| Title: | DENIED PETITION HAGGAR/STRAUSS |
|---|---|
| Date: | 2001-04-10 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : CHERIE B. PARSONS
SUBJECT : DENIED PETITION HAGGAR/STRAUSS
DATE : 04/06/2001
ENT-12 FO:TP:IA:TT CP
APRIL 6, 2001
TO: ALL DIRECTORS, FIELD OPERATIONS
FROM: EXECUTIVE DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS
PASS TO: PORT DIRECTORS, ASSISTANT PORT DIRECTORS,
NATIONAL IMPORT SPECIALISTS, IMPORT SPECIALISTS,
ENTRY OFFICERS, FINES AND PENALTY OFFICERS,
ACCOUNT MANAGERS, IMPORTERS, BROKERS
AND OTHER INTERESTED PARTIES
SUBJECT: TBT-01-023 FINAL DISPOSITION OF HAGGAR AND
LEVI STRAUSS SUPREME COURT CASES
REFERENCE: TBT-00-019
PURPOSE:
THE PURPOSE OF THIS TBT IS TO INFORM CUSTOMS PORTS THAT ON
MARCH 5, 2001, THE UNITED STATES SUPREME COURT DENIED PETITIONS FOR
WRIT OF CERTIORARI FILED BY THE HAGGAR APPAREL COMPANY AND LEVI
STRAUSS AND COMPANY ON WHETHER IMPORTED ARTICLES QUALIFIED FOR A
PARTIAL EXEMPTION OF DUTIES UNDER SUBHEADING 9802.00.80 AFTER
UNDERGOING PERMAPRESSING, STONEWASHING, AND ENZYME WASHING
OPERATIONS.
BACKGROUND:
ON MARCH 5, 2001, THE SUPREME COURT DENIED PETITIONS FOR WRIT
OF CERTIORARI FILED BY HAGGAR AND LEVI STRAUSS ON JANUARY 22,
2001. HAGGAR AND LEVI STRAUSS HAD SOUGHT SUPREME COURT REVIEW
OF UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT (CAFC)
DECISIONS WHICH, UPON REMAND, FOLLOWED THE SUPREME COURT'S
OPINION IN U.S. V. HAGGAR APPAREL CO., 526 U.S. 380 (1999). THE
CAFC DEFERRED TO THE AGENCY'S REGULATIONS INTERPRETING THE
REQUIREMENT IN HTSUS 9802.00.80 (AND, IN PRIOR YEARS, TSUS
807.00) THAT THE TARIFF BENEFITS PROVIDED THEREIN FOR ARTICLES
ASSEMBLED ABROAD FROM FABRICATED U.S. COMPONENTS APPLY ONLY IF
THE ARTICLES ARE "ADVANCED IN VALUE OR IMPROVED IN CONDITION
ABROAD" BY SUCH ASSEMBLY OPERATIONS OR OPERATIONS "INCIDENTAL TO
ASSEMBLY." HAGGAR AND LEVI STRAUSS SUBJECTED THEIR APPAREL
ARTICLES ASSEMBLED IN MEXICO TO PERMAPRESSING AND STONEWASHING
OPERATIONS IN MEXICO, BOTH OF WHICH ARE "OPERATIONS NOT
INCIDENTAL TO THE ASSEMBLY PROCESS" UNDER 19 C.F.R. 10.16(C)(4)
AND, CONSEQUENTLY, RESULTED IN A DENIAL OF THOSE TARIFF
BENEFITS.
ACTION:
PORTS ARE INSTRUCTED TO DENY ALL CLAIMS OF 9802.00.80 FOR
ARTICLES ASSEMBLED ABROAD FROM U.S. FABRICATED COMPONENTS THAT
HAVE UNDERGONE TREATMENT IDENTIFIED IN 19 CFR 10.16(C)(4). ANY
PROTESTS THAT ARE BEING HELD PENDING A DECISION BY THE SUPREME
COURT ARE ALSO TO BE DENIED.
INFORMATION:
QUESTIONS FROM THE IMPORTING COMMUNITY REGARDING THIS ELECTRONIC
MESSAGE SHOULD BE REFERRED TO THE LOCAL CUSTOMS PORT. THE
CUSTOMS PORT OF ENTRY MAY REFER QUESTIONS TO CHERIE PARSONS,
TEXTILES AND TRANSSHIPMENT BRANCH AT (202) 927-7002.
\S\
ELIZABETH G. DURANT
CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS