The U.S. Court of International Trade found that the purpose of the subject imports—cloth pet carriers—was to carry pets and not items. Accordingly, the trade court found the imported pet carriers were excluded as a matter of law from heading 4202 of the Harmonized Tariff Schedule of the United States (HTSUS), the tariff classification that applies for travel bags.
However, the trade court found that there was not enough information in the pleadings to determine the proper classification. Thus, the importer’s motion for judgment on the pleadings was granted in part and denied in part, pending future proceedings.
The case is: Quaker Pet Group, LLC v. United States, Slip Op. 18-9 (CIT February 12, 2018). Read the trade court’s decision [PDF 541 KB]
The importer contested the tariff classification of five of its pet carrier products imported from China.
U.S. Customs and Border Protection (CBP) classified the pet carriers under HTSUS heading 4202 that covers travel, sports, and similar bags, and is subject to a 17.6% customs duty rate.
The importer asserted that pets are not “personal effects” and that the pet carriers (cloth and mesh carrying bags) were classifiable under the residual provision for textile articles, HTSUS heading 6307, and subject to a customs duty rate of 7%.
The trade court agreed that given that the pet carriers’ primary purpose is to carry pets and not items, they are excluded as a matter of law from HTSUS heading 4202. However, the court found there were not sufficient facts contained in the pleadings for the court to determine the proper classification for the imported products.
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
<p>© 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.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.</p>
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.