Star-Kist Foods, Inc. v. United States

169 F. Supp. 268, 41 Cust. Ct. 200, 1958 Cust. Ct. LEXIS 20
United States Customs Court·Decided November 21, 1958·No. C.D. 2043; Protest 258737-K·Published·Cited by 3 cases

Opinions

WILSON, Judge.

The party in interest in this case, Bruno Scheidt, Inc., on April 5, 1955, imported into the United States certain tuna fish, packed in brine. This merchandise was assessed at 12% per centum ad valorem by the collector as “Fish, prepared or preserved in any manner, when packed in air-tight containers weighing with their contents not more than fifteen pounds each (except fish packed in oil or in oil and other substances)” under the provisions of paragraph 718(b) of the Tariff Act of 1930, as amended by a trade agreement between the United States and Iceland, T.D. 50956, which became effective November 19, 1943, by Presidential proclamation. The duty against such merchandise under paragraph 718(b), without the trade agreement amendment, is 25 per centum ad valorem.

The plaintiff has heretofore been held by our appellate court to be an American manufacturer of merchandise of “the same class or kind as the imported merchandise, within the meaning of section 516(b) of the Tariff Act of 1930 [19 U.S.C.A. § 1516(b)], and * * * therefore qualified to maintain its protest under that paragraph.” Star-Kist Foods, Inc., v. United States (Bruno Scheidt, Inc., Party in Interest), 45 C.C.P.A., Customs, 16, C.A.D. 666.

The plaintiff concedes that the classification and assessment of the merchandise are correct, if the agreement between the United States and Iceland (T.D. 50956) [270]*270is valid. However, plaintiff attacks that agreement as “illegal and unauthorized” upon the ground that the Trade Agreements Act of 1934, under which the Icelandic agreement was negotiated, is “unconstitutional, null and void.” Counsel for the plaintiff, in their brief, state that “the sole question presented is whether or not section 350(a) of the Tariff Act of 1930 (the so-called Trade Agreements Act of 1934) is constitutional.” The Government accepts this statement of the issue, and the case has been submitted solely upon that question.

The pertinent parts of the statutes here involved, except as set forth elsewhere in this opinion, are as follows:

Paragraph 718(b) of the Tariff Act of 1930, as enacted by Congress:

“Fish, prepared or preserved in any manner, when packed in airtight containers weighing with their contents not more than fifteen pounds each (except fish packed in oil or in oil and other substances): Salmon, 25 per centum ad valorem; other fish, 25 per centum ad valorem.”

Paragraph 718(b) of the Tariff Act of 1930, as amended by the trade agreement with Iceland, T.D. 50956:

“Fish, prepared or preserved in any • manner, when packed in air-tight containers weighing with their contents not more than fifteen pounds each (except fish packed in oil or in oil and other substances) :
“Any of the foregoing (except herring, smoked or kippered or in tomato sauce, packed in immediate containers weighing with their contents more than one pound each, and except salmon and anchovies) ... 12% % ad valorem.”

Section 350(a), which is an amendment, dated in 1943, to the Reciprocal Trade Agreements Act of June 12, 1934, amending the Tariff Act of 1930, 48 Stat. 943, 19 U.S.C.A. § 1351:

“(a) For the purpose of expanding foreign markets for the products of the United States (as a means of assisting in the present emergency in restoring the American standard of living, in overcoming domestic unemployment and the present economic depression, in increasing the purchasing power of the American public, and in establishing and maintaining a better relationship among various branches of American agriculture, industry, mining, and commerce) by regulating the admission of foreign goods into the United States in accordance with the characteristics and needs of various branches of American production so that foreign markets will be made available to those branches of American production which require and are capable of developing such outlets by affording corresponding market opportunities for foreign products in the United States, the President, whenever he finds as a fact that any existing duties or other import restrictions of the United States or any foreign country are unduly burdening and restricting the foreign trade of the United States and that the purpose above declared will be promoted by the means hereinafter specified, is authorized from time to time—
“(1) To enter into foreign trade agreements with foreign governments or instrumentalities thereof; and
“(2) To proclaim such modifications of existing duties and other import restrictions, or such additional import restrictions, or such continuance, and for such minimum periods, of existing customs or excise treatment of any article covered by foreign trade agreements, as are required or appropriate to carry out any foreign trade agreement that the President has entered into hereunder. No proclamation shall be made increasing or decreasing by [271]*271more than 50 per centum any existing rate of duty or transferring any article between the dutiable and free lists. The proclaimed duties and other import restrictions shall apply to articles the growth, produce, or manufacture of all foreign countries, whether imported directly, or indirectly: Provided, That the President may suspend the application to articles the growth, produce, or manufacture of any country because of its discriminatory treatment of American commerce or because of other acts or policies which in his opinion tend to defeat the purposes set forth in this section; and the proclaimed duties and other import restrictions shall be in effect from and after such time as is specified in the proclamation. The President may at any time terminate any such proclamation in whole or in part.
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“Sec. 2 [19 U.S.C.A. § 1352]. * * *
“(b) Every foreign trade agreement concluded pursuant to this Act shall be subject to termination, upon due notice to the foreign government concerned, at the end of not more than three years from the date on which the agreement comes into force, and, if not then terminated, shall be subject to termination thereafter upon not more than six months’ notice.
“(c) The authority of the President to enter into foreign trade agreements under section 1 of this Act shall terminate on the expiration of three years from the date of the enactment of this Act.”

Provisions of the United States Constitution invoked by plaintiff:

“ [Article I, sec. 1]:
“All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.”
“Article I, sec. 7]:
“1. All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.”
“Article I, sec. 8]:
“Section 8 — (Powers of Congress)
“1. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and General Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
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Star-Kist Foods, Inc. v. United States, 169 F. Supp. 268, 41 Cust. Ct. 200, 1958 Cust. Ct. LEXIS 20 (cusc 1958).

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