Otter Products LLC imported protective cases for smart-phones, branded as the "Otterbox Commuter" and "Defender" series. The cases have a clear plastic screen cover, rigid outer plastic shell that fits snuggly, and a flexible silicone component. A case does not have to be opened to use the phone. Customs classified the articles in Chapter 42 under Subheading 4202.9900 that included "Trunks, suitcases, vanity cases, attaché cases, briefcases ... and similar containers ..." at 20 percent duty. Otterbox argued that the items should be classified in Chapter 39 under Subheading 3926.90.9980 as "other articles of plastic" at 5.3 percent duty. Otterbox protested, paid the duties, and filed with the Court of International Trade. The court agreed with Otterbox and the government (defendant) appealed.
1. What are the questions of law that the court must decide? What are the questions of fact?
2. How does the court define "similar containers" and what sources does it rely on?
3. How might tariff classification affect new product design? Explain
4. How would you see this case affecting classifications of other items? How would you classify a "smart" cover for a tablet? Would it make a difference if the tablet cover has a zipper?