Al Nyman & Son, Inc. v. United States

61 Cust. Ct. 236, 1968 Cust. Ct. LEXIS 2179
CourtUnited States Customs Court
DecidedOctober 9, 1968
DocketC.D. 3585
StatusPublished
Cited by2 cases

This text of 61 Cust. Ct. 236 (Al Nyman & Son, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Customs Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Al Nyman & Son, Inc. v. United States, 61 Cust. Ct. 236, 1968 Cust. Ct. LEXIS 2179 (cusc 1968).

Opinion

Kao, Chief Judge:

The merchandise involved in this case consists of pin curl clips imported from Japan and entered at the port of New York on November 29,1962. It was assessed with duty at 19 per centum ad valorem under paragraph 397 of the Tariff Act of 1930, as modified by the Sixth Protocol of Supplementary Concessions to the General Agreement on Tariffs and Trade, 91 Treas. Dec. 150, T.D. 54108, as manufactures of metal, not specially provided for, in chief value of steel. It is claimed to be properly dutiable at 17 per centum ad valo-rem under paragraph 339 of said tariff act, as modified, as household utensils, not specially provided for, in chief value of base metal.

The pertinent provisions of said tariff act, as modified, are as follows:

Paragraph 397, Tariff Act of 1930, as modified by T. D. 54108:

[238]*238Articles or wares not specially provided for, whether partly or wholly manufactured:

$ ‡ ‡ ‡ ^
Composed wholly or in chief value of iron, steel, copper, brass, nickel, pewter, zinc, aluminum, or other base metal (except lead), but not plated with platinum, gold, or silver, or colored with gold lacquer:
Not wholly or in chief value of tin or tin plate:
****** *
Other, composed wholly or in chief
value of iron, steel, * * *-19% ad val.

Paragraph 339, Tariff Act of 1930, as modified by T.D. 54108:

Table, household, kitchen, and hospital utensils, and hollow or flat ware, not specially provided for, * * *:

Hi ***** *
Not plated with platinum, gold or silver, and not specially provided for, composed wholly or in chief value of—
* * * * * * * Other base metal:
* * ❖ Hi Hi *
Other_17% ad val.

At the trial plaintiff called Leo Goldstein, director and vice president in charge of sales of Yassar Corp., manufacturer and importer of hair care accessories, for whose account the merchandise was imported, and Phyllis Lipoff and Nancy Newfrock, both employees of plaintiff’s attorneys. Defendant called Louis E. Platt, vice president of Gibbs & Company, a firm engaged in the wholesale beauty parlor supply and equipment business, and Elizabeth Jones and Mattie Marcella Fair, both employees in the Customs Section of the Department of Justice.

Two exhibits representative of the merchandise involved herein were received in evidence as exhibits 1 and 2. Exhibit 1, designated as item No. 800/8, was described by Mr. Goldstein as a double-pronged steel clip with a spring or tension action intended for the purpose of holding the hair or a curl. These items are packed eight to a card and are in a poly bag. According to the witness, the package was so designed for the purpose of making available to the consumer a package of clips that can be bought in a retail store. Exhibit 2 is representative of the item designated as No. 888 on the invoice. It consists of four cards of clips packed together in a poly bag.

It is clear from the evidence and the exhibits that the merchandise was designed to hold a curl or create a wave in a woman’s hair or hold [239]*239a hair roller in place. Such clips are used in the home and in beauty-parlors to set women’s hair. They are not ornamental. Women who are members of the same household or who are visiting there will borrow such clips from each other. Plaintiff’s female witnesses said they would not wear them outside the home or beauty shop and very seldom saw women wearing them on the streets or in stores. Defendant’s female witnesses, on the other hand, said they wear them outside the home and had often seen women wearing them on the streets and in supermarkets. They also used them to pin kerchiefs. Mr. Goldstein had seen them used by women in homes in various parts of the country, but had seen them on the heads of women in public very infrequently.

Mr. Goldstein testified that he had been employed by Yassar Corp. for 7 years and that his duties include the supervision of 32 to 35 sales agents who sell Yassar’s product line all over the country. Pie had also covered the territory with his sales representatives and had sold pin curl clips personally. He stated that Yassar sells pin curl clips packaged as in exhibits 1 and 2 at wholesale to supermarket chains, distributors who service supermarkets, drug chains, drug wholesalers who sell to drug stores, syndicates, variety stores, and discount chains, such as S. H. Kress, McCrory’s, Safeway Stores, A & P Stores, Food Fair, Grand Union, Rexall Drug, W. T. Grant, Korvette’s, Shoprite, First National Stores, National Tea, Loche Drug, and Walgreen. These customers have retail stores throughout the United States and most of their sales are made at the retail level. According to Mr. Goldstein, his firm usually makes its sales through the buying offices of the chains, most of which are located in New York City. In some cases this results in nationwide distribution through all the chain’s stores and in other cases it encompasses only a particular area. In the latter case, his firm approaches a buying office in some other part of the country in order to seek distribution in the stores there.

Yassar also sells to beauty supply wholesalers, but for that section of the trade, the clips are packaged 100 to a box and are not on cards.

Mr. Goldstein testified that 85 percent of the total sales volume for Yassar’s complete line was directed toward the class of trade that sells at retail and 15 percent was directed toward beauty jobbers. He could not give figures as to sales of pin curl clips versus total sales. He could not say where Yassar ranked in the total nationwide wholesale market for pin curl clips and testified that he was not qualified to state what the total retail market was. He did not know the wholesale dollar volume of Yassar in pin curl clips in channels leading to distribution at retail and in those leading to the beauty supply market. He did not know how many competitors there were in the sale of pin curl clips at wholesale in the United States. He did say the greatest [240]*240competition was in the trade which resells at retail since there were more outlets, the volume was greater, and there were more people selling to those outlets.

Mr. Platt testified that his firm, Gibbs & Company, was a wholesale beauty parlor supply house, having 17 branches in the United States, with sales agents covering 45 states. He said it was the biggest organization in the United States in the wholesale beauty jobbing industry. It handles pin curl clips such as exhibited on exhibit 1, and sells them through its salesmen to beauty shops all over the United States. They are sold in lots of 100 to a box. His firm normally brings in about 15 to 25 thousand boxes, 4, 5, or 6 times a year, and disposes of them in the same year. He estimated that his firm sold about $80,000 worth of clips a year to beauty shops and that that amounted to less than one percent of its total wholesale business. He said that there are a little over 100,000 beauty shops listed in the United States and that his firm sells to 15,000 of them.

Mr. Goldstein testified on direct examination that pin curl clips were designed primarily for use in the home when a woman does her own hair. On re-cross-examination he stated:

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Bluebook (online)
61 Cust. Ct. 236, 1968 Cust. Ct. LEXIS 2179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/al-nyman-son-inc-v-united-states-cusc-1968.