Texas Co. v. United States

48 Cust. Ct. 257
CourtUnited States Customs Court
DecidedJune 14, 1962
DocketC.D. 2346
StatusPublished

This text of 48 Cust. Ct. 257 (Texas 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
Texas Co. v. United States, 48 Cust. Ct. 257 (cusc 1962).

Opinions

LaweeNCe, Judge:

Plaintiff imported a device described in tbe record as a “gear lubricant testing machine and equipment.” It was classified by the collector of customs as “Laboratory apparatus” in paragraph 360 of the Tariff Act of 1930 (19 U.S.C. § 1001, par. 360), as modified by the Torquay Protocol to the General Agreement on Tariffs and Trade, 86 Treas. Dec. 121, T.D. 52739, supplemented by Presidential notification, 86 Treas. Dec. 337, T.D. 52820, and duty was imposed thereon at the rate of 30 per centum ad valorem.

Plaintiff, by its protest, claims that the importation should be classified in said paragraph 360, as modified by the General Agreement on Tariffs and Trade, 82 Treas. Dec. 305, T.D. 51802, which provides for “Laboratory instruments, apparatus, or appliances, for determining the strength of materials or articles in tension, compression, torsion, or shear, * * * and parts thereof,” and subjected to duty at the rate of 20 per centum ad valorem.

When the case originally came on for trial, plaintiff, in its opening statement, made the same claim as was set out in the protest. However, at the close of the trial, plaintiff limited its claim of classification as laboratory instruments, apparatus, or appliances, for determining the strength of materials or articles in compression or shear, making no claim as to tension or torsion, and the case was submitted for decision. Subsequently, however, upon motion of plaintiff, the submission was set aside and the case restored to the calendar.

When the case was next called for trial, plaintiff moved that the record be amended to include the words “we also claim that torsion is involved,” and, there being no objection by the defendant, the record was amended accordingly and the case resubmitted.

[259]*259The pertinent text of paragraph 360 of the Tariff Act of 1930, as modified, swpra, which was in force at the time the merchandise in controversy was entered for consumption, reads as follows:

Paragraph 360, as modified by the Torquay protocol and Presidential notification, supra:

Scientific and laboratory instruments, apparatus, utensils, appliances (including mathematical instruments, but not including surveying instruments), and parts thereof, wholly or in chief value of metal, and not plated with gold, silver, or platinum, finished or unfinished, not specially provided for:
Slide rules wholly or in chief value of synthetic resins-* * *
Other (except laboratory instruments, apparatus, or appliances, for determining the strength of materials or articles in tension, compression, torsion, or shear; moisture testers; pyrometers; and parts of any of the foregoing)-30% ad val.

Paragraph 360, as modified by the General Agreement on Tariffs and Trade, supra:

Laboratory instruments, apparatus, or appliances, for determining the strength of materials or articles in tension, compression, torsion, or shear, and pyrom-eters and moisture testers which are scientific or laboratory instruments, apparatus, utensils, or appliances; all the foregoing and parts thereof, wholly or in chief value of metal, and not plated with gold, silver, or platinum, finished or unfinished, not specially provided for-20% ad val.

Plaintiff introduced the following exhibits which were received in evidence.

Illustrative exhibit 1 — photograph of the apparatus in controversy.

Illustrative exhibit 2 — photograph of a portion of the apparatus in which lubricants are tested.

Illustrative exhibit 3 — simplified line drawing to illustrate the basic principles of the testing mechanism.

Collective illustrative exhibit 4 — two unused gears of special description for use in the testing portion of the apparatus.

Illustrative exhibit 5 — one of such gears which had been used in a testing operation.

Defendant introduced exhibit A, an operators’ handbook, published by the manufacturer of the apparatus in controversy, which states the purpose, use, and description of the apparatus and its principal parts. It also contains instructions as to the installation and operation of the apparatus.

At the trial, Emil F. Koenig, the only witness in the case, was called by plaintiff. From his testimony, it appears that he is department head of the Products Application Department of the Texaco Research Center of Texaco, Inc., at Beacon, N.Y. He is a graduate of the University of Minnesota with the degree of bachelor of chemical engineering. After graduating from the university, he found employment in chemical engineering, as an inspection engineer, and also as a plant production engineer. Since 1941, he has been employed at [260]*260the Texaco Research Center, above referred to, which is maintained by the Texaco company, producer, refiner, and marketer of petroleum products. The center is engaged in fundamental scientific research and the application of scientific principles and methods for developing and testing products for commercial use.

The qualifications of the witness Koenig to testify upon the subject here in controversy are well established and not challenged. As head of the Products Application Department, he was familiar with the various types of mechanical test work necessarj? for evaluating the commercial possibilities or need for improvements in Texaco products, which includes lubricants, fuels, and various industrial oils. For many years, Koenig had devoted a great deal of his working time to the mechanical testing of petroleum lubricants.

After the subject apparatus was imported, it was installed in Koenig’s department, where it was being operated under his supervision. As a matter of fact, he has, at times, operated the machine himself.

The device under consideration is a carefully integrated assembly of parts which is used to test, in comercial laboratories, the efficiency of oil lubricants in protecting certain types of gears, such as those used in jet aircraft engines, from wear. As stated in the Operators’ Handbook, defendant’s exhibit A, at page 1—

This machine is specially designed for investigating the antiseuflmg properties of engine oils of the mildly doped types used in aero engine reduction gears, and is intended to give an indication of the suitability of these oils as gear lubricants, as a preliminary step before running full scale engine tests. The oils are tested by finding at what load scuffing occurs on the teeth of gears of standard type.

When asked to explain how the imported device determines the strength of material in compression or shear, the witness pointed out that when the gear teeth are in contact they are, by reason of the load applied to them, under a compressive force, and shearing action takes place as the gears rotate by each other. The ultimate result sought to be established by the use of the device is the ability of the lubricant to prevent contact of the gears, in other words, to establish an oil film to prevent a direct metal-to-metal contact, which causes scuffing, wearing, and deterioration of the gears. The ability to protect the gear metal parts depends upon the strength of the lubricant in compression and its resistance to the pressure imposed on the lubricant when the gears are rotating.

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Related

Turner v. United States
40 Cust. Ct. 439 (U.S. Customs Court, 1958)

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Bluebook (online)
48 Cust. Ct. 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-co-v-united-states-cusc-1962.