Merck & Co. v. United States

19 C.C.P.A. 16, 1931 CCPA LEXIS 262
CourtCourt of Customs and Patent Appeals
DecidedApril 22, 1931
DocketNo. 3390
StatusPublished
Cited by1 cases

This text of 19 C.C.P.A. 16 (Merck & Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merck & Co. v. United States, 19 C.C.P.A. 16, 1931 CCPA LEXIS 262 (ccpa 1931).

Opinion

Graham, Presiding Judge,

delivered tbe opinion of the court:

This case involves five protests filed at the port of Philadelphia against assessments of duty made upon certain importations of sugar of milk made by appellant under the Tariff Act of 1922. The classification in each case was under the provision for “other saccharides” in paragraph 504 of said act. The protests severally claimed the goods to be dutiable under paragraph 5 of said act as “chemical compounds.” The United States Customs Court overruled the protests, and the importer has appealed.

The paragraphs involved are as follows:

Par. 5. All chemical elements, all chemical salts and compounds, all medicinal preparations, and all combinations and mixtures of any of the foregoing, all the foregoing obtained naturally or artificially and not specially provided for, 25 per centum ad valorem.
Par. 504. Adonite, arabinose, dulcite, galactose, inosite, inulin, levulose, mannite, d-talose, d-tagatose, ribose, melibiose, dextrose testing above 99.7 per centum, mannose, melezitose, rafiinose, rhamnose,' salicin, sorbite, xylose, and other saccharides, 50 per centum ad valorem.

The appellant claims here that the rule of ejusdem generis should be applied and that, if applied, the articles of importation can not properly be classified under said paragraph 504. It contends and argues that the various products named in said paragraph 504 are rare saccharides, with the exception of salicin, and are used primarily for bacteriological testing and medical diagnosis and are not used industrially. On the other hand, it contends that sugar of milk is a product used on a very large scale industrially and commercially, is sold in vast quantities to be used as a component in infants’ food, can be made at an expense of from 23 cents to 24 cents per pound, and that it is not in the same class as the saccharides named in said paragraph [18]*18504. It is stated by appellant that sugar of milk is a saccharide but, as has been said, not of the same class as the others specifically named. It is also agreed by all parties that sugar of milk is a chemical compound.

In addition to this, the appellant argues that the legislative history of the Tariff Act of 1922 and of the particular paragraphs here involved indicates that the Congress intended sugar of milk to be classified under said paragraph 5 and not under said paragraph 504.

The Government takes issue with these various propositions and insists that the rule of ejusdem generis should not apply, and that, inasmuch as said paragraph 504 specifically provides for “other saccharides,” this is, in effect, an eo nomine designation of the product here involved which carries it into said paragraph. • As to the legislative history the Government counsel argue that this history indicates that the converse of appellant’s claims is apparent from said proceedings.

The rule of ejusdem generis is one of construction, and we have said that it can be invoked only whenever a doubt arises as to whether a given article, not specifically named, is to be placed in a class of which some of the individual subjects are named. United States v. Lilly & Co., 14 Ct. Cust. Appls. 332, T. D. 41970. However, in proper cases this court has never hesitated to apply the rule unless it was apparent that the legislative intent was otherwise. United States v. Kirkwood Co., 15 Ct. Cust. Appls. 32, T. D. 42136; United States v. Kelley Hardware Co., 12 Ct. Cust. Appls. 204, T. D. 40182; United States v. Imperial Wall Paper Co., 14 Ct. Cust. Appls. 280, T. D. 41886; United States v. Kahn & Co., 13 Ct. Cust. Appls. 57, T. D. 40881; Overton & Co. v. United States, 2 Ct. Cust. Appls. 422, T. D. 32172; Morimura Bros. v. United States, 2 Ct. Cust. Appls. 181, T. D. 31941.

That there is doubt as to the real congressional intent in the enactment of said paragraph 504 is quite apparent. Counsel for both parties have quoted at length from the reports of the United States Tariff Commission, which were furnished to the committees of the House and Senate while H. R. 7456, which afterwards became the Tariff Act of 1922, was under consideration. In addition to this, the court below has gone into that matter at length, drawing its conclusions as to the effect of the various matters submitted and the construction to be deduced therefrom. In this view of the matter some consideration should be given to the legislative history of the provisions in question.

Under the tariff acts of March 3, 1883, and October 3, 1913, sugar of milk was specifically mentioned and on the free list. Under the tariff acts of October 1, 1890, August 27, 1894, July 24, 1897, and August 5, 1909, sugar of milk was on the dutiable list. In each of these statutes by which it was classified as dutiable it was specifically [19]*19named. Thus, for the first time in almost 40 years, sugar of milk was not specifically named in the Tariff Act of 1922.

The various substances named in paragraph 504, except salicin, appear for the first time in the Tariff Act of 1922. They are, as is shown by the testimony offered in the court below, rare saccharides, with the exception of inulin, which is a variety of starch, and salicin, which is a glucoside. As shown by Webster’s New International Dictionary, 1930, adonite is a crystalline pentahydric alcohol occurring in Adonis vernalis. Arabinose is a sugar of the pentose class, most generally obtained from cherry gum. Dulcite is a sweet white crystalline substance, occurring in various plants, and obtained from a manna from Madagascar, and is a hexahydric alcohol. Inulin is a substance resembling starch and is a polysaccharide. Salicin is a bitter white crystalline glucoside found in the bark and leaves of several species of willow and poplar. These examples are typical of the derivation and general character of the rest of the substances named in said paragraph.

The Summary of Tariff Information, 1921, furnished for the use of the Senate Committee on Finance in the consideration of H. R. 7456, pages 607, 608, gave the following description of the various products named in said paragraph 5Ó4:

Description and uses. — The items enumerated in paragraph 505 are for the most part substances belonging to a class of carbohydrates chemically known as sugars. They are not, however, used as foods nor do they have an industrial or economic relationship to commercial sugar. They are in fact highly refined chemicals, used primarily for bacteriological testing and medicinal diagnosis.
Two of the substances included in the list in paragraph 505 are not sugars at all; inulin is a variety of starch, and salicin is a glucoside.
Production. — These substanees*are extracted from various vegetable materials on a small laboratory scale and are commonly sold in bottles containing a fraction of an ounce. Before the war they were not produced for sale at all in the United States, but since the outbreak of the European war two American firms have undertaken the manufacture of some of them. The annual demand for these rare sugars is very small, probably not more than a few hundred pounds a year for any one of them, with the possible exception of salicin.

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Bluebook (online)
19 C.C.P.A. 16, 1931 CCPA LEXIS 262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merck-co-v-united-states-ccpa-1931.