C. H. Powell Co. v. United States

63 Cust. Ct. 302, 1969 Cust. Ct. LEXIS 3756
United States Customs Court·Decided October 31, 1969·No. C.D. 3912·Published·Cited by 4 cases

Opinion

Donlon, Judge:

Two protests are here consolidated for purposes of trial. The merchandise of protest 67/36009 consists of a machine known as a Pedersen Rapid Beam Cutting Press, imported from Denmark on November 1,1963. The merchandise of protest 67/36016 consists of parts for a Pedersen press, imported from Denmark on March 2, 1964. Both importations were made for Allied Shoe Machinery Corporation, of Haverhill, Massachusetts, the ultimate consignee.

The claim here litigated is that the imported press and parts are shoe machinery and parts thereof, and that as such they are entitled to free entry under TSUS, schedule 6, part 4, subpart H, item 678.10. Classification in liquidation was as machines not specially provided for, and parts thereof, under item 678.50, with duty charged at 10 percent ad valorem.

The competing tariff provisions are as follows:

Schedule 6, part 4, subpart H:
678.10 Shoe machinery and parts thereof_ Free
678.50 Machines not specially provided for, and parts thereof_ 10% ad val.

Item 678.10, under which plaintiff claims, is a use provision. The use prescribed in the provision is use as shoe machinery.

[304] The rule was succinctly stated by our appeals court in E. Dillingham, Inc. v. United States, 54 CCPA 121, C.A.D. 922 (1967), as follows:

Recently we had occasion to comprehensively review the case law on the issue of chief use. United States v. C. S. Emery & Co., 53 CCPA 1, C.A.D. 868, decided January 13, 1966. In Emery, we concluded that the case law unqualifiedly holds that the chief, principal or predominant use governs the classification of imported merchandise if a use provision is involved. Under such circumstances, we conclude that the classification of the instant merchandise requires a consideration of use because the statute employed a term, “shoe machinery,” which imputes a use. [P. 124.]

In Dillingham the classification provision construed was found in the Tariff Act of 1930, as amended, while here the classification .is to be determined under the TSUS. Rule 10 of the General Pleadnotes and Rules of Interpretation of the Tariff Schedules of the United States is as follows:

10. General Interpretative Rules. For the purposes of these schedules—
$ ❖ -¡‘ * ❖ ❖ *
(e) in the absence of special language or contest which otherwise requires—
(i) a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of articles of that class or kind to which the imported articles belong, and the controlling use is the chief use, i.e., the use which exceeds all other uses (if any) combined;

Writing for the court in Hoffschlaeger Company, Ltd., et al. v. United States, 60 Cust. Ct. 497, C.D. 3440, 284 F. Supp. 787 (1968), Chief Judge Rao stated:

While “chief use” is thus established to be the criterion for ascertaining use when that characteristic is a relevant consideration, it does not appear 'that the rules of the tariff schedules provide complete requirements of proof of chief use. But the concept of chief use as the determinant of use provisions is a familiar one in customs jurisprudence which has often occupied the attention of the courts, and rules for proving it have long since been explicitly formulated. * * * [P. 501.]

To establish plaintiff’s claim, then, proofs are required to show that, at or immediately prior to the time of importation, the “chief, principal or predominant use” of the machinery at bar was use in the manufacture of shoes.

The official papers are in evidence, as are certain exhibits. Two witnesses testified for plaintiff; one witness for defendant.

[305] Testimony adduced, in plaintiff’s behalf shows that Allied Shoe Machinery Corporation had the exclusive right, from the Pedersen Company in Denmark, to import and sell Pedersen Rapid Beam Cutting Presses in the United States, and that no one else in the United States sold that particular Pedersen machine, which is the machine of this litigation and the machine with which the involved parts were solely used.

Mr. Albert Meyers identified himself as having been with Allied Shoe Machinery Corporation since 1934. Prior thereto he had worked for Compo Shoe Machinery Company, as a shoe consultant promoting cemented-process footwear. He worked also for an employer whom he did not name, as superintendent in its factory manufacturing different types of shoes.

He said that he had operated several types of cutters, but that at the time of his experience in such operations there were no beam cutters. Mr. Meyers has, however, frequently demonstrated the Pedersen Beam Press in order to sell it; he has shown operators how to operate it; and he has worked on it in different factories. There is also such a press in the plant of his employer, Allied Shoe Machinery Corporation, where component shoe parts are made for the shoe trade. After selling the Pedersen press, Allied sets up the machine in the plants of its customers and instructs their operators in its use. Such instruction was one of Mr. Meyers’ duties.

Mr. Harry Gamer also testified for plaintiff. He identified himself as treasurer of Plymouth Shoe Machinery Company, of East Boston, selling machines such as the Pedersen press to shoe manufacturers.

Mr. Donald B. White testified for defendant. He said he was sales manager of the industrial machinery division of Compo Industries, of Waltham.

While Mr. Meyers did not state the actual use of the presses, but only the work for which they were capable and the type of manufacture done by those who bought the presses, namely, shoe manufacture, Mr. Gamer described work that he had actually observed as “Cutting of various parts of the shoe, upper leather, sock linings, and various parts of the shoes, uppers of the shoes.” (R. 34.) He had never seen the presses used other than in shoe manufacturing. Moreover, he had never sold a Pedersen press to any one outside of the shoe manufacturing business.

Mr. White, the defense witness, was unable to recall that he had ever seen a Pedersen Beam Cutting Press in operation, which considerably limits the utility of his testimony as to its use.

Certainly the evidence adduced does not negative the possibility that a beam cutting press, such as the press at bar, might be used in some leather cutting operation other than shoe manufacture. However, it is [306] the fact of chief use, and not potential use, which the statute sets up as the basis of tariff classification.

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C. H. Powell Co. v. United States, 63 Cust. Ct. 302, 1969 Cust. Ct. LEXIS 3756 (cusc 1969).

63 Cust. Ct. 302 (C. H. Powell Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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