Full Volume 19 - Federal Maritime Commission

CRESTLINE SUPPLY CORP v CONCORDIA LINE 211
no Shipping Act violation has occurred We cannot however simply
adopt the Initial Decision without comment Crestline s contention that
the Presiding Officer s statement of reasons is critically unclear cannot be
ignored A more disciplined and logical approach is unquestionably
required and rather than consume further time by remanding the
proceeding for clarification we have written our own decision denying
Crestline s complaint
The Carlisle Company fabricated the goods in question out of crumbly
bulk butyl which it purchased in 70 pound bales from one of several large
synthetic rubber manufacturers such as DuPont or Exxon 7 The butyl
bales were then placed in mixing equipment with other materials such as
pigments extenders vulcanizing agents and antiozonants aqd the mixture
run between two steel rollers to form synthetic rubber sheets approxi
mately a quarter of an inch thick After being scored for 4872 hours
these sheets were fed into a calendar a series of steel rollers and further
formed into much thinner sheets The thin rolls of sheeting were then
joined into the particular widths and lengths desired by Carlisle s
customers placed on a mandrel and vulcanized After this processing the
rubber was no longer crumbly and the sheets could be directly employed
in a variety of end products with only minor subsequent alterations The
only thing remaining to be done to Crestline s sheets and tapes upon
arrival in Libya was to cut them to appropriate sizes and apply them to a
tank or reservoir They could also have been employed as inner tubing
heater ducts or roofing materials
The primary factual question to be determined in this proceeding is
whether the sheets and tapes were manufactured from synthetic rubber
at the time they were shipped Crestline s evidence aimed at proving that
the sheets and tapes were not completely finished goods is irrelevant
to this determination The final application of a product with several
possible end uses is immaterial to the proper classification of commodities
for tariff
purposes Misclassification and Misbilling of Glass Articles 6
F M B 155 159 1960 The applicable freight rate should depend upon
the intrinsic nature and market value ofthe goods themselves rather than
a shipper s representation as to the intended use of goods as it would be
virtually impossible for ocean carriers to ascertain whether each item
transported is subsequently put to the use for which it was rated for
ocean transportation
The record leaves no doubt that Crestline s goods weresufficiently new
and different artillles from the butyl bales initially entering Carlisle s plant
to be considered manufactured articles See generally Interstate
Commerce Commission v Weldon 90 F Supp 873 W D Tenn 1950
affd 188 F 2d 367 6th Cir 1951 cert denied 342 U S 827 1951
where shelled but otherwise unprocessed peanuts were held to be
1
Butyl is itself manufactured out of petroleum products and other chemicals In bales it represents an
unprocessed stage of synthetic rubber comparable to that of natural rubber in its crude state
19 F M C