Falcon Sales Company v. United States

199 F. Supp. 97, 47 Cust. Ct. 129, 1961 Cust. Ct. LEXIS 17
CourtUnited States Customs Court
DecidedOctober 18, 1961
DocketC. D. 2292; Protest 59/20884
StatusPublished
Cited by178 cases

This text of 199 F. Supp. 97 (Falcon Sales Company 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
Falcon Sales Company v. United States, 199 F. Supp. 97, 47 Cust. Ct. 129, 1961 Cust. Ct. LEXIS 17 (cusc 1961).

Opinion

MOLLISON, Judge.

This protest is directed against the action of the collector of customs in assessing duty at the rate of 20 cents per gross under the provision in paragraph 412 of the Tariff Act of 1930,19 U.S.C.A. § 1001, par. 412, for “spring clothespins” on an importation of such clothespins.

The rate of duty applicable to spring clothespins under the provisions of paragraph 412, as originally enacted, was 20 cents per gross. By his proclamation of December 22, 1949 (No. 2867, 64 Stat. pt. 2, A380; T.D. 52373), supplemented by that of April 27, 1950 (No. 2884, 64 Stat., pt. 2, A399; T.D. 52462), carrying out the Annecy Protocol of Terms of Accession to the General Agreement on Tariffs and Trade (hereinafter referred to as the Annecy protocol), the President of the United States put into effect the item .(first 412) in part I of schedule XX of the said Annecy protocol, providing for a rate of duty of 10 cents per gross on spring clothespins which were entered, or withdrawn from warehouse, for consumption on or after April 30, 1950.

Upon request of an interested party, the United States Tariff Commission made an investigation under the authority of section 7 of the Trade Agreements Extension Act of 1951, as amended 1 here *99 inafter referred to as section 7), to determine whether spring clothespins provided for in the said item of the Annecy protocol were, as a result of the duty or other customs treatment reflecting the concession made in the said item, being imported into the United States in such increased quantities, either actual or relative, as to cause or threaten serious injury to the domestic industry producing like or directly competitive products.

Under date of September 10, 1957, the Tariff Commission reported the results of its investigation (No. 57) to the President, by which it found (one member dissenting):

“(1) That as a result in part of the customs treatment reflecting the concessions granted thereon in the General Agreement on Tariffs and Trade, spring clothespins provided for in paragraph 412 of the Tariff Act of 1930 and described in item 412 (first) in part I of schedule XX of the General Agreement on Tariffs and Trade (Annecy) are being imported into the United States in such increased quantities, both actual and relative, as to cause serious injury to the domestic industry producing like products; and
“ (2) That in order to remedy such serious injury it is necessary, for an indefinite period, to limit the quantity of spring clothespins that may be entered, or withdrawn from warehouse, for consumption to an annual quota of 650,000 gross.”

In the said report, the Commission recommended :

* * * that the appropriate concession granted in the General Agreement on Tariffs and Trade be modified to permit the application of an annual absolute quota on imports of spring clothespins, as set forth in finding (2) above.”

Pursuant to section 7 (c) of the Trade Agreements Extension Act of 1951, as amended, the President addressed identical letters to the Chairman, Committee on Finance, United States Senate, and to the Chairman, Committee on Ways and Means, House of Representatives, reading as follows:

“I have carefully considered the report of the United States Tariff Commission in the case of spring clothespins,' and I agree with the majority of the Commission that this case satisfies the statutory conditions for relief under Section 7 of the Trade Agreements Extension Act. As to the remedy to be applied, however, I do not find in the Commission’s report a sufficient justification for imposing the quota recommended by four of the Commissioners.
“The Tariff Commission majority recommended an absolute quota limiting spring clothespin imports to 650,000 gross annually.
“Although the facts in this case do not all point in the same direction, as evidenced by the lack of unanimity among the Commissioners, the need for an absolute import quota has not been clearly established. Sales by the domestic industry, for example, have increased in recent years reaching an all-time high last year. Moreover, the evidence does not clearly show that the customary remedy would be inadequate. A ten cent-per-gross increase in the rate of duty on imports would seem to be appropriate relief in view of the existing price differentials for packaged and bulk clothespins, the clothespin-size characteristics of imports, and the economic condition of the domestic industry.
“Accordingly, I have taken the necessary steps to increase the rate of duty on imports of spring clothespins by ten cents per gross.”

Concurrently therewith, he caused to be issued his proclamation No. 3211, 72 Stat., part 2, cl4; T.D. 54493, providing that first item 412 specified in schedule XX of the Annecy protocol be withdrawn and that proclamation No. 2867 (as supplemented by proclamation No. 2884) be suspended, insofar as it applied to the *100 said item, effective after the close of business on December 9, 1957.

The effect of this action was to fix the rate of duty applicable to spring clothespins under paragraph 412 of the tariff act at 20 cents per gross. The reason for this is that, in the situation that the earlier proclamations were suspended or inoperative, no provision of law existed with respect to the rate of duty applicable to spring clothespins other than paragraph 412, as originally enacted by Congress, providing for a rate of 20 cents per gross.

The spring clothespins here involved were imported into the port of New York on July 9,1958, and entered for consumption on the following day. As hereinbefore indicated, duty was assessed thereon by the collector at the rate of 20 cents per gross under the authority of proclamation No. 3211.

Briefly stated, the plaintiffs’ contention is that, by proclamation No. 3211, the President acted outside the authority which the Congress delegated to him under section 7, supra; that his action was, therefore, illegal, null, and void; and that the correct rate of duty applicable to spring clothespins at the time of entry for consumption of the merchandise at bar was 10 cents per gross under paragraph 412 of the tariff act, as modified by proclamation Nos. 2867 and 2884.

Briefly stated, the defendant’s contention is that the withdrawal of a concession and the termination of a former proclamation in part are not powers delegated to the President under section 7, supra, but are authority delegated under section 350(a) (5) of the Tariff Act of 1930, as amended, now 19 U.S.C.A. § 1351(a) (6).

In the brief filed in their behalf, plaintiffs’ contention with respect to the invalidity of proclamation No. 3211 is based upon a construction of section 7, supra, to the effect that, in any proceeding thereunder, the discretion of the President is limited to acceptance or rejection in toto of the findings and recommendations of the Tariff Commission.

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Bluebook (online)
199 F. Supp. 97, 47 Cust. Ct. 129, 1961 Cust. Ct. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falcon-sales-company-v-united-states-cusc-1961.