Kraft Phenix Cheese Corp. v. United States

10 Cust. Ct. 271, 1943 Cust. Ct. LEXIS 746
CourtUnited States Customs Court
DecidedMay 12, 1943
DocketC. D. 767
StatusPublished
Cited by11 cases

This text of 10 Cust. Ct. 271 (Kraft Phenix Cheese 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
Kraft Phenix Cheese Corp. v. United States, 10 Cust. Ct. 271, 1943 Cust. Ct. LEXIS 746 (cusc 1943).

Opinion

Cline, Judge:

This is a suit against the United States in which the plaintiff seeks to recover a part of the duty assessed on certain cheese at the rate of 35 per centum ad valorem under paragraph 710 of the Tariff Act of 1930. The plaintiff claims that the merchandise is Gruyéro process-cheese, dutiable at 5 cents per pound or 20 per centum ad valorem, whichever is higher, under paragraph 710 as modified by the trade agreement with Finland, T. D. 48554.

The pertinent parts of the competing provisions read as follows:

Pab. 710. [Tariff Act of 1930] Cheese and substitutes therefor, 7 cents per pound, but not less than 35 per centum ad valorem.
Pab. 710 [Trade agreement with Finland] Cheese having the eye formation characteristic of the Swiss or Emmenthaler type; and Gruyere process-cheese, 5(5 per lb., but not less than 20% ad val.

Twenty-one protests were consolidated for trial. The plaintiff introduced the record in Gruyere Cheese Corp. et al. v. United States, 7 Cust. Ct. 171, C. D. 562, and rested. We will not attempt to digest the evidence in that record as it is carefully set forth in the above-cited decision, which covered two grades of cheese, one designated as “Crown Brand, boxes assorted,” and the other as “Trauben-Swiss.”

The description of the merchandise on the invoices in the instant case is as follows: The tops of the invoices show the number of cases, after which follow the words “cases of Swiss Gruyere cheese in boxes.” Under that appear the words “Crown Brand” and the details of those cases and then the words “Trauben-Swiss” followed by the details of that merchandise. The cheese described as “Crown Brand” was returned at 20 per centum ad valorem while that described as “Trauben-Swiss” was returned at 35 per centum ad valorem. That indicates that the “Trauben-Swiss” brand is the only commodity involved in this case. The record in the incorporated case covered both brands.

In that case the defendant attempted to introduce testimony showing the commercial meaning of the term “Gruyére process-cheese” but the court sustained an objection to such testimony made on the ground that the provision was a descriptive term. On this point, the court said in its decision:

* * *. From the character of the testimony which thé deféñdánt in this case endeavored to introduce, it is evident that an attempt was made to limit, by com[273]*273mercial designation, the meaning of the words “Gruyere process-cheese” in the’ trade agreement with Finland. Such testimony is clearly immaterial. In any' event, in the absence of a showing that there was a distinction between the common meaning and the trade meaning of the term, it was not acceptable. Passaio Worsted Co. et al. v. United States, 17 C. C. P. A. (Customs) 459, T. D. 43916.
The words “Gruyére process-cheese” in the trade agreement with Finland must be considered as a descriptive term as is the first part of the provision covering: “cheese having the eye formation characteristic of the Swiss or Emmenthaler type.” The use of the word “process” in connection with the word “cheese” indicates that the cheese described is made-by a process of manufacture and not' as an original production of cheese from milk.

In the instant case the defendant again offered testimony regarding commercial designation of the term “Gruyére process-cheese” and the court reversed its ruling in the former case and admitted it.

The first witness called by the defendant was Mr. Frederick Rohner, who is president of Gerber & Co., an importer and distributor of' cheese. He testified that he had been engaged in the business of importing cheese for 22 years and had sold it all over the United States; that the term “process-cheese” has had a definite understanding in the trade within his experience; that he had seen Gruyére-process-cheese made in Switzerland and in France and he described the method of making it as follows:

A. Swiss cheese is cut into small pieces, and those small pieces are put through a chopping and grinding machine, then reduced to a mealy consistency. Thereafter the cheese is put in a mixing machine, water is added, and an emulsifier, to a maximum of 3 percent. The cheese mass is thereafter thoroughly mixed and put into a so-called filling machine. The filling machine feeds the cheese into tinfoil-lined molds, and after these molds have been formed there are 6 of those little wedge-shaped portions sampled in a metal dish.
The labels are afterwards placed on each of those portions. The dishes are covered, and pass through a refrigeration installation. After they come out the cheese, which in the meantime has become firm, is taken from the metal dishes and put into cardboard containers, and is after that ready for the market or for' consumption.

The witness testified further that such cheese is labeled “Swiss-Gruyére process-cheese”; that he has had occasion to discuss the meaning of that term wdth buyers of the merchandise and that, prior to June 17,1930, the meaning was the type of cheese he described; that he had not dealt in merchandise like exhibit 1 but is familiar' with it. The witness was then asked and answered the following, question:

Q. Now, within your experience, Mr. Rohner, is merchandise like Exhibit I sold as Gruyére Process-Cheese — -A. It is not sold as Gruyére Process-Cheese.

The next witness called by the defendant was Mr. Robert Roeth-lisberger, who is vice president and treasurer of Roethlisberger & Co., an importer of cheese. He testified that he had been importing Gruyére process-cheese since 1915 and had seen it manufactured in [274]*274Switzerland at the factory of Roethlisberger & Son. He described the process of manufacture as follows:

A. The Swiss Cheese is processed by removing the rind, cutting it into pieces, and then it is ground and heated to the melting point. Then a small quantity of emulsifier and water are added, so as to make a homogeneous mass. This mass is poured into the forms, which have been lined with tinfoil, and that becomes automatically sealed, so as to keep it airtight. After it is sufficiently cooled it is packed in the round boxes that we know in this market.

The witness testified further that he had sold Gruyére process-cheese at wholesale throughout the United States and that he was acquainted with the name under which it was sold; that he had discussed the meaning of the term “Gruyére process-cheese” with buyers of that merchandise and, at and prior to June 17, 1930, there was a definite, uniform, and general trade understanding of the term; that the meaning was cheese processed the way he had described; that he had never imported cheese like exhibit 1 but had sold it for approximately 5 years or more in New York, Kentucky, Missouri, and Texas; that he had always sold it under the name “Trauben-Swiss”; that within his experience exhibit 1 was not known in the trade as “ Gruyére process-cheese. ’ ’

On cross-examination the witness testified that Mr. Otto Roethlis-berger, who testified in the case the record of which is incorporated herein, is his brother and they are associated in business. Questions were read to him from his brother’s testimony and he testified as follows:

X Q. Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
10 Cust. Ct. 271, 1943 Cust. Ct. LEXIS 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kraft-phenix-cheese-corp-v-united-states-cusc-1943.