French Kreme Co. v. United States

18 C.C.P.A. 301, 1930 CCPA LEXIS 102
CourtCourt of Customs and Patent Appeals
DecidedDecember 19, 1930
DocketNo. 3325
StatusPublished

This text of 18 C.C.P.A. 301 (French Kreme Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
French Kreme Co. v. United States, 18 C.C.P.A. 301, 1930 CCPA LEXIS 102 (ccpa 1930).

Opinion

Hatfield, Judge,

delivered the opinion of the court:

This is an appeal from a judgment of the United States Customs Court.

[302]*302Merchandise, consisting of dried egg yolk in the form of powder, was assessed for duty by the collector at the port of New York at 18 cents per pound' under paragraph 713 of the Tariff Act of 1922.

Par. 713. Eggs of poultry, in the shell, 8 cents per dozen; whole eggs, egg yolk, and egg albumen, frozen or otherwise prepared or preserved, and not specially provided for, 6 cents per pound; dried whole eggs, dried egg yolk, and dried egg albumen, 18 cents per pound.

The importers protested, claiming that the merchandise was properly dutiable as egg yolk prepared or preserved, not specially provided for, at only 6 cents per pound.under paragraph 713.

One protest — 177424-G—was dismissed as untimely by the court below. The other protests were overruled.

Like merchandise and issues similar to those presented by this appeal were before this court in the cáse of French Kreme Co. et al. v. United States, 16 Ct. Cust. Appls. 126, T. D. 42768. We there held that the merchandise was dried egg yolk within the common meaning of the descriptive statutory term; and that the importers had failed to establish by a preponderance of the evidence that the merchandise was excluded from the statutory term by commercial designation.

The record in that case, as well as considerable additional testimony, was introduced by counsel for the importers in the case at bar for the purpose of establishing commercial designation. In our former decision we described the merchandise, summarized the evidence, and stated and disposed of the issues in the following language:

It appears from the record that the processing to which the imported merchandise, Exhibit A, has been subjected has removed all but from 3 to 6 per centum of moisture. It is readily soluble in water. It is known in the trade, according to the witness for importers, as “spray egg yolk,” “soluble egg yolk,” and “processed sprayed egg yolk” and is sold to the baking, mayonnaise, and ice-cream industries. The same witnesses stated that “granular” or “native” egg yolk, Exhibit B, due to the cooking process to which it is subjected, contains only from 2.5 to 3 per centum of moisture, is not soluble in water, and can not be used for the making of ice cream, maydnnaise, or sponge cake, but can be used only for the making of noodles and “ fiat cakes, cookies, when there is no spring, or springy properties of the cake desired. In other words, it is used as egg flavor in those cakes ”; that it is known in the trade as “ granular egg yolk,” “ native egg yolk,” and “ dried egg yolk ”; and that Exhibit A is a better product, adaptable to more uses, and sells in the market for about twice as rriuch as the merchandise represented by Exhibit B.
*******
The “granular” or “native” egg yolk (admittedly dried in a tariff sense) is ■dried by cooking. It is then ground. The involved merchandise is prepared by & more elaborate process. It is forced through a stratum of heated air “very ■quickly so it does not cook” the particles of egg yolk. The obvious and admitted purpose of this preparation is to reduce the quantity of moisture in the egg yolk without subjecting it to a cooking process. The reason for this is clear, When cooked, the yolk will not dissolve readily in water, and will not form a perfect [303]*303solution. So, the uses of egg yolk, dried by a cooking process, are somewhat limited. Egg yolk prepared by the “spray'1 process, although dried, remains in a raw state. It is readily soluble in water, and, when dissolved, has the properties and uses of undried raw egg yolk. Obviously, if the “spray” process reduces the moisture in the egg yolk to such an extent as to put it in a dry, powdered form, even though it is in an uncooked state, it is “dried” within the common meaning of the term. One of the witnesses said that the involved merchandise was subjected to a secret German process before it was broken into small particles and forced through the warm air. However, there is nothing in the record to indicate what this process is, nor what effect, if any, it has on the merchandise.
It has been fully established, we think, that the merchandise in question is dried egg yolk. It is superior in quality, commands a higher price — about twice as much — and is adaptable to a greater variety of uses than the “granular” or “native” dried egg yolk. There seems to be no logical reason why it should bear a less rate of duty than an inferior quality of the same kind of merchandise. '
However, it is claimed that this particular kind of dried egg yolk is excluded, by the trade and commerce of the United States, from the descriptive term used in the statute. Evidence was introduced on the trial to substantiate this contention. It appears therefrom that the merchandise was bought and sold as “spray egg yolk,” “soluble egg yolk,” and “processed sprayed egg yolk”; and that it was not included in the expression “dried egg yolk.” There is no direct evidence of the trade understanding of the term “dried egg yolk.” It does appear from the testimony of the witnesses for the importer that it is not bought and sold under the descriptive term “dried egg yolk”; and that it is known in the trade by names indicating the processes to which it has been subjected. Assuming, for the purpose of this discussion, that these facts have been established: Are they sufficient to prove that, in the trade and commerce of the United States, the descriptive term “dried egg yolk” has a distinctive meaning different from the common meaning? We think not. If evidence of this character is sufficient to remove imported merchandise from a descriptive designation, all merchandise bought and sold under selective trade terms could be excluded by this character of proof from appropriate descriptive tariff designations. United States v. Frank, 15 Ct. Cust. Appls. 97, T. D. 42184.
Had it been established by a •preponderance of the evidence that in the trade and commerce of the United States, the term “dried egg yolk” had a restricted meaning, which included only such egg yolk as had been dried by a “cooking process,” the importers might be justified in complaining of the judgment below. La Manna, Azema & Farnan v. United States, 14 Ct. Cust. Appls. 289, T. D. 41908; Central Warehouse Co. v. United States, 14 Ct. Cust. Appls. 315, T. D. 41914, and cases cited therein. [Italics not quoted.]

With regard to the additional evidence introduced on the trial below, it may be said that some of the witnesses testified that they first heard of the involved merchandise about 1921, and that they commenced to deal in it at about that time. They said that the involved merchandise — represented by Exhibit A — was known in the trade as "spray egg yolk,” “spray-processed egg yolk,” and “soluble egg yolk”; that egg yolk dried by a cooking process — represented by Exhibit B — was known in the trade as “granular” or “native” dried egg yolk. Some testified that on an.order for “dried egg yolk” they would deliver merchandise represented by Exhibit B, while others said that on receipt of such an order they would inquire of the [304]

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Related

La Manna v. United States
14 Ct. Cust. 289 (Customs and Patent Appeals, 1926)
Central Warehouse Co. v. United States
14 Ct. Cust. 315 (Customs and Patent Appeals, 1926)
United States v. Frank
15 Ct. Cust. 97 (Customs and Patent Appeals, 1927)
French Kreme Co. v. United States
16 Ct. Cust. 126 (Customs and Patent Appeals, 1928)

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Bluebook (online)
18 C.C.P.A. 301, 1930 CCPA LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/french-kreme-co-v-united-states-ccpa-1930.