The Video Assembly Company VAC, a company organized in State Z, entered into an agreement with the US government to assemble video cassette recorders from foreign manufactured parts inside a US FTZ. Before this could be done, however, VAC had to set up an assembly plant. Rather than using an American facility, it imported a completely prefabricated plant. The plant consisted of the building, all of the assembly and packaging equipment, and all the ancillary tools. The US Customs Service claims that the plant itself did not qualify for exemption from customs duties at that time it came into the FTZ, because it was not "merchandise" for assembly, as required by US law and the Customs Service levied duties on the plant. VAC has appeal to the US Court of International Trade asking for an order compelling the Customs Service to return the duties it collected. How should the Court rule? Discuss.