Owens-Illinois Glass Co. v. United States

48 Cust. Ct. 263
CourtUnited States Customs Court
DecidedJune 18, 1962
DocketC.D. 2347
StatusPublished
Cited by2 cases

This text of 48 Cust. Ct. 263 (Owens-Illinois Glass 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
Owens-Illinois Glass Co. v. United States, 48 Cust. Ct. 263 (cusc 1962).

Opinion

FoRd, Judge:

The merchandise in question is made up of six major pieces of equipment, consisting of a hydraulically controlled four-roll paper-making press, an oil pressure station, an electric transformer, an ignitrón electronic tube power controlling unit, an electronic control panel, and a cart for adjusting wire rolls, all of which were assessed with duty at the rate of 13% per centum ad valorem under the provisions of paragraph 353 of the Tariff Act of 1930, as modified by the Torquay Protocol to the General Agreement on Tariffs and Trade, 86 Treas. Dec. 121, T.D. 52739, as articles having as an essential feature an electrical element or device, and not specially provided for.

Plaintiff herein contends that said merchandise is properly dutiable at only 8% per centum ad valorem as machines for making paper or [265]*265paper pulp under paragraph 372 of the Tariff Act of 1930, as modified by the Sixth Protocol of Supplementary Concessions to the General Agreement on Tariffs and Trade, 91 Treas. Dec. 150, T.D. 54108. It is alternatively claimed by plaintiff herein that, if the court should disagree with the primary claim herein, said merchandise is, nevertheless, dutiable at the rate of 12% per centum ad valorem as a heater under the provisions of paragraph 353 of the Tariff Act of 1930, as modified by said Torquay protocol, supra.

The pertinent text of the statutes relied upon is here set forth: Paragraph 353 of the Tariff Act of 1930, as modified by the Torquay protocol, supra:

Articles having as an essential feature an electrical element or device, such as electric motors, fans, locomotives, portable tools, furnaces, beaters, ovens, ranges, washing machines, refrigerators, and signs, finished or unfinished, wholly or in chief value of metal, and not specially provided for:
Electric motors, furnaces, heaters, and ovens_12%% ad val.
*******
Other (* * *)_13%% ad val.

Paragraph 372 of the Tariff Act of 1930, as modified by the Sixth protocol, supra:

Machines, finished or unfinished, not specially provided for:
* * * * * * *
* * * machines for making paper or paper pulp; * * *_ 8%% ad val.
* ******
Parts, not specially provided for, wholly or in chief value The rate for of metal or porcelain, of any article provided for in any the article of item 372 in this Part. which they are parts.

The record herein consists of a stipulation received in evidence as plaintiff’s exhibit 1, blueprints and photographs, received as plaintiff’s collective exhibit 2, and the testimony of Edwin E. Burr, a well-qualified mechanical engineer who supervised the installation of the involved merchandise in plaintiff’s plant.

Based upon the stipulation, in which it is agreed that the merchandise imported herein consists, among other things, of “A hydraulically controlled four-roll paper-making press * * *” and the testimony of Mr. Burr, there appears to be no question that the imported merchandise is a paper-making machine. The question before the court is whether a paper-making machine having electrical features is properly dutiable under paragraph 353, supra, or under the eo nomine provision contained in paragraph 372, supra. Before this question may be answered, the court must consider a number of legal principles raised by both parties in their well-prepared briefs.

Since the article we have before us is a paper-making machine, it will be unnecessary to discuss the mechanical operations in the [266]*266manufacture of paper. We will, however, first consider the electrical features of the involved merchandise. Based upon the stipulation and the testimony of Mr. Burr, it appears that the motive power for the operation of the press itself is a steam turbine. There are, however, two electrically powered pumps which are utilized by the hydraulic or oil-pressure system, which are both turned on for 5 minutes at the beginning of the operation of the press and then their use is discontinued. It also appears that the transformer, the ignitrón electronic tube power controlling unit, and the electronic control panel are all utilized when the paper-making press is operating with the conductive heating roll. The evidence establishes that the involved machine is quite efficient in removing moisture from the sheet of paper being produced, without the conductive heating unit on the basis of hydraulic pressure alone. It also appears that the imported merchandise is not regularly used in this manner because of an apparent defect in the conductive heating roll. In operation, the conductive heating roll, by utilizing electricity, facilitates the withdrawal of water from the paper being manufactured. Mr. Burr also testified that the electrically initiated hydraulic system could utilize other sources of hydraulic pressure which are available in the plant.

Based upon the record as made herein, plaintiff contends that the imported paper-making press and accompanying equipment do not have as an essential feature an electrical element or device.

The question of whether an article is one which has as an essential feature an electrical element or device has been before this court on many occasions. In the case of United States v. Dryden Rubber Co., 22 C.C.P.A. (Customs) 51, T.D. 47050, the basic rule for determination of this principle was set forth as follows:

There are two inquiries, therefore, when the question of the classifiability of an article under this division of the paragraph is under consideration: First, is it essentially an electrical article? The electrical feature must be an essential feature, without which the article will not function, normally, for the purposes intended, for, it must be manifest, that if it be not an electrical article, it does not come within the division at all. Second, if it is such an electrical article, is it an article named in the language, or within the class of articles named in this paragraph?
From what has been said, it follows that if the article, when it is imported, is designed and constructed to use electrical power, or other power, interchangeably, then it has not, as an essential feature, an electrical element or device.
On the other hand, if, when the article is imported, it is so constructed as to utilize electrical power solely, and, therefore, is, essentially, an electrical article, and its various parts are imported, are intended to be used, and are used, together, as was the case with the imported merchandise, then no reason can be seen why it should not be considered, for dutiable purposes, within the scope of the third division of this paragraph, for in such ease, we think the article should be held to be included within the class of articles named in the paragraph.

[267]*267This well-established principle is presently considered by the court as a means for determining whether an article falls within the purview of that portion of paragraph 353 involved herein. See United States v. Mill & Mine Supply Co., 30 C.C.P.A. (Customs) 128, C.A.D. 224; United States v. Baker Perkins et al., 46 C.C.P.A. (Customs) 128, C.A.D. 714.

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Bluebook (online)
48 Cust. Ct. 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owens-illinois-glass-co-v-united-states-cusc-1962.