Pistorino & Co. v. United States

81 Cust. Ct. 106, 461 F. Supp. 337, 81 Ct. Cust. 106, 1978 Cust. Ct. LEXIS 987
United States Customs Court·Decided October 30, 1978·No. C.D. 4774; Court Nos. 73-10-02911·Published·Cited by 9 cases

Opinion

RAO, Judge:

These actions concern the proper tariff classification of “Plastak MT 10” and “Gesta SS 200” machines, and molds imported with these machines, exported from Italy and entered at the port of Boston in 1970, 1971, and 1972. The MT 10 is manufactured by Plastak Machinery, Italy, and the SS 200 is manufactured by Gesta S.p.A., also in Italy.

The machines were assessed with duty by the district director under item 878.35, TSUS, as modified by Presidential Proclamation 3822, T.D. 68-9, as machines used for molding or otherwise forming rubber or plastics, articles, and parts thereof, at a duty rate of 5.5 percent ad valorem for 1972 and at a duty rate of 6.5 percent ad valorem for those machines imported in 1971.

The molds were classified in some entries under item 680.12, as modified, supra, at a duty rate of 8 percent ad valorem for 1970 [6.5 percent ad valorem for those imported in 1971] as “Molds of types used for metal (except ingot molds) * * * or for rubber or plastics materials: Molds used for rubber or plastics materials: * * * Other,” and in some entries under item 680.15, TSUS, as modified, supra at the same rates of duty (depending on date of entry) as other molds used for rubber or plastics materials.

It is plaintiff's claim that the merchandise, both machines and molds, is properly free of duty; the machines being classifiable as shoe machinery and parts thereof under item 678.10, TSUS, and the molds being classifiable as molds, shoe machinery molds, under item 680.11, TSUS, as amended.

The question presented by this civil action is whether the imported machines belong to a class or kind of machinery chiefly used in the production of shoes, and similarly, whether the imported molds are used with a class or kind of machinery chiefly used in the production of shoes.

The operative interpretive rule is general interpretative rule 10 which states in part:

(e) in the absence of special language or context which otherwise requires—
(i) a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of articles of that class or kind to which the imported articles belong, and the controlling use is the chief use, i.e., the use which exceeds all other uses (if any) combined;

The central issue then becomes whether the Plastak MT 10 and the Gesta SS 200 belong to a class or kind of machines susceptible of [108]*108classification as machines used for molding rubber or plastics materials as determined by the district director, or whether, as claimed by plaintiff, they belong to a special class or kind of plastic molding machines chiefly used in the production of shoe parts.

Plaintiff attempted to meet its burden of proof through the testimony of three witnesses and the introduction into evidence of eleven exhibits. The evidence and testimony adduced tended to establish that the MT 10 is an injection plastic molding machine with a clamping force of 33 tons and an injection capacity of 6 ounces. To the knowledge of plaintiff’s witnesses it is used exclusively for the molding of shoe heels, although toplifts can also be produced with a modification of the platen system. The platen is approximately 6 by 11 inches and is bored out to accept only one kind of mold. According to the brochure depicting the MT 10 circulated by the manufacturer and entered into evidence by plaintiff, this machine has a clamping force of 42 tons and produces three pairs of heels per minute or six pairs of toplifts per minute.

The SS 200 is a two-station molding machine which operates on an intrusion molding principle, that is, it utilizes a screw which is rotated through a hole which causes the plastic material to flow or be forced into the mold cavity. It can, according to the brochure introduced into evidence by plaintiff, produce two pairs of soles simultaneously at a rate of between 60 and 140 pairs of soles per hour depending on the type and size.

It was the testimony of plaintiff’s witness that the MT 10 and the SS 200 would require extensive and expensive modification before they could be employed to mold other items such as combs, checkers, and screwdriver handles, since these machines cannot accept a plastic material of great hardness without changes in the hydraulic and clamping systems, although no testimony was introduced as to the amount of expense which would be involved.

The testimony of defendant’s witnesses tended to establish-similarities between the imported machines and general purpose molding machines manufactured in the United States and used in this country to mold a variety of articles, including shoe soles and heels. In the opinion of defendant’s witnesses, Lawrence Bauer and Murray Freedman, both horizontal and vertical injection molding machines can produce a variety of articles, so long as the molds fit within the configuration of the platen, the changing of molds is an inexpensive and customary practice in the molding industry, and the imported MT 10 and SS 200 could be used, economically, to produce a number of articles such as combs, checkers and other small items, although they knew of no instance where they had been so used.

[109]*109Plaintiff’s evidence established that the MT 10 and the SS 200 are actually used in this country to manufacture parts of shoes, specifically, to mold shoe heels and soles. However, it is plaintiff’s burden to prove that the imported machines belong to a class or kind of machines whose chief use is as shoe machinery. We do not conclude that it has met that burden.

When chief use is in dispute, it is usually a question of fact which should be established on the basis of positive testimony representative of an adequate geographical cross section of the country. L. Tobert Co. v. United States, 41 CCPA 161, 164, C.A.D. 544 (1953). Chief use envisions use by users, as a whole, of the type of article involved, and not merely individual use of the particular machines in question. W. A. Gleeson v. United, States, 58 CCPA 17, C.A.D. 998, 432 F. 2d 1403 (1970). Particularly with regard to shoe machinery, such chief use must be established by positive testimony with respect to merchandise of the same class or kind. E. Dillingham, Inc. v. United States, 54 CCPA 121, C.A.D. 922 (1967). This is a question of fact to be determined by the relevant facts and circumstances in each case. Howland v. United Stales, 53 CCPA 62, C.A.D. 878 (1966).

To determine whether the imported machines belong to a special class or kind commonly used as shoe machinery, we must look to all the pertinent circumstances. United States v. Carborundum Co., 63 CCPA 98, C.A.D. 1172, 536 F. 2d 373, cert. denied, 429 U.S.979 (1976). Factors which have been considered to be pertinent in determining whether imported merchandise falls within a particular class or kind include the general physical characteristics of the merchandise; the expectations of the ultimate purchasers; the channels, class or kind of trade in which the merchandise moves, Maher-App & Co. v. United States, 57 CCPA 31, C.A.D. 973, 418 F. 2d 922 (1969); the environment of the sale and the manner in which the merchandise is advertised and displayed, United States v. Baltimore & Ohio R.R., 47 CCPA 1, C.A.D.

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Pistorino & Co. v. United States, 81 Cust. Ct. 106, 461 F. Supp. 337, 81 Ct. Cust. 106, 1978 Cust. Ct. LEXIS 987 (cusc 1978).

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