United States v. Schmidt Pritchard & Co.

47 C.C.P.A. 152
CourtCourt of Customs and Patent Appeals
DecidedJuly 20, 1960
DocketNo. 4980
StatusPublished
Cited by210 cases

This text of 47 C.C.P.A. 152 (United States v. Schmidt Pritchard & Co.) 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
United States v. Schmidt Pritchard & Co., 47 C.C.P.A. 152 (ccpa 1960).

Opinions

Smith, Judge,

delivered the opinion of the court:

• Appellees imported bicycles of wheel diameter over twenty-five inches, weighing less than 36 pounds, and not designed for use with tires having a cross-sectional diameter exceeding one and five-eighths inches, which the Customs Collector classified under paragraph 371 of the Tariff Act of 1930, as modified. Duty was assessed at 11% per-centum ad valorem according to Presidential Proclamation 3108, 70 Stat. C 4, 90 Treas. Dec. 285, T.D. 53883. Presidential Proclamation 3108 purported to modify Proclamation No. 2761 A, 61.Stat. (Part 2) 1103, 82 Treas. Dec. 305, T.D. 51802, issued pursuant to the General Agreement on Tariffs and Trade, 61 Stat. (Part 5) A 1213, which had [154]*154set the rate of duty at $1.25 each, but not less than 7*4% nor more than 15% ad valorem.

Based upon the allegation that the modification made by Proclamation 3108 is illegal, the importer, acting under section 514 of the Tariff Act of 1930, protested the rate of duty assessed, contending that the duty should have been assessed according to Proclamation No. 2761 A. The Customs Court sustained the protest, and held that Presidential Proclamation No. 3108 was illegal, C.D. 2029. The Government appeals from that judgment.

Proclamation No. 3108, the legality of which is here in issue, was issued after an “escape-clause” proceeding had been instituted pursuant to section 7 of the Trade Agreements Extension Act of 1951, as amended. In addition to the formal “escape-clause” proceeding under section 7, the President had requested and the Tariff Commission had conducted a supplemental investigation, after which its final recommendations were transmitted to the President and Proclamation No. 3108 was issued.

The record here consists of a stipulation of the parties, a certified statement by the Secretary of the Tariff Commission as to the official records of that Commission pertaining to its Investigation No. 37 with respect to bicycles, and copies of official notices, reports and statements in connection with the Commission’s proceedings and Presidential action.

The record establishes the following chronology of events pertinent to the present controversy:

1 — On June 14, 1954, an application was filed with the Tariff Commission for an investigation of bicycles under section 7, Trade Agreements Act of 1951, as amended.
2 — On June 22, 1954, the Tariff Commission, by Order of Investigation No. 37, instituted an investigation under said section 7, with respect to bicycles. Due notice of such investigation was given.
3 — On July 8, 1954, the Tariff Commission ordered a public hearing to be held in said Investigation No. 37 on September 21, 1954. Due notice of such hearing was given.
4 — On September 21-24, inclusive, 1954, and September 27, 1954, a public hearing was held by the Commission pursuant to said notice.
5 — On March 14, 1955, the Tariff Commission submitted a report to the President on its said Investigation No. 37 on bicycles.
6 — On May 11, 1955, the President addressed a letter to the Chairman of the Tariff Commission requesting further information and report back to him no later than July 15, 1955.
7 — On May 11, 1955, the President addressed a letter to the Chairman of the Committee on Ways and Means, House of Representatives and Committee on Finance, Senate, advising them he was remanding the ease to the Commission for further information.
[155]*1558 — On July 14, 1955, tlie Tariff Commission submitted a supplemental report to tbe President on its said Investigation No. 37 with respect to bicycles. No public notice was issued and no public bearing was beld in connection with tbe investigation made to gather tbe data requested by tbe President.
9 — On August 18, 1955, tbe President issued Proclamation No. 3108 increasing tbe rates of duty on bicycles. Tbe increased rates so proclaimed differed in part from tbe rates found and recommended by tbe Tariff Commission to tbe President.
10 — On August 18, 1955, coincident with the issuance of said proclamation, the President addressed a letter to tbe Chairman of tbe Committee on Finance, United States Senate, and tbe Chairman of the Committee on Ways and Means, House of Representatives, setting forth reasons for bis action in promulgating rates of duty different from those found and recommended by tbe majority of the Commission.
11 — On August 19, 1955, tbe Tariff Commission issued a statement reporting tbe action of tbe President, and tbe reasons stated by him for bis action.

Tbe statutory provisions involved are:

A) Section 7 of the Trade Agreements Extension Act of 1951, 65 Stat. (19 U.S.C.A., § 1364 [T.D. 52772]):

Sec. 7. (a) Upon tbe request of tbe President, upon resolution of either House of Congress, upon resolution of either tbe Committee on Finance of the Senate or tbe Committee on Ways and Means of tbe House of Representatives, upon its own motion, or upon application of any interested party, the United States Tariff Commission shall promptly mate an investigation and make a report thereon not later than one year after the application is made to determine whether any product upon which a concession has been granted under a trade agreement is, as a result, in whole or in part, of tbe duty or other customs treatment reflecting such concession, being imported into tbe 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.
In tbe course of any such investigation, whenever it finds evidence of serious injury or threat of serious injury or whenever so directed by resolution of either the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives, the Tariff Commission shall hold hearings giving reasonable public notice thereof and shall afford reasonable opportunity for interested parties to be present, to produce evidence, and to be heard at such hearings.
Should the Tariff Commission find, as the result of its investigation and hearings, that a product on which a concession has been granted is, as a result, in whole or in part, of the duty or other customs treatment reflecting such concession, being imported 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, it shall recommend to the President the withdrawal or modification of the concession, its suspension in whole or in part, or the establishment of import quotas, to the extent and for the time necessary to prevent or remedy such injury. Within sixty days, or sooner if the President has taken action under subsection (c) of this section, the Tariff Commission shall transmit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives an exact copy of its report and recommendations to the President.
[156]

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Bluebook (online)
47 C.C.P.A. 152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-schmidt-pritchard-co-ccpa-1960.