North American Processing Co. v. United States

North American Processing Company (North American) (plaintiff) imported bovine fat trimmings that were 35 percent lean and 65 percent fat. The fat component of the trimmings adhered to the lean component. The United States Customs Service (Customs) (defendant) originally classified the import under Harmonized Tariff Schedule of the United States (HTSUS) heading 1502.00.00 as “fats of bovine animals,” which was dutiable at a rate of 0.95 cents per kilogram. However, Customs subsequently reclassified the import under HTSUS heading 0202.30.60 as “meat of bovine animals, boneless, other,” which was dutiable at a rate of 4.4 cents per kilogram. The explanatory notes to HTSUS chapter 2 indicated that animal fat adhering to meat was properly treated as meat. Additionally, United States Department of Agriculture (USDA) regulations defined “meat” as muscle of cattle, sheep, swine, or goats, “with or without the accompanying and overlying fat.” The USDA also considered trimmings to qualify as “fat” only if the trimmings contained less than 12 percent lean. Webster’s Dictionary defined “fat” to mean parts of animal tissues consisting mostly of greasy or oily matter. North American filed a protest with Customs to challenge the reclassification, but Customs denied the protest. The Court of International Trade upheld the classification under 0202.30.60, and North American appealed to the United States Court of Appeals for the Federal Circuit.