G. Heileman Brewing Co. v. United States

14 Ct. Int'l Trade 614
CourtUnited States Court of International Trade
DecidedSeptember 6, 1990
DocketCourt No. 84-12-01779
StatusPublished

This text of 14 Ct. Int'l Trade 614 (G. Heileman Brewing 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
G. Heileman Brewing Co. v. United States, 14 Ct. Int'l Trade 614 (cit 1990).

Opinion

Re, Chief Judge:

The question presented in this case pertains to the proper classification, for customs duties purposes, of certain merchandise described on the customs invoices as “ceramic steins.” The merchandise was imported from Brazil, and entered at the port of Baltimore, Maryland.

The merchandise was classified by the Customs Service as “[m]ugs and other steins,” under item 533.30 of the Tariff Schedules of the United States (TSUS), with duty assessed at the rate of 13.5 per centum ad valorem. Plaintiff protests this classification and contends that the [615]*615merchandise is properly classifiable as “art and ornamental articles,” under item A534.87, TSUS, duty free under the Generalized System of Preferences, as the product of a beneficiary developing country.

The pertinent statutory provisions of the tariff schedules are as follows:

Classified Under:
Schedule 5, Part 2, Subpart C:
Articles chiefly used for preparing, serving, or storing food or beverages, or food or beverage ingredients:
*******
Of fine-grained earthenware (except articles provided for in item 533.15) or of fine-grained stoneware:
*******
Household ware not available in specified sets:
* * * * * * *
533.30 Mugs and other steins .13.5% ad val.
Claimed Under:
Schedule 5, Part 2, Subpart C:
Smokers’ articles, household articles, and art and ornamental articles such as, but not limited to, statues, figurines, flowers, vases, lamp bases, bric-a-brac, and wall plaques, all the foregoing not specially provided for, of ceramic ware:
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Of fine-grained earthenware or of fine-grained stoneware (except articles provided for in items 534.74 and 534.76):
* * * * * * *

A534.87 Valued over $10 per dozen articles .free

The question presented is whether the imported ceramic steins have been properly classified as “[m]ugs and other steins,” under item 533.30, TSUS, or whether they are properly classifiable as “art and ornamental articles,” under item A534.87, TSUS, as maintained by plaintiff.

In order to decide the question presented, the court must consider “whether the government’s classification is correct, both independently and in comparison with the importer’s alternative.” Jarvis Clark Co. v. United States, 733 F.2d 873, 878, reh’g denied, 739 F.2d 628 (Fed. Cir. 1984).

After an examination of the merchandise, exhibits introduced at trial, pertinent tariff provisions, relevant case law, and the testimony of record, it is the holding of the court that the plaintiff has overcome the presumption of correctness that attaches to the classification by Customs. Hence, the imported ceramic steins are properly classifiable as “art and [616]*616ornamental articles,” under item A534.87, TSUS, as maintained by plaintiff.

At trial, plaintiff presented the testimony of Mr. Gary Perleberg, plaintiffs director of planning and development. Mr. Perleberg stated that, as part of his duties, he assembled all of plaintiffs beer memorabilia, including the mugs or steins produced after 1979. Mr. Perleberg identified two samples of the imported ceramic steins at issue in this case, as well as several photographs of the imported steins. Mr. Per-leberg explained that a limited number of steins were produced in each style, and each stein was given a serial number.

Mr. Perleberg testified that, after importation, the ceramic steins were sold at auction. He stated that “the individuals that purchased these steins were antique collectors, and I personally know two of these antique collectors, they purchased the steins for resale.” He added that plaintiffs purpose in producing and marketing the steins was to create “a classy advertisingpiece * * * to reach the consumer in his or her home as a reminder of our advertising campaigns at the then present time. * * *” He stated that plaintiff continues to sell steins, and “[t]he advertising department is responsible for the ordering * * * and is also responsible for the administration of the steins reaching the distributors. ”

On cross examination, defendant introduced an advertisement of the ceramic steins. The advertisement depicted a ceramic stein filled with beer, and cans of plaintiffs “Old Style” brand beer. Printed above the pictures was: “DRINK IN STYLE. Our 1983 Limited Edition Collector’s Stein is the perfect way to drink the perfect beer: fully kraeusened, naturally carbonated Old Style. ” Defendant also introduced an in-house bulletin that was distributed to plaintiffs beer sales personnel in 1982. The bulletin directed personnel to “SELL STEINS WITH BEER,” and stated that “Old Style and Old Style Light can be successfully sold through use of the stein display.”

Defendant also introduced a similar bulletin, dated 1983, which stated that “[sjteins will be shipped to wholesalers via beer loads if so designated on the attached order form. * * *” The bulletin also stated: “Host a ’Drink with Style’ Stein Night. Consumers can buy a ’Drink With Style’ Stein full of Old Style or Old Style Light for $10.00 and get refills that night for $1.00.” In addition, defendant presented several of plaintiffs internal memoranda. Mr. Perleberg agreed that all of the memoranda introduced by defendant contained drawings or photographs which “depicted these steins or mugs with beer inside them.”

Plaintiff also introduced the testimony of Mr. Lynn Geyer, the owner of a business dealing in “antique breweriana,” — i.e., “[a]ntique items that are collectable that pertain to the beer industry.” Mr. Geyer stated that he was familiar with the beer industry, both as a consumer and a merchandiser, since 1965. He stated that he had “attend[ed] many shows and many conventions dealing in breweriana.”

Mr. Geyer identified the samples of the imported ceramic steins. He also identified several auction catalogs, prepared by his company, which [617]*617depicted “a variation of different mugs and steins that have collectable value. * * *” Mr. Geyer identified several of plaintiffs ceramic steins, at issue in this case, which were pictured and offered for sale in his catalogs. He also identified Ceramarte, the manufacturer of the ceramic steins at issue in this case, as a producer of breweriana steins and mugs.

Mr. Geyer testified that breweriana mugs or steins, which “have a brand name on them or abrand identification or abrewer’s name with a brewery identification on them[,]” have been collector’s items for many years. He stated that breweriana mugs and steins were marketed by breweries and beer manufacturers. Mr. Geyer testified that the purpose of breweriana mugs and steins:

is to put a piece of advertising in a home that will last for a period of time to enhance brand loyalty.

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Bluebook (online)
14 Ct. Int'l Trade 614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/g-heileman-brewing-co-v-united-states-cit-1990.