Castelazo & Associates v. United States

47 Cust. Ct. 137
United States Customs Court·Decided October 24, 1961·No. C.D. 2293·Published·Cited by 2 cases

Opinion

JOHNSON, Judge:

This is a protest against the collector’s assessment of duty on merchandise imported from Japan and described as ceramic bees at 10 cents per dozen pieces and 40 per centum ad valorem under paragraph 211 of the Tariff Act of 1930, as modified by the Protocol of Terms of Accession by Japan to the General Agreement on Tariffs and Trade, T.D. 53865, effective September 10, 1955, T.D. 53871, as earthenware tableware articles, other than plates, cups, or saucers, valued over $1 but under $2 per dozen articles. It is claimed that the merchandise is properly dutiable at 10 cents per dozen pieces and 25 per centum ad valorem under said paragraph, as modified, supra, as articles which are not tableware, kitchenware, or table or kitchen utensils, valued under $3 per dozen articles. It is also claimed that, in determining the number of dozen pieces, the iron legs and the body of the ceramic bee should be counted as one piece.

The collector’s report contains a statement that, at the time the protest was filed, the agent or attorney who made, signed, and filed the protest was not named in a power of attorney authorizing him to make, sign, and file it. At the trial, the importer appeared by counsel, and it was conceded by counsel for the Government that the action of the agent had been ratified.

The pertinent provisions of the tariff act, as modified, are as follows:

[211] Earthenware and crockery ware composed of a nonvitrified absorbent body, * * *:
Tableware, kitchenware, and table and kitchen utensils:
#♦*❖*** articles which are not plates, cups, or saucers and which are valued over $1 but under $2 per dozen articles;
all the foregoing-100 per doz. pieces and 40% ad val.
3: is 5*s sj* # s¡« sfc
Articles which are not tableware, kitchenware, or table or kitchen utensils, valued per dozen articles—
Under $3_100 per doz. pieces and 25% ad val,

[139]*139At the trial, there was received in evidence a sample representative of the imported merchandise as plaintiffs’ collective exhibit 1. It consists of a yellow ceramic article with black stripes, in the shape of a bee, having a body, a lid,-and a wire arrangement with six legs. The body is about 5% inches long and 2 inches high and is hollow. The lid is wing-shaped and covers an opening at the top of the body. The body fits into the wire arrangement at the neck of the bee. The ceramic portion is glazed both on the outside and the inside.

Hans Vom Dorp, manager of Western Commerce Corp., testified as follows: The business of Western Commerce Corp. is the packing and distribution of honey and the sale of allied items all over the United States. The witness has been manager of the company since 1939 and has been in the honey business since 1928. His present duties are to supervise the packing of honey, its distribution and sale, and all other factors connected with it, including the development of new products. The firm sells to department stores, fancy food shops, roadside stands, and other outlets of that nature. The new products developed include whisky bottles filled with honey, the ceramic beehive, oranges, orange crocks, and apple crocks, all filled with honey. The purpose of these various commodities is to stimulate a demand for honey and to increase the firm’s margin of profit. The witness has been familiar with the ceramic bee for 4 or 5 years. It was originally made in Salt Lake City and was known as the Mormon Bee. The firm made arrangements with the original maker to take it over on a royalty basis and, later, purchased all rights connected with it. It has the right to distribute it in all states, except Utah.

After importation, a polyethylene bag, containing 5 ounces of honey, is placed in the ceramic bee to dress up the item and identify the container with the content. The bee with the honey inside is then placed in a cellophane container on the cover of which is printed a story about bees and the gathering of honey. The purpose of this is to make a gift item out of it. It is sold to gift shops, fancy food shops, department stores, and roadside stands.

The witness had seen the ceramic bee used on knickknack shelves, on mantlepieces, and window sills in the homes of friends in southern California. He had never seen it used on a breakfast, luncheon, or dinner table for the dispensing of honey during the service of a meal. He did not think it was practicable for that purpose, for the following reasons:

In the first place, it only contains five ounces, which means that it is adequate for a service for two, and it would have to he cleaned and refilled every day. In the second place, the head is open, and the honey would flow into the head, and the opening is too small to insert a spoon, so a great deal of honey would he lost.

[140]*140tie admitted, however, that the bee could be tipped in order to get the honey out of the head.

The witness said that the wire legs are attached to the body of the bee by pressing the body down into the wire and that the article would be of no use without them.

The witness stated that his firm sells drip-cut servers, which are articles which dispense honey and which cut off the flow at a given point. They contain 1 to 3 pounds of honey. They have round openings the same as collective exhibit 1 but they have a spout to dispense the honey.

Alphonse Erhart, called as a witness for the plaintiffs, testified that he has been with Western Commerce Corp. for about 7 years and that he helps to develop and sell new items in the fancy food field and as gift items. He has been a salesman in the gift-item field for about 37 years. He sells articles all over the United States, except South Dakota, and travels extensively throughout the United States and Canada. During his travels, he has become familiar with the purposes for which such articles are designed and the uses made of them. He has been familiar with the merchandise involved herein for about 4 or 5 years. He first saw such an item in the gift department of a store in Salt Lake City and found that it was made by a man named Hatch, who had a small pottery business. Since the latter could not make a sufficient quantity for Western Commerce Corp., they made an arrangement with him to take over the rights to it.

The witness stated that the polyethylene bag, containing honey, was placed in the bee in order to sell it in fancy food stores or candy departments in department stores, where they will sell 15 to 20 times as many as in the gift department. When it is sold in gift departments, it is sold without honey in it. He had never seen it sold in the chinaware or tableware department.

He had seen about 40 or 50 of them used in homes of friends, mainly in Los Angeles, and had never seen it used anywhere except as an ornament. He added that he had friends in Chicago, that he had given away a hundred of the bees, and that every one was used for the purpose of ornament. He had not actually seen how the whole hundred was used, but stated that he had never seen any used on the breakfast, luncheon, or dinner table during the service of a meal. In the course of a year, a couple of hundred-thousand are sold.

The first question to be determined is whether this merchandise is tableware or not.

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Castelazo & Associates v. United States, 47 Cust. Ct. 137 (cusc 1961).

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