Phone-Mate, Inc. v. US
| Citation | 690 F. Supp. 1048,12 CIT 575 |
| Decision Date | 17 June 1988 |
| Docket Number | Court No. 86-11-01449. |
| Parties | PHONE-MATE, INC., Plaintiff, v. The UNITED STATES, Defendant. |
| Court | U.S. Court of International Trade |
Glad & Ferguson, Edward N. Glad, Los Angeles, Cal., for plaintiff.
John R. Bolton, Asst. Atty. Gen., Washington, D.C., Joseph I. Liebman, Atty. In Charge, International Trade Field Office, Commercial Litigation Branch, Susan Handler-Menahem, New York City, for defendant.
The question presented in this case pertains to the proper classification, for customs duty purposes, of certain combination telephone and answering machine devices imported from Japan and described on the customs invoice as "other terminal equipment."
The merchandise entered at the port of Los Angeles, California in 1986, and was classified by the Customs Service as "telephone sets and other terminal equipment and parts thereof," under item 684.58 of the Tariff Schedules of the United States (TSUS). Consequently, the merchandise was assessed with duty at the rate of 8.5 per centum ad valorem.
Plaintiff protests this classification, and contends that the imported merchandise should properly be classified under item 688.41, TSUS, as "other: articles designed for connection to telegraphic or telephonic apparatus or instruments or to telegraphic or to telephonic networks." If the merchandise is properly classifiable under item 688.41, TSUS, as maintained by plaintiff, it would be dutiable at the lower rate of 4.1 per centum ad valorem.
In its complaint, plaintiff claimed alternative classifications under item 685.39, TSUS, as "telephone answering machines, and parts thereof," or under item 688.42, TSUS, as "other: articles designed for connection to telegraphic or telephonic apparatus or instruments or to telegraphic or telephonic networks ... other," or under item 676.30, TSUS, as "office machines not specially provided for." In its brief, however, plaintiff did not pursue any of these claims, and requested classification only under item 688.41, TSUS. Hence, the alternative claims are deemed abandoned.
The imported merchandise consists of combination devices, designated as models 8050 and 9550, which contain a telephone, an answering and recording machine, and a digital clock. Plaintiff contends that, as a combination article with the two distinct functions of a telephone and an answering machine, the merchandise cannot properly be described by the heading "telephone sets and other terminal equipment and parts thereof." Hence, the court must determine whether the provision "telephone sets and other terminal equipment and parts thereof," as used in item 684.58, TSUS, includes combination telephone and answering machine devices. Since neither party discusses the digital clock, it is evident that the clock is incidental to the merchandise, and is therefore not in issue.
The pertinent statutory provisions of the tariff schedules are as follows:
Classified Under
Schedule 6, Part 5
Electrical telegraph (including
printing and type-writing)
and telephone apparatus and instruments
and parts thereof
Telephonic apparatus
and instruments and
parts thereof
. . . .
684.58 Telephone sets and other
terminal equipment
and parts thereof............. 8.5% ad val.
Claimed Under:
Schedule 6, Part 5:
Electrical articles and electrical
parts of articles, not specially
provided for:
. . . .
Other:
688.41 Articles designed for
connection to telegraphic
or telephonic apparatus
or instruments or to
telegraphic or telephonic
networks ......................... 4.1% ad val.
The question presented is whether the imported merchandise has been properly classified by Customs as "telephone sets and other terminal equipment and parts thereof" under item 684.58, TSUS, or whether it is properly classifiable as "other: articles designed for connection to telegraphic or telephonic apparatus or instruments or to telegraphic or telephonic networks," under 688.41, TSUS, as contended by plaintiff.
In order to decide this question, the court must consider "whether the government's classification is correct, both independently and in comparison with the importer's alternative." Jarvis Clark Co. v. United States, 733 F.2d 873, 878, reh'g denied, 739 F.2d 628 (Fed.Cir.1984). Pursuant to 28 U.S.C. § 2639(a)(1) (1982), the government's classification is presumed to be correct and the burden of proof is upon the party challenging the decision. See Jarvis Clark Co., 733 F.2d at 876.
Contending that there are no material issues of fact in dispute, both parties moved for summary judgment pursuant to Rule 56 of the Rules of this Court. Upon examining the tariff schedules, relevant case law, and supporting papers, the court concludes that there are no material issues of fact in dispute, and that the imported merchandise has been properly classified. Hence, plaintiff's motion for summary judgment is denied, and defendant's cross-motion for summary judgment is granted.
On a motion for summary judgment, it is the function of the court to determine whether there are any factual disputes that are material to the resolution of the action. See Heyman v. Commerce and Indus. Ins. Co., 524 F.2d 1317, 1319-20 (2d Cir.1975). The court may not resolve or try factual issues on a motion for summary judgment. Yamaha Int'l Corp. v. United States, 3 CIT 108, 109 (1982) available on WESTLAW, 1982 WL 2221. In ruling on cross-motions for summary judgment, if there are no genuine issues of material fact, the court must decide whether either party has demonstrated its entitlement to judgment as a matter of law. See American Motorists Ins. Co. v. United States, 5 CIT 33, 36 (1983) available on WESTLAW, 1983 WL 4994.
In support of its motion, plaintiff maintains that in order to be included in the inferior heading for item 684.58, TSUS, the merchandise must be included within the superior heading, which provides for "electrical telegraph ... and telephone apparatus and instruments, and parts thereof." Plaintiff contends that the telephone answering machine component of the merchandise does not fall within the meaning of that heading, as intended by Congress. Furthermore, plaintiff submits that if Congress considered telephone answering machines to be "telephone apparatus and instruments," it would have placed the provision for answering machines under that heading rather than in item 685.39, TSUS, under the heading which provides:
Radiotelegraphic and radiotelephonic
transmission and reception
apparatus; radiobroadcasting
and television transmission
and reception apparatus, and
television cameras; record players,
phonographs, tape recorders,
dictation recording and transcribing
machines, record changers,
and tone arms; all of the
foregoing, and any combination
thereof, whether or not incorporating
clocks or other timing apparatus,
and parts thereof:
. . . .
685.39 Telephone answering
machines, and
parts thereof........ 4.1% ad val.
In addition, plaintiff contends that the telephone and telephone answering machine components have separate and independent commercial functions, and, therefore, the merchandise is "more than" either item of the combination.
In opposition to plaintiff's motion, defendant maintains that the legislative history of item 684.58, TSUS, shows that the provision for "telephone sets and other terminal equipment" includes merchandise which combines a telephone and an answering machine in one unit. Defendant contends that under the Trade and Tariff Act of 1984, which established and added item 684.58, TSUS, Congress intended that the provision for "telephone sets and other terminal equipment and parts thereof," should be sufficiently broad to encompass new technology in the area of telecommunications.
It is evident from the submissions that there is no material issue of fact in dispute. Plaintiff describes the merchandise as consisting "in part of a telephone answering machine and in part of a built-in telephone." Defendant describes the merchandise as consisting of "a combination of a telephone and answering machine." Hence, regardless of phraseology, both parties agree that the importation is a combination article. The parties are in disagreement, however, as to whether item 684.58, TSUS, encompasses or provides for a combination telephone and answering machine device.
Whether the imported merchandise is within the meaning of "telephone sets and other terminal equipment" is a matter of law and not an issue of fact. See Fanon Elec. Indus., Inc. v. United States, 65 Cust.Ct. 542, 545, C.D. 4135 (1970). As with other statutory provisions, it is the function of the court to interpret the tariff acts in a manner that will fulfill or carry out the intent of Congress. See Sandoz Chem. Works, Inc. v. United States, 43 CCPA 152, 156, C.A.D. 623 (1956).
The initial source for the determination of congressional intent is the specific language of the tariff provision, which is to be given its common or commercial meaning. See Ameliotex, Inc. v. United States, 65 CCPA 22, 25, C.A.D. 1200, 565 F.2d 674, 677 (1977). When the court is confronted with conflicting interpretations of a tariff provision, and there is doubt or ambiguity, it is proper to resort to legislative history, committee reports and other pertinent extrinsic aids. See United States v. Kung Chen Fur Corp., 38 CCPA 107, 117-18, C.A.D. 447 (1951); see also Schott Optical Glass, Inc. v. United States, 82 Cust.Ct. 11, 16, C.A.D. 1239, aff'd, 612 F.2d 1283 (1979).
The language of item 684.58, TSUS, ...
To continue reading
Request your trial
-
American Nat. Fire Ins. Co. V. U.S.
...Sea-Land Serv., Inc. v. United States, 23 CIT 679, 684, 69 F.Supp.2d 1371, 1375 (1999) (quoting Phone-Mate, Inc., v. United States, 12 CIT, 575, 577, 690 F.Supp. 1048, 1050 (1988)), affd, 239 F.3d 1366 (Fed.Cir.2001). Plaintiff's Claim ANF contests Customs' denial of its April 27, 1999, pro......
-
Shinyei Corp. of America v. U.S.
...id. Accordingly, the Court may not decide or try factual issues upon a motion for summary judgment. See Phone-Mate, Inc. v. United States, 12 CIT 575, 577, 690 F.Supp. 1048, 1050 (1988). When genuine issues of material fact are not in dispute, summary judgment is appropriate if a moving par......
-
Ps Chez Sidney v. U.S. Intern. Trade Com'n
...In its evaluation and analysis of the motions, "[t]he Court may not resolve or try factual issues." Phone-Mate, Inc. v. United States, 12 CIT 575, 577, 690 F.Supp. 1048 (1988), aff'd, 867 F.2d 1404 (Fed.Cir.1989). In order to determine whether there exists a genuine issue of material fact, ......
-
Plexus Corp. v. United States
...106 S.Ct. 2505."The court may not resolve or try factual issues on a motion for summary judgment." Phone-Mate, Inc. v. United States , 12 CIT 575, 577, 690 F. Supp. 1048, 1050 (1988) (citation omitted), aff'd , 867 F.2d 1404 (Fed. Cir. 1989). Further, "summary judgment in a classification c......