CAFC Issues Mandate in Customs Suit on Net Wraps Used in Hay Baling Machine
The U.S. Court of Appeals for the Federal Circuit on April 29 issued its mandate in a case on the tariff classification of importer RKW Klerks' net wrap products, used in a machine to bale harvested crops. In March, the…
court said the products are not "parts" of harvesting machinery but in fact are "warp knit fabric," dutiable at 10% under Harmonized Tariff Schedule subheading 6005.39.00 (see 2403070047). The court clarified that when an item is "consumable," such as "bullets in a gun, staples in a stapler, or film in a camera," it's not meant solely for use within the machine just because it's used exclusively by the machine. Here, the net wrap is similarly "never a part of the baling machine" since the output product is the net wrap packaged around a hay bale (RKW Klerks v. United States, Fed. Cir. # 23-1210).