In March 20, 2024, Customs Bulletin Vol. 58, No. 11 ( beginning on page 6) the U.S. Court of Appeals for the Federal Circuit case RKW KLERKS INC., Plaintiff-Appellant v. UNITED STATES, DefendantAppellee is reported.
BACKGROUND: RKW imports two types of net wrap, marketed as “Top Net” and “Rondotex” (collectively, Netwraps). The Netwraps are synthetic fabrics used to wrap round bales of harvested crops released from baling machines such that the bales maintain their compressed structure and are easier to transport. The Netwraps are made up of highdensity polyethylene (HDPE) film layers that have been knit on a Raschel machine and wrapped around a cardboard core.
At issue in this case is the proper classification of the Netwraps in the HTSUS. Customs classified the Netwraps under HTSUS Chapter 60 under subheading 6005.39.00 as “warp knit fabric,” dutiable at the rate of 10% ad valorem.
After Customs’s initial classification, RKW filed a protest, which was deemed denied. RKW then appealed to the CIT, filing a motion for summary judgment. The government filed a cross-motion for summary judgment. In its motion, RKW contended that the Netwraps should instead be classified under Chapter 84, subheading 8433.90.50 as “parts” of harvesting machinery or alternatively subheading 8436.99.00 as “parts” of other agricultural machinery
The Court concluded the the Netwraps are a disposable input and not a part of round baling machines.
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