Nightwriter Corporation v. United States

• Decision Date: 24 November 1972
• Docket Number: C.D. 4393
• Citation: 69 Cust. Ct. 191
• Court: U.S. Court of Customs and Patent Appeals (CCPA)
• Parties: NIGHTWRITER CORPORATION <I>v.</I> UNITED STATES.

Page 191

69 Cust. Ct. 191

NIGHTWRITER CORPORATIONv.

UNITED STATES.

C.D. 4393

United States Customs Court, First Division.

Decided November 24, 1972.

Jennings Bailey, Jr., for the plaintiff.

Harlington Wood, Jr., Assistant Attorney General (Herbert P. Larsen and Steven P. Florsheim, trial attorneys), for the defendant. Before WATSON, MALETZ and RE, Judges

RE, Judge:

The question presented in this case pertains to the proper classification, for customs duty purposes, of certain merchandise imported from Japan and invoiced as "telescopic penpointers". Plaintiff, in its proposed findings of fact, describes the imported "penpointer" as:

"a collapsible or telescoping pointer capable of being carried in the pocket in the same manner as a ball point pen. The various sections slide one out of the other and the article can be extended to approximately two feet and used as a pointer. It is provided with a cap which can be removed to expose the tip of a ball point pen, whereupon, the article can be used for writing."

The merchandise was classified by the customs officials as "ball-point pens" under item 760.05 of the Tariff Schedules of the United States, and was consequently assessed at the rate of four (4) cents each plus 27 per centum ad valorem.

Plaintiff claims that the merchandise has been erroneously and illegally classified, and should have been properly classified under one of the following three alternative tariff provisions:

(1) as articles of copper, not coated or plated with precious metal, under item 657.35 of the tariff schedules, at a rate of 1.275¢ per pound plus 15% valorem;

(2) as articles of base metals, not coated or plated with precious metal, under item 658.00 of the tariff schedules, at a rate of 18% ad valorem; or

(3) as "hand styluses" under item 710.78 of the tariff schedules, at a rate of 11.25% ad valorem.

The following are the pertinent provisions of the Tariff Schedules of the United States:

                Classified under
                  Schedule 7, part 10
                         "Part 10 headnotes
                           1. The provisions of this part cover pens
                         and pencils designed for writing, marking
                         and similar uses, * * *
                   *      *      *      *      *      *      *
                760.05   Fountain pens, including stylographic
                           pens and ball-point pens and ball-point
                           pencils, and combination pens and
                           pencils--------------------------------   4¢ each +
                                                                    27% ad val."
                

                Claimed under:
                  Schedule 6, part 3, subpart G:
                         "Articles of copper, not coated or plated
                           with precious metal:
                   *      *      *      *      *      *      *
                657.35     Other ----------------------------------------   1.275¢ per lb.
                                                                               +     15% ad
                                                                             val.
                   *      *      *      *      *      *      *
                658.00     Articles of base metals not provided for
                           in the foregoing provisions of this subpart,
                           not coated or plated with precious
                           metal ---------------------------------------  18% ad val."
                  Schedule 7, part 2, subpart C:
                           "Drafting machines, compasses, dividers,
                            ruling pens, lettering pens (including
                            fountain-pen type) used by draftsmen,
                            pantographs, drawing curves, rulers,
                            scribers, straight edges, disc calculators,
                            slide rules, and other instruments, all
                            the foregoing which are drawing,
                            marking-out or mathematical calculating
                            instruments; hand styluses; micrometers,
                            calipers, gauges, balancing
                            machines, and non-optical measuring or
                            checking instruments, apparatus, and
                            machines not specially provided for;
                            and parts of the foregoing articles:
                             Disc calculators, slide rules, and other
                              mathematical calculating instruments,
                              all the foregoing and parts
                              thereof:
                710.60         Not of metal --------------------------------------   * * *
                710.61         Of metal ------------------------------------------   * * *
                710.63      Protractors, and parts thereof -----------------------   * * *
                710.65      Calipers and micrometers, and parts
                               thereof -------------------------------------------   * * *
                            Folding rules, and parts thereof:
                710.67         Of aluminum ---------------------------------------   * * *
                710.68         Of wood -------------------------------------------   * * *
                710.70         Other ---------------------------------------------   * * *
                710.72      Rules (except folding rules) -------------------------   * * *
                710.76      Lettering pens (including fountain-pen
                              type) used by draftsmen, and
                              parts thereof --------------------------------------   * * *
                710.78      Hand styluses ---------------------------------------- 11.25% ad val.
                710.80      Other ------------------------------------------------   * * *"
                

Plaintiff notes that there can be no dispute as to the nature of the merchandise. The imported article, represented by plaintiff's exhibit 1, is "the same thing" as defendant's exhibit "A". Admittedly, plaintiff advertises and sells its product as a "penpointer", whereas defendant's exhibit is described, on the case or package that contains it, as a "Pointer Pen". It cannot be questioned that both these exhibits are usable for writing and pointing.

The testimony revealed that, in its imported condition, the telescopic penpointer includes two pointer tips and two ink nibs, i.e., refill cartridges. Testimony was also presented that, because of the poor quality of the ink nibs, plaintiff's telescopic penpointer is seldom, if ever, used for writing. Plaintiff has, at times, replaced defective nibs in the imported merchandise. Refill cartridges may also be purchased. There was also testimony that most purchasers check to see if the penpointer can write.

Although there was testimony that the penpointer is a "gimmick" or "novelty" item, it was not questioned that it is distributed by a distributor-manufacturer of ball-point pens, and is sold in retail stores that sell pens.

The defendant submits that the testimony of the expert witnesses who testified at the trial leaves no doubt that the penpointers are, in fact, ball-point pens. Indeed, the defendant notes that it would seem to be conceded that the penpointers can be used for writing, and are used for writing precisely in the same manner as all other ball-point pens.

Additionally, the defendant indicates that the merchandise is clearly embraced by the definition of ball-point pens as contained in the federal excise tax regulations. This definition, which is the generally accepted definition of a ball-point pen during the relevant period, reads as follows:

"The term `ball point pens' includes any writing instrument of the type having a reservoir, cartridge, or magazine containing a writing compound or fluid that is fed to a ball type writing device when the instrument is in use." Federal Register, March 1, 1960, p. 1777; 26 C.F.R. 48.4201-2(d) (1971).

Plaintiff's claim for the reclassification of the merchandise is premised on the assertion that "the primary function and purpose of the article * * * is as a pointer, and that its utility for writing purposes is at most incidental." The defendant, however, responds that even if plaintiff's assertion were a fact supported by evidence, it would not necessarily prevent the penpointer from being classified under an eo nomine provision which expressly covers "ball-point pens". Defendant adds that it cannot be refuted that the merchandise possesses all of the characteristics and features of a ball-point pen, and that it can, and does in fact, perform as a ball-point pen. Novelty Import Co., Inc. v. United States, 53 CCPA 28, C.A.D. 872 (1966); Romicks International, Inc. v. United States, 64 Cust. Ct....