## Facts

- North American Processing Company imported frozen bovine fat trimmings consisting of 35% “chemical lean” and 65% fat (Oct. 14, 1992).
- Customs initially liquidated the entry under HTSUS subheading 1502.00.00 (fats of bovine animals) at 0.95¢/kg.
- Customs reliquidated and reclassified the merchandise under HTSUS subheading 0202.30.60 (meat of bovine animals, frozen, boneless, other) at 4.4¢/kg.
- North American protested under 19 U.S.C. § 1514(c); Customs denied the protest.
- In the Court of International Trade, North American argued the goods were “fats,” but the court sustained Customs’ “meat” classification based on trial testimony, USDA regulations/product classifications, and the common/commercial meaning of “meat.”
- North American appealed the classification decision to the Federal Circuit.

## Issues

1. Whether bovine trimmings containing significant lean (35%) and fat (65%) are properly classified as “meat” under HTSUS subheading 0202.30.60 rather than “fats” under HTSUS subheading 1502.00.00.
2. Whether the common and commercial meaning of “meat,” informed by trade usage, USDA standards, and Harmonized System Explanatory Notes, includes trimmings containing both lean and fat.

## Decision

- The Federal Circuit affirmed the Court of International Trade.
- The court held Customs correctly classified the merchandise under HTSUS subheading 0202.30.60 (meat of bovine animals, frozen, boneless, other).
- The classification resulted in the higher duty rate assessed on reliquidation.

## Legal Principles

- HTSUS section and chapter notes have statutory force and control tariff classification analysis.
- Tariff terms are construed according to their common and commercial meaning, determined using sources such as dictionaries, scientific authorities, and trade usage evidence.
- Harmonized System Explanatory Notes, while not binding, may be persuasive in interpreting HTSUS headings and scope.
- Regulatory and industry classification standards (including USDA definitions and product classifications) may be used as persuasive evidence of commercial meaning.
- For classification purposes, fat accompanying or adhering to lean tissue may be treated as “meat” where commercial usage and interpretive materials support that treatment.

## Conclusion

The Federal Circuit upheld Customs’ determination that frozen bovine trimmings with substantial lean content are commercially “meat” for HTSUS purposes, and therefore fall under the frozen boneless beef meat provision rather than the separate fats provision.


North American Processing Co. v. United States, 236 F.3d 695 (Fed. Cir. 2001)