Mead imported day planner calendars. Under the tariff (HTSUS), there was a general heading for registers, account

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Mead imported "day planner" calendars. Under the tariff (HTSUS), there was a general heading for "registers, account books, notebooks.and similar articles." Under subheading 4820.10, "diaries, notebooks and address books" were subject to a 4.0% tariff. Another subheading was for "other" items not subject to a tariff. The "other" heading was applied to the planners until 1993, when Customs changed the classification to the "diaries" subheading and applied the 4% tariff. Mead protested, but Customs stayed with the new classification. Mead sued in the Court of International Trade (CIT). It granted summary judgment for Customs. Mead appealed to the Court of Appeals for the Federal Circuit. It reversed, holding that tariff classifications by Customs do not get the high level of deference given to some agency regulations under the Chevron doctrine (see Chapter 15) because Customs can change classifications without a formal notice-and-rule process that occurs for most substantive regulations. The court then held that the planners were not "diaries" as those are defined as bound volumes, whereas the planner was in a three-ring binder, so should be classified as "other" and not subject to a tariff. Customs appealed.

What does the lower level of deference by the courts mean in practice?


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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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