The U.S. Court of Appeals for the Federal Circuit today affirmed a grant of summary judgment for the importer by the U.S. Court of International Trade concerning the tariff classification of the imported screws.
The case is: GRK Canada Ltd. v. United States, 2016-2623 (Fed. Cir. March 20, 2018). Read the Federal Circuit’s decision [PDF 148 KB]
U.S. Customs and Border Protection (CBP) classified the screws as “other wood screws” under subheading 7318.12.00 of the Harmonized Tariff Schedule of the United States (HTSUS) that would be subject to an import duty of 12.5% ad valorem. The company, however, claimed that the screws were properly classified under subheading 7318.14.10 as “self-tapping screws,” and thus subject to a 6.2% ad valorem duty. The trade court agreed with that claim, and concluded that the various imported screws were properly classified as “self-tapping screws” under HTSUS subheading 7318.14.10.
Today, the Federal Circuit affirmed, after finding that it agreed with the trade court’s constructions of the common and commercial meanings for “other wood screws” and “self-tapping screws” and concluding that the trade court had properly classified the imported screws.
For more information, contact a professional with KPMG’s Trade & Customs practice:
Douglas Zuvich | +1 (312) 665-1022 | firstname.lastname@example.org
Andrew Siciliano | +1 (631) 425-6057 | email@example.com
© 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.