Aimcee Wholesale Corp. v. United States

66 Cust. Ct. 155, 324 F. Supp. 514, 1971 Cust. Ct. LEXIS 2390
CourtUnited States Customs Court
DecidedMarch 12, 1971
DocketC.D. 4186
StatusPublished
Cited by3 cases

This text of 66 Cust. Ct. 155 (Aimcee Wholesale Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Customs Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aimcee Wholesale Corp. v. United States, 66 Cust. Ct. 155, 324 F. Supp. 514, 1971 Cust. Ct. LEXIS 2390 (cusc 1971).

Opinion

Newman, Judge:

Plaintiffs protest the rate of duty imposed by the collector of customs at the port of New York on certain bicycles imported from England on June 6, 1961. These bicycles are the so-called large-wheel lightweight type, viz., with wheels over 25 inches in diameter, weighing less than 36 pounds complete without acessories. [156]*156and not designed for use with tires having a cross-sectional diameter exceeding 1% inches.

The shipment in question was assessed at the rate of 11% per centum ad valorem under paragraph 371 of the Tariff Act of 1930, as modified by Presidential Proclamation No. 3394, dated February 25, 1961, T.D. 55328. The latter proclamation increased the rate for the type of bicycles imported from 7% percent, provided for under paragraph 371, as modified by the General Agreement on Tariffs and Trade (GATT), 82 Treas. Dec. 305. T.D. 51802.

Plaintiffs do not controvert the collector’s classification of the bicycles under paragraph 371; but rather, assail the 11% per centum rate of duty, contending that the President’s proclamation increasing the rate from 7% percent to 11% percent is void, and the legal rate is that set forth in the GATT.1

Plaintiffs assert two alternative grounds for their claim that Proclamation 3394 is invalid:

First, that the proclamation “purports to establish ‘escape clause’ rates of duty in a manner not authorized by the then-governing statute, section 7 of the Trade Agreements Extension Act of 1951 as amended.” 2

Second, that “the proclamation is invalid for failure to include therein the factual finding required by section 350 of the Tariff Act of 1930 as amended3 * * * that existing duties or other import restrictions of the United States are unduly burdening and restricting foreign trade and that the statutory purposes will be promoted by the proclaimed duty change.”

The Government’s position is that the rates of duty in Proclamation 3394 are based on a trade agreement with the United Kingdom, Germany, Belgium, the Netherlands, Luxemburg and Austria entered into by the President in full-compliance with section 350 of the Tariff Act of 1930 (as amended) and the “peril point” procedures set forth in section 3 of the Trade Agreements Extension Act of 1951 ('as amended) ; and that the President was not required to comply with the “escape clause” procedures in section 7 of the Trade Agreements Extension Act of 1951.

After careful consideration of the record and the excellent briefs filed by counsel for the respective parties and by amici curias on behalf of the domestic manufacturers of bicycles, we have concluded that Presidential Proclamation 3394 is valid and that the collector assessed the proper rate of duty. Accordingly, the protest is overruled.

[157]*157PRESIDENTIAL PROCLAMATION 3394

The proclamation, in pertinent part, provides:
1. Whereas, pursuant to the authority vested in him by the Constitution and the statutes, including section 350 of the Tariff Act of 1930, as amended (19 U.S.C. 1351), the President, on October 30, 1947, entered into a trade agreement with certain foreign countries, which consists of the General Agreement on Tariffs and Trade, including a schedule of United States concessions * * *, and by Proclamation No. 2761 A of December 16, 1947 (61 Stat. (pt. 2) 1103), proclaimed such modifications of existing duties * * * as were then found to be required or appropriate to carry out such trade agreement * * *;
2. Whereas United States tariff concessions on bicycles provided for in paragraph 371 of the Tariff Act of 1930 were included in such trade agreement, such concessions * * *, being * * * as follows: [setting forth old rate of duty claimed herein by plaintiffs] * * *
3. Whereas Article XXVIII of the said General Agreement on Tariffs and Trade (8 UST (pt. 2) 1790) provides that a contracting party may, pursuant to procedures provided for therein, modify or withdraw concessions in its schedules to that agreement;
4. Whereas due notice of intention to enter into negotiations under the said Article XXVIII with a view to the modification or withdrawal of the concessions represented by item 371 [first] in Part I of Schedule XX-1947 was given, and the views presented by interested persons were received and considered, and information and advice with respect to such negotiations were sought from the Departments of State, Agriculture, Commerce, and Defense and from other sources, and an investigation and report to the President under the provisions of section 3 of the Trade Agreements Extension Act of 1951, as amended (19 U.S.C. 1360), have been made by the United States Tariff Commission with respect to the products involved in such negotiations;
5. Whereas, agreement for the modification of the said concessions in the manner set forth below in this recital 'having been reached pursuant to Article XXVIII of the said General Agreement, I determine that it is required or appropriate in order to carry out the agreement specified in the first recital hereof that Part I of Schedule XX-1947 be applied as though the said item 371 [first] and the appropriate headings read as follows: [setting forth new rate of duty as assessed in the present case] * * *
6. Whereas a proclaiming of the application of Part I of Schedule XX-1947 as set forth in the fifth recital of this proclamation would supersede Proclamation No. 3108 of August 18, 1955 (70 Stat. C 4), relating to such concessions;
Now, thereeore, I, John F. Kennedt, President of the United States of America, acting under the authority of the Constitution [158]*158and statutes, including the said section 350 of the Tariff Act of 1930, as amended, do proclaim as follows:
PART I
To the end that the trade agreements referred to in the foregoing recitals may be carried out:
(a) Effective at 5 p.m. on the day following the date hereof, at the respective ports of entry, Proclamation No. 3108 of August 18,1955, referred to in the sixth recital of this proclamation is terminated;
(b) Effective at the opening of the Customs House, at the respective ports of entry, on the second day following the date hereof, Part I in Schedule XX-1947 shall be applied as though item 371 [first] therein read as set forth in the fifth recital of this proclamation;
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Statutes

Proclamation 3394 was issued pursuant to section 350 of the Tariff Act of 1930, as amended (19 U.S.C. § 1351), and provides:

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Related

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Aimcee Wholesale Corp. v. United States
468 F.2d 202 (Customs and Patent Appeals, 1972)

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66 Cust. Ct. 155, 324 F. Supp. 514, 1971 Cust. Ct. LEXIS 2390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aimcee-wholesale-corp-v-united-states-cusc-1971.