The U.S. Court of International Trade today granted summary judgment for the government in a case concerning the appropriate tariff classification of certain key-operated locking hardware articles (“entry locks” or “entry door-knobs”). The trade court agreed with the government on classifying the imported merchandise under HTSUS subheading 8301.40.6030, subject to a customs duty rate of 5.7% ad valorem.
The case is: Home Depot U.S.A., Inc. v. United States, Slip Op. 17-127 (CIT September 21, 2017). Read the trade court’s opinion [PDF 544 KB]
At issue was the classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS). The importer (a retailer) challenged the HTSUS classification of certain key-operated locking hardware articles (“entry locks” or “entry door-knobs”) by U.S. Customs and Border Protection (CBP).
CBP classified the imported merchandise under HTSUS subheading 8301.40.6030, subject to a customs duty rate of 5.7% ad valorem. The importer asserted the proper classification was under HTSUS subheading 8302.41.6045, at a customs duty rate of 3.9% ad valorem.
The trade court agreed with CBP and found the items were appropriately classified within HTSUS heading 8301 pursuant to a General Rules of Interpretation 1 (GRI 1) analysis. Thus, the court denied the importer’s motion for summary judgment, and granted the government’s cross-motion for summary judgment.
For more information, contact a professional with KPMG’s Trade & Customs practice:
Douglas Zuvich | +1 (312) 665-1022 | email@example.com
Andrew Siciliano | +1 (631) 425-6057 | firstname.lastname@example.org
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.