Clipper Belt Lacer Co., Inc. v. The United States

923 F.2d 835, 1991 U.S. App. LEXIS 649, 1991 WL 3362
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 17, 1991
Docket90-1338
StatusPublished
Cited by9 cases

This text of 923 F.2d 835 (Clipper Belt Lacer Co., Inc. v. The United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clipper Belt Lacer Co., Inc. v. The United States, 923 F.2d 835, 1991 U.S. App. LEXIS 649, 1991 WL 3362 (Fed. Cir. 1991).

Opinion

RICH, Circuit Judge.

This appeal is from the judgment of the United States Court of International Trade in Clipper Belt Lacer Co. v. United States, 738 F.Supp. 528 (CIT 1990), affirming the classification by the United States Customs Service (Customs) of imported metallic belt fasteners as “articles of iron or steel, not coated or plated with precious metal” under Item 657.25,. Tariff Schedules of the United States (TSUS). Familiarity with the *836 extensive opinion of the trial court will be presumed. We affirm.

Appellant, Clipper Belt Lacer Co., is a purveyor of a wide variety of fasteners for splicing or joining abutting belt ends of many kinds, sizes, and uses. The merchandise here involved consists of two varieties of heavy-duty fasteners, identified as the “Ultra” and the “Mato,” collectively referred to as the Mato Line, which are used principally by the mining industry for joining together the ends or sections of convey- or belts used in belt conveyors for transporting heavy materials such as coal and ore. These conveyors may be four feet or more in width and from a thousand yards to two miles long. Necessarily, the belts are made of sections. When completed, such belts are, of course, endless and are carried on the guides, rollers, and driving pulleys of the conveyor machinery and moved by powerful motors. For reasons which will appear, the trial court found it useful to distinguish between belt conveyors, i.e., the complete apparatus, and conveyor belts, which are, of course, a necessary element of the complete conveyors.

The “Ultra” belt fasteners are made of steel wire and the heavier “Mato” fasteners of sheet steel and comprise multiple units to be clinched into the end of a belt or belt section so as to provide a series of metal loops across the edge of the whole belt end. Belt sections are then joined together in a flexible manner by overlapping the loops on one section with those on an adjoining section and passing a “pin,” which is a braided piece of wire, which may be externally covered or armored, through the overlapping loops to form a transversely flexible hinge joint. The trial court opinion contains further detailed description and illustrations.

Customs’ classification under TSUS Item 657.25 carries an ad valorem duty of 5.7%. Clipper’s protest has the usual objective of getting a classification with a lower duty to which end it asserts the following three allegedly more specific TSUS provisions (emphasis throughout ours):

Schedule 6 — METALS AND METAL PRODUCTS

Part 3 — Metal Products

Subpart D (1983): Nails, Screws, Bolts and Other Fasteners; Locks; Builders’ Hardware; Furniture, Luggage and Saddlery Hardware.

[A] Item 646.20 Staples in strip form. 0.9% ad val. Brads, nails, spikes, staples and tacks, all the foregoing, not described in the foregoing provisions of this subpart, of base metal: of iron or steel

[B] Item 646.32 Of two or more pieces. 2.3% ad val. Part 4 — Machinery and Mechanical Equipment

Subpart B (1983): Elevators, Winches, Cranes and Related Machinery; Earth Moving and Mining Machinery

[C] Item 664.10 Elevators, hoists, winches, cranes, jacks, pulley tackle, belt conveyors, and other lifting, loading or unloading machinery, and conveyors, all of the foregoing and parts thereof.

Parts of the foregoing:

Other. 2.0% ad val.

It is thus seen that appellant relies on two separate “staples” provisions, [A] and [B], and one “parts” provision. It is impossible, because of vacillations in its argu *837 ments and briefs, here and in the trial court, to say what its first choice is, but we will presume it is [A] which has the lowest duty. Whether [A] or [B], however, the imports in either of these two claims must be “staples” within the common meaning of the term since no other meaning has been established as intended by Congress. See Trans-Atlantic Co. v. United States, 60 CCPA 100, 471 F.2d 1397 (1973). The trial court exhaustively considered the characteristics of the imports and the meaning of the term “staples,” devoting about seven pages of its typed opinion to this single question, concluding that the imports are not staples and therefore not classifiable under either Item 646.20 or Item 646.32. The evidence of record supports its conclusion, with which we agree. We therefore affirm that aspect of its decision. We find nothing in appellant’s brief tending to show that the trial court’s reasoning on this score was flawed.

Appellant’s remaining contention, listed by the trial court as its “Third Alternative Claim,” but apparently put forward on appeal to us as its principal contention, is that the imported belt fasteners are properly classifiable as parts of belt conveyors under Item 664.10, [C] supra. The literalistic logic of the argument is that Item 664.10 contains a specific provision for “parts” of “belt conveyors” and that when the fasteners are put to use to fasten the segments of conveyor belts and the completed belts are assembled in the conveyor, then the imported fasteners squarely meet the words of Item 664.10 as parts of belt conveyors. However, there are additional words which must be considered.

TSUS Item 664.10, as shown above, falls in Part 4 of Schedule 6. Part 4 contains an interpretative Headnote 1. It reads:

Part 4 Headnotes

1. This part does not cover—
(ii) belts and belting
(v) articles and parts of articles specifically provided for elsewhere in the schedules.
The counter logic to appellant’s claim [C] is well set forth in the Government’s brief:
Since Congress clearly intended by virtue of Headnote l(ii) to exclude belts and belting from classification as parts of conveyors[,] it is logical to conclude that Congress also intended to exclude parts of belts from classification as parts of a conveyor, as such parts only become parts of conveyors after first becoming parts of belts, which requires that they be solely or chiefly used as such. See General Interpretative Headnote 10(e).
While it is undisputed that conveyor belts are necessary for the operation of conveyors, they are nonetheless not classifiable as parts of conveyors. Similarly, a part of the belt is also precluded from such classification. Thus, assuming, for purposes of argument, that the belt fasteners are factually parts of conveyors, they are nevertheless precluded from classification under item 664.10, TSUS, by the exclusionary headnote.

Essentially, that is the reasoning of the trial court which first considered whether the fasteners are parts of belt conveyors or parts of conveyor belts. After reviewing relevant case law, the court concluded that the fasteners are parts of belts, not parts of conveyors.

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923 F.2d 835, 1991 U.S. App. LEXIS 649, 1991 WL 3362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clipper-belt-lacer-co-inc-v-the-united-states-cafc-1991.