Tower v. United States

43 Cust. Ct. 36, 177 F. Supp. 470
United States Customs Court·Decided July 13, 1959·No. C.D. 2100·Published·Cited by 118 cases

Opinion

Donlon, Judge:

Two protests are before us, consolidated for purposes of trial. The merchandise in controversy in both cases is pork meat which was imported from Canada at the port of Buffalo.

The official papers are in evidence.

The entry of protest 257669-K included various meats imported on September 14, 1954, by truck from the plant of Canada Packers, Limited, at West Toronto, Ontario, via Fort Erie, consigned to C. J. Tower & Sons, the importer of record and plaintiff here, at Buffalo. [38]*38The merchandise, liquidation of which was protested, is described in the consumption entry as “6 bxs. — SP & DS Meats.” The official papers show that this meat is poi’k backs, which were entered at a duty rate of 3% cents per pound under paragraph 703, and that the merchandise was liquidated as entered. The protest claims that “said merchandise is properly dutiable at 20 lb. under Par. 703 and T.D. 51802.”

The entry of protest 321367-K likewise included various meats. These were imported on April 16, 1957, by truck from the West Toronto plant of Canada Packers, Limited, via Fort Erie, consigned to plaintiff at Buffalo. There was included certain merchandise, described in the consumption entry as “Smoked Pork Bacon, F.S. In Airtight Containers, 75 ctns.,” and in the invoice as “Smoked Pork Bacon, F.S., 75 CTN. SMK F.S. Sliced Backs.” The official papers show that these smoked sliced backs were entered at a rate of 3% cents per pound under paragraph 703 and that the merchandise was liquidated as entered. The protest claims that “flavor-sealed bacon and similar merchandise ... is properly dutiable at 20 per lb. under Par. 703.”

Both protests claim (although entries did not claim) the benefit of the modification of paragraph 703, Tariff Act of 1930, made by the General Agreement on Tariffs and Trade (GATT), effective January 1, 1948, and published as T.D. 51802. This modification reads as follows:

Bacon, hams, and shoulders, and other pork, prepared or preserved, but not including any of the foregoing if cooked, boned, packed in air-tight containers, or made into sausages of any kind-20 per lb.

Certain facts were stipulated on trial, exhibits were introduced into the record, and plaintiff adduced the testimony of one witness.

The stipulated facts include the following (R. 5):

(1) All bacon is boned.
(2) All canned pork products are cooked and honed.
(3) Some bacon is canned.
(4) Not all cooked pork products are canned.
(5) Not all cooked pork products are boned.

Plaintiff’s witness, Mr. Christian Thorsen of Toronto, identified himself as assistant to the general superintendent of Canada Packers, Limited. The business is meat packing. Mr. Thorsen has been with Canada Packers since 1927. He has been in the meat industry since 1913, first in his native Denmark and thereafter in England and Scotland, before coming to Canada. He now has supervisory duties in 12 Canadian and 2 midwestern American plants.

Mr. Thorsen explained the abbreviated invoice and entry descriptions of the protest merchandise as follows (R. 35, 36, 38, 39):

[39]*39SP PM SO backs are ‘‘sweet-pickled, pea meal, short-cut backs.”
F.S. sliced backs are flavor-sealed backs.
The sweet-pickled backs are individually wrapped in parchment and packed six to a case, or box, for shipment. These backs are neither smoked nor sliced.
The flavor-sealed backs are smoked and sliced. They are packaged in lots of 6 ounces; each 6-ounce lot is placed on a piece of white cardboard and then put into a plastic container, which is heat sealed and overlapped. A paper wrapping is then put around the plastic container. Twelve such packages of sliced bacon are put into a carton; there are six cartons to a case.

There seems to be no explanation in the record of the significance of “DS,” a descriptive abbreviation that is used both in the entry and invoice for that meat which is more particularly described as sweet-pickled, pea-meal, short-cut backs, the merchandise of protest 257669-K.

There are in evidence three packages of bacon which, as to meat and the method of packaging it, are said to be representative of the bacon of protest 321367-K. (Exhibits 6 (one package) and 8 (two packages).) A cardboard base, plastic container, and parchment wrapper, typical of materials used in packaging the bacon, are also in evidence. (Exhibit 7.)

The issue in both protests is whether the merchandise is or is not within the exclusionary language of the GATT modification of paragraph 703. If it is within the intent of that language, the merchandise is not entitled to the benefits of the GATT rate reduction. If it is not within the intent of that language, the merchandise is entitled to the benefits of the GATT rate reduction.

The meat of protest 257669-K is sweet-pickled pork backs, in chunks. It is “other” pork (not bacon, hams, or shoulders) that has been prepared or preserved. It is not cooked. It is boned. It is not packed in airtight containers. It has not been made into sausages of any kind.

The meat of protest 321367-K is sliced smoked bacon. It is the product “bacon,” specifically enumerated in the GATT modification. It has not been cooked. It has been boned. It is for us to decide whether it is packed in airtight containers. It has not been made into sausages of any kind.

It is plaintiff’s contention, as to the pickled pork backs, that although they are boned (as the bacon is) they are not cooked or packed in airtight containers, and that all three of these conditions must be conjoined in order for the backs to come within the language of the GATT exclusion. Defendant does not dispute the fact that these backs are boned and neither cooked nor packed in airtight containers; but contends that the boning alone suffices to bring these backs within the exclusionary GATT provision.

It is plaintiff’s contention, as to the sliced bacon, that although boned (as the pork backs are) it is neither cooked nor packed in airtight con[40]*40tainers, and that all three of these conditions must be conjoined in order for the bacon to fall within the GATT exclusion. Defendant agrees that this bacon is boned but not cooked, and contends that it is packaged in airtight containers. Defendant concedes that boning alone would not suffice to take this bacon into the exclusionary GATT provision, but argues that the airtight containers do bring it within that provision.

The only issue of fact, then, is whether the bacon is packaged in an airtight container. We defer consideration of that issue of fact until we have decided the basic law issue which plaintiff raises, namely, the proper interpretation of the GATT provision. If plaintiff’s views are correct, it is immaterial, on the agreed facts, whether the bacon packaging is or is not an airtight container.

The crux of the controversy is whether the three conditions set forth in the GATT modification of paragraph 703 — “cooked, boned, packed in air-tight containers” — are to be read conjunctively or disjunctively. Plaintiff argues for the former; defendant, except in part as to the bacon, for the latter.

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Tower v. United States, 43 Cust. Ct. 36, 177 F. Supp. 470 (cusc 1959).

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