Target Vies for Classification of LED Lamps Under HTS Headings 8543, 8539

June 24, 2024 by Jacob Kopnick|Litigation

Importer Target General Merchandise moved for summary judgment in a customs case on its LED lamps, breaking down its case into two tracks -- one regarding its goods imported in 2014 and the other on its imports entered in 2018 (Target General Merchandise v. United States, CIT # 15-00069).

Regarding the first track, CBP classified the goods under Harmonized Tariff Schedule subheadings 9405.20.60, 9405.20.80, 9405.30.00, 9405.40.60 and 9405.40.80, should all fit under the eo nomine subheading 8543.70.70, dutiable at 2% as "Electrical luminescent lamps."

For the first track, Target cited the U.S. Court of Appeals for the Federal Circuit's decision in Gerson Co. v. United States, which rejected subheading 8543.70.70 for the classification of "certain battery-powered LED votive candles," due to the "superior heading language," which read "electrical machines and apparatus." The court said that it's plausible to read heading 8543 "broadly as encompassing Gerson’s candles, at least in a 'hyper-technical sense,' because the candles use electricity to operate and therefore arguably qualify as 'electrical machines and apparatus.'"

But reading subheading 8543.70.70 in context, the Federal Circuit rejected this classification, finding that the concern isn't that "other (non-LED) lights would be classified in subheading 8543.70.70's provision for 'electric luminescent lamps,' but rather in the 'basket' provision for 'other electrical machines and apparatus' in 8543.70.96." Since this decision, "the cadence of decisions in the United States and elsewhere has been that Chapter 85 covers lighting components, but not finished lighting apparatus," Target said. Its lights are distinguishable from those in Gerson, the brief said.

The 2018 goods were classified under subheadings 9405.30.00, 9405.40.60 and 9405.40.8410, while Target said they should fit under subheading 8539.50, which cover LED lamps. Target said that the creation of this subheading made the Gerson decision "irrelevant."