Alltransport, Inc. v. United States

37 Cust. Ct. 112, 146 F. Supp. 181, 1956 Cust. Ct. LEXIS 13
United States Customs Court·Decided September 20, 1956·No. C. D. 1807·Published

Opinion

Mollison, Judge:

The merchandise the subject of these protests is described on the invoices as “Spungel (Surgical material)” and was assessed with duty at the rate of 15 per centum ad valorem under the [113]*113provision in paragraph 41 of the Tariff Act of 1930, as modified by the Presidential proclamation relating to the General Agreement on Tariffs and Trade, reported in T. D. 51802, for manufactures, wholly or in chief value of gelatin. The claim in each of the protests is for duty at the rate of 12K per centum and valorem under the provision in paragraph 5, as modified by the Presidential proclamation relating to the Torquay Protocol to the General Agreement on Tariffs and Trade, T. D. 52739, for—

* * * all medicinal preparations * * * obtained naturally or artificially and not specially provided for * * *.

There is no real dispute as to the facts. The merchandise consists of what are known as absorbable gelatin sponges. They are sponges made of pure gelatin, not medicated in any way, and used in surgery to stop excessive capillary and venous bleeding by bringing about a firm, adherent blood clot. They also help the surgeon to maintain a clean field so that it is not necessary to continually remove blood from the area of the surgery. After the clot is formed, the sponges are left inside the patient and are absorbed by the system of the patient within a period of from 4 to 6 weeks, disappearing without any trace.

It is clear that the manner in which the sponges accomplish their function of aiding the blood clotting is entirely physical, so far as the sponges themselves are concerned. This was described by the single witness who testified, the vice president of the ultimate consignee in charge of purchase and sale of the product, as follows:

Well, the blood going up through the myriad interstices of the sponge, there are platelets which — they are little disks, which come in contact with the gelatin, and in doing so, they release thromboplastin, which in turn, reacts to produce thrombin, which in turn reacts with the fibrinogen in the blood, to produce fibrin, which becomes the tightening mesh which ties in on the basis of the blood clot.
Now, that whole thing hangs on this gelatin framework or gelatin skeleton, I might say, and serves as a track, or these little traces of fibrin serve as a track or a route of travel for small blood vessels growing into the area and for the growth of the cellular structure up through this sponge, which eventually, as I say, becomes— disappears and becomes part of the system. It serves as a skeleton on which this new cellulose structure is built. (Tr. pp. 28-29.)

In other words, it is the form or construction of the article, as having “myriad interstices,” which causes a physical reaction on contact with the blood, whereby the blood, itself, releases certain substances and undergoes certain reactions which result in the desired clotting.

It also appears that, while in a normal person, under normal conditions, the blood will form a clot, the use of the gelatin sponge brings about a more rapid clotting, or accelerates the clotting of the blood. Moreover, in so doing, it appears that the gelatin sponge does not, itself, cause a foreign body reaction, nor does it produce fever, as, presumably, other substances might do.

[114]*114The record shows that the name of the merchandise, “Spun-Gel,” is a registered trade name for absorbable gelatin sponge, U. S. P.; that the merchandise is imported in double packaging to preserve sterility; and that it is sold in the condition imported to hospitals, surgical and medical supply houses, pharmacists, dental surgeons, and doctors. It also appears that it is not sold otherwise, except upon prescription, and that it conforms to the specifications of the monograph on absorbable gelatin sponges in the United States Pharmacopeia and to the specifications of the same in the United States Dispensary.

It is the plaintiff’s position that the article at bar responds to the definitions which have been laid down for “medicinal preparations” in cases arising under both the present and previous tariff acts, and that, inasmuch as the provision for medicinal preparations is a designation by use, under the doctrine of relative specificity, it is more properly applicable to the merchandise at bar than the provision for manufactures of gelatin, under which it was classified.

The defendant’s position is, first, that, in view of the admitted absence of medication in the sponges and the lack of proof that gelatin has therapeutic properties, the articles at bar cannot be medicinal preparations, and, second, that the sponges in issue are tools of the surgeon in the same sense that cotton packs and metal clamps used to stop bleeding are surgical tools, and, as such, are not medicinal preparations.

Counsel for both parties cite and discuss the definition of “medicinal,” suggested in 1891 by the late Circuit Court Judge Lacombe in the case of Dodge & Olcott v. United States, reported in 130 Fed. 624, as follows:

* * * As to the precise meaning of the word “medicinal,” for the purposes of this particular case I will assume — without undertaking to say what may or what may not be the conclusion which the court will arrive at when it becomes necessary, if it does hereafter, to determine the precise meaning of that, I will assume — that it confines the noun with which it is coupled to something which is of use, or believed by the prescriber or user fairly and honestly to be of use, in curing or alleviating, or palliating or preventing, some disease or affection of the human frame.

While the foregoing definition does not seem to have been accepted as encompassing all the articles or substances which may be embraced within the term “medicinal preparations,” it has, on occasion, been cited and quoted by our appellate court as sufficiently authoritative to serve as a standard by which particular importations might be judged. See Britt, Loeffler & Weil v. United States, 7 Ct. Cust. Appls. 118, T. D. 36428, at page 121, and Smith & Son Manufacturing Co. v. United States, 15 Ct. Cust. Appls. 277, T. D. 42468, at page 278.

That the article at bar is covered by the rather broad provisions of the foregoing definition seems to be obvious, that is to say, the evidence shows that it is something which is of use in alleviating or [115]*115palliating an affection of the human frame, i. e., it is used in stopping excessive capillary and venous bleeding by accelerating the clotting action of the blood.

In so holding, we assume that the term “medicinal,” as used in the statute, is not confined to those preparations used only by the physician but includes, as well, those used by the surgeon and the obstetrician,1 and that excessive bleeding, occurring in surgery, is an “affection of the human frame.”

Counsel for the defendant argues, in the brief filed in its behalf, that the lack of evidence that the chief use of all gelatin is as a medicinal preparation, or that gelatin has therapeutic properties, requires a holding that the sponges at bar are not medicinal preparations. We know of no case which holds that the chief use of the ingredients,

Free access — add to your briefcase to read the full text and ask questions with AI

Alltransport, Inc. v. United States, 37 Cust. Ct. 112, 146 F. Supp. 181, 1956 Cust. Ct. LEXIS 13 (cusc 1956).

37 Cust. Ct. 112 (Alltransport, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

United States v. Von Oefele
4 Ct. Cust. 15 (Customs and Patent Appeals, 1913)
Britt v. United States
7 Ct. Cust. 118 (Customs and Patent Appeals, 1916)
Smith & Son Manufacturing Co. v. United States
15 Ct. Cust. 277 (Customs and Patent Appeals, 1927)
Dodge & Olcott v. United States
130 F. 624 (U.S. Circuit Court for the District of Southern New York, 1891)