American Express Co. v. United States

10 Ct. Cust. 275, 1920 WL 19909, 1920 CCPA LEXIS 51
CourtCourt of Customs and Patent Appeals
DecidedApril 13, 1920
DocketNo. 1947
StatusPublished
Cited by19 cases

This text of 10 Ct. Cust. 275 (American Express Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Express Co. v. United States, 10 Ct. Cust. 275, 1920 WL 19909, 1920 CCPA LEXIS 51 (ccpa 1920).

Opinions

Barber, Judge,

delivered the opinion of the court:

The merchandise here is sheets or plates of metal (by one witness referred to as “slabs” or '.'ingots”), 6 inches long, 3 inches wide, and about one-eighth of an inch in thickness, the content being 90 per cent platinum and 10 per cent iridium, artificially combined. The edges are rough. The upper and lower surfaces are smooth, as though hammered or rolled. Such pieces are parts of a larger product from which they have been cut before importation to satisfy the requirements of the importer. Sometimes this metal’ is imported in similar shapes 2 or 3 feet or more long and 3 or 4 inches or more in width, and not always of the same thickness. It is considered by weight in the customhouse. The importation here was assessed at 50 per cent ad valorem under paragraph 167 of the act of 1913, which provides, among other things, for—

Articles or wares not specially provided for in this section, if composed wholly or in part of platinum, gold, or silver, and articles or wares plated with gold or silver, and whether partly or wholly manufactured * * *.

Importer protested, claiming free entry under paragraph 578, which we quote:

578. Platinum, unmanufactured or in ingots, bars, plates, sheets, wire, sponge, or scrap, and vases, retorts, a,nd other apparatus, vessels, and parts thereof, composed of platinum, for chemical uses.

Claims were also made under other paragraphs unnecessary to mention here.

The Board of General Appraisers overruled the protest, and the case is here for review upon importer’s appeal.

In the course of the hearing before the board the importer offered to show that the merchandise, although composed of the two metals above mentioned, was in the wholesale trade and commerce dealing therein in this country known as “platinum in sheets.” The board held, however, that—

the provision in paragraph 578 for “platinum in * * * sheets” was a purely descriptive and not a denominative provision, and was therefore not subject to proof on the question of commercial designation — •

and excluded the offered evidence. This action was based upon its previous ruling in G. A. 7762 (T. D. 35627), where it had reached a similar conclusion. In that case the judgment of the board was affirmed in this court (see Bosch Magneto Co. v. United States, 7 Ct. Cust. Appls., 50; T. D. 36310) and the Government here largely relies upon that case as ruling this. Later herein that case will be referred to.

The present case was first argued in this court in March, 1919, but desiring further light, particularly upon the question of the [277]*277admissibility of proof of commercial designation, reargument was bad at tbe request of tbe court in October, 1919.

If tbe excluded evidence ought to bave been admitted, we tbink tbe case should be remanded and therefore proceed to consider tbe question of its admissibility.

Although there is no dispute whatever as to tbe right in proper cases to make proof of commercial designation, it is nevertheless deemed advisable to examine quite fully tbe force and application of tbe rule.

In the early case of Two Hundred Chests of Tea (22 U. S., 9 Wheat., 428) the Supreme Court said:

The object of the duty laws is to raise revenue, and for this purpose, to class substances according to the general usage and known denomination of trade. Whether a particular article were designated by one name or another, in the country of its origin, or whether it were a simple or mixed substance, was of no importance in the view of the legislature. It did not suppose our merchants to be naturalists or geologists or botanists. It applied its attention to the description of articles, as they derived their appellations in our own markets, in our domestic' as well as our foreign traffic. And it would have been as dangerous as useless to attempt any other classification than that derived from the actual business of human life.

The meaning of tbe term “bobea tea” was tbe subject of consideration. Referring thereto, tbe court said that that term—

in the sense of all our revenue laws, means that article which, in the known usage of trade, has acquired that distinctive appellation. And even if the article has undergone some variation in quality or mixture, during the intermediate period from 1789 to 1816, when the act last passed, but still retains its old name, it must be presumed that Congress, in this last act, referred itself to the existing standard, and not to any scientific or antiquated standard.

This doctrine has never been departed from by tbe Supreme Court, but in many cases has been affirmed.

In Arthur v. Cumming et al. (91 U. S., 1 Otto., 362) the court considered whether certain merchandise was dutiable as “burlaps” or as “oil-cloth foundations” or “floor-cloth canvas,” as to each of which tbe statute provided' that if made or manufactured of flax, jute, or hemp they should be dutiable at certain rates unless within certain prescribed exceptions. Mercantile testimony had been admitted to show that the merchandise was burlap, a manufacture of jute, and not within the exceptions. The same kind of evidence had also been received to show that “floor-cloth canvas” meant the same thing as “oil-cloth foundation” and that the latter were not burlaps. The court sustained the admissibility of this evidence and said, referring to the case of Two Hundred Chests of Tea, supra, and other cases:

The rule to be followed in the construction of revenue statutes in cases like this is well settled in this court. It is, that the descriptive terms applied to articles of commerce shall be understood according to the acceptation given to them by com[278]*278mercial men in our own porta at the time of the passage of the act in which they are found.

In Pickhardt v. Merritt (132 U. S., 252) the statute under consideration provided for aniline dyes and colors, by whatever name known.” It was claimed this was a descriptive and not a commercial term and' therefore that evidence of commercial designation was not admissible. The court denied the claim and further held that proof of commercial designation was applicable even though the article in question was unknown when the statute was enacted, citing Newman v. Arthur (109 U. S., 132).

In Barlow v. United States (32 U. S., 7 Pet., 404) it was held that the meaning of the term “refined sugar” was properly shown by proof of commercial designation.

In Hedden v. Richard (149 U. S., 346) a statute providing for “cabinet ware and house furniture, finished,” was under consideration and the court held that evidence tending to show the meaning of the word “finished” in the furniture trade was relevant.

In Chew Hing Lung v. Wise (176 U. S., 156), it was said:

The commercial designation of an article is the first and most important thing to he ascertained, and governs in the construction of the tariff law when that article is mentioned, unless there is something else in the law which restrains the operation of this rule.

To the same effect see Robertson v. Salomon (130 U. S., 412).

In Cadwalader v. Zeh (151 U.

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10 Ct. Cust. 275, 1920 WL 19909, 1920 CCPA LEXIS 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-express-co-v-united-states-ccpa-1920.