United States v. Mead Corp.
Facts
Customs issues tariff classification ruling letters for particular imports under regulations adopted by the Treasury Secretary. Mead imported day planners, and after previously classifying such goods as duty-free under the "other" subheading, Customs in 1993 issued a Headquarters ruling classifying Mead's planners as "Diaries . . . , bound," which carried a tariff. The Headquarters letter gave a reasoned explanation based on dictionary definitions of "diary" and explanatory notes regarding what counts as "bound." Customs ruling letters are not generally issued through notice-and-comment procedures, may be modified or revoked, and are binding only with respect to the specific transaction or identical goods described.
Issue
Whether a tariff classification ruling letter issued by the United States Customs Service is entitled to Chevron deference. If not, whether such a ruling may still receive some judicial respect under Skidmore.
Rule
Administrative implementation of a statutory provision qualifies for Chevron deference when it appears that Congress delegated authority to the agency generally to make rules carrying the force of law and the agency interpretation claiming deference was promulgated in the exercise of that authority. When Chevron does not apply, an agency interpretation may still receive respect under Skidmore to the extent it has the power to persuade, considering factors such as thoroughness, validity of reasoning, consistency, formality, and expertness.
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