B. & K. Instruments, Inc. v. United States

82 Cust. Ct. 219, 1979 Cust. Ct. LEXIS 1163
CourtUnited States Customs Court
DecidedMay 22, 1979
DocketC.D. 4803; Court Nos. R65/25188
StatusPublished

This text of 82 Cust. Ct. 219 (B. & K. Instruments, 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
B. & K. Instruments, Inc. v. United States, 82 Cust. Ct. 219, 1979 Cust. Ct. LEXIS 1163 (cusc 1979).

Opinion

Ford, Judge:

The articles involved in these five consolidated appeals for reappraisement consist of instruments and parts invoiced as models 2203 and 2204 sound level meters and model 1613 octave filter sets, which were appraised on the basis of foreign value 1 as defined in section 402a(c), Tariff Act of 1930, as amended by the Customs Simplification Act of 1956, T.D. 54165. The basis of appraisement was predicated upon a finding by Customs that the articles [220]*220came within the designation “Instruments and parts, laboratory, sound measuring,” which appears on the final list of articles issued by the Secretary of the Treasury and published in 93 Treas. Dec. 14, T.D. 54521, covering articles to be appraised under section 402a, Tariff Act of 1930, as amended, supra. The appraised values were found to be the invoiced unit prices, net, packed, plus 29.03 percent. B. & K. Instruments, Inc., the plaintiff-importer of record, and the exporter, Bruel & Kjaer, were at the time of exportation related persons within the meaning of section 402(g) of the Tariff Act of 1930, as amended, supra.

The court has before it for determination the issue of whether the importations are laboratory instruments, or parts thereof, within the meaning of the final list. Plaintiff has conceded they are sound measuring instruments or parts thereof.

Plaintiff contends the importations are not on the final list inasmuch as they are not laboratory instruments and parts, and therefore the proper basis of appraisement is export value as defined in section 402(b),2 Tariff Act of 1930, as amended, supra, which values are represented by the invoiced unit prices, net, packed, less the 29.03 percent addition.

At trial the parties stipulated if the court finds the merchandise is not on the final list, the proper basis of appraisement would be export value at invoice values.

The record consists of the testimony of five witnesses, two called on behalf of plaintiff and three on behalf of defendant. In addition, 11 exhibits were received on behalf of plaintiff and 8 on behalf of defendant, 1 of which was a collective exhibit (exhibits A-l through A-4). Included before this court is the record in The A. W. Fenton Co., Inc. v. United States, 67 Cust. Ct. 519, R.D. 11755 (1971), aff'd, 70 Cust. Ct. 286, A.R.D. 313 (1973). By the incorporation of the record in the previously decided case, the court has before it for consideration all of the facts established in the earlier case. The merchandise involved in that case is described in the findings of fact of the trial court as follows:

1. That the merchandise involved herein consists of the following electronic instruments and parts manufactured by Bruel & [221]*221Kjaer, Copenhagen, Denmark, and exported from that country from 1959 through 1962: 3322, audio frequency response and spectrum recorder; 3311, 3313, audio frequency spectrum recorders; 2111, 2112, 2141, audio frequency spectrometers; 1611, 1612, 1/3 octave filter sets; 1619, extension filter set; ZS-0146, filter chassis; 2603, 2604, microphone amplifiers; 3330, narrow band spectrum recorder; 2107, frequency analyzer; 2612, 2613, 2615, cathode, followers; 4131, 4132, 4133, 4134, condenser microphone cartridges; 4408, two channel microphone selector; UA-0030, input adaptor; UA-0034, flush mounting; UA-0039, extension connector; UA-0040, probe microphone set; UA-0051, UA-0052, nose cones; 4122, floor stand; JJ-2612, input adaptor.

It also appears from the court's decision that the enumerated instruments and parts were appraised on the basis of foreign value, as defined in section 402a(c), Tariff Act of 1930, as amended, predicated, as in the case at bar, upon the Customs’ finding that the articles came within the final list designation, “Instruments and parts, laboratory, sound measuring.” The record therein established that certain of the analyses and recording instruments were chiefly used for nonlaboratory purposes and therefore were erroneously appraised. They were items 3322, 3311, 3313, 2111, 2112, 2141, 1611, 1612, 1619, ZS-0146, 2603, and 2604.3 The court found export value, as defined in section 402(b), Tariff Act of 1930, as amended, supra,, to be the proper basis for valuation of those items. The appellate term in affirming the judgment of the trial court adopted and incorporated by reference the findings of fact and conclusions of law of the lower court. (70 Cust. Ct. 286, 295, A.R.D. 313.)

Defendant argues there is a difference in merchandise and time of importation in the incorporated case and in the oase now before the court. The court agrees with defendant’s position that the incorporated case cannot be stare decisis of the issue.

In the case at bar defendant contends the imported merchandise belongs to a class of articles which is chiefly used as laboratory instruments for purposes of experiment or study and was properly appraised on the basis of foreign value as defined in section 402a (c), supra, by virtue of enumeration on the final list.

Although the classification of the imported merchandise is not in issue, determination of whether an article comes within the final list enumeration is dependent in large part upon the classification status under the Tariff Schedules of the United States and the rules of construction applicable thereto. In ascertaining whether an article comes within the final list description, this court and the appeals court [222]*222have been guided by its tariff classification. National Carloading Corporation v. United States, 53 CCPA 57, C.A.D. 877 (1966).

Plaintiff contends that whether or not a particular imported article is specified on the final list is not based upon the use in the United States of competitive domestic articles of the same class or kind. The uses in the United States, plaintiff contends, of domestically produced sound level meters and octave filter sets are not pertinent to the question of whether articles imported from Denmark, having a high degree of accuracy, are chiefly used in this country for laboratory purposes related to experiment and study. Plaintiff further alleges the imported instruments are not laboratory instruments or parts thereof within the meaning of the final list if the particular imported articles are suitable for supplemental use in a laboratory, but are chiefly used throughout the United States at the time of importation for practical commercial applications as distinct from the purposes of laboratory testing for experiment and study. Plaintiff contends inter alia the evidence establishes these particular instruments were chiefly used throughout the United States during the period in issue for practical commercial applications rather than for laboratory testing for experiment and study. It is also alleged the written material furnished by defendant’s witnesses indicate competitive domestic articles, claimed by defendant to be of the same class or kind, were chiefly used throughout the United States during the time period involved for practical commercial applications.

In support of its position plaintiff cites the following cases wherein the courts based their determination as to whether the items in controversy were, or were not, “laboratory instruments” upon the question of whether the particular articles were chiefly used in a laboratory without reference to other articles of the same class or kind: United States v.

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Bluebook (online)
82 Cust. Ct. 219, 1979 Cust. Ct. LEXIS 1163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-k-instruments-inc-v-united-states-cusc-1979.