Rembrandt Electronics, Inc. v. United States

75 Cust. Ct. 103, 405 F. Supp. 588, 1975 Cust. Ct. LEXIS 2209
CourtUnited States Customs Court
DecidedOctober 16, 1975
DocketCourt No. 67/83657
StatusPublished
Cited by2 cases

This text of 75 Cust. Ct. 103 (Rembrandt Electronics, 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
Rembrandt Electronics, Inc. v. United States, 75 Cust. Ct. 103, 405 F. Supp. 588, 1975 Cust. Ct. LEXIS 2209 (cusc 1975).

Opinion

Ford, Judge:

This case involves the proper classification of certain articles described on the commercial invoices as “Television Antenna Switch unwired with Nut” which were classified as electrical switches under the provision of item 685.90, Tariff Schedules of the United States, and assessed with duty at the rate of 17.5 per centum ad va-lorem. Plaintiff contends the merchandise, a patented device for use in a television antenna, is properly subject to classification as parts of television reception apparatus under item 685.20, Tariff Schedules of the United States, and as such subject to duty at 10 per centum ad valorem.

Defendant concedes in its brief that the imported merchandise is used exclusively in television antennas but contends the provision for electrical switches more definitely describes the article and therefore must prevail over a “parts” provision by virtue of General Interpretative Rule 10(ij) of the Tariff Schedules of the United States. Plaintiff on the other hand takes the position that the law is well settled that the articles set forth in item 685.90, supra, cover only [104]*104articles used for electrical power sources and not those utilized in audio or television circuits. Midland International Corporation v. United States, 62 Cust. Ct. 164, C.D. 3715, 295 F. Supp. 1101 (1969); General Electric Company v. United States, 63 Cust. Ct. 140, C.D. 3887 (1969), aff'd, 58 CCPA 152, C.A.D. 1021, 441 F. 2d 1186 (1971).

The pertinent statutory provisions read as follows:

Item 685.90, TSUS:
Electrical switches, relays, fuses, lightning arresters, plugs, receptacles, lamp sockets, terminals, terminal strips, junction boxes and other electrical apparatus for making or breaking electrical circuits, for the protection of electrical circuits, or for making connections to or in electrical circuits; switchboards (except telephone switchboards) and control panels; all the
foregoing and parts thereof_ 17. 5% ad val.
Item 685.20, TSUS:
Radiotelegraphic and radiotelephonic transmission and reception apparatus; radiobroadcasting and television transmission and reception apparatus, and television cameras; record players, phonographs, tape recorders, dictation recording and transcribing machines, record changers, and tone arms; all of the foregoing, and any combination thereof, whether or not incorporating clocks or other timing apparatus, and parts thereof:
. * * * * * * *
Radiotelegraphic and radiotelephonic transmission and reception apparatus; radio-broadcasting and television transmission and reception apparatus, and parts thereof:
Television apparatus, and parts thereof- 10% ad val.
10. General Interpretative Rules. For the purposes of these schedules—
* * * * ❖ * *
(ij) a provision for "parts” of an article covers a product solely or chieñy used as a part of such article, but does not prevail over a specific provision for such part.

The record presented on behalf of plaintiff consists of the testimony of three witnesses and the introduction into evidence of 10 exhibits. Defendant offered the testimony of one witness and one exhibit was received on its behalf.

[105]*105The first witness called on behalf of plaintiff was Mr. William T. Korn, president of Rembrandt Electronics, Inc. and All Channel Products. Rembrandt was the purchaser of the raw material and manufactured the antenna which was sold by All Channel Products until approximately two years ago. At present, All Channel Products does the purchasing and selling. The witness was familiar -with the imported antenna switches and testified that prior to importing them and at present the switches were manufactured and purchased from Centralab in the United States.

The switches, according to witness Korn, whether imported or made by Centralab were manufactured pursuant to the patent of Marvin P. Middlemark who was paid royalties. There is only one type of antenna switch involved although some were imported with wires and others without.

Mr. Marvin P. Middlemark, inventor of the antenna of which the switch is an integral part, is presently chairman of the board of All Channel Products. The witness identified exhibit 1 as the switching arrangement of the antenna. The switching arrangement is utilized to combine different combinations for the antenna to enable it to eliminate ghosts or bring in television signals from different directions. The -witness testified that the transcript of the examination before trial which was received in evidence as plaintiff’s exhibit 7 is accurate.

On cross-examination, Mr. Middlemark testified he was not an engineer but has an engineering background. He admitted the imported article is a switch hut would not agree that it was an electrical switch. According to the witness, the switch merely connects different elements of the antenna. The wires connected to the switch carry high frequency induced voltages which are picked up by the antenna. After having examined exhibit 2, the witness was of the opinion that it appeared to be the same as plaintiff’s exhibit 1. Mr. Middlemark testified that in his opinion an electrical switch is one in which power is carried. The switch, in his opinion, is not an electrical switch notwithstanding the reference in his patent to the terms “electrical connection,” “electrically connected” and “electrically connecting.” The term “electric” according to witness Middlemark is a very broad term.

Next called on behalf of plaintiff was Mr. William L. Fowler, vice president of marketing for Centralab Electronics, the American manufacturer of the switch used in the Rembrandt antenna. Mr. Fowler has a B.A. in physics, master of business administration and a master of science and engineering with an electronics major. Prior to his association with Centralab, which is among the top three manufacturers of switches in the United States, he was employed by Texas Instrument, Inc. for 11 years in various positions including [106]*106manager of applications engineering and manager of the radio-TV design group. His duties during his employment included among other things application of switches.

Plaintiff’s collective exhibit 8 is the design submitted by All Channel for the manufacture of a switch. Centralab has been making and supplying this switch to All Channel since 1958. A sample of the switch manufactured by Centralab pursuant to the specifications contained in plaintiff’s collective exhibit 8, was received in evidence as plaintiff’s exhibit 9. On voir dire, Mr. Fowler stated that the switch, plaintiff’s exhibit 9, is covered by a patent held by Mr. Middlemark. According to Mr. Fowler, exhibit 9 is not a general purpose switch but is a custom-made switch designed primarily for interconnections of audio- and radio-frequency components.

Upon being shown exhibit 4, a single gang rotary switch manufactured by Mallory, Mr. Fowler testified that exhibit 4 is a general purpose switch and could not be substituted by All Channel in the manufacture of its antennas. Based upon his experience the witness testified that rotary switches have in excess of 15,000 uses but the involved switch, in his opinion, would not be applicable to any such uses.

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Related

United States v. Rembrandt Electronics, Inc.
542 F.2d 1154 (Customs and Patent Appeals, 1976)
Inter-Maritime Forwarding Co. v. United States
77 Cust. Ct. 7 (U.S. Customs Court, 1976)

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Bluebook (online)
75 Cust. Ct. 103, 405 F. Supp. 588, 1975 Cust. Ct. LEXIS 2209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rembrandt-electronics-inc-v-united-states-cusc-1975.