Theo. H. Davies & Co. v. United States

70 Cust. Ct. 5, 1973 Cust. Ct. LEXIS 3484
CourtUnited States Customs Court
DecidedJanuary 12, 1973
DocketC.D. 4399
StatusPublished
Cited by3 cases

This text of 70 Cust. Ct. 5 (Theo. H. Davies & 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
Theo. H. Davies & Co. v. United States, 70 Cust. Ct. 5, 1973 Cust. Ct. LEXIS 3484 (cusc 1973).

Opinion

Kao, Judge:

The merchandise involved in this case consists of crawler-mounted machinery manufactured by Bucyrus-Erie Co. of Canada, Ltd., entered at the port of Hilo, Hawaii, on April 9, 1969. It is described on the invoice as follows:

Model 25-B Clamshell, comb. 60-10, Series III
Unit LB-c: 40' Boom, 8 part continuous suspension (1-5' insert)
Unit 13: Boom Stop
[6]*6Unit 18: Swing Brake
Unit 78(a): Cat D-7 tractor type mtg. w/26" single grouser treads
Unit 79(B) : 850# Counterweight
Unit 56: Signal Horn
Single Stick Clamshell Control
Knockdown Method “C”

The purchase order (exhibit 1) denominates the unit as Bucyrus-Erie25-B (60-10) Series III Cane Loader.

The merchandise was assessed with duty at 8 per centum ad valorem under item 664.05, Tariff Schedules of the United States as modified, as excavating, levelling, boring and extracting machinery. Plaintiff claims it is entitled to entry free of duty under item 666.00, as amended, as harvesting machinery, chiefly used for agricultural purposes as a sugar-cane loader.

The pertinent provisions of the tariff schedules, as amended or modified, are as follows:

Schedule 6, Part 4:
Subpart B headnote;
1. This subpart does not cover—
$ $ $ ‡ ‡ ‡ $
(ii) agricultural implements (see subpart C of this part).
664.05 Mechanical shovels, coal-cutters, excavators, scrapers, bulldozers, and other excavating, levelling, boring, and extracting machinery, all the foregoing, whether stationary or mobile, for earth, minerals, or ores; pile drivers; snow plows, not self-propelled; all the foregoing and parts thereof_, 8% ad val.1
Schedule 6, Part 4, Subpart C:
666.00 Machinery for soil preparation and cultivation, agricultural drills and planters, fertilizer spreaders, harvesting and threshing machinery, hay or grass mowers (except lawn mowers), farm wagons and carts, milking machines, on-farm equipment for the handling or drying of agricultural or horticultural products, and agricultural and horticultural implements not specially provided for, and parts of any of the foregoing_ Free2

[7]*7General Headnotes and Rules of Interpretation:

10. General Interpretative Rules. For the purposes of these schedules—
* * * * * * *
(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;

At the trial plaintiff called Edwin Sorenson, assistant to the sales manager and used equipment manager of Pacific Machinery, a subsidiary of Theo. H. Davies & Co., the plaintiff herein. He had previously been general service manager for Theo. H. Davies, covering the Pacific area from Hawaii through the Samoas down to Guam and the Trust Territories. He had also held positions as used equipment and parts exchange manager and garage superintendent. Pacific Machinery sells all types of heavy equipment, such as tractors, excavators, and agricultural equipment. Mr. Sorenson had traveled throughout Hawaii, the Trust Territories, Guam and Samoa, and to mainland manufacturing plants and job sites. He had observed the use of cane loaders manufactured by Bucyrus-Erie and was familiar with the firm’s industrial machines.

Mr. Soren'son testified that he has been familiar with the type of agricultural cane loader involved herein since 1957. Prior to that time the machinery used was not built to handle the steep hillsides on the islands. The imported merchandise consists primarily of two parts, the upper part being the so-called '25-B basic unit, and the lower part a D-7 crawler mounting with grouser bars. The basic unit consists of a revolving base, the complete hoist mechanism and engine, a complete cab with operator’s controls, and a truck frame. To the basic unit there has to he added an undercarriage and a front-end attachment. The basic unit involved herein had 4-drum laggings on the hoist unit and •a larger swing brake than is on the basic unit for industrial applications. The undercarriage was a D-7 Caterpillar crawler with grouser bars, that is, a heavy truck-type undercarriage that is used on a tractor or a bulldozer. After importation, a cane grabber was installed as well, as lighting systems, larger fuel tanks, and an auxiliary engine to run the lighting system.

The combination, as imported, is designated by the manufacturer as combination 60-10. Mr. Sorenson called it an agricultural cane, loader and said it was bought and sold by that name.

[8]*8He testified that ¡he had seen it used since 1957 on agricultural plantations for the harvesting of sugar cane. It moves up and down the windrows picking up cane and loading it onto trucks. Because it travels constantly, it -has a much larger and heavier undercarriage than machines used for industrial purposes. The shoe or track has a grouser bar on it much wider than the standard flat shoe used on an industrial-type machine, ¡because the cane loader is used on steep hillsides in the Hawaiian Islands. The cane 'loader also has a larger swing brake than that on industrial machines So the operator does not lose control on the steep hillsides. It has 4-drum laggers for speeding up lifting. It does not need the higher lifting capacity of industrial machines. According to Mr. Sorenson, industrial machines work off a flat area Such as a roadway or in a flat floor area of a quarry and do not move while they are working, unless used to drag out a channel or canal. They would travel about 5 miles a year in contrast to the cane loader which travels 1 y2 miles per day during a 10-month period.

These features make the cane loader more expensive than industrial machines. In the experience of the witness, the cane loader is used only for harvesting sugar cane. He had sold such machines to plantation accounts and to al'l the sugar companies on the islands and had seen them used on agricultural plantations. He had never sold any to an industrial account. He had never Seen them used or sold for anything but harvesting sugar. He said they would he unsuitable and expensive for other purposes. While he had never sold this merchandise on the mainland of the United States, he was of opinion that it would be extremely unusefu'l for applications there other than harvesting sugar because of the excessively long undercarriage, the grouser track shoes and the large lagging. These would not make the machine useful as a shovel, back hoe, or dragline. The undercarriage used with the 25-B basic unit to form the imported merchandise is not offered by Bucyrus-Erie for the model 25-B.

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Bluebook (online)
70 Cust. Ct. 5, 1973 Cust. Ct. LEXIS 3484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/theo-h-davies-co-v-united-states-cusc-1973.