Inter Maritime Forwarding Co. v. United States

51 C.C.P.A. 95, 1964 CCPA LEXIS 382
CourtCourt of Customs and Patent Appeals
DecidedJune 11, 1964
DocketNo. 5107
StatusPublished

This text of 51 C.C.P.A. 95 (Inter Maritime Forwarding Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inter Maritime Forwarding Co. v. United States, 51 C.C.P.A. 95, 1964 CCPA LEXIS 382 (ccpa 1964).

Opinion

Smith, Judge,

delivered the opinion of the Court:

This appeal is from a decision and judgment of the Customs Court, 48 Cust. Ct. 80, C.D. 2318, which overruled, by a divided court, appellant’s protest to a decision of the Collector of Customs.

Factual Bachgroimd

The subject merchandise is imported from England and consists of woven woolen fabrics weighing over four ounces per square yard. Appellant, the importer, does not challenge the classification of the [97]*97goods under paragraph 1109(a) of the Tariff Act of 1930 (as modified by GATT, T.D. 51802), which reads as follows:

Woven fabrics, weighing more than four ounces per square yard, wholly or in chief value of wool, regardless of value_37!4<¿ per lb. and 25% ad val.

The Collector, for reasons hereinafter discussed, assessed duty at 37140 per pound plus 45% ad val. Appellant contends the additional 20% assessment in the ad valorem portion of the duty is unlawful.

Prior to 1948, under original paragraph 1109(a) of the 1930 Act, goods such as the subject merchandise were dutiable at 500 per pound plus an ad valorem percentage rate which varied according to the value per pound of the fabrics. Effective January 1, 1948, the rate was modified to 371/40 per pound plus 25% ad val., pursuant to the inclusion of paragraph 1109(a) in Schedule XX of GATT (as proclaimed by the President on December 16, 1947, 82 Treas. Dec. 305, T.D. 51802). Also included in Schedule XX of GATT, however, accompanying paragraph 1108, was the following “NOTE,” popularly known as the Wool Fabrics Eeservation:

NOTE: The United States reserves the right to increase the ad valorem part of the rate applicable to any of the fabrics provided for in item 1108 .or 1109(a) of this Part to 45 per centum ad valorem on any of such fabrics which are entered in any calendar year in excess of an aggregate quantity by weight of 5 per centum of the average annual production of similar fabrics in the United States during the 3 immediately preceding calendar years.

On September 28, 1956, the President issued the following proclamation (No. 3160, T.D. 54212) which invoked the Wool Fabrics Eeservation for the remaining three months of 1956 and for each calendar year thereafter, until otherwise proclaimed:

* * * 7. Whereas I find that upon invocation of the said [Wool Fabrics] reservation set forth in the second recital of this proclamation, effective October 1, 1956, it will Ibe appropriate to carry out the trade agreement specified in the first recital of this proclamation that the ad valorem part of the rate be 45 per centum ad valorem in the case of any of the fabrics described in the said item 1108 or 1109(a) in Part I of Schedule XX to the General Agreement on Tariffs and Trade set forth in the second recital of this proclamation * * * :
(a) during the period from October 1, 1956, to December 31, 1956, both inclusive, if such fabrics are entered, or withdrawn from warehouse, for consumption after the total aggregate quantity of 3,500,000 pounds of such fabrics has been so entered or withdrawn; which quantity I find to be not less than 1% per centum of the average annual production in the United States during the three immediately preceding calendar years of fabrics similar to such fabrics; and
(b) following December 31, 1956, until otherwise proclaimed by the President, if such fabrics are entered, or withdrawn from warehouse, for consumption in any calendar year after that total aggregate quantity by weight of such fabrics which shall have been notified by the President to the Secretary of the Treasury, [98]*98and published in the FEDERAL REGISTER, has been so entered or withdrawn during such calendar year; which quantity the President shall have found to be not less than 5 per centum of the average annual production in the United States during the three immediately preceding calendar years of fabrics similar to such fabrics;
*******
Now, therefore, I, Dwight D. Eisenhower, President of the United States of America, acting under and by virtue of the authority vested in me by the Constitution and the Statutes, including the said section 350 of the Tariff Act of 1930, as amended, do proclaim as follows:
1. In order to carry out the said trade agreements specified in the first and third recitals of this proclamation, until otherwise proclaimed by the President, the ad valorem part of the rate which shall be applied to the said fabrics described in the seventh recital of this proclamation, entered, or withdrawn from warehouse, for consumption in excess of the quantity specified in clause (a) of that recital, or in excess of a quantity notified to the Secretary of the Treasury pursuant to clause (b) of that recital, shall be 45 per centum ad valorem. * * *

In essence, this proclamation did (or, as appellant would have it, purported to do) several things: 1) it invoked the reservation and ordered that the ad valorem portion of the rate specified in paragraph 1109(a) would be 45% whenever the total annual importation of fabrics exceeded the 5% quota contained in the reservation; 2) it announced that the 5% quota for the last quarter of 1956 was 3,500,000 pounds (or, in other words, that 5% of the average annual domestic production during the three calendar years immediately preceding 1956 was not greater than 14,000,000 pounds); and 3) it stated that for each year subsequent to 1956, the President would set a quota, not less than 5% of the average annual domestic production during the three immediately preceding calendar years, and would notify the Secretary of the Treasury of such quota, such notification to be published in the Federal Register.

On May 24, 1957, the President transmitted the following notification to the Secretary of the Treasury (92 Treas. Dec. 122, T.D. 54370):

* * * Pursuant to paragraph 1 of that proclamation [No. 3160, supra] I hereby notify you that for the calendar year 1957 the quantity of such fabrics on imports in excess of which the ad valorem part of the rate will be 45 per centum ad valorem shall be 14,000,000 pounds. I find this quantity to he not less than 5 per centum of the average ammal production in the United States during the three immediately preceding calendar years of fabrics similar to such fabrics. * * * [Emphasis added.]

This notification was published in the Federal Register under date of May 28,1957 (22 F.R. 3717). Subsequent to such publication there was a series of communications between the Commissioner of Customs and the Collector, indicating that the 1957 quota of 14,000,000 pounds probably would be reached on July 24 or 25, and outlining a collection procedure to be followed after those dates which required a deposit [99]*99by the importer of the extra 20% differential in the ad valorem portion of the rate. Finally, on December 3,1957, the Commissioner notified the Collector at New York that the quota of 14,000,000 pounds had been filled on July 25,1957 at 3:07 p.m. E.S.T. and that the increased rate of 45% ad valorem should be collected on all entries and withdrawals for consumption made after that time.

Since the merchandise in this case was entered after July 25, 1957, it was assessed at the increased ad valorem rate of 45%.

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Bluebook (online)
51 C.C.P.A. 95, 1964 CCPA LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inter-maritime-forwarding-co-v-united-states-ccpa-1964.