F. W. Myers & Co. v. United States

46 Cust. Ct. 90
United States Customs Court·Decided March 8, 1961·No. C.D. 2239·Published·Cited by 4 cases

Opinion

LawkgNCe, Judge:

In this cause of action, plaintiff challenges the decision of the collector of customs in classifying an importation of nickel-cobalt briquettes as articles or wares, not specially provided for, composed wholly or in chief value of nickel or other metal, whether wholly or partly manufactured, upon which duty was imposed at the rate of 22% per centum ad valorem, as provided in paragraph 397 of the Tariff Act of 1930 (19 U.S.C. § 1001, par. 397), as modified by the General Agreement on Tariffs and Trade, 82 Treas. Dec. 305, T.D. 51802.

The jurisdiction of the court was invoked by a protest filed by plaintiff, pursuant to the provisions of section 514 of said act (19 U.S.C. §1514).

By its protest, plaintiff makes the following alternate claims:

1. Paragraph 1734 of the Tariff Act of 1930 (19 U.S.C. § 1201, par. 1734), as amended by Public Law 723, 84th Congress, approved July 16, 1956, which grants exemption from duty of certain metal articles.

2. Paragraph 389 of said act (19 U.S.C. §1001, par. 389), as modified by the General Agreement on Tariffs and Trade, supra, at a rate applicable to the nickel content, and paragraph 1652 (19 U.S.C. § 1201, par. 1652), with respect to the cobalt content.

3. . Section 508(a) of said act (19 U.S.C. § 1508(a)), as amended by the Customs Simplification Act of 1953, 88 Treas. Dec. 186, T.D. 53318, if the merchandise “is not readily segregable,” the entire impor[92]*92tation is dutiable at the rate provided in paragraph 389 of said act, as modified, supra.

The statutes referred to, so far as pertinent, read as follows, certain portions being stressed:

Classified in paragraph 397, as modified, 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:
Woven wire fencing and woven wire netting, * * *
‡ • * * * * * *
Other » * *_22%% ad val.

Claimed:

Paragraph 1734 of said act, as amended by Public Law 723, 84th Congress:

Ores of gold, silver, or nickel; niclcel-contaimng material in powder, slurry, or any other form, derived from ore liy chemical, physical, or any other means, and requiring further processing for the recovery therefrom of niclcel or other metals; nickel matte; nickel oxide; ores of the platinum metals; sweepings of gold and silver. [Italicized portions added by Public Law 723.]

Paragraph 389 of said act, as modified, sufra:

Nickel, and alloys (except those provided for in paragraph 302 or 380, Tariff Act of 1930) in which nickel is the component material of chief value:
In pigs or ingots, shot, cubes, grains, cathodes, or similar forms_'_per lb.

Paragraph 1652:

Cobalt and cobalt ore. [Free entry.]

Section 508(a), as amended, supra:

(a) Whenever dutiable merchandise and merchandise which is free of duty or merchandise subject to different rates of duty are so packed together or mingled that the quantity or value of each class of such merchandise cannot be readily ascertained by the customs officers (without physical segregation of the shipment or the contents of any entire package thereof), by one or more of the following means: (1) Examination of a representative sample, (2) occasional verification of packing lists or other documents filed at the time of entry, or (3) evidence showing performance of commercial settlement tests generally accepted in the trade and filed in such time and manner as may be prescribed .by regulations of the Secretary of the Treasury, and if the consignee or his agent shall not segregate the merchandise pursuant to subsection (b), then the whole of such merchandise shall be subject to the highest rate of duty applicable to any part thereof.

At the trial, the two witnesses who testified were called by the plaintiff through whom 13 exhibits were introduced. The testimony [93]*93and exhibits will be referred to wherever deemed necessary in the course of this opinion.

Plaintiff, in its brief, presents the issues as follows:

1. Are the mixed metals, which have been pressed into briquette form for convenience in handling and transportation, entitled to free entry in paragraph 1734, as amended, or

2. Dutiable in paragraph 389 on the nickel content; and the cobalt content granted free entry in paragraph 1652, or

3. Whether the commodity is commingled within the meaning of section 508, as amended, and classifiable in paragraph 389.

Both of plaintiff’s witnesses were highly informed by training and experience in the field of metallurgy and their testimony is not rebutted.

The subject merchandise is derived from a nickel-bearing ore (exhibit 4) by chemical means. It appears from the record that the importations, represented by exhibits 1-A and 1-B, consist of a mixture of nickel and cobalt in powder form, which has been briquetted for convenience in handling, transportation, and melting. (It was conceded by the parties that the commodity is not an alloy.) The record clearly establishes that the nickel and cobalt in the briquettes are not chemically combined hut exist as a simple physical mixture.

Analysis of a number of batches of the mixed metal briquettes indicates a nickel content varying from 50.1 per centum to 58.6 per cen-tum and the cobalt content varying from 41.1 per centum to 49.2 per centum, the remaining percentages consisting of traces of unrecovered metals.

The witness Pearce described in detail, unnecessary to repeat here, the production of the ore and the subsequent processing to produce the merchandise in controversy. He stated that the nickel and cobalt metals contained therein could be recovered by further processing by chemical means from merchandise such as exhibits 1-A and 1-B.

It appears from the record that, in 1956 and 1957, there was an acute shortage of nickel. Senate Beport 2710, which accompanied H.R. 8636, in explaining Public Law 723, supra, contains the following observation:

A critical shortage of nickel exists in the United States. Defense needs are large and there is no foreseeable domestic supply adequate for those needs.

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