Texas Instruments v. United States
United States Court of Customs and Patent Appeals
681 F.2d 778 (1982)
- Written by Gonzalo Rodriguez, JD
Facts
Texas Instruments (TI) (plaintiff) imported electronic camera parts called cue modules into the United States from Taiwan. Many of the components necessary to manufacture the cue modules in Taiwan were imported from the United States. For example, silicon slices containing many chips, which would then have to be separated for individual use, came from the United States. The chips would then be mounted on lead frames that were made from die-cut metal strips imported from the United States. The United States Customs Service (customs) (defendant) classified the modules as other parts of photographic cameras, a classification that subjected such goods to a 10 percent value tax. TI challenged this determination, arguing that the modules should have received duty-free treatment under the Generalized System of Preferences (GSP), which granted duty-free status to goods wholly produced or substantially transformed in Taiwan. Customs argued that TI merely assembled the U.S. components and thus did not substantially transform them. The United States Court of International Trade agreed with customs, and TI appealed.
Rule of Law
Issue
Holding and Reasoning (Rich, J.)
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