Citations
- 318 F. Supp. 2d 1279
Full opinion text
OPINION
TSOUCALAS, Senior Judge.
Plaintiff, Cargill, Incorporated (“Car-gill”) moves pursuant to USCIT R. 56 for summary judgment on the ground that there is no genuine issue as to any material facts. Defendant cross-moves for summary judgment seeking an order dismissing the case.
JURISDICTION
The Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1581(a) (2000).
STANDARD OF REVIEW
On a motion for summary judgment, the Court must determine whether there are any genuine issues of fact that are material to the resolution of the action. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A factual dispute is genuine if it might affect the outcome of the suit under the governing law. See id. Accordingly, the Court may not decide or try factual issues upon a motion for summary judgment. See Phone-Mate, Inc. v. United States, 12 CIT 575, 577, 690 F.Supp. 1048, 1050 (1988). When genuine issues of material fact are not in dispute, summary judgment is appropriate if a moving party is entitled to judgment as a matter of law. See USCIT R. 56; see also Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
DISCUSSION
I. Background
The merchandise subject to this action was entered in the port of Chicago, Illinois between March 19, 1996, and April 26, 1996. See Summons. The subject merchandise involves thirteen consumption entries covering merchandise identified as “deodorizer distillate” on the commercial invoices. See Mem. Supp. Def.’s Opp.’n Pl.’s Mot. Summ. J. & Supp. Def.’s Cross-Mot. Summ. J. (“Customs’ Mem.”) at 2. The subject merchandise is a residual byproduct attained during the deodorization process of edible vegetable oils, which removes unwanted constituents during refining. See Compl. ¶ 7. The United States Customs Service (“Customs”) classified the imported merchandise under heading 3824 of the United States Harmonized Tariff Schedule (“HTSUS”), subject to a duty rate of 3 cents per kilogram, plus 12.2 percent ad valorem. See id. ¶ 12. Plaintiff filed a timely protest and application for further review with Customs challenging the classification of the subject merchandise under HTSUS 3824.90.28. See id. ¶ 13. Cargill requested reliquidation of the entries under subheading 3823.19.40, which carries a duty rate of 4.4 percent ad valorem. See id. On July 29, 1999, Customs issued Headquarters Ruling Letter (“HRL”) 960311, holding that deodorizer distillate imported with a mixture of fatty acids that contains 5 percent or more of tocopherols is classifiable under subheading 3824.90.28, while a mixture of fatty acids containing less than 5 percent by weight of tocopherols is classified under 3824.90.9050. See Customs’ Mem. Ex. D at 3. In reaching its decision, Customs states: “We agree [with Cargills opinion that] the deodorizer distillate is not prima facie classified in heading 3823, and it is not classified in heading 3823 by virtue of [Rule 1 of the General Rules of Interpretation, HTSUS (‘GRI 1’)]. However, we disagree with the protestant’s opinion concerning heading 3824.” Id. at 2. Accordingly, Customs found that since the deodorizer distillate is not classifiable under heading 3823, by virtue of GRI 1, and is not elsewhere specified or included in the tariff, then pursuant to GRI 1, the merchandise is classifiable under heading 3824. See id. at 2-3.
The HTSUS sections relevant to the Court’s discussion are set forth below:
3823 Industrial monocarboxylie fatty acids; acid oils from refining; industrial fatty alcohols:
Industrial monocarboxylie fatty acids; acid oils from refining:
3823.11.00 Stearic acid
3823.12.00 Oleic acid
3823.13.00 Tall oil fatty acids
3823.19 Other:
3823.19.20 Derived from coconut, palmkernel or palm oil
3823.19.40 Other ... 4.4%
3824 Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products) not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified of included:
3824.90 Other:
Other:
Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances:
3824.90.28 Other ... 3