Impact Container Corp. v. United States

59 Cust. Ct. 390, 1967 Cust. Ct. LEXIS 2143
CourtUnited States Customs Court
DecidedOctober 24, 1967
DocketC.D. 3172
StatusPublished

This text of 59 Cust. Ct. 390 (Impact Container Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Customs Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Impact Container Corp. v. United States, 59 Cust. Ct. 390, 1967 Cust. Ct. LEXIS 2143 (cusc 1967).

Opinion

Rao, Chief Judge:

The merchandise involved in the protests consolidated herein consists of aluminum cylinders which were assessed [391]*391with duty at the rate of 17 per centum ad valorem, plus 3.5 cents per pound, under paragraph 339 of the Tariff Act of 1930, as modified by the Sixth Protocol of Supplementary Concessions to the General Agreement on Tariffs and Trade, 91 Treas. Dec. 150, T.D. 54108, as hol-lowware, not specially provided for, composed wholly or in chief value of aluminum. Plaintiffs claim that these cylinders should be classified as cylindrical and tubular tanks or vessels for holding gas, liquids, or other material, whether full or empty, within the provisions of paragraph 328 of the Tariff Act of 1930, as modified by the Annecy Protocol of Terms of Accession to the General Agreement on Tariffs and Trade, 84 Treas. Dec. 403, T.D. 52373, and supplemented by Presidential proclamation, 85 Treas. Dec. 64, T.D. 52423, and assessed with duty at the rate of 12½ per centum ad valorem. The statutory provisions involved in this case read as follows:

Paragraph 339 of the Tariff Act of 1930, as modified, sufra:

Table, household, kitchen, and hospital utensils, and hollow or flat ware, not specially provided for, whether or not containing electrical heating-elements as constituent parts:
⅜ ⅜ ⅜ ⅜ ⅜
Composed wholly or in chief value of alu-milium_3.5 cents p©r lb. and 17 % ad val.

Paragraph 328 of the Tariff Act of 1930, as modified, supra:

Cylindrical and tubular tanks or vessels, for holding-gas, liquids, or other material, whether full or empty_ 12½% ad val.

The same merchandise and the same issues were involved in prior litigation before this court at which time plaintiffs’ protest was overruled. Impact Container Corp. and Judson Sheldon International Corp. v. United States, 55 Cust. Ct. 180, C.D. 2572. The record in said case has been incorporated herein. Said case was submitted for decision upon the exhibits, consisting of one empty aluminum container with a 32-ounce capacity, one filled and equipped for spraying paint, and a stipulation of facts between the two parties regarding the uses of the importation. It was agreed that the importation consisted of empty aluminum containers which are filled with gas or liquids under pressure and closed with a valve cup and spray head. Such containers are used for the application of paint, germicides, oxygen, tire sealants, etc., by shaking the container and then pressing the spray head. It was also agreed between the parties that the containers were discarded after use and not refilled by the ultimate purchaser.

In rejecting plaintiffs’ claim that the imported containers came within the purview of paragraph 328 as cylindrical and tubular tanks [392]*392or vessels, this court noted that judicial construction of paragraph 328 had established certain criteria for paragraph 328 articles and limited that provision to those which were substantial, relatively large in size, and capable of reuse as containers after consumption of the original contents.

This analysis was supported by a line of cases beginning with United States v. Marx, 1 Ct. Cust. Appls. 152, T.D. 31210, in which substantial iron drums containing glycerin were held to be classifiable within paragraph 151 of the Tariff Act of 1909, which paragraph closely resembles paragraph 328 in the Tariff Act of 1930. The same conclusions were reached in Marx & Rawolle et al. v. United States, 3 Ct. Cust. Appls. 94, T.D. 32359. In United States v. Garramone, 2 Ct. Cust. Appls. 30, T.D. 31517, certain tin cans containing fresh tomatoes and tomato sauce were denied classification under said paragraph 151 due to the fact that they served no further useful purpose after the removal of their contents and hence were of a character unlike that of the containers in United States v. Marx, supra. Similarly, in United States v. Braun Chemical Co., 2 Ct. Cust. Appls. 57, T.D. 31596, certain cylindrical iron drums, containing magnesium chloride, whose usefulness was ended when the contents were removed, both because they were not of durable construction and because it appears to have been the practice to slice the drums in half in order to remove the contents, were excluded from paragraph 151.

These criteria of size, durability, and potential reuse have been applied consistently. Colby & Co. v. United Stales, 3 Ct. Cust. Appls. 234, T.D. 32542; United States v. Bene et al., 6 Ct. Cust. Appls. 523, T.D. 36145; Foxboro Co. v. United States, 13 Cust. Ct. 326, Abstract 49868. At no time have the courts employed a literal interpretation of paragraph 328 or its predecessors since such a reading would include an unlimited variety of containers clearly outside the intent of Congress.

In light of the stipulated facts regarding reuse, the court, in its application of the above criteria, concluded that the aluminum containers at issue were not such containers as came within the ambit of paragraph 328 of the Tariff Act of 1930.

Plaintiffs have now commenced a new action in an attempt to re-litigate the issues surrounding the classification of the imported aluminum containers.

In order to adduce further proof on the issue of reuse and in order to soften the impact of the stipulated fact, mentioned previously, that the instant containers were discarded after use, plaintiffs introduced in evidence the testimony of Mr. Dean Rockwell, president of the Impact Container Corporation, who has been associated with that firm since 1959. The Impact Container Corporation is engaged in [393]*393the manufacture and importation of pressure containers such as aluminum seamless aerosol containers and the packaging thereof. Previously, Mr. Rockwell was employed for 13 years by the Tube Manifold Corporation, manufacturers of pressure vessels, as vice president and general manager in charge of design and sales. Mr. Rockwell holds degrees in mechanical engineering and is a member of the Compressed Gas Association and the Chemical Specialties Manufacturing Association, serving on a number of committees which formulate standards for pressure containers, and submit them to the Bureau of Explosives from whence they are forwarded to the Interstate Commerce Commission for promulgation as regulations and specifications governing the transportation of pressure containers.

The witness stated that he was responsible for the purchase of the containers involved herein and was familiar with their manufacture and use. Upon entry into the United States, the cylinders are painted and filled with various aerosol products.

Samples of the 540 cubic centimeter size of aluminum container here at issue, as filled, were introduced in evidence as plaintiffs’ exhibits 1, 2, and 3. These filled cylinders contained, respectively, a deodorizer and air conditioner, fire extinguishing chemicals, and tire inflating and puncture sealing material. The witness stated that the 360 cubic centimeter containers at issue were used by the Hercules Packing Company to hold a high pressure industrial type lubricant. The 220 cc. containers at issue were being used for a product which had not yet entered the market and which was in the process of being tested.

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Related

United States v. Marx
1 Ct. Cust. 152 (Customs and Patent Appeals, 1911)
United States v. Garramone
2 Ct. Cust. 30 (Customs and Patent Appeals, 1911)
United States v. Braun Chemical Co.
2 Ct. Cust. 57 (Customs and Patent Appeals, 1911)
Marx v. United States
3 Ct. Cust. 94 (Customs and Patent Appeals, 1912)
Colby v. United States
3 Ct. Cust. 234 (Customs and Patent Appeals, 1912)
United States v. Bene
6 Ct. Cust. 523 (Customs and Patent Appeals, 1916)
Protest 800468-G of Foxboro Co.
13 Cust. Ct. 326 (U.S. Customs Court, 1944)
Norman G. Jensen, Inc. v. United States
32 Cust. Ct. 176 (U.S. Customs Court, 1954)
Impact Container Corp. v. United States
55 Cust. Ct. 180 (U.S. Customs Court, 1965)

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Bluebook (online)
59 Cust. Ct. 390, 1967 Cust. Ct. LEXIS 2143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/impact-container-corp-v-united-states-cusc-1967.