Sommers Fabrics Corp. v. United States

62 Cust. Ct. 953, 1969 Cust. Ct. LEXIS 3446
CourtUnited States Customs Court
DecidedJune 5, 1969
DocketR.D. 11670; Entry Nos. 716427; 911821
StatusPublished

This text of 62 Cust. Ct. 953 (Sommers Fabrics Corp. 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
Sommers Fabrics Corp. v. United States, 62 Cust. Ct. 953, 1969 Cust. Ct. LEXIS 3446 (cusc 1969).

Opinion

Watson, Judge:

The merchandise involved in these consolidated appeals for reappraisement, consists of vinyl plastic sheeting manufactured in West Germany and exported between January and June of 1962. It was apjiraised on the basis of United States value of such merchandise (section 402a(e) of the Tariff Act of 1930, as amended by the Customs Simplification Act of 1956, T.D. 54165). Plaintiff claims that the merchandise should be appraised under section 402a (f) of said act, on the basis of cost of production.

It was stipulated between the parties that there was no one price at which similar merchandise imported from West Germany was freely offered for sale for domestic consumption, packed ready for delivery in the principal markets of the United States, at or about the time of exportation of the imported merchandise, in the usual wholesale quantities and in the ordinary course of trade (K. 5-6). It was further stipulated between the parties that the principal market for such merchandise was the metropolitan New York area (K. 6).

The specific issue, in this case, is whether there is a United States value for the involved merchandise as contended by the defendant, or whether it is necessary to resort to cost of production to determine the proper value of the merchandise.

It is the position of the plaintiff, that United States value (section !02a(e)), has been eliminated from consideration since there was no one price at which the involved merchandise was freely offered for sale for domestic consumption in the principal markets of this coup-[955]*955try. It is further contended that plaintiff’s exhibit 1, an affidavit of the manufacturer, establishes the proper cost of production of the merchandise.

The statutes herein involved, are as follows:

Section 402a (e), supra:
United States Value. — The United States value of imported merchandise shall be the price at which such or similar imported merchandise is freely offered for sale for domestic consumption, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of exportation of the imported merchandise, in the usual wholesale quantities and in the ordinary course of trade, with allowance made for duty, cost of transportation and insurance, and other necessary expenses from the place of shipment to the place of delivery a commission not exceeding 6 per centum, if any has been paid or contracted to be paid on goods secured otherwise than by purchase, or profits not to exceed 8 per centum and a reasonable allowance for general expenses, not to exceed 8 per centum on purchased goods.

Section 402a (f), supra:

Cost oe Production. — For the purpose of this title the cost of production of imported merchandise shall be the sum of—
(1) The cost of materials of, and of fabrication, manipulation, or other process employed in manufacturing or producing such or similar merchandise, at a time preceding the date of exportation of the particular merchandise under consideration which would ordinarily permit the manufacture or production of the particular merchandise under consideration in the usual course of business;
(2) The usual general expenses (not less than 10 per cen-tum of such cost) in the case of such or similar merchandise;
(3) The cost of all containers and coverings of whatever nature, and all other costs, charges, and expenses incident to placing the particular merchandise under consideration in condition, packed ready for shipment to the United States; and
(4) An addition for profit (not less than 8 per centum of the sum of the amounts found under paragraphs (1) and (2) of this subdivision) equal to the profit which ordinarily is added, in the case of merchandise of the same general character as the particular merchandise under consideration, by manufacturers or producers in the country of manufacture or production who are engaged in the production or manufacture of merchandise of the same class or kind.

The pertinent record consists of the testimony of one witness called by the plaintiff, and an affidavit of the manufacturer of the involved merchandise (plaintiff’s exhibit 1). Swatches, typical of the materials purchased by plaintiff from the manufacturer herein, were introduced in evidence as plaintiff’s exhibit 2 (R.8). The defendant introduced in evidence a report of Customs Agent A. John Kessel, dated March 13, 1963 (defendant’s exhibit A).

[956]*956Plaintiff’s exhibit 1 is an affidavit of Dieter Lissman, a principal in the firm of Alkor GmbPI, manufacturer of the imported merchandise. Mr. Lissman stated that he is in charge of and “intimately acquainted” with the items manufactured by his firm and supervises and has access to the sales record, records of cost and manufacture and production, as well as records pertaining to general expenses and all other expenses embraced in the manufacture and sale of the products of his firm. The affiant further stated that based upon these records the following were the cost of production figures for the period between January 1962 and June 1962, in deutsche marks the currency of the country of production (plaintiff’s exhibit 1, paragraph 8) :

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62 Cust. Ct. 953, 1969 Cust. Ct. LEXIS 3446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sommers-fabrics-corp-v-united-states-cusc-1969.