Naftone, Inc. v. United States

67 Cust. Ct. 341, 1971 Cust. Ct. LEXIS 2250
CourtUnited States Customs Court
DecidedNovember 11, 1971
DocketC.D. 4294
StatusPublished
Cited by2 cases

This text of 67 Cust. Ct. 341 (Naftone, Inc. 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
Naftone, Inc. v. United States, 67 Cust. Ct. 341, 1971 Cust. Ct. LEXIS 2250 (cusc 1971).

Opinions

RosbNSTeiN, Judge:

The merchandise at bar consists of rolls of “Makrofol KG” (MKG), a polycarbonate film imported from West Germany in 1967 in two sizes: 5 micron (0.005 millimeters) thick, 381 millimeters wide and 29,000 meters long, and 12 micron (0.012 millimeters) thick, 314 millimeters wide, and 31,000 meters long.1 The shipment was assessed for duty under TSUS item 774.60, as “Articles, not specially provided for, of rubber or plastics: * * * Other”, at 17 per centum ad valorem, the rate in effect at the time of importation, and is claimed properly dutiable under TSUS item 773.30 as “Electrical insulators, of rubber or plastics”, at 10 per centum ad valorem.

At the trial five witnesses were called by plaintiff and one by defendant.

It appears from the record that MKG is made from a solution of polycarbonate resin to which solvents have been added in order to effect the crystallization, or orientation of the molecules. The solution is cast on specially designed drums, dried, and wound. The film is then stretched lengthwise and slit to the desired length. The stretching and casting process for MKG film is patented by Farbenfabricken Bayer, West Germany.

The crystallization and stretching increase the tensile strength of the film and impart to it excellent insulating, or dielectric, properties. Its high dielectric strength makes it suitable for use as a “capacitor dielectric” (K. 42), that is, “as an insulator in the capacitors to separate the electrodes” (R. 42). A capacitor, essentially, is a device for storing electrical energy. The only commercial use at the present for MKG film is as a dielectric, or insulator, in capacitors, although if it were more competitive in price, it might have other applications as an electrical insulator.

Dr. Eckart Keese, a chemist in charge of the production, development and control of MKG for Bayer, testified:

Q. What are the properties, if any, of Makrofol KG? — A. The properties of Makrofol KG are high dielectric strength, low dissipation factors even at high temperatures, resistance against the deterioration by high voltage.
Q. Dr. Keese, when you use the words “high dielectric strength” would you please explain for us what you meant ? — A. High dielectric strength means that Makrofol KG is an insulator at high voltages.
[343]*343Q. What do you mean by the term “insulator” ? — A. It prevents the current from flowing from one electrode to another. [R. 8-9.]
*******
Q. How is Makrofol KG used in the United States, from your investigation? — A. It is used as a dielectric for capacitors.
Q. What do you mean by the term “dielectric”? — A. It’s the same like an insulator.
Q. Do you know of any use for Makrofol KG other than as a dielectric or an insulator ? — A. No. [R. 14.]

Helmut O. E. Kluefer, product manager for plaintiff-importer, testified that MKG is used “as an insulator to manufacture capacitors” (R. 24).

Haim Beyer, electrical engineer and former chairman of the board, now consultant, to Cornell Dubilier, an electronics firm which manufactures capacitors using MKG film in widths ranging up to six inches,2 testified:

Q. Mr. Beyer, what function does Makrofol play, if any, in Plaintiff’s Exhibits 3-A [unfinished capacitor] and 3-B [finished capacitor] ? — A. As an insulator or dielectric.
Q. When you use the words “insulator or dielectric” what do you mean ? — A. I mean that it does not conduct electricity.
Q. Does Makrofol possess any particular properties that cause you to use it in the manufacture of your capacitors ? — A. Yes.
Q. What are these properties ? — A. Well, it has extremely stable characteristics with respect to variation in dielectric constant with temperature, very high insulation resistance, high resistance to moisture, and I guess that’s about the major parts. It’s got high dielectric strength, too. [R. 32-33.]
# #
[cross-examination]
Q. When you say “an insulator in a capacitor” you mean this is a component of the capacitor? — A. Well, you might say that it’s a dielectric of the capacitor, that’s the insulator.
Q. This is the only use that you have for Makrofol KG?— A. That’s right. [R. 38.]

Louis Kahn, a consultant engineer in the field of electrical and electronic devices and materials, professor of electrical engineering at Cooper Union, New York City, and consulting member to ASTM for dielectric materials, who, during his prior employment with companies manufacturing capacitors and electronic components, had “investigated MKG as a capacitor dielectric” testified:

Q. Just talking about the test performed on Makrofol KG itself, what were the results, if any, of your investigations?—
[344]*344A. Well, the results were that the material had excellent properties for use as a capacitor dielectric.
Q. When you use the term “capacitor dielectric” what do you mean? — A. I mean as an insulator in the capacitors to separate the electrodes.
Q. What were these properties of which you have just spoken? — A. Well, the properties in which we were interested were first dielectric constant, dielectric strength, dissipation factor, the effects of temperature, voltage, and time and humidity on these properties, and also the physical properties of the material such as tensile strength, shrinkage, thickness, and many others that are necessary in the use of an insulator in capacitors.
Q. Are there any particular requirements with respect to the selection of the insulators in a capacitor? — A. Yes; there are many requirements that are special. In selecting a dielectric for a capacitor the first thing that must be taken into account is the particular application or the requirements of the capacitor, and these are very broad, cover a very, very wide range. And since the major properties of the capacitor are controlled or determined by the dielectric, the selection of dielectrics must take all of these factors into account. * * * [E. 42-43.]
$ ‡ ‡ ‡ $
[cross-examination]
Q. Would you make any distinction between a dielectric material and an insulator? — A. No. It depends entirely — whatever distinction is made depends entirely on its application rather than on the basic properties of the materials or the device.3 [ft. 49.]

Exhibit 2, a brochure put out by Farbenfabriken Bayer, describes its “electrical insulating films which are based on polycarbonate, and are sold under our Eegistered Trade Mark Makrofol” and lists the films’ various specifications and uses in insulating applications. MKG, according to the pamphlet, is used in “Capacitors (of vacuum-metallized film or with aluminum foil), conductor and coil insulation, slot layer material”.

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Cite This Page — Counsel Stack

Bluebook (online)
67 Cust. Ct. 341, 1971 Cust. Ct. LEXIS 2250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/naftone-inc-v-united-states-cusc-1971.