Keuffel & Esser Co. v. United States

7 Ct. Int'l Trade 384
CourtUnited States Court of International Trade
DecidedJune 22, 1984
DocketCourt No. 80-1-00192
StatusPublished

This text of 7 Ct. Int'l Trade 384 (Keuffel & Esser 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
Keuffel & Esser Co. v. United States, 7 Ct. Int'l Trade 384 (cit 1984).

Opinion

Rao, Judge:

This civil action involves the proper classification of merchandise imported from France through the port of New York. The merchandise comprises a sheet of paperboard or cardboard, approximately 0.7 mm. 232 mm. by 120 mm. and a sheet of styrene plastic film, of similar proportions, on the rear surface of which are adhered printed letters and symbols which are overcoated with a layer of a waxy, low-tack adherent composition. The film sheet is permanently affixed along its edges to the paperboard sheet and the paperboard sheet is through-scored approximately Vz inch from its periphery so that its center, which protects the printed surface, can be removed when the merchandise is in use.

When the merchandise is in use, the letters and symbols are transferred from the printed sheet to a receiving surface or sheet by burnishing the face of the styrene film directly over the letter or symbol desired to be transferred. This may be done with a stylus or with a pencil or other pointed instrument.

The merchandise was classified by the U.S. Customs Service (Customs) as “Articles not specially provided for, of rubber or plastics: * * * Other” under item 774.60 Tariff Schedules of the United States (TSUS) at a duty rate of 8.5 percent ad valorem.

It is plaintiffs claim that the merchandise should be classified under item 273.75 TSUS as “Decalcomanias * * * Other: Not backed with metal leaf’ at a duty rate of $0.10 per pound. In essence, plaintiff claims that the merchandise is eo nomine decalco-manias, as that term is understood commercially and regardless of the traditional requirement that decalcomanias be placed on paper carriers.

Defendant, on the other hand, relies on lexicographic definitions of word “decalcomania” and on this court’s previous decisions in M. H. Garvey v. United States, 65 Cust. Ct. 434, C.D. 4119 (1970) and 58 Cust. Ct. 530, C.D. 3040 (1976). Both the lexicographic definitions and the court’s decisions in the Garvey cases require that the [385]*385letters and symbols or designs be placed on a carrier of paper for decalcomanias.

Plaintiff relies on the testimony of two witnesses and the introduction into evidence of U.S. patents for transfer sheets similar to the imported merchandise to establish that the common and commercial meaning of the word decalcomania currently includes transfer sheets composed of plastic as well as those of paper.

The first witness, Edward Kaprelian, is a consultant in mechanical and electronic design of equipment and in process optics, imaging and graphic arts. He has a degree in mechanical engineering and has studied optics and physics, and has had wide experience in the field of graphic arts, including patent applications. He was vice-president of Keuffel & Esser Company from 1968 to 1973, where his responsibilities included supervision of transfer lettering and all research and development.

Mr. Kaprelian was qualified as in expert in the areas of graphic arts and decalcomanias, as well as in the preparation and review of patent applications (R. 16, 17). He testified that there are two types of decalcomanias, wet and dry. In dry decals, the material to be transferred has been applied to the carrier sheet in such a way that it can be easily released onto a receiving sheet by the application of pressure (R. 59). The wet decal differs from this only in that the material to be transferred is held onto the carrier sheet by a water soluble adhesive and requires wetting of the carrier sheet to effectuate release of the design, letters or symbols. While wet de-calcomanias have been in use for more than 100 years, dry decals have been used for approximately 30 years.

In Mr. Kaprelian’s opinion the word decalcomania encompasses all types of transfer sheets in which an image is transferred from a carrier sheet to another surface, and the carrier sheet can be of any material that is transparent or translucent (R. 61). He disagrees with lexicographic definitions in Webster’s New World Dictionary of the American Language, 2nd Edition (1977), and in The Dictionary of Paper, 4th Edition (1980), which limit decalcomanias to those for which the carrier sheet is of paper, as being incomplete in that they do not take into consideration that the state of the art now includes decalcomanias with plastic carrier sheets.

Plaintiffs second witness, Richard L. Wayne, is a principal in an advertising agency and has used transfer cards similar to the merchandise at issue in his work. In his opinion the merchandise is a dry decalcomania. Mr. Wayne testified that there is no difference between wet and dry decalcomanias except for the method of transferring the image; the end result in both types is the same (R. 91).

The patents introduced into evidence were for transfer sheets (also referred to as decalcomanias in the patents) for which the transfer sheets were paper or plastic. Mr. Kaprelian agreed with the statements contained in the patents that the carrier sheets could be of paper or plastic composition.

[386]*386The United States relied on the testimony of two witnesses: Mr. Robert M. Kennedy and Mr. Steven Berczuk. Mr. Kennedy was qualified as an expert witness in the area of decaleomanias. It was his opinion that the term decalcomania properly only applies to water slide off merchandise where the carrier is of paper (R. 100-101). It was also his opinion that the merchandise in question would not be considered a decalcomania because it is not durable and cannot be applied rapidly.

Mr. Berczuk was the Customs import specialist for paper and printed matter between 1970 and 1981. He testified that the merchandise is not considered a decalcomania because it is on a plastic carrier sheet and not on paper, and because of the decisions in the previous Garvey cases.

In Garvey II (the more recent decision), the court considered marking devices printed on rubber which are placed by hand on vulcanized hose. During vulcanization the marking device becomes an integral part of the hose through a combination of heat and pressure. The court denied the plaintiffs protest, holding that the merchandise was not decaleomanias within the eo nomine meaning of that word as used in the tariff schedules and held that “no finding could be made [on the record before the court] that at the date of the enactment of the Tariff Schedules of the United States, the term ‘decaleomanias’ was known uniformly and generally throughout the United States to include such articles not necessarily made of paper, but which by usage and general appearance perform the same function as paper decaleomanias.”

The court then found plaintiffs evidence on the question of commercial designation to be wholly insufficient to meet the standard established by the cases.

Commerical designation must be the result of established usage in commerce and trade and must be definite, uniform and general, and not local, partial or personal. Maddock v. Magone, 152 U.S. 368, 14 S. Ct. 588, 38 L.Ed. 482; United States v. Salomon, 1 Ct. Cust. Appls. 246, T.D. 31277 (1911); United States v. Burlington Venetian Blind Co., 3 Ct. Cust. Appls. 378, T.D. 32967 (1912).

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Bluebook (online)
7 Ct. Int'l Trade 384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keuffel-esser-co-v-united-states-cit-1984.