Mayers, Osterwald & Muhlfeld (Inc.) v. Bendler

18 C.C.P.A. 117, 1930 CCPA LEXIS 65
CourtCourt of Customs and Patent Appeals
DecidedJune 4, 1930
DocketNo. 3267
StatusPublished

This text of 18 C.C.P.A. 117 (Mayers, Osterwald & Muhlfeld (Inc.) v. Bendler) 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
Mayers, Osterwald & Muhlfeld (Inc.) v. Bendler, 18 C.C.P.A. 117, 1930 CCPA LEXIS 65 (ccpa 1930).

Opinion

Graham, Presiding Judge,

delivered the opinion of the court:

This is an appeal by an American wholesaler and dealer in diamonds, pearls, and other precious stones, from a judgment of the United States Customs Court, Third Division, overruling the protest filed by appellant under the provisions of section 516 (b), of the Tariff Act of 1922; The merchandise involved consisted of a diamond, cut and unset, weighing 78% carats and called the Nassak or Nassac diamond, which had been classified and admitted to free entry under paragraph 1708 of the Tariff Act of 1922 as an artistic antiquity. After the diamond had been delivered to the importer, and within 60 days after liquidation, the Ameiican wholesaler filed protest claiming it to be dutiable under paragraph 1429 of said act, which reads in part as follows:

Par. 1429. * * * diamonds, coral, rubies, cameos, and other precious stones and semiprecious stones, cut but not set, and suitable for use in the manufacture of jewelry, 20 per centum ad valorem; * * *.

Paragraph 1708 follows:

Par. 1708. Works of art (except rugs and carpets), collections in illustration of the progress of the arts, works in bronze, marble, terra cotta, parían, pottery, or porcelain, artistic antiquities, and objects of art of ornamental character or educational value which shall have been produced more than one hundred years prior to the date of importation, but the free importation of such objects shall be subject to such regulations as to proof of antiquity as the Secretary of the Treasury may prescribe.

The lower court overruled the protest of the American wholesaler and held the diamond to be free of duty under paragraph 1708 as an artistic antiquity produced more than 100 years prior to the date of importation.

In the court below, importer, appellee herein, moved to dismiss the protest upon the following grounds:

1. That the court has no jurisdiction of the subject matter or remedy sought,
2. That there is no provision of law authorizing such protest in this case.
[119]*1193. That the provisions of section 516, which alone authorize and provide for protests by American manufacturers or producers do not warrant protests in such eases there not having been a previous importation upon which notices and other statutory conditions precedent provided in said section of the law are or could be predicated.
4. That the conditions precedent in the proceedings provided by section 516' authorizing protests by American manufacturers or producers have not been complied with; that the acts, decisions, conditions, and notices therein provided which shall have been previously had by the Secretary of the Treasury and other officials of the Government have not in this case been had; that the provisions of said section 516 do not apply to an instant importation such as this but solely and only after proceedings had thereunder with reference to an instant importation whereupon said protest and such protests may be lodged against subsequent importations.
5. That there is no law authorizing the protest herein or supporting the same.

This motion was denied by the Third Division of thé United States Customs Court, and in a very carefully prepared and weff-written opinion Mr. Justice Waite, speaking for the court, held that such preliminary acts and conditions required by the section had been complied with and that the American wholesaler, appellant, was within his statutory rights in filing the protest after such preliminary requirements had been complied with and in directing same against the initial importation. This action on the part of the court below has been assigned as error here and has been ably argued at great length by appellee’s counsel.

Appellees point out that section 516 (b) accords to domestic-manufacturers, producers, and wholesalers a new statutory right,, and contends that previously Congress had always denied the granting of this kind of privilege, since it would afford competitive domestic-interests a legal way of interfering with and hampering international commerce to the great financial loss of those engaged in it, and that, as the law was finally adopted it was intended to provide only for a protest by such producer in entries other than the one concerning which the original notice and complaint were filed with the Secretary of the Treasury and not against liquidations in “initial importations”; that the law was framed upon the theory that American producers finding certain goods coming into the country free of duty, or upon which duty was assessed, at an erroneous rate, to their damage, would have the right to attempt to induce the Secretary of the Treasury to require a change in classification, and that upon failure to obtain such relief through the department, then only would protest lie against subsequent entries.

The chief reason given by appellees for their belief that this- was the-intent of Congress is to the effect that one importation would not be-regarded as sufficiently harmful to the American producer to justify congressional solicitude in his behalf, and that if there were subsequent importations opportunity for protest would be afforded, and that. [120]*120Congress could not be presumed to have intended to give domestic interests the right to damage and possibly destroy the business of American importers by authorizing an action which might result in the reclassification of merchandise which had already been admitted free and gone into commerce. Appellees point to the case at bar as an example where an importer with the consent and full approval of the customs officials had imported, free of duty, a very valuable diamond which, if dutiable, would be taxed with one-fifth of its great value; that in a case of this kind the importer might well have sold or parted with the diamond at a price based upon its free entry, and argues that if the statute is construed as the lower court has construed it, no importer may know for 60 days after liquidation the dutiable status of any given entry, and that possibly, after long and expensive litigation instituted by a party unknown on the date of importation, a different rate may be determined upon.

This logic and the strength of appellees’ position can not be brushed aside as frivolous or wholly fallacious. It would seem to us that Congress in some appropriate way would desire to protect American importers against just such a contingency as is here pointed out, but, as we view the statute, it did not do so. We can not insert into the section a provision which Congress withheld, nor do we find such ambiguous language contained therein as will permit of the construction contended for. It will be noticed that after the “complaint” has been filed and relief refused, the American producer may file with the Secretary a notice that he desires to protest and that the producer “may file within 60 days after the date of liquidation with the collector of such port a protest in writing,” etc. There is no language •in the section which may be interpreted as meaning that the protest can not be filed .against an initial liquidation after the statutory prerequisites have been complied with. It is not contended here that the prerequisites have not been complied with.

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Bluebook (online)
18 C.C.P.A. 117, 1930 CCPA LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayers-osterwald-muhlfeld-inc-v-bendler-ccpa-1930.