Circuit Board Assembly Importer Wants Stay of Customs Case While Settlement Is Discussed

Plexus Corp., the plaintiff in a customs classification case over printed circuit board assemblies used in audio-visual transmission equipment, wants proceedings stayed pending the Department of Justice's consideration of its settlement offer. According to the June 30 motion to stay in the Court of International Trade, Plexus said that a stay would help avoid "incurring unnecessary significant additional expenses" should the settlement offer be accepted (Plexus Corp. v. United States, CIT #13-00343).

CIT recently sent the case to trial after it found that it couldn't determine whether PCBAs imported by Plexus are principally used for televisions and dutiable at 2.9% or principally used for other devices, including computers and smartphones, and duty free (see 2012230084). Plexus had imported the PCBAs for incorporation into encoders, multiplexers and re-multiplexers designed by Harmonic. CBP classified the PCBAs in Harmonized Tariff Schedule subheading 8529.90.13 and 8529.90.83, both of which cover parts of television apparatus of heading 8525. Plexus disagreed, protesting the decision and arguing for classification under the 8517 subheading alongside apparatus for the transmission or reception of voice, images or other data.

Plexus made its settlement offer to the government on June 21. DOJ then informed Plexus on June 30 that the government completed an initial review of the offer and is moving to full consideration, indicating "serious consideration by both parties." Plexus is preparing for the trial, which is set to take place throughout July and August. "Without a stay, Plaintiff almost certainly would incur significant fees and expenses for trial preparation work while a universal settlement offer is pending under serious consideration and that if accepted would avoid trial," the motion said.