E.T. Horn Co. v. United States

14 Ct. Int'l Trade 790, 752 F. Supp. 476, 14 C.I.T. 790, 1990 Ct. Intl. Trade LEXIS 422
CourtUnited States Court of International Trade
DecidedNovember 27, 1990
DocketCourt No. 84-12-01730
StatusPublished
Cited by2 cases

This text of 14 Ct. Int'l Trade 790 (E.T. Horn Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E.T. Horn Co. v. United States, 14 Ct. Int'l Trade 790, 752 F. Supp. 476, 14 C.I.T. 790, 1990 Ct. Intl. Trade LEXIS 422 (cit 1990).

Opinion

Aquilino, Judge:

This action, which has been designated a test case pursuant to CIT Rule 84(b), challenges classification by the U.S. Customs Service of penta-ethylenehexamine (“PEHA”) “bottoms” and bishexamethylenetriamine (“BHMT”) residues from Japan under Schedule 4 of the Tariff Schedules of the United States (“TSUS”), Part 2 (“Chemical Elements, Inorganic and Organic Compounds, and Mixtures”) as “Mixtures of two or more organic compounds: * * * Other”, item 430.20.1

The plaintiff claims that this merchandise should have entered duty free in accordance with TSUS item 793.00, which covered “Waste and scrap not specially provided for”.

I

The parties have submitted cross-motions for summary judgment. After review of the pleadings and the papers filed in support of these motions, the court concludes that no material facts are in dispute, that trial therefore is not necessary and that this action can be resolved upon the submissions at hand.

An affidavit attached to plaintiffs motion states, in part:

4) PEHA Bottoms are the residue of manufacturing processes undertaken to produce ethyleneamines. * * * BHMT Amine Residues are the byproduct of manufacturer’s processes undertaken to produce Nylon 66 from hexamethylenediamine.
5) The[y] * * * are the residues or “bottoms” which remain in the bottom of the receptacle after distillation and production of these amines. The bottoms are unsatisfactory for use with the ethyleneamines and hexamethylenediamines which are the intended products of the manufacturing process.
* * * * * * *
9) The BHMT Amine Residues are purchased for $986/metric ton FOB Japan and the PEHA Bottoms are purchased for $81.62/100 pounds FOB Japan.
[791]*791* * * * * * *
11) After importation, the PEHA Bottoms are sold, in their condition as imported, * * * [and] are reacted with various fatty acids to produce amides, imidazolines, and esters for use as ingredients in the manufacture of oilfield treating chemicals.
12) BHMT Amine Residues are also sold * * * in their conditions as imported, and also so used, but additionally are reacted with phosphourous [sic] acid to produce phosphonates.

The parties agree that the PEHA bottoms are a mixture of diethylenetriamine, tri-ethylenetetramine, tetra-ethylenepentamine, penta-ethylenehexamine, hexa-ethyleneheptamine, hepta-ethyleneoc-tamine and N-aminoethylpiperazine, each of which is a nitrogenous compound. They also agree that the BHMT residues are a mixture of hexamethylenediamine, bishexamethylenetriamine and N-ethyl hexamethylenediamine, each of which is also a nitrogenous compound. An affidavit filed by the defendant adds, among other points:

9. The “PEHA Bottoms” and “BHMT Amine Residues” both contain amines. Amines are nitrogenous organic compounds containing amino groups, designated in chemical formulas, for example, as -NH2 (a primary amine) or -NH- (a secondary amine). Amino groups are polar and hydrophilic. * * * PEHA has two primary amine groups and four secondary amine groups. BHMT has two primary amine groups and one secondary amine group. * * *
10. These kinds of compounds react with organic acids, specifically so-called fatty acids like oleic acid (C17H33COOH). One of the primary amines in each compound forms an amide with the acid, but the other primary amine group and all the secondary amine groups are unaffected. The result is an aminoalkylamide of a fatty acid. * * *
11. PEHA Bottoms are also used to make * * * a kind of compound known as an imidazoline. Again, the aminoalkane (e.g., PEHA) is reacted with a fatty acid, but this time one of the secondary amines also participates in the reaction to form a five-mem-bered ring.
12. Aminoalkylamides of fatty acids and the corresponding im-idazolines are, generally speaking, excellent anti-stripping agents. The portion of such compounds which is from the fatty acid is the nonpolar portion which is compatible with the bituminous composition, and the aminoalkyl moiety, which comes directly from the PEHA or BHMT, is the polar portion which is compatible with the mineral aggregate.
13.At[on]etime* * *, the preferred amine compounds were relatively pure materials like diethylene triamine. However, in recent years it has been found that mixtures of amine compounds are just as cost effective, and mixtures like “PEHA Bottoms” and “BHMT [792]*792Amine Residues” are readily available to meet the paving industry’s needs. Accordingly, the trend has been to use these kinds of mixtures to prepare antistripping agents.2

As stated above, Customs classified both substances at issue as mixtures of two or more organic compounds. However, discovery in conjunction with this action determined that some 5-11 percent of the BHMT residues by weight was sodium hydroxide, which the defendant now admits was and is inorganic. Defendant’s Memorandum, p. 2 and n. 3 (“ [t]he provision for mixtures of organic compounds is interpreted by Customs as covering only those mixtures which consist entirely of organic compounds”) (emphasis in original). Thus, the defendant now takes the position that “the BHMT should have been classified under item 432.25, TSUS, which covers ‘mixtures not specially provided for: other: other’”. Id. at 2.

II

Classification of the BHMT residues under that item would not have changed the rate of duty owed (pursuant to TSUS item 425.52) in view of the other component compounds, but the plaintiff properly argues that no statutory presumption of correctness supports defendant’s present position on this particular merchandise, citing for support United States v. Magnus, Mabee & Reynard, Inc., 39 CCPA 1, C.A.D. 455 (1951). When an error such as the one at bar is discovered, the burden of persuasion rests on Customs as to any alternative classification claimed. See, e.g., Abbey Rents v. United States, 79 Cust.Ct. 103, C.D. 4720, 442 F.Supp. 540 (1977), aff'd, 585 F.2d 501 (CCPA 1978). On the other hand, the presumption set forth in 28 U.S.C. § 2639(a)(1) does apply to defendant’s classification of the PEHA bottoms. And, in either instance, the court is mindful of its responsibilities in an action like this, as elucidated by the court of appeals in Jarvis Clark Co. v. United States, 733 F.2d 873, reh’g denied, 739 F.2d 628 (Fed.Cir. 1984).

A

Headnote 1 to TSUS Schedule 4, Part 2 (1983) stated that it covered “chemicals, except those provided for elsewhere in this schedule and those specially provided for in any of the other schedules.” The defendant claims that “for merchandise which is chemicals to be classified outside of Schedule 4, the chemical must be specially provided for. ” Defendant’s Memorandum, p. 6 (emphasis in original).

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Related

Precision Specialty Metals, Inc. v. United States
116 F. Supp. 2d 1350 (Court of International Trade, 2000)
E.T. Horn Company v. The United States
945 F.2d 1540 (Federal Circuit, 1991)

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Bluebook (online)
14 Ct. Int'l Trade 790, 752 F. Supp. 476, 14 C.I.T. 790, 1990 Ct. Intl. Trade LEXIS 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/et-horn-co-v-united-states-cit-1990.