.20, subject to a duty rate of 0.3% ad valorem. Customs denied the protest on September 18, 1997, after which plaintiff timely filed this action.

II.

STANDARD OF REVIEW

This case is before the Court on cross-motions for summary judgment. Summary judgment is appropriate when “there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law.” See USCIT R. 56(d).

The “[cjlassification of goods entails a two-step process: (1) ascertaining the proper meaning of specific terms in the tariff provision; and (2) determining whether the merchandise in question comes within the description of the properly construed terms.” Hewlett-Packard Co. v. United States, 189 F.3d 1346, 1348 (Fed.Cir.1999). In this case, the parties agree on the physical characteristics of the imported fasteners. Thus, the Court must determine only “the proper meaning and scope of the relevant provisions.” Carl Zeiss, Inc. v. United States, 195 F.3d 1375, 1378 (Fed.Cir.1999). Because the meaning *1240 of tariff terms is a question of law, see id., summary judgment is appropriate in this case.

In reviewing Customs’s classification, the Court must determine the correct classification for the subject merchandise. See Jarvis Clark Co. v. United States, 733 F.2d 873, 878, 2 Fed. Cir.(T) 70, 75 (1984). Its review of Customs’s classification ruling is de novo. See 28 U.S.C. § 2640 (1994). Ordinarily, classification rulings are entitled to a statutory presumption of correctness. See 28 U.S.C. § 2639(a)(1) (1994). Because the Court is faced with a question of law on motions for summary judgment, however, no presumption of correctness attaches to Customs’s classification. See Universal Elecs. Inc. v. United States, 112 F.3d 488, 492 (Fed.Cir.1997). In addition, the Court does not apply Chevron deference to Customs’s classification rulings. See Carl Zeiss, 195 F.3d at 1378; Mead Corp. v. United States, 185 F.3d 1304, 1307 (Fed.Cir.1999), cert. granted, — U.S. -, 120 S.Ct. 2193, 147 L.Ed.2d 231 (U.S. May 30, 2000) (No. 99-1434).

III.

DISCUSSION

Plaintiff claims the subject fasteners should be classified as bolts under subheading, 7318.15.20. In support of its argument, plaintiff relies on general dictionary definitions and its understanding of prior case law.

Defendant asserts that the subject fasteners are properly classified as screws under subheading 7318.15.80. As the basis for its classification, defendant relies on ANSI/ASME Standard B18.2.1 (1981) (“the Standard”), which identifies screws and bolts according to primary and supplementary design characteristics.

The starting point in every classification case is the tariff schedule. Accordingly, the Court begins by examining the structure of the statute. Next, the Court considers the specific tariff provisions in question, and in particular, the meaning of the tariff terms “bolt” and “screw.” After reviewing dictionary definitions, fastener industry standards, and judicial precedent, the Court concludes that the common and commercial meaning of bolt and screw is embodied by ANSI/ASME Standard B18.2.1. Because the subject fasteners are screws as defined by the Standard, the Court concludes that Customs’s classification is correct.

A. Congress Intended That Customs Distinguish Bolts From Screws.

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118 F. Supp. 2d 1238, 24 Ct. Int'l Trade 900, 24 C.I.T. 900, 22 I.T.R.D. (BNA) 1949, 2000 Ct. Intl. Trade LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rocknel-fastener-inc-v-united-states-cit-2000.