R. W. Greeff & Co. v. United States

10 Cust. Ct. 210, 1943 Cust. Ct. LEXIS 735
CourtUnited States Customs Court
DecidedApril 2, 1943
DocketC. D. 756
StatusPublished
Cited by2 cases

This text of 10 Cust. Ct. 210 (R. W. Greeff & 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
R. W. Greeff & Co. v. United States, 10 Cust. Ct. 210, 1943 Cust. Ct. LEXIS 735 (cusc 1943).

Opinion

Cole, Judge:

The merchandise involved in this suit is known as iron by hydrogen. It derives its name from the method by which it is obtained. Oxide of iron is reduced in a suitable furnace by hydrogen gas, removing the oxygen in the form of water and leaving metallic iron in powdered form with slight impurities, similar to the product before us.

The collector of customs assessed duty on the merchandise at the rate of 25 per centum ad valorem under the Tariff Act of 1930, paragraph 5, (19 U. S. C. 1940 ed., sec. 1001, par. 5) as a medicinal preparation. Plaintiff claims that it is properly classifiable, either under paragraph 335, providing for “Grit, shot, and sand of iron or steel, in any form, three-fourths of 1 cent per pound,” or under the provision in paragraph 301 for “granular or sponge iron, $2.25 per tom”

Identical merchandise was before the court in the case of R. W. Greeff & Co. v. United States, 2 Cust. Ct. 679, Abstract 41155. Although the issue in that case was somewhat different from that presented herein, the record was incorporated in the instant case, by consent of the parties. There, the merchandise was assessed as- a [212]*212chemical compound and the claim was limited to paragraph 335, supra. The court found from uncontradicted testimony, that the chief use of the merchandise was for medicinal purposes and overruled the protest. The effect of this ruling was to retain the merchandise under paragraph 5, but as a medicinal preparation, the classification in dispute here.

At the outset, it is important to emphasize the well-settled rule that the burden on a plaintiff in a classification case is twofold: first, it must be shown that the collector’s classification was wrong, and then the correctness of the alleged claim must be established. United States v. Albrecht, 27 C. C. P. A. 112, C. A. D. 71. To meet the first obligation, it is essential that competent evidence be offered disproving, prima facie at least, the classification fixed by the collector.

The classification, “medicinal preparations,” under which the instant merchandise was classified, is one determined by the use to which the merchandise is put, and the controlling factor is chief use. Scharf Brothers Co., Inc. v. United States, 25 C. C. P. A. 32, T. D. 49038, and United States v. William Cooper & Nephews, Inc., 22 C. C. P. A. 31, T. D. 47038. The latter case discussed with such clarity and force the soundness of this doctrine, we quote at length therefrom:

In view of the fact that the Congress has required the application of the test of chief use to the drug paragraphs of the act, we can see no reason, so far as the test of use is concerned, for not applying the same test to the provision for medicinal preparations contained in paragraph 5. See Monticelli Bros. et al. v. United States, 8 Ct. Cust. Appls. 21, T. D. 37162. Both medicinal preparations and drugs, according to the statutory meaning of those terms, have therapeutic or medicinal properties, and both must be used for the prevention, cure, or alleviation of bodily disease of either man or animal. See United States v. Nagase et al., supra [11 Ct. Cust. Appls. 144, T. D. 38939].
* * » . * * * »
In the case of Fink v. United States, supra [170 U. S. 584], the Circuit Court of Appeals,- Second Circuit, stated in a certificate to the Supreme Court of the United States that “The commercial meaning of the term ‘medicinal preparation’ is the same as its ordinary meaning, viz, a substance used solely in medicine and prepared for the use of the apothecary or physician to be administered as a remedy in disease.” The questions which the Circuit Court of Appeals propounded to the Supreme Court in that case related to the proper dutiable classification of muriate of cocaine. In answering those questions, the court, among other things, said:
Being a medicinal preparation, made as such and solely used as a medicine, the language of paragraph 74 clearly more definitely applies to it than does the generic provision “of chemical compounds and salts” found in paragraph 76. Magone v. Heller, 150 U. S. 70; Robertson v. Salomon, 130 U. S. 412.
It has been, suggested that the Supreme Court held in that ease that a medicinal preparation was one used solely as a medicine.- It is evident, we think, that the Supreme Court did not so hold. It merely accepted, for the purpose of answering the questions propounded to it, that' a medicinal preparation, both as commonly [213]*213and commercially understood, was a "substance used solely in medicine * * Furthermore, it is evident, we think, from the certificate of the Circuit Court of Appeals that its definition of the term “medicinal preparation” was based upon the testimony in that case. But, however that may be, we are of opinion that the same test of use — chief use — should be applied to the provision for “medicinal preparations”, contained in paragraph 5 of the Tariff Act of 1930, as the Congress has required, by the provisions of paragraph 34, shall be applied to the drug paragraphs of that act.

Being an eo nomine provision that suggests use, it is chief use at the time of enactment of the tariff act that determines whether an article is properly classifiable as a medicinal preparation. This rule is very clearly set forth in United States v. F. W. Myers & Co., Inc., 24 C. C. P. A. 464, T. D. 48913, wherein the court said:

The term newsprint paper is an eo nomine provision. It indicates the use to which the paper is put. “Standard newsprint paper” is also an eo nomine designation and suggests its use. The particular kind of newsprint paper free fisted was “Standard newsprint paper.”
Under the well-settled rule of this and other courts, an eo nomine designation, the meaning of which is in question, must be determined as of the date of the passage of the act. In determining the meaning of a word which meaning depends upon its use, it has always been the law that proof of that use is confined to the time prior to and on the date of the passage of the act in which the term is used. In other words, what did the term mean when Congress used the same? Goldsmith's Sons v. United States, 13 Ct. Cust. Appls. 69, T. D. 40932; Wilbur-Ellis Co. v. United States, 18 C. C. P. A. (Customs) 472, T. D. 44762.

The same principle was enunciated by our appellate court in its later decision United States v. C. J. Tower & Sons, 26 C. C. P. A. 1, T. D. 49634, and this court followed it in an opinion by Judge Walker in the recent case of Purepac Corporation v. United States, C. D. 722, construing the provision for “lubricating oil” as used in the Revenue Act of 1932.

The case of United States v. Roessler & Hasslacher Chemical Co., 79 Fed.

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Related

E. F. Drew & Co. v. United States
41 C.C.P.A. 101 (Customs and Patent Appeals, 1953)
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Bluebook (online)
10 Cust. Ct. 210, 1943 Cust. Ct. LEXIS 735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-w-greeff-co-v-united-states-cusc-1943.