C. J. Tower & Sons v. United States

46 C.C.P.A. 36, 1958 CCPA LEXIS 143
CourtCourt of Customs and Patent Appeals
DecidedNovember 17, 1958
DocketNo. 4931
StatusPublished

This text of 46 C.C.P.A. 36 (C. J. Tower & Sons 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
C. J. Tower & Sons v. United States, 46 C.C.P.A. 36, 1958 CCPA LEXIS 143 (ccpa 1958).

Opinion

O’Connell, Acting Chief Judge,

delivered the opinion of the court:

This is an appeal from the judgment of the United States Customs Court, Second Division, C.D. 1872, overruling the importer’s protest and sustaining the collector’s classification of the instant merchandise as ferrosilicon, containing 8 per centum or more of silicon, and less than 30 per centum, dutiable at one cent per pound under paragraph 302(i) of the Tariff Act of 1930, as modified by the General Agreement on Tariffs and Trade, 82 Treas. Dec. 305, T. D. 51802. The actual silicon contents of the two importations of ferrosilicon in controversy are 16.10 and 16.57 per centum, respectively.

It is the claim of the importer, appellant here, that the merchandise ' is properly free of duty under paragraph 1664 of the Act, as a metallic mineral substance in a crude state.

Appellant, among other things, further claims in its protest that the assessment of duties made herein by the Collector of Customs is illegal and void “under the rules relating to the ordinary meaning of ;words, and the commercial designation of the merchandise,” as defined by the language of Congress in the enactment of the Tariff Act of 1930, and the amendments thereto.

In the interpretation of that act, it is of course, the function of the court to ascertain the intent of Congress. One of the rules to be followed in discovering that intent is the rule of commercial designation, which time and again has been described by the courts as a wise rule “often claimed in customs litigation and rarely established.” United States v. Fung Chong Co., 34 CCPA 40, C.A.D. 342; Jas. Akeroyd & Co. et al. v. United States, 15 Ct. Cust. Appls. 440, T. D. 42641.

What the rule is and where it came from was thus defined in United States v. Stone & Downer Co. et al., 16 Ct. Cust. Appls. 82, 85, T.D. 42732:

Soon after the organization of this court we held, following Two Hundred Chests of Tea, 22 U.S. 428, and Cadwalader v. Zeh, 151 U.S. 176, that where words were used in a Tariff Act to designate particular kinds of goods, having a general, definite, and uniform signification in our trade and commerce [throughout the country], different from their ordinary meaning, the commercial meaning must prevail, citing United States v. Borgfeldt, 1 Ct. Cust. Appls. 255, T.D. 31279. (Italics supplied.)

We also there observed, page 85:

But this rule has its limitations. If, in the consideration of a statute, it appears, from its language or from its context, from the legislative history of the act, or from other material facts, that it was the intent of the legislative body to restrict the meaning of the words used to their common meaning, then any commercial meaning which the words employed in the act may have must’yield to the legislative -intent, which is, after all, the major guide to construction.

[38]*38One of the rules of this court in the construction of the provisions of tbe Tariff Act is however that resort may not be had to extraneous matters to create an ambiguity in the language of the statute where none otherwise exists. Universal Transcontinental Corp. v. United States, 40 CCPA 54, 58; United States v. American Trucking Ass’ns., 310 U.S. 534, 542.

The pertinent text of the respective paragraphs reads as follows:

As shown by the testimony of the importer’s witness, MacDonald, the merchandise, an abrasive furnace ferrosilicon, is a by-product of an electric furnace process of manufacturing a crude abrasive aluminum oxide, known as “Aloxite,” from bauxite ore. The steps of the process are not important here, but it is to be noted that no attempt is made to control the composition of the abrasive furnace ferrosilicon, and that such composition may vary with the type of ore being used. It is not in dispute, however, that the silicon content of the merchandise is in the neighborhood of sixteen percent, and thus is within the range of 8 to 30 percent provided for by paragraph 302 (i), supra.

Appellant does not deny that the merchandise falls within the common meaning of the term “ferrosilicon,” but contends that it is excluded from the commercial meaning of that term as understood in the trade and commerce of the United States on and prior t.o June 17, 1930, the date of enactment of the Tariff Act of 1930, as well as on and prior to January 1, 1939, and January 1, 1948, respectively, on which dates reciprocal trade agreements containing the term went into effect. Consequently, appellant argues, the merchandise is free from duty as a metallic mineral substance in a crude state under paragraph'1664 hereinbefore set forth.

While it appears that the merchandise falls within the broad language of paragraph 1664, it is evident that the express provision for ferrosilicon in paragraph 302 (i) is more specific and will prevail [39]*39unless appellant can establish a commercial meaning of the term "ferrosilicon” which will exclude the merchandise therefrom.

The Customs Court was of the opinion that the legislative and judicial history, as well as the express language of paragraph 302 (i), are such as to preclude the ascertainment of its meaning by resort to commercial designation. Accordingly, that court sustained the collector’s classification without deciding whether or not such a designation had been established.

From the foregoing statement of facts it will be seen that appellant can prevail here only by establishing; first, that this is a proper case for ascertainment of the meaning of the statute involved by resort to commercial designation; and, second, that a commercial designation has been established which excludes the instant merchandise from paragraph 302 (i).

It is appellant’s contention that the commercial meaning of "ferro-silicon” is limited to purposely produced alloys which are controlled as to the amount of silicon and other elements, and that the term is not applicable to incidental or by-product materials.

The Customs Court, in its decision, pointed out that in United States v. Tower & Sons, et al., 10 Ct. Cust. Appls. 155, T.D. 38401, the Court of Customs Appeals held that a metallic product containing iron and silicon, which was a by-product of the manufacture of alumi-nous abrasives, was classifiable as ferrosilicon, under paragraph 102 of the tariff act of 1913, rather than as a crude mineral or metallic mineral substance in a crude state under other paragraphs of that act. The silicon content of that product varied from 8.80 to 16.85 percent. While it is not shown that such a product was identical with the merchandise at bar, the two products were similar in that both were by-products rather than purposely produced materials, and that neither product was accurately controlled as to its silicon content. Accordingly, the respective products were substantially the same, so far as the grounds on which appellant relies as determining the classification thereof are concerned.

It is true that there was evidence that the material involved in the case last cited was sold commercially as ferrosilicon.

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Related

The Margaret
22 U.S. 421 (Supreme Court, 1824)
Cadwalader v. Zeh
151 U.S. 171 (Supreme Court, 1894)
United States v. American Trucking Associations
310 U.S. 534 (Supreme Court, 1940)
United States v. Borgfeldt
1 Ct. Cust. 255 (Customs and Patent Appeals, 1911)
United States v. Tower & Sons
10 Ct. Cust. 155 (Customs and Patent Appeals, 1920)
Akeroyd v. United States
15 Ct. Cust. 440 (Customs and Patent Appeals, 1928)
United States v. Stone
16 Ct. Cust. 82 (Customs and Patent Appeals, 1928)

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46 C.C.P.A. 36, 1958 CCPA LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-j-tower-sons-v-united-states-ccpa-1958.