Atlas Copco North America, Inc. v. United States

17 Ct. Int'l Trade 1163, 837 F. Supp. 423, 17 C.I.T. 1163, 15 I.T.R.D. (BNA) 2375, 1993 Ct. Intl. Trade LEXIS 206
CourtUnited States Court of International Trade
DecidedOctober 26, 1993
DocketCourt No. 87-02-00272
StatusPublished
Cited by7 cases

This text of 17 Ct. Int'l Trade 1163 (Atlas Copco North America, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlas Copco North America, Inc. v. United States, 17 Ct. Int'l Trade 1163, 837 F. Supp. 423, 17 C.I.T. 1163, 15 I.T.R.D. (BNA) 2375, 1993 Ct. Intl. Trade LEXIS 206 (cit 1993).

Opinion

Memorandum Opinion

Watson, Senior Judge:

This is a dispute concerning the tariff classification of imported merchandise that is described on the invoices as [1164]*1164“Swellex bolts,” and further described in technical literature as “Swel-lex rock bolts. ” The merchandise was manufactured by Atlas Copco, AB, Stockholm, Sweden, and imported by Atlas Copco North America, Inc., of Utica, New York. The Customs Service classified the merchandise under Item 657.25, TSUS, a general or “basket” provision for articles of iron or steel.

The plaintiff claims that the merchandise should be classified as bolts under Item 646.54, TSUS.

The competing provisions of the TSUS are as follows:

Bolts, nuts, studs and studding, screws, and washers (including bolts and their nuts imported in the same shipment, and assembled bolts or screws and washers, with or without nuts); screw eyes, screw hooks and screw rings; turnbuckles; all the foregoing not described in the foregoing provisions of this subpart, of base metal:
of iron or steel:
Bolts and bolts and their nuts imported in the same 646.54 shipment . 0.7%adval.
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Articles of iron or steel, not coated or plated with precious metal:
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Other articles:
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Other:
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657.25 Other..... 5.7%adval.

The parties entered into a stipulation of facts in lieu of trial. Attached to the stipulation are Plaintiffs Exhibits 1 through 9 and Defendant’s Exhibits A through O.

The imported merchandise is tubular in shape and measures from two to twenty-four feet in length with bushings (metal sleeves), welded to both ends. The lower bushing of the imported merchandise has a flange whose purpose is to fasten and hold a bearing plate in place on the roof of the tunnel or mine.

The imported merchandise is made from a steel tube which starts out with an outer diameter of 41 mm. and a wall thickness of 2 mm. The outer diameter of the tube is reduced as the tube is reshaped by flattening it and folding it along its length so that the edges touch one another. This gives it a folded circular profile of 25.5 mm. In its final configuration it has the capacity to expand when water is injected into its folded interior. The merchandise is not threaded and is not used in conjunction with a nut.

The imported merchandise functions in the following manner: A hole is drilled into the roof of a mine or tunnel, into a stratum of stable rock. The merchandise is then inserted, through a hole in a bearing plate, into [1165]*1165the drilled hole. The flange at the end does not allow it to pass through the bearing plate. Water, under high pressure, is then injected through a hole in the bushing into the hollow folded interior section of the tube. That is done by means of an installation rod which is connected to a high pressure water pump.

The pressure of the water distends the tube to near its original diameter. This forces the wall of the tube to move outwardly against the irregularities of the drill hole. That in turn causes the lower part of the tube to shorten. The reduction in length of the tube and its position in the hole hold the bearing plate firmly against the roof of the mine or tunnel. The tube is thus anchored in its position and assists in holding up the roof. After installation, the water pressure is released.

The imported merchandise is covered by four United States patents issued to Atlas Copco of Sweden which describe the subject matter of the patents as “method and installation of apparatus for rock bolting,” as well as “method of rock bolting and tube formed expansion bolt.” This merchandise substitutes for traditional mine roof bolts or rock bolts which traditional types are described in the annual hook of ASTM Standards, Vol. 15-08, as bars with heads and threads.

According to the “Professional Users Handbook for Rock Bolting,” a portion of which comprised plaintiffs Exhibit 4, the history of rock bolting dates from the end of the nineteenth century, but they were not used extensively until 40 or 50 years later. In the introduction to Chapter 1 of that work it is stated that “the use of rock bolts in mining as well as in underground excavations for civil engineering applications has become worldwide and hundreds of millions of bolts are installed annually.”

The evidence establishes that within the field of mining these importations are known as bolts. Ordinarily, the court would have to go no further because Congress is “regarded as having used the name of an article in the commercial sense * * *” United States v. Victoria Gin Co., Inc., Et Al., 48 CCPA 33 (1960). With respect to these articles however, the government argues that the usage in field of mining is not an accurate reflection of the commercial or common meaning of the term “bolt.”

The government points to many technical dictionaries which generally define bolt as a metal rod with a head at one end and a thread on the other, the thread being designed to engage a fastening nut. According to the government, if a fastening device designed for insertion into a hole does not have a thread it cannot be called a bolt.

The government also argues that the purpose of a so-called rock bolt differs from that of genuine bolt in that it does not really hold two parts together but rather reinforces or stabilizes a mass of rock.

Plaintiff responds that bolts do not have to have threads and points to the definition of bolt adopted in the case of A.L. Liebman & Son, Inc. v. United States 65 Cust. Ct. 85, C.D. 4059 (1970). That opinion clearly supports the plaintiffs position in this action. (In passing, the court takes note of the government’s scrupulous assurance that there is no relationship between the plaintiff in that case and the distinguished attor[1166]*1166ney in charge of the International Trade Field Office of the Commercial Litigation Branch of the Department of Justice.) Plaintiff also relies on a basic tenet of customs law that a named provision for an article encompasses all forms of that article. Nootka Packing Co. v. United States, 22 CCPA 464, T.D. 47464 (1935).

The government, in its turn, argues that the Liebman opinion was clearly erroneous, in that it found a common meaning that was so broad and indefinite as to include numerous articles that are demonstratively not bolts. In any event, the government asks this court not to adopt the reasoning of Liebman because it involved markedly different merchandise.

The government goes on to make a historical argument in which it tries to show that Item 646.54, under which plaintiff seeks classification, is a narrow descendent of Paragraph 330 of the Tariff Act of 1930. The latter covered: “bolts, with or without threads or nuts * * *.” The government argues that if congress intended to cover unthreaded bolts it would have retained the language of Paragraph 330.

In its analysis, the court begins with the language of Item 646.54.

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17 Ct. Int'l Trade 1163, 837 F. Supp. 423, 17 C.I.T. 1163, 15 I.T.R.D. (BNA) 2375, 1993 Ct. Intl. Trade LEXIS 206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlas-copco-north-america-inc-v-united-states-cit-1993.