Casio Tried to Weasel Out of Import Tax

Here's a fascinating bit of synthesizer history sent my way via Brian Moore. Apparently Casio claimed their synthesizers fell under "electrical articles which produce sound" taxed at 3.9%, rather than, "electronic musical instruments" taxed at 6.8%. They argued this because they were sold without an amplifier, speakers or headphones and because they went beyond that of "electronic musical instruments." Title link takes you to the case brief for Casio v. U.S. Below are some exerpts. The case was decided against Casio in 1996. Good stuff. Thanks Brian. Makes you wonder what Roland, Korg and Yamaha classified their synths as during the same time...

"Casio imports into the United States electronic musical synthesizers. All of the imported synthesizer models were classified by the Customs Service, upon entry into the United States, as "Electronic musical instruments: Other," TSUS 725.47, with a duty rate of 6.8% ad valorem.

Casio timely challenged the classification by filing suit in the United States Court of International Trade. Casio argued that these synthesizers were improperly classified as electronic musical instruments and should instead have been classified under TSUS 688.34 as "Electrical articles and electrical parts of articles, not specifically provided for: Electrical articles using pre-programmed digital integrated circuits to produce sound," dutiable at the rate of 3.9% ad valorem."

"In addition, Casio argued that five of the imported models, VZ-1, VZ-10M, HZ-600, MG-510 and PG-380, could not be classified as electronic musical instruments because they were imported and sold in commerce without an amplifier and speakers or headphones and thus did not make an audible sound as imported. The ability to make an audible sound, they argued, was a requirement for classification as an electronic musical instrument."

"The trial court's finding that the synthesizers do not possess features substantially in excess of those within the common meaning of the term "electronic musical instruments" is not clearly erroneous. All of the additional features are designed primarily to make it easier for a musician to create music or embellish the sound he or she would normally be able to produce. The auto-rhythm and auto-accompaniment features allow inexperienced users to create chords and accompaniment with the press of a key, and the sequencer features allow a single musician to play, in essence, multiple instruments simultaneously. The only feature which does not appear to enhance a musician's ability to play the instrument is the one that plays prerecorded melodies. However, Casio admitted that this may be a musical instrument feature because it is similar in nature to a music box, which was specifically designated a musical instrument by Congress. TSUS 725.50."


Update via Dave Manley in the comments:
"Apparently Casio tried to do this more than once. In Pinch and Trocco's book "Analog Days" there is a short description of a 1994 case that sounds similar, but I guess is different: Casio Inc. versus the United States", October 7, 1994. The products aren't described but apparently they only played preprogrammed patterns.

"What the court had to decide was whether the Casio devices were machines or musical instruments. It fell to Bob [Moog], testifying for Casio, the plaintiff, to argue that the Casios were machines and to Herb [Deutsch], testifying for the government, to argue that they were musical instruments. Bob pointed out the essence of a musical instrument is that the performer should have "real-time control" and that the Casio takes this away. The judge did not buy this argument, describing it as a "seemingly myopic premise" and contrary to legislative inent. The government won the case and the judge decided that, for tariff purposes anyway, the Casio, as long as it contained an amplifier and loudspeakers, was a musical instrument, and thus subject to the higher rate of tariff."

Interesting that Casio tried this twice once arguing with amplifier and loudspeakers, and once without.

Herb Deutsch played an interesting part in the development of the synthesizer. He met Moog when he sold Theremins and started requesting features that eventually led to the synthesizer. Take a look at Analog Days for more details (read it for the story, not for the authors' editorializing and analysis)."