United States v. Mead Corp.

121 S. Ct. 2164, 3 A.L.R. Fed. 2d 651, 150 L. Ed. 2d 292, 533 U.S. 218, 2001 Daily Journal DAR 6144, 69 U.S.L.W. 4488, 23 I.T.R.D. (BNA) 1129, 2001 U.S. LEXIS 4492, 2001 Colo. J. C.A.R. 3077, 2001 Cal. Daily Op. Serv. 5004
CourtSupreme Court of the United States
DecidedJune 18, 2001
Docket99-1434
StatusPublished
Cited by3,083 cases

This text of 121 S. Ct. 2164 (United States v. Mead Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Mead Corp., 121 S. Ct. 2164, 3 A.L.R. Fed. 2d 651, 150 L. Ed. 2d 292, 533 U.S. 218, 2001 Daily Journal DAR 6144, 69 U.S.L.W. 4488, 23 I.T.R.D. (BNA) 1129, 2001 U.S. LEXIS 4492, 2001 Colo. J. C.A.R. 3077, 2001 Cal. Daily Op. Serv. 5004 (U.S. 2001).

Opinions

Justice Souter

delivered the opinion of the Court.

The question is whether a tariff classification ruling by the United States Customs Service deserves judicial deference. The Federal Circuit rejected Customs’s invocation of Chevron U S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837 (1984), in support of such a ruling, to which it gave no deference. We agree that a tariff classification has no claim to judicial deference under Chevron, there being no indication that Congress intended such a ruling to carry the force of law, but we hold that under Skidmore v. Swift & Co., 323 U. S. 134 (1944), the ruling is eligible to claim respect according to its persuasiveness.

I

A

Imports are taxed under the Harmonized Tariff Schedule of the United States (HTSUS), 19 U. S. C. § 1202. Title 19 U. S. C. § 1500(b) provides that Customs “shall, under rules [222]*222and regulations prescribed by the Secretary [of the Treasury,] ... fix the final classification and rate of duty applicable to... merchandise” under the HTSUS. Section 1502(a) provides that

“[t]he Secretary of the Treasury shall establish and promulgate such rules and regulations not inconsistent with the law (including regulations establishing procedures for the issuance of binding rulings prior to the entry of the merchandise concerned), and may disseminate such information as may be necessary to secure a just, impartial, and uniform appraisement of imported merchandise and the classification and assessment of duties thereon at the various ports of entry.”1

See also §1624 (general delegation to Secretary to issue rules and regulations for the admission of goods).

The Secretary provides for tariff rulings before the entry of goods by regulations authorizing “ruling letters” setting tariff classifications for particular imports. 19 CFR § 177.8 (2000). A ruling letter

“represents the official position of the Customs Service with respect to the particular transaction or issue described therein and is binding on all Customs Service personnel in accordance with the provisions of this section until modified or revoked. In the absence of a change of practice or other modification or revocation which affects the principle of the ruling set forth in the ruling letter, that principle may be cited as authority in the disposition of transactions involving the same circumstances.” § 177.9(a).

[223]*223After the transaction that gives it birth, a ruling letter is to “be applied only with respect to transactions involving articles identical to the sample submitted with the ruling request or to articles whose description is identical to the description set forth in the ruling letter.” § 177.9(b)(2). As a general matter, such a letter is “subject to modification or revocation without notice to any person, except the person to whom the letter wás addressed,” § 177.9(c), and the regulations consequently provide that “no other person should rely on the ruling letter or assume that the principles of that ruling will be applied in connection with any transaction other than the one described in the letter,” ibid. Since ruling letters respond t'o transactions of the moment, they are not subject to notice and comment before being issued, may be published but need only be made “available for public inspection,” 19 U. S. C. § 1625(a), and, at the time this action arose, could be modified without notice and comment under most circumstances, 19 CFR § 177.10(c) (2000).2 A broader notice-and-comment requirement for modification of prior rulings was added by statute in 1993, Pub. L. 103-182, § 623, 107 Stat. 2186, codified at 19 U. S. C. § 1625(c), and took effect after this case arose.3

[224]*224Any of the 464 port-of-entry5 Customs offices may issue ruling letters, and so may the Customs Headquarters Office, in providing “[a]dvice or guidance as to the interpretation or proper application of the Customs and related laws with respect to a specific Customs transaction [which] may be requested by Customs Service field offices ... at any time, whether the transaction is prospective, current, or completed,” 19 CFR § 177.11(a) (2000). Most ruling letters contain little or no reasoning, but simply describe goods and state the appropriate category and tariff. A few letters, like the Headquarters ruling at issue here, set out a rationale in some detail.

B

Respondent, the Mead Corporation, imports “day planners,” three-ring binders with pages having room for notes of daily schedules and phone numbers and addresses, together with a calendar and suchlike. The tariff schedule on point falls under the HTSUS heading for “[registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles,” HTSUS subheading 4820.10, which comprises two subcategories. Items in the first, “[d]iaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles,” were subject to a tariff of 4.0% at the time in controversy. 185 F. 3d 1304, 1305 (CA Fed. 1999) (citing subheading 4820.10.20); see also App. to Pet. for Cert. 46a. Objects in the second, covering “[o]ther” items, were free [225]*225of duty. HTSUS subheading 4820.10.40; see also App. to Pet. for Cert. 46a.

Between 1989 and 1993, Customs repeatedly treated day planners under the “other” HTSUS subheading. In January 1993, however, Customs changed its position, and issued a Headquarters ruling letter classifying Mead’s day planners as “Diaries . . . , bound” subject to tariff under subheading 4820.10.20. That letter was short on explanation, App. to Brief in Opposition 4a-6a, but after Mead’s protest, Customs Headquarters issued a new letter, carefully reasoned but never published, reaching the same conclusion, App. to Pet. for Cert. 28a-47a. This letter considered two definitions of “diary” from the Oxford English Dictionary, the first covering a daily journal of the past day’s events, the second a book including “ ‘printed dates for daily memoranda and jottings; also . . . calendars . . . .’” Id., at 33a-34a (quoting Oxford English Dictionary 321 (Compact ed. 1982)). Customs concluded that “diary” was not confined to the first, in part because the broader definition reflects commercial usage and hence the “commercial identity of these items in the marketplace.” App. to Pet. for Cert. 34a.

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Cite This Page — Counsel Stack

Bluebook (online)
121 S. Ct. 2164, 3 A.L.R. Fed. 2d 651, 150 L. Ed. 2d 292, 533 U.S. 218, 2001 Daily Journal DAR 6144, 69 U.S.L.W. 4488, 23 I.T.R.D. (BNA) 1129, 2001 U.S. LEXIS 4492, 2001 Colo. J. C.A.R. 3077, 2001 Cal. Daily Op. Serv. 5004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-mead-corp-scotus-2001.