Arnart Imports, Inc. v. United States

55 Cust. Ct. 32, 1965 Cust. Ct. LEXIS 2386
Procedural entryThis page is a short order in Arnart Imports, Inc. v. United States. Read the opinion of the Court — 54 Cust. Ct. 187
United States Customs Court·Decided June 28, 1965·No. C.D. 2550·Published

Opinion

Donlon, Judge:

These two cases were consolidated for the purpose of trial. They 'both have to do with certain decorated earthenware articles, imported from Japan, which the collector assessed with duty on the basis of two pieces for each article.

There is no dispute as to classification. These articles are dutiable under paragraph 211, as modified by the Japanese Protocol to the General Agreement on Tariffs and Trade (T.D. 53865), at 25 percent ad valorem and 10 cents per dozen pieces. They were so assessed. The protest claim is that, under that classification, each article is dutiable as one piece, not as two pieces.

Plaintiff’s exhibit 1 was conceded by defendant to be representative of the merchandise in dispute. It includes a figure of a woman who is guiding, with her left hand, a baby carriage with baby. All of the foregoing are in one earthenware piece. There are two earthenware figures of poodles, each with a metal chain around its neck, simulating a leash, and the ends of these chains are looped over the woman’s right hand. These figures were all assessed as one piece, even though the poodles are separate earthenware figures. As imported there was also a parasol, which counsel stipulated is not of earthenware. This parasol has a stick extending down from the center of the parasol, on the under side. It was separate from the figure group. The stick was [33]*33designed to be inserted in a hole in the woman’s right hand. When so inserted, subsequent to importation, the woman appears to be under the shade of an open parasol. This parasol was counted by the collector as a second piece, and specific duty computed accordingly.

Two witnesses testified for plaintiff. Besides exhibit 1, representative of the merchandise in controversy, plaintiff introduced into evidence three other articles with respect to which plaintiff’s witnesses testified as to sales and trade practices.

Exhibit 2 was described as “Little Miss Perfume Bottle.” There is a decorative container (evidently intended for perfume) and a separate stopper which fits into the base or container. Together they simulate a girl in a pink dress, who is holding in her hands a blue hat.

Exhibit 3 is described as a “Dutch Girl Trinklet [sic] Box” in two parts, both hollow, an upper part and a lower part. Together they represent a girl in Dutch costume.

Exhibit 4 is described as a receptacle for cookies or candy or buttons. It also is in two parts (both hollow), a body and a head. Together they represent an upright pig.

Mr. Arthur Tamchin, testifying for plaintiff, identified himself as plaintiff’s president. Plaintiff, he said, is engaged in the importation and distribution of gift merchandise, including objects of art, utility merchandise, and decorative accessories for the home made of porcelain, ceramic, metal, glass, wood, or of a combination of components. Mr. Tamchin said he had been in what he called the giftware business for 30 years.

As to exhibit 1, the witness said that this is an article which was suggested to his brother and himself by an importation from France; that they had made approximately 50 variations of the article, a woman pushing a baby carriage, with poodles, and carrying an umbrella ; that they experienced so much breakage that they decided to separate the article, both to avoid breakage and to keep cubic content low enough so that the article could be sold as a dollar item. These were the only reasons for having the article in two parts.

As to cubic content, the witness said that attachment of the parasol increased shipping costs so seriously as to affect distribution as an item for retail sale at one dollar.

His corporation offers figures like exhibit 1, per dozen pieces, at a price range that varies according to the category of the buyer, such as jobbers, department stores, variety, and gift stores. The entire article, including the parasol, is counted as a single piece in plaintiff’s price quotations, which are at a rate per dozen pieces.

Testimony both of Mr. Tamchin and of Mr. Benjamin Francis Allen, plaintiff’s sales manager, was largely as to trade practices, pricelists, etc., all to the effect that goods such as the articles repre[34]*34sented by exhibits 1 to 4 were quoted, offered, and sold in lots of a dozen pieces, and that this meant lots of a dozen articles.

Defendant introduced no evidence, confining itself to cross-examination of plaintiff’s witnesses and a good many interjections and objections.

It appears to be plaintiff’s chief argument that, in ascertaining the number of pieces on which the specific duty under modified paragraph 211 is to be computed, the practices of the trade and commerce in the particular merchandise are to be considered. From this premise, plaintiff seems to conclude that where the trade practice is, as here, to deal in an article as a single piece, even though physically it is in separate pieces, then for purposes of computing specific duty the article should be deemed a single piece. It is not, of course, quite so simple as that.

The proper query is: What did Congress intend by the term “piece” when it enacted the Tariff Act of 1930 ? The specific duty provision on earthenware, at a rate per dozen pieces, was a provision newly introduced in the 1930 act. It is not found in the 1922 act.

We had supposed, in view of the thoughtful and comprehensive opinion of our appeals court in United States v. S. H. Kress & Co., 23 CCPA 90, T.D. 47764, that there no longer is room to doubt that Congress intended that each separate piece of an earthenware article is a “piece,” which is to be counted as such for ascertainment of specific duties under paragraph 211.

The common meaning of piece is, of course, a single, separate part, as distinguished from the whole. Piece is often synonymous with part. However, it is commercial meaning which plaintiff asserts, and has sought to prove by testimony as to trade practices.

The rule is that commercial meaning has application only where it is shown that there is commercial meaning which is different from the common meaning of a term. This, however, is a rule of classification. United States v. Allen Forwarding Co., 42 CCPA 33, C.A.D. 566; Victor W. Davis, Jr., Administrator v. United States, 16 Cust. Ct. 163, C.D. 1005, affirmed, id. v. id., 35 CCPA 79, C.A.D. 374. Here we have no issue as to classification. But if, arguendo, commercial meaning might be deemed to have relevance to a non-classification tariff term, one describing the guantwn basis of duty computation, the necessary inquiry would still be: what did Congress intend.

All those who testified at the Congressional hearings on the proposed specific duty provision agreed as to what the commercial practice was at that time and what were pieces that would become the basis of specific duty computation if the specific duty became law, as it did. Commercial practice for tariff purposes, if proved to be different from common meaning, is the commercial practice which was in effect [35]*35at the time of tariff enactment. E. Dillingham, Inc., et al. v. United States, 48 CCPA 46, C.A.D. 762; Davies Turner & Co. v. United States, 45 CCPA 39, C.A.D. 669; Davies, Turner & Company v. United States, 39 CCPA 76, C.A.D. 466.

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

Arnart Imports, Inc. v. United States, 55 Cust. Ct. 32, 1965 Cust. Ct. LEXIS 2386 (cusc 1965).

55 Cust. Ct. 32 (Arnart Imports, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Davis v. United States
16 Cust. Ct. 163 (U.S. Customs Court, 1946)
Arnart Imports, Inc. v. United States
46 Cust. Ct. 449 (U.S. Customs Court, 1961)