Empire Findings Co. v. United States

57 Cust. Ct. 412, 260 F. Supp. 884, 1966 Cust. Ct. LEXIS 1705
United States Customs Court·Decided November 25, 1966·No. C.D. 2830·Published·Cited by 1 cases

Opinion

Nichols, Judge:

The merchandise in the case at bar consists of glass articles, which the collector classified as “finished glass clinical thermometers” (entries 505800, 968832, and 479506) and “unfinished glass clinical thermometers” (entry 959777), and on all of which he assessed duty at 85 percent ad valorem under paragraph 218(a), Tariff Act of 1930, as modified by Presidential Proclamation No. 3235, T.D. 54577. The single protest applying to all four entries claims under paragraph 218, as modified, at 42% or 32% percent. Plaintiff admits that the articles, finished, are dutiable under paragraph 218(a). It claims that the unfinished articles in entry 959777, described in the invoice as “shaped glass capillary tubing,” are properly dutiable as glass tubes, rods, canes, and tubing under paragraph 218(b) at 32% percent, but its principal claim for all entries is under paragraph 218(a), at 42% percent. It claims under the Torquay Protocol to the General Agreement on Tariffs and Trade, T.D. 52739 and T.D. 52820, reducing the statutory rate to that figure and says that Presidential Proclamation No. 3235, T.D. 54577, was void and ineffective to do what it purported to do, restore the full statutory rate for “clinical thermometers, finished or unfinished, wholly or in chief value of glass.”

Our decision falls into two parts, because we must dispose of preliminary issues before considering the validity of the Presidential proclamation.

First: The proper classification of the unfinished articles.

The pertinent tariff provisions are as follows:

Paragraph 218(a) of the Tariff Act of 1930:
Biological, chemical, metallurgical, pharmaceutical, and surgical articles and utensils of all kinds, including all scientific articles, and utensils, whether used for experimental purposes in hospitals, laboratories, schools or universities, colleges, or otherwise, all the foregoing (except articles provided for in paragraph 217 or in subparagraph (e)), finished or unfinished, wholly or in chief value of glass, 85 per centum ad valorem; * * *.
Paragraph 218 (a), as modified by T.D. 52739 and T.D. 52820:
Biological, chemical, metallurgical, pharmaceutical, and surgical articles and utensils of all kinds, including all scientific articles, and utensils, whether used for experimental purposes in hospitals, laboratories, schools or universities, colleges, or otherwise, all the foregoing (except articles provided for in paragraph 217 or 218(e), Tariff Act of 1930), finished or unfinished, wholly or in chief value of glass- 42%% ad val.
[415] Presidential Proclamation No. 3235, T.D. 54577:
Now, THEREFORE, I, Dwight D. Eisenhower, President of the United States of America, acting under the authority vested in me by section 350 of the Tariff Act of 1930, as amended, and by section 7 (c) of the Trade Agreements Extension Act of 1951, as amended, and in accordance with the provisions of Article XTX of the said General Agreement on Tariffs and Trade, do proclaim that, effective after the close of business on May 21? 1958, and until the President otherwise proclaims, the tariff concession granted in the said General Agreement with respect to clinical thermometers, finished or unfinished, wholly or in chief value of glass, provided for in said item 218(a), shall be withdrawn, and the said Proclamation No. 2929 of June 2, 1951, and the said notification of September 10, 1951, as amended by the said notification of September 20, 1951, shall be suspended insofar as they establish a rate of duty to be applied to the clinical thermometers provided for in the said item 218(a) on which the concession is withdrawn by this proclamation.

The record reflects that the production of glass clinical thermometers starts with blown or drawn glass tubing or “cane.” This is filled with mercury and cut into lengths. The mercury is withdrawn and measured to classify the tube by bore size. A small blister is blown into the tube near one end and the end is pinched off. Bulb tubing is joined to the opening. A part of the imported merchandise, designated as No. 8 on the invoices, is in the state of advancement now attained. Subsequently the tube is filled with mercury. The mercury is drawn into the end opposite the bulb and the constriction is put in which keeps the mercury from falling back after removal from the patient’s mouth until the instrument is read and shaken down. The constriction properly placed, the mercury is returned by shaking, to the bulb. The part of the imported merchandise designated on the invoices as No. 11 is at the stage now attained. The next operations are for getting gas out of the tube. It is separated from the mercury and driven up to the head, by various methods. Next, the instrument is placed in 106° water to test if the column rises the proper distance from the top and from the bulb. The tube is then sealed and the top chamber removed. The result is known as a blank. The blanks are immersed in water at 98° and 106° Farenheit, and the column level marked with ink. The blank is tested for presence of air by driving the mercury column to the top. It is coated with wax and engraved with the temperature locations. Scratches through the wax are made which are then marked with acid. It remains to dip in ink for the colored markings on the completed instrument.

There is no other known industrial use for the material after any of the measures described above have been taken. Plaintiff’s witness admitted that both items 8 and 11 were specifically dedicated for [416] use as glass clinical thermometers. Our description, based on the record, is highly oversimplified but is believed sufficient for decision herein. The record in the Tariff Commission proceeding, exhibit 8 herein, reflects the existence of 130 well recognized manufacturing-steps in the production of a glass clinical thermometer. Exhibit 5 is a list of 28 steps advancing the merchandise just from the state of invoice item 11 to a blank. In the form of item 8, plaintiff’s witness said, 20 percent of the value of a clinical thermometer has been added, in item 11, 45 percent, and in the blank 75 percent. A Government witness gives the first two as 40 to 45 percent and 65 percent.

Some producers perform all the steps from production of the blown tubing or “cane” to the finished product. Commonly, however, unfinished thermometers are sold and purchased in blank form. Between 1954 and 1957 nearly all imports were finished blanks, but since then there has grown up some trade in unfinished blanks. Steps in producing blanks are commonly subcontracted out.

The Government witnesses said that the exhibits like items 8 and 11 were unfinished clinical thermometers.

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Empire Findings Co. v. United States, 57 Cust. Ct. 412, 260 F. Supp. 884, 1966 Cust. Ct. LEXIS 1705 (cusc 1966).

57 Cust. Ct. 412 (Empire Findings Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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