James Loudon & Co. v. United States

79 Cust. Ct. 149, 1977 Cust. Ct. LEXIS 903
CourtUnited States Customs Court
DecidedDecember 20, 1977
DocketC.D. 4727; Court No. 73-7-01978
StatusPublished
Cited by1 cases

This text of 79 Cust. Ct. 149 (James Loudon & Co. 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
James Loudon & Co. v. United States, 79 Cust. Ct. 149, 1977 Cust. Ct. LEXIS 903 (cusc 1977).

Opinion

Maletz, Judge:

This action involves a shipment of 21 drums of marine cleanser or degreaser invoiced as “Petrocon” and known as “Dunall Dunrinse,” which is used for cleaning the holds or bottoms of ships. The official entry papers and accompanying documents were lost by the Bureau of Customs. However, documents presented to the court by the parties reveal that the merchandise was entered at the port of San Francisco, California on or about August 12, 1966 by plaintiff James Loudon & Co., Inc., a customhouse broker, for the account of Dunn Chemical Co. under entry number 00751. The plaintiff's copy of the consumption entry lists the value of the merchandise at $3,696.00 and claims classification as American goods returned [150]*150under item 800.00 of' the Tariff Schedules of the United States (TSUS) which carries a duty-free rate.

The entry was liquidated by Customs on December 12, 1967 and assessed duty of 3.5 cents per pound plus 25% ad valorem under-item 405.35, TSUS, which covers—

[products * * * chiefly used for any one or combination of the following purposes: as detergents, wetting agents, emulsifiers, dispersents, or foaming agents.

The increased duty of $1,313.55 was paid in or about April 1971. The protest in this action was filed on February 21, 1973 against the assessment of duties under item 405.35. However, this protest does not challenge the liquidation of December 12, 1967; rather, it challenges Customs’ refusal of plaintiff’s request for reliquidation, which request plaintiff claims was filed on February 6, 1968 under section 520(c) of the Tariff Act of 1930, as amended (19 U.S.C. 1520(c)).1 According to plaintiff, this request for reliquidation was not acted upon by Customs until January 12, 1973 when it was denied, thus making plaintiff’s protest of February 21, 1973 timely under section 514 of the Tariff Act of 1930, as amended (19 U.S.C. 1514 (1970 ed.)).2

Plaintiff’s claim in essence is that the imported merchandise was exported aboard the S.S. NILOS from Portland, Oregon as ships stores, which are materials used and consumed in the normal operation of a vessel. Plaintiff claims that the'merchandise was later returned to the United States from Vancouver, British Columbia without having been advanced in value or improved in condition while abroad and was therefore entitled to duty-free entry as American goods returned under item 800.00, TSUS. It asserts that it filed a timely protest under section 514 of the Tariff Act of 1930, as amended, against classification by the Bureau of Customs under item 405.35 within 60 days after liquidation on December 12, 1967, which protest it alleges was lost by Customs. Also, as already noted, plaintiff contends that on February 6, 1968 it filed a request for reliquidation under section 520(c) of the Tariff Act of 1930, within 60 days of the liquidation (December 12, 1967) which request was allegedly not acted upon by Customs until January 12, 1973, following which it filed a protest on February 21, 1973.

[151]*151Defendant-presents several arguments as to why plaintiff’s claim should be dismissed. First, as to the claimed lost protest, defendant argues that plaintiff did not in fact file a section 514 protest challenging the Customs’ classification of the merchandise under item 405.35, Second, it argues that in any event the issue of proper classification and assessment of duties based upon the allegedly lost protest under section 514 is not before the court since the present action is based on a protest which merely challenges a refusal to reliquidate under section 520(c).

Further, with regard to plaintiff’s protest filed on February 21 r 1973, challenging Customs’ refusal to reliquidate under section 520(c),, defendant contends that plaintiff failed to comply with the statutory requirements of Section 520(c) in that it did not bring any clerical error, mistake of fact or other inadvertence not amounting to an error in the construction of a law to the attention of Customs within the statutory period of 60 days after the liquidation of December 12, 1967.3 More particularly, defendant argues that the record shows that request for reliquidation under section 520(c) was not filed on February 6, 1968, as claimed by plaintiff, but rather was filed on August 26, 1968 and was thus untimely. Defendant further argues that the record shows that plaintiff’s request for reliquidation was denied by Customs on October 24, 1968 and not January 12, 1973, as. claimed by plaintiff, and that the protest of February 21, 1973 was therefore untimely. Finally, defendant insists that plaintiff failed to submit sufficient proof to substantiate its claim that the merchandise was entitled to duty-free entry under item 800.00. Hence, defendant’s position with regard to the protest filed on February 21, 1973 is that. Customs properly refused to reliquidate the entry under section 520(c),

The Issues

Against this background, the following issues are presented:

1. Whether plaintiff filed a protest under section 514, contesting the liquidation of the merchandise under item 405.35, TSUS, and assessment of duty at the rate of 3.5£ per lb. plus 25% ad valorem.

2. Whether plaintiff timely brought any clerical error, mistake of fact, or other inadvertence not amounting to an error in the construction of a law, adverse to the importer and manifest from the record or established by documentary evidence, to Customs’ attention as provided in section 520(c).

3. Whether plaintiff filed a timely protest under section 514 against, the refusal to reliquidate under section 520(c).

[152]*1524. Whether any clerical error, mistake of fact, or other inadvertence not amounting to an error in the construction of a law occurred in the liquidation.

5. Whether plaintiff timely complied with all applicable Customs regulations for duty-free entry under TSUS item 800.00.

6. Whether Customs improperly denied plaintiff’s request for re-liquidation under section 520(c).

The Record

The record consists of the testimony of two witnesses4 and nine exhibits for the plaintiff and four witnesses 5 and seven exhibits for the defendant. From this record the following appears:

The Dunn Chemical Co. of San Francisco, California (Dunn) manufactures and distributes marine chemicals and the majority of its business is selling ships stores. It is a small operation with only three or four emplojrees, and Mr. John W. Schrick, its president, does everything from making company decisions to making deliveries himself on occasion.

Mr. Schrick testified that the merchandise covered by the entry in question — entry number 00751 — is a chemical product manufactured in San Francisco, California to the specifications of Dunn. The product — which is known as “Dunall- Dunrinse” — is a degreasing material that is used for cleaning and “upgrading” the double bottoms of ships or tankers. The name “Dunall” is a trademarked one.

The events giving rise to the present controversy were recounted by Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
79 Cust. Ct. 149, 1977 Cust. Ct. LEXIS 903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-loudon-co-v-united-states-cusc-1977.