Teague v. Regional Commissioner of Customs

404 F.2d 441
CourtCourt of Appeals for the Second Circuit
DecidedNovember 14, 1968
DocketNos. 1, 2, Dockets 31966, 32077
StatusPublished
Cited by11 cases

This text of 404 F.2d 441 (Teague v. Regional Commissioner of Customs) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teague v. Regional Commissioner of Customs, 404 F.2d 441 (2d Cir. 1968).

Opinion

HAYS, Circuit Judge:

. ,, „ Appellants are the addressees of mail ?ackages containing publications orig- ? ma3^á TCThiaa' jfben Atbese Plages reach the United States tbey are detalned by the Commissioner of Customs pursuant to the Foreign Assets Control Regulations, 31 C.F.R. § 500.808 (1968).1 The Commissioner sends letters of notice to the addressees advising them of the detention and stating that the material will be released only if Foreign Assets Control issues a license.

Appellants did not apply for licenses for the packages addressed to them,2 but brought this action, asserting that the Foreign Assets Control Regulations and the Trading with the Enemy Act § 5(b), 50 U.S.C.App. § 5(b) (1964), abridge their first amendment rights, that the statute unconstitutionally delegates legislative power to the President, that the President has unlawfully delegated powers to the Director of Foreign Assets [443]*443Control, and that the statute and regulations deprive appellants of property without due process of law. They seek a declaratory judgment that the statute and regulations are unconstitutional, that no licenses need be obtained or applied for in transactions involving the importation of North Vietnamese or Chinese publications, and that payment for those publications may be made directly to the publishers rather than into blocked accounts. Appellants also ask for an injunction preventing the Commissioner from continuing to detain the publications already in his possession.

Plaintiffs moved for summary judgment or, alternatively, for a preliminary injunction and the convening of a statutory three-judge court. Defendants challenged the court’s jurisdiction, and themselves sought summary judgment dismissing the complaint.

The district court held that it had jurisdiction under Section 1337 of the Judicial Code, 28 U.S.C. § 1337 (1964), but granted summary judgment dismissing the complaint.

Appellant Teague thereupon applied for a license. Five weeks later he received a letter from the Federal Reserve Bank of New York requiring that he amplify his application by answering a series of questions. He has not done so. Instead, relying on the delay involved in processing Teague’s application, plaintiffs moved pursuant to Fed.R.Civ.P. 60 (b) to vacate the order of dismissal, arguing that the regulations involved a far more burdensome procedure than had previously been assumed to exist. The court denied the motion, finding that the length of the delay involved was attributable to the pending litigation, and that while some delay could always be expected it would be closer to 10 days than to 5 weeks.3

Plaintiffs have appealed from both judgments. We affirm.

I.

Section 5(b) of the Trading with the Enemy Act, 50 U.S.C.App. § 5(b) (1964) authorizes the promulgation, during the time of war or other national emergency, of regulations controlling the flow of American currency to foreign nations.4

In December 1950 President Truman proclaimed the existence of a national emergency. 64 Stat. A454 (1950). That proclamation has never been revoked. Although the proclamation took particular note of “recent events in Korea and elsewhere,” it also made general reference to “the increasing menace of the forces of communist aggression.”

As this court said in Sardino v. Federal Reserve Bank, 361 F.2d 106, 109-110 [444]*444(2d Cir.), cert. denied, 385 U.S. 898, 87 S.Ct. 203, 17 L.Ed.2d 130 (1966):

“The declaration has never been revoked; rather it has been repeatedly and recently reaffirmed. * * * While the courts will not review a determination so peculiarly within the province of the chief executive, there can hardly be doubt as to the existence of an emergency today when thousands of United States troops are in action and many more are in readiness around the globe. Plaintiff’s contention that the national emergency provision, which came into the statute at the time of the economic crisis of 1933, 48 Stat. 1, is limited to economic emergencies, is sufficiently answered by the breadth of the language. The understanding that the words mean all they say was illustrated by President Roosevelt’s freezing the assets of nationals of Norway and Denmark on the invasion of those countries by Germany long before the United States was at war * * *. We take the prompt Congressional ratification * * * as a demonstration of approval of what was already lawful rather than as an indication of doubt.”

Acting under, the authority of the Trading with the Enemy Act and the declared state of national emergency, the Secretary of the Treasury, to whom the President delegated his rule-making power under the Act, promulgated the Foreign Assets Control Regulations, 31 C.F.R. Part 500 (1968). The relevant portions of those regulations are set forth in the margin.5

[445]*445II.

Plaintiffs challenge the constitutionality of the Trading with the Enemy Act, contending that the Congress has delegated legislative power to the President without fixing standards. And they assert that the powers delegated to the President (if constitutionally delegated to him) are personal to his office and may not constitutionally be delegated to the Secretary of the Treasury or the Director of Foreign Assets Control. These precise contentions were raised and dismissed in Sardino v. Federal Reserve Bank, supra. Far from overruling Sardino, as plaintiffs urge us to do, we reaffirm it as a sound and well-reasoned decision.

Plaintiffs contend that even if Sardino is reaffirmed a different set of standards should apply to the present case because the challenges on the basis of overbroad delegations of power involve first amendment claims. Our conclusion that plaintiffs’ first amendment rights have not been violated makes it unnecessary to decide that issue.

Sardino also provides a sufficient answer to plaintiffs’ contention that the statute and the regulations deprive them of property without due process of law.

III.

Plaintiffs’ major contention is that the statute and regulations violate the first amendment. They argue both that it is unconstitutional to subject the exercise of first amendment rights — the receipt of publications — to “burdensome and time-consuming administrative procedures,” and that the regulations require the keeping of records that impair the applicants’ right to anonymity.

The challenged regulations were designed to limit the flow of currency to specified hostile nations: mainland China, North Korea, and North Vietnam. We are presently in a state of armed conflict with North Vietnam; and while we are not at war with either China or North Korea our relations with those nations are hardly peaceful. As we noted in Sardino,

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404 F.2d 441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teague-v-regional-commissioner-of-customs-ca2-1968.