Varian Associates v. United States

56 C.C.P.A. 54, 1969 CCPA LEXIS 403
CourtCourt of Customs and Patent Appeals
DecidedFebruary 6, 1969
DocketCommerce Appeal No. 2, C.A.D. 953
StatusPublished

This text of 56 C.C.P.A. 54 (Varian Associates v. United States) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Varian Associates v. United States, 56 C.C.P.A. 54, 1969 CCPA LEXIS 403 (ccpa 1969).

Opinion

Worley, Chief Judge,

delivered the opinion of the court:

Varian Associates (Yarian) appeals from a decision of the Secretary of Commerce1 approving an application of Illinois State University (ISU) for duty-free entry of a Hitachi Perkin-Elmer nuclear magnetic resonance (NMR) spectrometer which ISU proposed to purchase from the Japanese manufacturer.

The claim for free entry was made pursuant to Item 851.60, Tariff Schedules of the United States (TSUS), under the Educational, Scientific and Cultural Materials Importation Act of 1966, 80 Stat. 897 (898), 19 USC 1202, Schedule 8, Part 4, Headnote 6.2 That item reads:

Articles entered for tlie use of any nonprofit institution, whether public or private, established for educational or scientific purposes:
851.60 Instruments and apparatus, if no instrument or apparatus of equivalent scientific value for the purposes for which the instrument or apparatus is intended to be used in being manufactured in the United States (.see headnote 6 to this part)_ Bree

[56]*56The jurisdiction of this court is specified in 28 USC 1544 as follows:

The Court of Customs and Patent Appeals shall have jurisdiction to review, by appeal on questions of lato only, findings of the Secretary of Commerce under headnote 6 to schedule 8, part 4, of the Tariff Schedules of the United States (relating to importation of instruments or apparatus). [Emphasis supplied.]

ISU filed.its application3 accompanied by an addendum and an additional descriptive paper designated “Specifications for the Purchase of a Nuclear Magnetic Resonance Spectrometer.” The reasons set out in the application why the Varian instrument is not the scientific equivalent of the Japanese article included the following:

2. Variable temperature work is planned — particularly low temperature studies of small chemical shift temperature coefficients, and thermodynamic and kinetic studies of conformational changes which require the best available range, stability, and determination of sample temperature. The Perkin Elmer R-20 specifications include the range of —100°G to 200°G, automatically controlled, without loss of resolution, stable to within ±.5° and precisely determinable at the sample due to an “In probe” thermocouple. The Varian variable temperature specifications offer temperature control at the sample of ±2°0, [4] and a calibration accuracy of ±3°C and a —60°C to 200°G range-with spinning sample. [Emphasis supplied.]

In approving the application the Secretary stated:

No instrument or apparatus of equivalent scientific value to the foreign article, for the purposes for which such article is intended to be used, is being manufactured in the United States. REASONS: (1) The foreign article provides a sample temperature range from minus 100 degrees Centigrade to plus 200 degrees Centigrade. (See specifications for Hitachi Perkin-Elmer Model R-20 High Resolution Nuclear Magnetic Resonance Spectrometer.) The Varian Model HA-60IL-HR-60 has a temperature range from minus 60 degrees Centigrade to plus 200 degrees Centigrade. (Varian brochure V4341 and V4341-1.) We are advised by the Department of Health, Education, and Welfare (HEW) (memorandum dated September 28, 1967), that, in view of the purposes for which the [57]*57foreign article is intended to be nsed, tbe difference in temperature range is significant. (2) Tbe foreign article provides a means for controlling tbe temperature witbin plus or minus 0.5 degree Centigrade whereas tbe Varían Model HA-60IEHR-60 provides a means for controlling tbe temperature witbin plus or minus 1 degree Centigrade. We are advised by tbe National Bureau of Standards (memorandum dated October 20, 1967) that “tbe difference between ±1.0°C and ±0.5°C is such as to affect significantly tbe capability to perform certain experiments.”
For tbe foregoing reasons, we find that tbe Varían Model HA-60IL-HR.-60 is not of equivalent scientific value to tbe foreign article for tbe purpose for wbicb sucb article is intended to be used.

Varían filed comments before the Secretary opposing tbe application, asserting that it manufactured apparatus which is of equivalent scientific value to the proposed, import. Those comments raised two issues, i.e., whether the Varían apparatus performs in the same temperature range, and whether it has the same temperature stability as the Japanese equipment. Here Varían argues the same questions, along with other contentions not raised below.

We think it clear that those contentions made here for the first time cannot be considered by us. It is firmly established that a court reviewing the action of an administrative agency does not consider issues raised by the party seeking review which could have been raised before the agency but were not. Unemployment Compensation Commission v. Aragon, 329 U.S. 143 (1946); United States v. L. A. Tucker Truck Lines, Inc., 344 U.S. 33 (1952). That principle governs here since Vardan’s new arguments could, and should, have been raised before the Secretary.

As to the matters properly before us, we have set out the statute which gives us jurisdiction to review the findings of the Secretary “on questions of law only.” Such review of the findings here is limited to determining whether the administrative decision is supported by substantial evidence. In re Von Clemm, 43 CCPA 56, CAD 609 (1955); Universal Camera Corp. v. National Labor Relations Board, 340 U.S. 474 (1951); Securities and Exchange Commission v. New England Electric System, 390 U.S. 207, 211 (1968).

With respect to the Secretary’s findings that the domestic instrument does not match the temperature characteristics of the Japanese article, Varían points out that it stated in its comments regarding the application that the temperature range of its instrument is from —120°C to 200°C and that its “temperature control specification * * * is ±1°C, and in a typical operation, more nearly ±%°C.” However, a brochure which Varían submitted with its comments has the temperature range printed therein as “ —60°C to +200°C”.at two locations with the figure “ —60o,C” crossed out and the figure “ — 120° C” substituted by hand at only one of the locations. The printed bro[58]*58chure sets out the temperature control characteristic as ±1°C at the sample contrary to its assertion relative to ±y2°C in its comments as cited above, and no change or correction was made in that item.

We are satisfied that such evidence must be ¡accepted under the present circumstances as substantial support for the finding that the Varian apparatus has a temperature rnge of but — 60°C to 200°C rather than one extending from — 100°C or — 120°C to the same upper limit.

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56 C.C.P.A. 54, 1969 CCPA LEXIS 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/varian-associates-v-united-states-ccpa-1969.