Labor Law -- 1999



United States v. Haggar Apparel Co.   (U.S. Supreme Court)

Deference to Treasury Dept. regulations under Tariff Act

The Supreme Court ruled 4/21/99 that Treasury Department regulations interpreting the Tarriff Act are entitled to deference under Chevron, U.S.A., Inc. v. NRDC, 467 U.S. 837 (1984). The Court reversed the ruling and rejected the reasoning of the Federal Circuit which had found that Chevron deference was inappropriate because the governing statute, 28 U.S.C. ยง 2643(b), instructs the Court of International Trade to "reach the correct decision." The Court remanded to the Federal Circuit for a determination whether, under Chevron, 19 C.F.R. 10.16(c) reasonably interprets the statutory phrase "operations incidental to the assembly process" in Subheading 9802.00.80 of the Harmonized Tariff Schedule of the United States to exclude the "permapressing" of items of clothing assembled abroad.