Federal Circuit rules that CBP classification decisions following notice and comment do not get full deference

August 14, 2003

The Supreme Court previously held in Haggar Apparel that the courts must defer to reasonable Customs regulations of unclear statutes. This means that where the applicable statute did not clearly provide the answer to the dispute, the courts would typically follow the Customs regulation on the issue. Regulations are usually not final until after publication in the Federal Register and a period for public comments. Soon after, the Supreme Court held in Mead that courts would give standard Customs classification rulings less than full deference based on the individual ruling's "power to persuade." This left open the level of deference given to a classification decision reached after public notice and comments (as is the case in a modification or revocation).

The recent Federal Appeals Court case of Rubie's Costume has concluded, however, that Customs classification decisions never enjoy Chevron deference, rather only limited deference. Courts will now follow Customs classification decisions, no matter whether issued in a New York ruling or after extensive notice-and-comment, only if the court thinks they reach the correct conclusion, taking into account factors such as the quality of the Customs reasoning, and the agency's expertise and past practice.