Empire Findings Co. v. United States

44 Cust. Ct. 21
CourtUnited States Customs Court
DecidedFebruary 1, 1960
DocketC.D. 2148
StatusPublished
Cited by19 cases

This text of 44 Cust. Ct. 21 (Empire Findings Co. v. United States) is published on Counsel Stack Legal Research, covering United States Customs Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Findings Co. v. United States, 44 Cust. Ct. 21 (cusc 1960).

Opinions

Rao, Judge:

Certain imported otoscopes were classified by the collector of customs at the port of New York as surgical instruments and assessed with duty at the rate of 45 per centum ad valorem, pursuant to the provisions of paragraph 359 of the Tariff Act of 1930, as modified by the Annecy Protocol to the General Agreement on Tariffs and Trade, 84 Treas. Dec. 403, T.D. 52373, supplemented by Presidential proclamation, 85 Treas. Dec. 116, T.D. 52462.

Various claims have been interposed by plaintiff challenging the collector’s action, and, while none of them has been waived, plaintiff relies principally upon the contention that the involved otoscopes are provided for in paragraph 353 of said act, as modified by the General Agreement on Tariffs and Trade, 82 Treas. Dec. 305, T.D. 51802, as electrical therapeutic (including diagnostic) instruments at the rate of 17*4 per centum ad valorem. The alternative claims invoke other provisions of said paragraph 353, as modified by said General Agreement on Tariffs and Trade, or by the Torquay Protocol to the General Agreement on Tariffs and Trade, 86 Treas. Dec. 121, T.D. 52739, for articles suitable for producing, rectifying, modifying, controlling, or distributing electrical energy; or for articles having as an essential feature an electrical element or device, and, respectively, dutiable at the rate of 15 per centum ad valorem, or 13% per centum ad valorem; as well as the provisions of paragraph 397 of said act, as modified by said General Agreement on Tariffs and Trade, for articles of base metal, which are dutiable at the rate of 2214 per centum ad valorem.

Paragraph 359 and T.D. 52373, supplemented by T.D. 52462, supra:

Surgical instruments, and parts thereof, including hypodermic syringes and forceps, composed wholly or in part of iron, steel, copper, brass, nicfcel, aluminum, or other metal, finished or unfinished (except hypodermic and other surgical needles^ and except instruments and parts in chief value of glass)-45% ad val.

Paragraph 353 and T.D. 51802, sufra:

Electrical apparatus, instruments (other than laboratory), and devices, finished or unfinished, wholly or in chief value of metal, and not specially provided for:

Telegraph (including printing and typewriting), telephone, and therea-peutic (including diagnostic)_17%% ad val.
* * * * * * *
Articles suitable for producing, rectifying, modifying, controlling, or distributing electrical energy, * * * all the foregoing (not including electrical wiring apparatus, instruments, and devices), finished or unfinished, wholly or in chief value of metal, and not specially provided for:
Other articles (except * * *)_15% ad val.

[23]*23Paragraph 353 and T.D. 52739, supra :

Articles having as an essential feature an electrical element or device, such as electric motors, fans, locomotives, portable tools, furnaces, heaters, ovens, ranges, washing machines, refrigerators, and signs, finished or unfinished, wholly or in chief value of metal, and not specially provided for:
* * * * * * *
Other (except * * *)_13%% ad val.

Paragraph 397 and T.D. 51802, supra :

Articles or wares not specially provided for, whether partly or wholly manufactured:

* * * * * * *
Composed wholly or in chief value of iron, steel, lead, copper, brass, nickel pewter, zinc, aluminum, or other metal (not including platinum, gold, or silver), but not plated with platinum, gold, or silver, or colored with gold lacquer:
* * * * * * *
Other (except * * *)_22%% ad val.

One of the imported articles has been .received in evidence as plaintiff’s collective exhibit 1. Counsel have agreed that it is in chief value of a base metal, other than gold, lead, silver, platinum, tin, and tin plate, and that it is not plated with gold or silver, nor colored with gold lacquer. With the aid of a diagrammatic chart (plaintiff’s exhibit 2), plaintiff’s witness, Irving Speelman, a chemical engineer, with a background which includes studies in electricity and metallurgical engineering, as well as practical experience in subway power maintenance, described these otoscopes, which he likened to flashlights, as consisting of a handle or barrel into which batteries are inserted, and a head to which a speculum may be attached. There is an adjustable rear lens which is used for magnification and focusing of the instrument for the examination of the ear or nose of a patient. The witness explained that the batteries convert chemical energy into electrical energy which flows up slide wires to a rheostat, through rheostat wires into the center post connection of the head, through connecting wire to the center contact of a lamp, and through the lamp filament into the receptacle of the lamp. The current then returns through the body of the otoscope handle. The degree and direction of light are controlled by a rheostat button. In the opinion of this witness, the electrical elements in plaintiff’s exhibit 1 are batteries, switch, wiring, lamp bulb, and rheostat. These, he stated, are essential to the functioning of the article, which could not operate without them. Further elaborating upon the electrical aspects of plaintiff’s exhibit 1, the witness testified that electrical energy is produced in the batteries from chemical energy; it is distributed by [24]*24means of wiring to the lamp bnlb; and is controlled by means of the rheostat and the switch.

The record also establishes that the witness Speelman is vice president of the plaintiff company, and director of development of its parent corporation, the Propper Manufacturing Co., Inc., which, respectively, import and manufacture various medical and surgical instruments and diagnostic equipment. He lias held those positions for 4 years. Prior thereto, he was a civilian in charge of specifications for medical and surgical supplies and diagnostic equipment for the Armed Forces. It appears that Speelman was personally involved in the development and improvement of plaintiff’s exhibit 1 and, in connection therewith, had visited doctors in various parts of the country to observe its use. It was his opinion that it is used by physicians and pediatricians, and sometimes otolaryngologists, for examining “the dark places of the ear and nose,” as well as for the therapeutic purposes of draining fluid from the ear or introducing medication into the ear. This latter procedure is performed by means of a rubber tube and bulb attachment to the tube which projects from the head of the otoscope.

This witness stated that these otoscopes are bought and sold as electrical diagnostic instruments, not as surgical instruments. However, it was brought out, in response to interrogation by the court, that his experience in connection with sales by medical supply houses to physicians was limited to three or four dealers in the Hew York area.

It further appears that in his capacity as chief of the specifications branch dealing with surgical instruments, Speelman had been required to become familiar with surgical procedures.

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Bluebook (online)
44 Cust. Ct. 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-findings-co-v-united-states-cusc-1960.