Edge Import Corp. v. United States

83 Cust. Ct. 140, 484 F. Supp. 906, 83 Ct. Cust. 140, 1979 Cust. Ct. LEXIS 1128
United States Customs Court·Decided December 17, 1979·No. C.D. 4832; Court No. 75-8-02155·Published·Cited by 1 cases

Opinion

Landis, Judge:

This case involves the importation of hunting knives exported from Germany and entered at New York in 1973 and 1974. The prior opinion of this court, C.R.D. 79-7, denying defendant’s motion to strike portions of plaintiff’s brief, appears in 82 Cust. Ct. 343.

The Customs Service heretofore classified the imported knives under TSUS item 650.21, as modified by T.D. 68-9, and assessed duty thereon at the rate of 0.5 cent each plus 8.5 per centum ad valorem. Plaintiff in its complaint claims that those knives which contain stag horn in their handles are properly classifiable under TSUS item 650.13, as modified by T.D. 68-9, and dutiable at the rate of 2 cents each plus 6 per centum ad valorem. Plaintiff further claims that those knives which contain wood in their handles are properly classifiable under TSUS item 650.19, as modified by T.D. 68-9, and dutiable at the rate [142]*142of 1 cent each plus 6 per centum ad valorem. Finally, plaintiff alternatively claims that prior Customs practice requires a result in its favor.

For the reasons stated below, it is the determination of the court that the classification relied upon by the defendant shall prevail.

The pertinent provisions of the tariff schedules, as modified by T.D. 68-9, are as follows:

Schedule 6. - Metals and Metal Products
PART 3. - METAL PRODUCTS
*******
Subpart E. - Tools, Cutlery, Forks and Spoons
* * * * * sfc *
Knives not specifically provided for elsewhere in this subpart, and cleavers, with or without their handles:
*:}:*** * *
Knives with their handles:

660.13 With animal horn, bone, ivory,

mother-of-pearl, or shell han-dles_ each +

6% ad val.

«I* .j.
Other:

650.19 Hunting knives with wood

handles_ lji each +

6% ad val.

650.21 Other_ 0.5^ each +

8.5% ad val.

In this case there is the question of whether a knife, containing a metal guard and metal pommel may be classified as a stag-handled knife or a wood-handled knife. This raises the issue of whether a guard and pommel are part of the handle of a knife. (The guard of a knife is that horizontal piece which separates the blade from the remainder of the handle. The pommel is at the very end of the knife. The guard is largely a safety feature while the pommel has esthetic value and also occasionally holds the knife together.) A subsidiary question plaintiff has made reference to is whether prior classification by the Customs Service bars the classification made herein.

Two witnesses were offered by plaintiff and one by defendant. Plaintiff’s witnesses, however, were ineffective and not particularly persuasive.

Plaintiff’s first witness was Mr. Tom Palmer, who for 7 years was vice president of Gutman Cutlery Co. (the parent of plaintiff). He was involved in sales and purchasing for the company with “special emphasis on product design” (R. 4).

[143]*143Mr. Palmer stated he agreed with Webster’s Seventh New Collegiate Dictionary’s definition of handle — “a part that is designed to be grasped by the hand” (R. 8). Mr. Palmer further stated, in the major portion of his testimony, that in the knife trade the exhibits in the case would be known as stag-handled or wood-handled knives. (See, e.g., R. 7, 23.) This was because the portion that was held was either wood or stag. However, on cross-examination, counsel for the defendant brought out that Palmer, while demonstrating how a knife is held, also had his hand, more particularly his thumb, wrapped around the metal guard as well (R. 49-50). Thus the guard would appear to be a segment of the handle. Nevertheless, Palmer stated that manufacturers, distributors, and consumers referred to the importations as stag-handled or wood-handled knives. This opinion was largely endorsed by numerous knife catalogs introduced by the plaintiff. However, even if the imported merchandise is known in the trade as wood-handled or stag-handled knives, this is not necessarily determinative of its tariff classification. United States v. Ignaz Strauss & Co., Inc., 37 CCPA 32, 35, C.A.D. 415 (1949). See also Hancock Gross, Inc. v. United States, 73 Cust. Ct. 72, C.D. 4555, 383 F. Supp. 832 (1974), aff'd, 62 CCPA 100, C.A.D. 1153, 517 F. 2d 951 (1975).

Plaintiff’s second witness was Mr. Ivan Szanto, the general manager of Gutman Cutlery (parent of plaintiff). Mr. Szanto testified that while he could imagine a knife with no metal whatsoever from the end of the blade to the end of the knife, such a knife would not be a quality knife (R. 65). Furthermore, he never saw a guard made out of wood, although he conceded that such a construction may not be impossible (R. 66). Finally, “thepommel is always made out of metal” (R. 67). On cross-examination though, Mr. Szanto identified high-quality knives, marked hunting knives (catalog, exhibit A), which contain wood in their handles and have no guards or pommels of metal. In another catalog exhibit (exhibit C, Gutman’s own cutlery) proffered by the defendant, the witness, however, identified a knife with a stag handle which has no metal guard or pommel (R. 79). Thus, such a knife is clearly possible.

Apparently in an effort to introduce a de minimis argument, i.e., that the metal in a knife pommel and guard is de minimis when compared to the handle as a whole, Szanto testified that the guard is never more than 3 percent of the value of the knife (R. 77). Yet doubt was cast on this figure on cross-examination (R. 80).

It should be noted that nowhere in the record are any of the exhibits identified as being the same as the imported merchandise. This should have been done by plaintiff, if that is true.

The defendant’s witness was Mr. R. N. Farquharson, executive vice president and chief operations officer of Case Cutlery Co. Case [144]*144Cutlery manufactures pocketknives, hunting knives, scissors, and shears, and markets them around the world (R. 84). The company also has prepared knives for the military, and for the space program, (R. 85). The company has been making knives since 1947 (R. 91). Mr. Farquharson has been with Case since 1955 (R. 84). As executive vice president and chief operations officer, since 1973, Mr. Farquharson has been in charge of all the operations of the company (R. 85). Mr. Farquharson at the time of trial was president emeritus of the American Cutlery Manufacturers Association after having served 2 years as president. He has been quoted in books and articles on knives and through the years has frequently attended trade shows (R. 86).

According to this experienced witness, “[a] knife is made of two major parts, the blade and the handle. The handle is composed of an assembly, normally, of three parts: The cover material, the guard, and the bolster” (R. 87). He stated: “It’s not a knife without a handle and without a blade” (R. 88). Some more of his testimony is worthwhile excerpting here:

Q. What is the purpose of the guard? — A. It’s a safety feature.

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Edge Import Corp. v. United States, 83 Cust. Ct. 140, 484 F. Supp. 906, 83 Ct. Cust. 140, 1979 Cust. Ct. LEXIS 1128 (cusc 1979).

83 Cust. Ct. 140 (Edge Import Corp. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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