E. Dillingham, Inc. v. United States

74 Cust. Ct. 162, 1975 Cust. Ct. LEXIS 2225
Procedural entryThis page is a short order in E. Dillingham, Inc. v. United States. Read the opinion of the Court — 70 Cust. Ct. 43
United States Customs Court·Decided June 24, 1975·No. Court Nos. 62/15969·Published

Opinion

Foed, Judge:

The merchandise at bar consists of various molds used with the Bata Monoplax Atlas Unit (hereinafter called the Bata Monoplax) for the production of footwear. The molds were imported from Canada during the years 1959-1963 and were assessed with duty under paragraph 353, Tariff Act of 1930, as modified, as parts of articles having as an essential feature an electrical element or device, and are claimed to be free of duty under paragraph 1643, as shoe machinery, in whole or in part.

The pertinent provisions of the tariff act are as follows:

Classification:
Paragraph 353, Tariff Act of 1930, as modified by Presidential Proclamations 2929, 3468, and 3479:
Articles having as an essential feature an electrical element or device, such as electric motors, * * * finished or unfinished, wholly or in chief value of metal, and not specially provided for:
* * * * * * *
Other (except * * *)_ 13%% ad val.
[Effective July 1, 1962]_ 12%% ad val.
Parts, finished or unfinished, wholly or in chief value of metal, not specialty provided for, of articles provided for in any item 353 of this Part (not including X-ray tubes or parts thereof)_ The same rate of duty as the articles of which they are parts.
Claim:
Paragraph 1643, Tariff Act of 1930, as amended: Linotype * * * machines, shoe machinery, * * * all the foregoing whether in whole or in part, including repair parts. [Free]

[164]*164The complaint covers 12 protests, consolidated for trial under the caption Bata Shoe Co., Inc., et al. v. United States, Court No. 61/5029. At the trial plaintiff abandoned Court Nos. 61/5029 and 63/4482 and the action was recaptioned as shown above. It further appears that 10 entries listed in the complaint under Court No. 62/18754 are in fact covered by Court No. 62/18755. At the trial plaintiff further limited its claim to the protests and entries listed on exhibit 14. Accordingly, this action is dismissed as to all entries not listed on exhibit 14, a copy of which is annexed hereto.

Defendant claims in addition that the merchandise covered by entry No. 0-1062 of Court No. 65/19813 was not placed in issue by the pleadings and that the action should be dismissed as to said entry. An examination of the entry papers reveals that the imported molds, which had been repaired abroad, were assessed with duty on the cost of repairs under paragraph 353, supra, and paragraph 1615, Tariff Act of 1930, as amended. The latter provides in subsection (g)(1) that any articles exported for repairs may be returned upon payment of duty upon the value of the repairs at the rate or rates which would apply to the article itself. The entry papers, the protest, and the complaint are sufficient to bring the merchandise and the issue before the court. The Rubberset Company et al. v. United Stales, 68 Cust. Ct. 370, C.R.D. 72-9, 342 F. Supp. 749 (1972); Ehrenreich Photo Optical Industries, Inc. v. United States, 71 Cust. Ct. 257, C.R.D. 73-18 (1973).

There was incorporated in this action the record in the case of E. Dillingham, Inc. v. United States, 65 Cust. Ct. 224, C.D. 4082 (1970), which in turn incorporated the record in E. Dillingham, Inc. v. United States, 56 Cust. Ct. 392, C.D. 2664 (1966), aff'd, 54 CCPA 121, C.A.D. 922 (1967).

The earlier Dillingham case involved the classification of the Bata Monoplax machine itself, whereas the later case related to a mold designed for use with the Bata Monoplax to produce an overshoe known as the Susan Boot. The instant case involves molds for the Bata Monoplax, for use in the production of footwear, including the Susan Boot.

In both the prior cases it was claimed the Bata Monoplax was chiefly used for the production of shoes and that the machine or the molds therefor were entitled to free entry under paragraph 1643. In neither case was plaintiff’s claim sustained. In the earlier case, the Court of Customs and Patent Appeals stated (54 CCPA 121, 123-125):

The Customs Court found that for an article to fall within the provisions for shoe machinery as contained in paragraph 1643 of the statute it must be chiefly used in a manufacturing operation upon shoes. Further, such chief use must be established by posi-[165]*165ti ve testimony with respect to merchandise of the same class or kind. L. Tobert Co., Inc., American Shipping Co. v. United States, 41 CCPA 161, C.A.D. 544; United States v. Spreckets Creameries, Inc., 17 CCPA 400, T.D. 43835. The Customs Court then concluded that Mr. Bara was not sufficiently qualified to testify as to the chief use of the imported merchandise, * * *
ife # iji ifc if; ‡ >Jc
We are in agreement with the decision of the court below.
* * * % if:
It is well established that the collector’s classification is presumed to be correct, F. H. Kaysing v. United States, 49 CCPA 69, C.A.D. 798, and that the burden of proving chief use of the imported merchandise is on the importer who protests the classification of the collector, United States v. Bruce Duncan Co., Inc., 50 CCPA 43, C.A.D. 817. In the present case appellant has entirely failed to establish any chief use for the merchandise in question. We find the testimony of Mr. Bara is without substantial probative value with respect to the question of chief use. For all we know, the imported machinery may be used in any manufacturing operation where molding is one step. * * *
The fact that the imported article is being used in the manufacture of shoes is insufficient to establish chief use. * * *

In the later case (65 Cust. Ct. 224), this court found the Bata Monoplax was a slush molding machine but that the evidence did not establish that it belonged to a class or kind of slush molding machinery that was chiefly used as shoe machinery. The court consulted a number of authorities on plastics and their production and concluded (p. 229):

It is evident that slush molding is not limited to the production of footwear. Therefore, to establish that the Bata monoplax unit belongs to a class of merchandise chiefly used as shoe machinery, it would have to be shown that there is a kind of slush molding machinery which is chiefly used as shoe machinery and that the Bata monoplax unit belongs to that class. Such evidence is lacking in the instant case. The witnesses were familiar only with machinery used in the footwear industry and could make no comparison with slush molding machinery used for general purposes. While they knew of no use of the Bata monoplax unit for the manufacture of articles other than footwear, it may well be that it could be so used. According to the record, it can produce different types of footwear with the use of different molds and some adjustment of the machinery. It is therefore reasonable to assume that the Bata unit itself could be adapted to the production of other slush molded articles.

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E. Dillingham, Inc. v. United States, 74 Cust. Ct. 162, 1975 Cust. Ct. LEXIS 2225 (cusc 1975).

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432 F.2d 1403 (Customs and Patent Appeals, 1970)
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