CAFC Affirms Classification of Army MRE Material As Plastic, Not Aluminum
The U.S. Court of Appeals for the Federal Circuit affirmed on Nov. 18 a lower court decision classifying the hybrid packaging material used in U.S. Army “Meals Ready to Eat” (MREs) as plastic, and not aluminum foil (here). Following in the footsteps of the Court of International Trade, the Appeals Court found Alcan Food Packaging’s “Flexalcon” material to have the essential character of plastic, notwithstanding its inclusion of an aluminum foil layer.
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The material consists of several plastic layers encasing a single aluminum layer. The aluminum foil layer allows the material to effectively preserve food, acting as a barrier to light and contaminants, while the plastic gives the package its flexibility and durability. CIT affirmed CBP’s classification of the material as flexible sheets of plastics under HTS subheading 3921.90.40, dutiable at 4.2% (see 13080728). Alcan appealed, arguing CBP and CIT should have classified the material as aluminum foil under subheading 7607.20.50, which enters duty free.
In the end, Alcan was unable to overcome the hurdle posed by the chapter and explanatory notes to the two competing subheadings. An explanatory note to heading 3921 allows classification as plastic sheets, even if the plastic is separated by a layer of metal foil, as long as the goods “retain the essential character as plastics.” On the other hand, Note 1(d) to Chapter 76 says heading 7607 can apply to aluminum foil covered in plastic, but only “provided that they do not thereby assume the character of articles or products of other headings.” Both courts found that plastics predominated in Flexalcon in terms of bulk, quantity, weight and value. With the plastic component giving the material its essential character, CAFC affirmed CIT by finding Flexalcon is still classifiable under heading 3921 in light of the relevant explanatory notes, but barred by Note 1(d) to Chapter 76 from classification under heading 7607.
(Alcan Food Packaging v. U.S., #14-1003, dated 11/18/2014, Judges Prost, Dyk and Taranto)
(Attorneys: William Randolph Rucker of Drinker Biddle for plaintiff-appellant Alcan Food Packaging (Shelbyville); Aimee Lee for defendant-appellee U.S. government.)