Walco Bead Co. v. United States

36 Cust. Ct. 162
CourtUnited States Customs Court
DecidedMarch 22, 1956
DocketC. D. 1770
StatusPublished
Cited by2 cases

This text of 36 Cust. Ct. 162 (Walco Bead 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
Walco Bead Co. v. United States, 36 Cust. Ct. 162 (cusc 1956).

Opinion

Oliveb, Chief Judge:

This case relates to merchandise described on the invoice as “Rhinestone Rondelles,” which were assessed with [163]*163duty at the rate of 40 per centum ad valorem under the provision in paragraph 1527 (d), as modified by T. D. 52739, for “Stampings * * * of metal, whether or not set with glass or paste, finished or partly finished, separate or in strips or sheets, suitable for use in the manufacture of any articles provided for in paragraph 1527 (a), (b), or (c), Tariff Act of 1930 * * Paragraph 1527 (a), (b), or (c) of the Tariff Act of 1930 provides for the following articles:

(a) Jewelry, commonly or commercially so known, finished or unfinished (including parts thereof): * * *.
(b) Rope, curb, cable, and fancy patterns of chain * * *.
(c) Articles valued above 20 cents per dozen pieces, designed to be worn on apparel or carried on or about or attached to the person, such as and including buckles, cardcases, chains, cigar cases, cigar cutters, cigar holders, cigar lighters, cigarette cases, cigarette holders, coin holders, collar, cuff, and dress buttons, combs, match boxes, mesh bags and purses, millinery, military and hair ornaments, pins, powder cases, stamp cases, vanity cases, watch bracelets, and like articles; all the foregoing and parts thereof, finished or unfinished: * * *.

The collector’s action with respect to the merchandise in question resulted in a change in practice and was taken pursuant to a directive issued by the Commissioner of Customs (88 Treas. Dec. 56, T. D. 53219 (4)), the pertinent part of which reads as follows:

(4) Rondelles, each consisting of two small circular metal disks or stampings which when placed together hold rhinestones or other imitation precious stones, are properly classifiable under paragraph 1527 (d), Tariff Act of 1930, as stampings of metal, whether or not set with glass or paste, finished or partly finished, suitable for use in the manufacture of any of the articles provided for in subdivision (a), (b), or (c) of that same paragraph, rather than under paragraph 1503, Tariff Act of 1930, as beads. * * *

Plaintiffs claim that the merchandise is properly dutiable at the rate of 17K per centum ad valorem under the provision in paragraph 1503 of the Tariff Act of 1930, as modified by T. D. 51802, supplemented by T. D. 51898, for “Beads, including bugles, not specially provided for.”

The issue has been very thoroughly presented by the respective parties. Eleven witnesses testified. Six appeared on behalf of plaintiffs. Five were called by defendant. In addition, several exhibits were offered and received. The evidence can be summarized as follows.

Plaintiffs’ first witness was the sales manager of the Walco Bead Co., Inc., the importer of the merchandise under consideration. He identified samples of the articles in question (plaintiffs’ collective exhibit 1) that he has bought and sold, and consistently referred to, for “over 20 years,” as rhinestone rondelles, and which have never been referred to as beads. Jewelry manufacturers, embroiderers, and trimming stores, to whom the witness sold rhinestone rondelles such as the articles under consideration, use them in [164]*164the manufacture of necklaces, earrings, bracelets, and for use as trim on dresses. The chief use of the merchandise is for costume jewelry, principally for bracelets. When they are used in bracelets, these rhinestone rondelles are never used by themselves, but always as separators between beads (defendant’s illustrative exhibit F). The witness stated that his understanding of the term “rondelle” is in accordance with the definition, read by counsel as taken from “Webster’s New International Dictionary, Second Edition, in the 1936 print, and also in the 1950 print” (R. 11), as follows:

A gem or bead cut in a thin disk pierced in the center, and, commonly, strung between larger stones or beads in a necklace.

On cross-examination, the witness defined a “rondelle” as a flat or semiflat disk, “slightly concave or slightly convex,” that has been perforated, suitable for stringing or threading, and made of either metal or wood. Referring to the practice of invoicing merchandise, the witness stated that the merchandise in question has always been invoiced as rhinestone rondelles, that it has never been ordered or invoiced as beads, and that the word “bead” has been used in the invoice description of some beads, such as chalk-colored beads, seed beads, and silver-lined beads. Along the same line, the witness further testified that “in selling different types of beads we usually put down the more or less trade article classification. As an example, I would say this: If we were to sell bugle beads we would not put on the invoice ‘bugle beads’; we would just mark it ‘bugles.’ ” (R. 36-37.) “And the same would hold good for a rhinestone rondelle, the invoice would just read ‘Rhinestone rondelle,’ but the rhinestone rondelle is also a form of a bead.” (R. 38.)

Five more witnesses were called by plaintiffs. All of them have been employed for several years by importers of merchandise that includes rhinestone rondelles like those under consideration. Although their testimony, under the terms of an oral stipulation entered into between counsel for the respective parties, is entirely cumulative of the testimony of the first witness, as hereinabove outlined, specific mention will be made of certain corroborative testimony, concerning use, indicative of the type of merchandise involved herein. The witness, Detkin, general manager and buyer of the Royal Bead Novelty Co., Inc., and importer of costume jewelry and beads, testified that his company manipulates rhinestone rondelles for use in necklaces and that, in such use, the rhinestone rondelles are strung “between beads.” The witness, Edelman, manager and import buyer of the Clover Bead & Jewelry Co., importer and manufacturer of costume jewelry, stated that his company has been “using these rondelles for many years, as infills for necklaces, and also in between, for earrings.”

[165]*165Defendant’s first witness, Greenberg, was the executive vice president of the Brier Manufacturing Co., manufacturer of all types of jewelry and other related items of adornment, including “kiddie” jewelry, costume jewelry, men’s jewelry, and religious jewelry. The company also imports all types of beads, imitation stones, and “various brass articles suitable for the manufacturing of jewelry.” The witness stated that he is “in general charge of designing, production, importing of materials, as well as domestic purchasing and sales.” His knowledge of rhinestone rondelles goes back, prior to 1930, when he purchased such merchandise in Czechoslovakia. Over the “last several years,” he has been manufacturing rhinestone rondelles in the plant of his company in Providence, B. I. He identified several rhinestone rondelles of different sizes and shapes (defendant’s illustrative exhibit G), including items that are identical with the articles in question, which have been consistently known as rhinestone rondelles since 1926, when the witness first handled such merchandise. Based on personal observation of the manufacturing processes in Czechoslovakia and on actual experience manufacturing rhinestone rondelles in this country, the witness testified that the articles in question consist of two brass findings, or brass disks. He defined a “finding” as “a small article of metal, suitable for the further fabrication of jewelry.

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Related

Dolliff v. United States
49 Cust. Ct. 25 (U.S. Customs Court, 1962)
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40 Cust. Ct. 117 (U.S. Customs Court, 1958)

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Bluebook (online)
36 Cust. Ct. 162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walco-bead-co-v-united-states-cusc-1956.