United States v. Mead Corp.

Summary

U.S. Supreme Court, Pending

        

        The United States Court of Appeals for the Federal Circuit ruled that tariff classification rulings issued by the Customs Service are not entitled to judicial deference.

        

        The Mead Corp. imported "daily planners," which are loose-leafs books containing calendars, note pads and telephone books. The Customs Service deemed the daily planners "bound dairies," and accordingly imposed a 3.2 percent duty. Mead protested the classification, asserting that the daily planners were neither bound nor diaries and thus no duty was applicable. When Customs denied Mead's protest, Mead sought review in the United States Court of International Trade, which upheld Customs' classification determination.

        

        The United States Court of Appeals for the Federal Circuit reversed. In its ruling, the Federal Circuit declined to give Customs' tariff classification ruling deference "because those rulings are issued without the benefit of public comment, 'do not carry the force of law and are not, like regulations intended to clarify the rights and obligations of importers beyond the specific case under review.'" Next, the Federal Circuit concluded that the items were not diaries in that daily planners provide a place to document future appointments whereas, the "very essence of a 'diary' is to be retrospective, not prospective." The appellate court further concluded that the planners were not bound because they were loose-leaf, rather than "sewn, glued, or stapled into permanent bindings."

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