Tyco Fire Products, L.P. v. United States

In 2004-2006 Tyco imported 42 models of liquid-filled glass bulbs, commonly used as a temperature-dependent trigger component of fire sprinkler heads. When the sprinkler head is exposed to fire, the bulb is heated and the liquid inside the bulb expands until the bulb shatters. When the bulb breaks, the valve of the sprinkler system opens and releases a shower of water to extinguish the fire. The bulbs can also be used in water heaters. The bulbs break at different temperatures, depending on the liquid. Tyco used 39 models in fire sprinkler systems and three models as thermal release devices in water heaters. Customs and Border Protection classified the bulbs as “other articles of glass” under the Harmonized Tariff Schedule of the United States (HTSUS) subheading 7020.00.60, which has a 5% rate of duty. Tyco protested, asserting that the bulbs would be more properly classified under subheading 8424.90.90, which includes “Other” “Parts” of goods classified under heading 8424 and is duty-free. Customs denied Tyco’s protest. The Trade Court upheld the ruling, finding that the bulbs are “of glass.” The Federal Circuit affirmed. While the liquid component is “the brains behind the operation,” the essential character of the product is glass. View "Tyco Fire Products, L.P. v. United States" on Justia Law