Kahrs International, Inc. v. United States
2013 U.S. App. LEXIS 6664
| Fed. Cir. | 2013Background
- Kahrs imports engineered wood flooring panels (EWF) with multiple plies designed to resemble solid hardwood.
- Panels have milled edges to join over a structural subfloor; panels are laminated with adjacent plies at right angles.
- Kahrs initially classified imports as 4418.30.00 (parquet panels) and listed as “PARQUET PANELS BUILDERS’ JOINERY.”
- Customs liquidated the merchandise under 4412 (plywood) at 8% duty, opposing Kahrs’ 4418 classification.
- Court of International Trade held for Customs; Kahrs appealed challenging the classification as plywood vs. builders’ joinery and whether 4412 is more specific.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper HTSUS heading for Kahrs’ EWF | Kahrs argues 4418 covers the product as builders’ joinery or assembled parquet panels. | Customs classified as 4412 plywood based on the product’s structure and use as laminated plywood. | Kahrs’ EWF is prima facie classifiable as plywood under 4412. |
| If also classifiable under 4418, which heading is more specific | 4418 is more specific than 4412 and should govern if applicable. | Even if 4418 could apply, 4412 is more specific or equally specific in light of the product’s characteristics. | Even if 4418 is applicable, 4412 provides the more specific description, so 4412 governs. |
| Use of Explanatory Notes and prior rulings to interpret 4412 | Explanatory Notes and prior rulings support 4418 for parquet-like use. | Explanatory Notes guidance supports 4412 for plywood panels used as flooring; prior ruling HQ 964565 favors 4412. | Explanatory Notes and HQ 964565 support 4412 classification. |
Key Cases Cited
- Boen Hardwood Flooring, Inc. v. United States, 357 F.3d 1262 (Fed. Cir. 2004) (defines plywood characteristics: at least three layers, right-angle arrangement, and bonded together)
- Russell Stadelman & Co. v. United States, 242 F.3d 1044 (Fed. Cir. 2001) (plywood defined by layered, glued sheets with perpendicular grains)
- Timber Products Co. v. United States, 515 F.3d 1213 (Fed. Cir. 2008) (reiterates plywood definition and structure)
- Orlando Food Corp. v. United States, 140 F.3d 1437 (Fed. Cir. 1998) (two-step HTSUS classification; de novo meaning of terms without deference)
- JVC Co. of Am. v. United States, 234 F.3d 1348 (Fed. Cir. 2000) (Explanatory Notes guidance; interpretive aid)
- Carl Zeiss, Inc. v. United States, 195 F.3d 1375 (Fed. Cir. 1999) (rules on interpreting HTSUS terms and use of common meaning)
- Mead Corp. v. United States, 283 F.3d 1342 (Fed. Cir. 2002) (consults dictionaries and reliable sources to determine common meaning)