CIT Orders CBP to Reliquidate Light Systems as Duty-Free Electro-Medical Instruments

January 25, 2011 by Barbara Chaves|Penalties and Courts

In Trumpf Medical Systems, Inc. v. U.S., the Court of International Trade granted in part Trumpf’s claims and ordered that U.S. Customs and Border Protection reliquidate entries of certain imported surgical light systems under HTS subheading 9018.19.95, as other electro-medical instruments, at a rate of duty-free. CIT also ordered the reliquidation of certain related light system components.

Trumpf Had Said Lights Were Diagnostic Tool, CBP Said Just Specialized Lights

In an earlier, October 2010 CIT proceeding, Trumpf had argued that its lights were surgical light systems intended for local illumination of the part of the patient being examined or operated upon and which also served diagnostic purposes since they had temperature and lighting features which would not harm the patient during a surgical procedure. Therefore, Trumpf argued that its merchandise should be classified under 9018.90.60 at a rate of duty-free.

CBP had argued that although precision overhead room lighting is necessary for the surgeon to do his or her job, Trumpf’s light system was not solely for diagnostic purposes, because it was not used in direct contact, or even close proximity with the patient. CBP had stated that they were just specialized lights better classified as lamps and lighting fittings under HTS 9405.10.6020 at a duty rate of 7.6%.

Parties Told to Review Entries, Seek Court Decision If No Agreement Reached

In the October proceeding, CIT concluded that the merchandise should be classified in 9018.90.60 because the light systems were instruments that performed a specific task. The CIT then directed the parties to review how the subject entries should be classified consistent with the court’s opinion, and if they could not agree, submit statements of their position for the court to decide. (See ITT’s Online Archives or 10/29/10 news, 10102904, for BP summary of CIT’s October 2010 determination.)

CIT Orders CBP to Reliquidate Lights and Parts, Refund Overpayments

As no agreement was reached, with this ruling, CIT orders CBP to reliquidate the following products (identified more specifically in an attached schedule to the ruling) as follows:

surgical light systems under HTS 9018.19.95 (duty-free)
examination light heads under HTS 9018.19.95 (duty-free);
suspension arms under HTS 8479.90.94 (duty-free);
control boxes/panels under HTS 8537.10.90 (2.7%); and
transformers under HTS 8504.31.40 (6.6%).

CIT also ordered CBP to refund any overpayment of duties with interest, as provided by law.

(Slip Op 11-5, dated 01/18/11)