Union Carbide Int'l Co. v. United States

66 Cust. Ct. 46, 1971 Cust. Ct. LEXIS 2418
CourtUnited States Customs Court
DecidedJanuary 25, 1971
DocketC.D. 4166
StatusPublished
Cited by1 cases

This text of 66 Cust. Ct. 46 (Union Carbide Int'l 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
Union Carbide Int'l Co. v. United States, 66 Cust. Ct. 46, 1971 Cust. Ct. LEXIS 2418 (cusc 1971).

Opinion

Rosenstein, Judge:

This case involves the classification of certain merchandise, invoiced as “Manganese Nodules”, which had been mined in British Guiana (now Guyana) and Ghana, thence shipped to Sauda, Norway for processing, and subsequently shipped to the United States where it was entered at the port of Baltimore in August 1964 as manganese ore under TSUS items 601.27 and 911.07. The merchandise was classified under TSUS item 603.70 as other metal-bearing materials of a type commonly used for the extraction of metal or as a basis for the manufacture of chemical compounds, and assessed with duty thereunder at the rate of 15 per centum ad valorem.

Plaintiff claims that shipment is entitled to entry free of duty as manganese ore.

[47]*47The pertinent provisions of the Tariff Schedules of the United States read as follows:

Schedule 6, Part 1:
Part 1 headnotes:
1. This part covers metal-bearing ores, and certain other metal-bearing materials. * * *
‡ ‡ ‡ ‡ ‡ ‡
2. For the purposes of this part—
(a) the term “metal-bearing ores” embraces only metalliferous minerals, whether crude or concentrated (by crushing, flotation, washing, or by. other physical or mechanical separation processes which do not involve substantial chemical change), and roasted or sintered lead, copper, and zinc concentrates, from which precious metals or base metals, as defined in headnote 2 of this schedule, are commercially obtained, including metals obtained directly in unalloyed form, in the form of alloys, or in the form of chemical compounds;
(b) the term “other metal-bearing materials of a type commonly used for the extraction of metal or as a basis for the manufacture of chemical compou/ads,'> embraces ash, slag, dross, scale, mattes, speiss, skimmings, flue dust, fumes, refinery slimes, residues, and all other materials (except metal-bearing ores, as above defined, and the dross or residuum from burnt pyrites) of a type from which precious metals or base metals, as defined in headnote 2 of this schedule, are commonly obtained (either as the result of a further processing of the materials as such, or as a result of the addition of the materials as alloying materials to other materials being processed), including metals obtained directly in unalloyed form, in the form of alloys, or in the form of chemical compounds; [Emphasis copied.]
Classified:
Other metal-bearing materials of a type commonly used for the extraction of metal or as a basis for the manufacture of chemical compounds:
Jfc ^ «H H» íjí
Other:
s-í íj:
603.70 Other_ 15% ad val.
Claimed:
Metal-bearing ores and the dross or residuum from burnt pyrites:
‡ ‡ ‡ ‡ ‡
601.27 Manganese ore, including ferruginous manganese ore, and manganiferous iron ore, all the foregoing containing over 10 percent by weight of manganese_ 0.25$ per lb. on manganese content
[48]*48911.07 Manganese ore, including ferruginous manganese ore, and manganiferous iron ore, all the foregoing containing over 10 percent by weight of manganese (provided for in item 601.27, part 1, schedule 6)_Free

Plaintiff produced three witnesses: Kobert N. Johnson, product manager of the importer’s Mining and Metals Division and former assistant director of its foreign operations including its overseas smelting plants; Dr. Robert A.. Hard, director of the research and development programs in the importer’s Mining and Metals Division; and Edgar Bell Manche, manager of raw materials research for Bethlehem Steel Corporation.

The material at bar originated in British Guiana and Ghana where it was 'bought by the importer as “raw” (mined and washed) ore. The merchandise, as purchased, contained manganese dioxide (Mn02), a common manganese mineral. Also present in the ore, as shown in collective exhibit 3 (characterized by the witness Hard as “typical commercial analyses which give the important ingredients in the ore”), are iron,1 phosphorus, and oxides of silicon, aluminmn, calcium and potassium.

The ore was shipped to a subsidiary of the importer in Sauda, Norway where it was screened to remove particles smaller than one-quarter inch in size, known as “fines”. The particles over one-quarter inch were heated with coke in a smelting furnace to produce standard ferromanganese, 'an alloy of iron, manganese and iron. In this process, the manganese in the ore is reduced to a metallic state.

The fines were mixed with a “small amount” of coal or coke and “agglomerated” in a rotary kiln in a process described as follows:

* * * The blend is passed through a rotary kiln in which oil and gas are fired. As the kiln rotates, the ore reaches a temperature at which it becomes plastic, semi-solid. The rotary action of the kiln agglomerates the semi-plastic particles of ore into nodules that are anywhere from one-half to one inch in size.

The heating removed the moisture in the form of steam, which was described by Hard as a “physical reaction”. However, chemical changes also took place in the kiln. At between 2000 to 2200 degrees Fahrenheit (or “roughly” between 1100 and 1250 degrees centigrade) the manganese dioxide lost one oxygen atom and was converted to manganous oxide (MnO). Apparently the conversion to this oxide was not total as, according to Hard, “some of it is Mn304 and some of it is Mn203.” This conversion also changed the valence state of the manganese. The oxygen atom released from the Mn02 combined with [49]*49tlie carbon in the coke to form carbon monoxide and carbon dioxide. (The carbon, which served, in addition, as a fuel, also united with the oxygen in the kiln gas.)

The purpose of the kiln operation was “to effect a physical change, agglomerating small particles into large particles” for use in producing ferromanganese and other manganese-bearing alloys. It is not commercially practicable to use fines in the production of these alloys because, when fed directly into the electric furnace, they prevent the escape of the gases formed during reduction. This condition has resulted in explosions which demolished furnaces and caused fatalities. The nodules obtained in the Sauda plant are then used in the same manner as the larger pieces which were screened out.

There is no removal or separation of the gangue (unwanted materials) or matrix in the Sauda process. Therefore, the witness Mancke testified, because of the presence of the gangue, he would consider the nodules to be an ore, but not a concentrated ore. However, according to Hard, the nodules are a concentrated ore, or “metal-bearing concentrate”, as the manganese content was upgraded by the loss of water and removal of oxygen.

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Related

Union Carbide Int'l, Co. v. United States
461 F.2d 818 (Customs and Patent Appeals, 1972)

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Bluebook (online)
66 Cust. Ct. 46, 1971 Cust. Ct. LEXIS 2418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-carbide-intl-co-v-united-states-cusc-1971.