Micro Systems Engineering, Inc. v. United States
2017 CIT 99
Ct. Intl. Trade2017Background
- Micro Systems Engineering, Inc. imported nine entries (subtrate parts for pacemaker subassemblies) between Aug 2011 and Jan 2012 that CBP liquidated under various HTSUS provisions.
- Plaintiff argued the parts are specially designed/adapted for use in pacemakers and therefore classifiable under the Nairobi Protocol as implemented in HTSUS subheading 9817.00.96 (duty-free and exempt from merchandise processing fees).
- Defendant (CBP/U.S. government) conceded that the imported substrates are classifiable under HTSUS 9817.00.96.
- Plaintiff moved for judgment on the pleadings under USCIT Rule 12(c), asserting no material facts were in dispute and entitlement to judgment as a matter of law.
- The parties’ agreement on classification eliminated any triable factual issue; the court considered whether judgment on the pleadings was appropriate and ordered reliquidation and refund with interest for the listed entries.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the imported substrates are classifiable under HTSUS 9817.00.96 (Nairobi Protocol) | Substrates are specially designed/adapted for pacemakers and qualify for Nairobi Protocol duty-free treatment | CBP concedes the substrates are properly classifiable under HTSUS 9817.00.96 | Court granted judgment for Plaintiff; substrates classifiable under HTSUS 9817.00.96 and entries must be reliquidated/refunded |
| Whether judgment on the pleadings is proper under USCIT Rule 12(c) | No material facts in dispute; pleadings closed; judgment appropriate | Agreement on classification means no triable issues; judgment on pleadings appropriate | Court found no material factual disputes and awarded judgment on the pleadings |
Key Cases Cited
- Forest Labs., Inc. v. United States, 476 F.3d 877 (Fed. Cir. 2007) (discussing timing and standards for Rule 12(c) judgment on the pleadings)
- New Zealand Lamb Co., Inc. v. United States, 40 F.3d 377 (Fed. Cir. 1994) (judgment on the pleadings appropriate where no material facts are disputed)
- Gen. Conference Corp. of Seventh-Day Adventists v. Seventh-Day Adventist Congregational Church, 887 F.2d 228 (9th Cir. 1989) (standard for judgment on the pleadings)