W. Kay Co. v. United States

53 Cust. Ct. 130, 1964 Cust. Ct. LEXIS 2288
CourtUnited States Customs Court
DecidedOctober 14, 1964
DocketC.D. 2484
StatusPublished
Cited by85 cases

This text of 53 Cust. Ct. 130 (W. Kay 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
W. Kay Co. v. United States, 53 Cust. Ct. 130, 1964 Cust. Ct. LEXIS 2288 (cusc 1964).

Opinion

KiciiardsoN, Judge:

Tbe merchandise involved in this case consists of teacups and saucers, imported from Japan in 1958, and assessed with duty as decorated china tableware at 60 or 45 per centum ad val-orem and 10 cents per dozen pieces under paragraph 212 of the Tariff Act of 1930, as modified by the General Agreement on Tariffs and Trade, TJD. 51802, or the Protocol of Terms of Accession by Japan to the General Agreement on Tariffs and Trade, TJD. 53865, effective September 10, 1955, T.D. 53877. It is claimed that the merchandise is not tableware and is properly dutiable under said paragraph 212, as modified, at 45 per centum ad valorem.

Samples of the merchandise involved herein were received in evidence as plaintiff’s collective exhibit 2 and an illustration as plaintiff’s collective exhibit 1.

Plaintiff’s collective exhibit 2 consists of 8 cups and saucers, very elaborately decorated in bright colors with a lustrous glaze and a considerable quantity of gold. The cups are decorated both inside and outside, some with irridescent colors and some with ornate fruit or flower patterns. Some of the cups are in the usual teacup shape but others are higher or more rounded or fluted. Some are footed. Six of the saucers have open work in the rim portion. Some of the cups do not fit into the saucer well snugly.

Plaintiff’s collective exhibit 1 consists of two sheets of illustrations of cups and saucers including those of the type involved herein. They are shown in cup and saucer racks with the saucer upright and the cup* placed in front of it.

At the trial, plaintiff called the following ten witnesses:

1. Boris B. Levitt (erroneously referred to as Boris B. Fevitt in the transcript), president of W. Kay Company, Inc., the plaintiff herein. He had been president of the company for 3 years and prior to that had been treasurer beginning in 1946. The company is an importer of novelties and gift items from Japan. Since 1948, the witness had gone to Japan several times a year and had designed and purchased merchandise there.

2. Alex M. Satler, presently in the wholesale business, who had been in the retail business, as merchandise manager of home furnishings with Lit Brothers, Philadelphia, for 4 years prior to 1958. During that period he had purchased merchandise similar to that involved herein from W. Kay Company, Inc., and other firms.

[132]*1323. Mrs. Louise Bergen, a buyer of gift items for Loft Candy Co. She had purchased merchandise like that involved herein from W. Kay Company, Inc., since 1958, in an aggregate quantity of 50,000 to 60,000 cups and saucers.

4. H. A. Lipper, sales manager of Lipperman, Inc., an importer of fancy goods. His firm had imported articles similar to those involved herein for the last 10 years in quantities exceeding a thousand dozen a year. He has been sales manager of the company since 1945 and travels about the country to showrooms in Atlanta, Chicago, Dallas, and California. He sells to every state in the Union, to J. C. Penney, Sears Roebuck, Belt Department Stores, and other large interstate distributors.

5. Mrs. Carla Rogers, housewife, who had seen articles like those involved herein on display all over; she could not recall ever not having seen them.

6. Morton Sills, sales manager of W. Kay Company, Lie. He had been with the company for 10 years and was familiar with articles like those involved herein. He had sold them in about 40 states including Washington, Oregon, California, Texas, Florida, Illinois, Minnesota, Massachusetts, Connecticut, North Carolina, Georgia, Alabama, Ohio, Oklahoma, Kentucky, Colorado, Utah, and Maine.

7. Irwin M. Randolph, District Manager for Northern California of National Silver Co. His duties are primarily to sell merchandise and direct the activities of others who work under him. He is a member of the Executive Merchandising Committee of National Silver Co., which meets twice a year to select patterns and types of merchandise. He was familiar with merchandise like that involved herein through selling and handling it for the past 10 years. His firm had imported an average of 10,000 dozen of similar items per year for the past 10 years. He identified photographs of articles imported by his firm, which were received in evidence as plaintiff’s exhibits 4, 5, and 6. The items illustrated are elaborately decorated teacups and saucers similar to those in plaintiff’s exhibits 1 and 2. In plaintiff’s exhibit 5 they are displayed in cup and saucer racks.

8. Fred Holzinger, manager of the gift and souvenir shops at Cliff House, a tourist attraction in San Francisco visited by about 8,000 people a day. He had been manager of the seven shops for 4 years, prior to which time he had been store manager and assistant store manager of Dohrman’s stores in San Francisco, Beverly Hills, and Los Angeles. He was familiar with the type of merchandise involved herein through having bought and sold it for many years.

9. Philip W. Fry, sales representative for United China & Glass Co. in Southern California and Arizona. He had been with that company for 5 years, prior to which time he had been employed by [133]*133George Borgfeld Corp., as salesman in about the same territory; and prior thereto by F. C. Nasch Co. Stores, Pasadena, Whittier, and Arcadia, Calif.; Good Housekeeping Shops of Texas; and Joske’s of Houston. He became familiar with the type of merchandise involved herein as a buyer and as a wholesaler.

10. Louis S. Lane, supervisor for Kay Jewelry Stores in Southern California. That firm has 22 stores in California which retail jewelry, watches, diamonds, porcelain, and giftware items and dinnerware. His duties include visiting the stores and supervising and making sales. He has been familiar with merchandise like that involved herein for 8 years.

Mr. Levitt testified that he had placed orders for this class of merchandise since 1951, at which time he became aware of the sales demand for it through a customer who was a buyer from Detroit. She suggested that teacups and saucers with fancy decorations be made in different shapes and colors in more numbers to retail for a dollar. According to Mr. Levitt, “we took some of the merchandise we had on hand which cost us more, some of it less, and shipped it out as a trial basis, and sure enough, that started the whole thing.” Other testimony herein indicates that this type of merchandise was sold at retail at from 59 cents to about a dollar per cup and saucer.

This merchandise was purchased in assortments of shapes, decorations, and colors and the patterns were changed once or twice a year. These changes were made to satisfy the demand of customers who came in looking for something new. Where a pattern did not sell, it was dropped, but some patterns, were continued. If the patterns were not changed, sales would have tapered off and stopped.

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Cite This Page — Counsel Stack

Bluebook (online)
53 Cust. Ct. 130, 1964 Cust. Ct. LEXIS 2288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-kay-co-v-united-states-cusc-1964.