Schnitzer Steel Products of California, Inc. v. County of Alameda

The sole issue on this appeal is whether certain scrap metal was an “export” on the lien date in each year in question and therefore exempt from local taxation. We conclude that it was not.

Appellant Schnitzer Steel Products of California, Inc., engaged primarily in buying, processing and selling scrap metal. The metal is purchased in unprocessed form from scrap vendors and peddlers at appellant’s facility in Oakland, and processed there to be sold in foreign and domestic commerce. Scrap which has been processed is stored in large open piles pending shipment to purchasers. Separate and distinct piles of processed scrap are maintained for domestic sale and foreign sale. The Oakland facility includes a berth and equipment to load ships docked at the berth.

On March 1, in each of the years 1968, 1969, 1970 and 1971, appellant was the owner of certain processed scrap metal located at the Oakland facility. At all times in question, the scrap rested in the same pile upon which it had been placed following the processing procedure at the facility.

Appellant had entered into general contracts for sale of scrap with three foreign buyers, covering a period of years. However,…