ELDRIDGE, Judge.
Maryland Code (1975, 1985 Repl.Vol.), § 7-202(a) of the Corporations and Associations Article states that, before doing any interstate or foreign business in Maryland, a foreign corporation shall “register” with the State Department of Assessments and Taxation (the Department).
Section 7-203(a) of the Corporations and Associations Article provides that, before doing any intrastate business in Maryland, a foreign corporation shall “qualify” with the Department.
Finally, under § 7-301 of the same Article, if a foreign corporation is doing or has done “any intrastate,
interstate, or foreign business” in Maryland without registering or qualifying, then neither the corporation nor any person claiming under it may maintain a suit in any court of this State.
The principal question raised in this case is whether Yangming Marine Transport Corporation (Yangming) is doing business in Maryland within the meaning of § 7-301, and is thereby barred from maintaining this action because of its failure to register or to qualify. A second question, to be reached only if the first question is answered in the affirmative, is whether such prohibition, as applied under the circumstances of this case, is inconsistent with the Commerce Clause of the United States Constitution, Art. I, § 8, cl. 3.
I.
Yangming exists under the laws of the Republic of China and is headquartered in Taipei, Taiwan. The parties have stipulated that, at all times relevant to this case, Yangming was “engaged in the transportation of goods by sea for hire in foreign commerce.” Yangming is represented in the United States through its agent in New York, Solar International Shipping Agency, Inc.
Yangming operated a weekly container shipping service between several ports on the East Coast of the United
States, including Baltimore, and various ports in the Far East, including ports in Korea. Yangming’s agent in Baltimore was Maher Shipping, Inc. Maher’s duties included husbanding cargo for Yangming’s vessels and arranging port services, facilities, and supplies for Yangming’s vessels while in the Port of Baltimore.
Yangming advertised its weekly container shipping service from Baltimore in several publications that circulated among Baltimore freight forwarders, steamship agents, ocean carriers, and others engaged in foreign commerce by sea. The advertisements contained Maher’s address and telephone number, and disclosed Maher’s agency relationship with Yangming.
During port visits to Baltimore, Yangming’s ships expended sums of money for Maryland Bay Pilots, tugs and berthing, loading and unloading, ánd refueling and reprovisioning. Additionally, Yangming shipped cargo from other states as well as Maryland inside containers that traveled by train or truck between the various shippers’ premises and the Port of Baltimore. At all times relevant to this case, Yangming had no resident agent in Maryland and had neither registered nor qualified to do business in Maryland.
Yangming’s suit against the defendant Revon Products, U.S.A. (Revon), arose out of a dispute over freight charges. In early 1982, a Korean seller agreed to ship certain goods freight prepaid to Revon in Baltimore. The goods were to travel on one of Yangming’s vessels. Because of an unrelated dispute between Yangming and the seller Yangming refused to deliver the original bill of lading. Consequently, Revon could not obtain title to the goods. When the goods arrived in Baltimore in the Spring of 1982, Maher informed Revon that the seller had not paid the freight charges and that Revon would not receive the goods until it discharged this $6,000 obligation. After Revon issued a check and obtained the goods, the seller claimed that it had indeed prepaid the freight and asserted that Revon could not deduct the $6,000 from the contract price. As a result, Revon stopped payment on the check.
In March 1985, Yangming filed a complaint in the Circuit Court for Howard County to recover the $6,000 from Revon. In a motion to dismiss, Revon asserted,
inter alia,
that the trial court lacked “personal jurisdiction” over Yangming. In its supporting memorandum, Revon explained that Yangming was “doing business” in Maryland without registering or qualifying with the State Department of Assessments and Taxation, in contravention of §§ 7-202 and 7-203. Hence, Revon concluded that, under § 7-301, Yangming could not maintain this action.
In December 1985, the trial court granted Revon’s motion to dismiss. Relying on federal diversity cases, the trial judge concluded that, because Yangming’s activities in the Port of Baltimore amounted to “doing business” in Maryland, Yangming was required to register under § 7-202 or to qualify under § 7-203. As Yangming had taken neither step, the trial judge held that § 7-301 barred Yangming from bringing an action in any court of Maryland. The trial judge also rejected Yangming’s claim that the application of § 7-301 would place an unconstitutional burden on interstate and foreign commerce. In reaching this decision, the trial judge relied on
Eli Lilly & Co. v. Sav-On-Drugs,
366 U.S. 276, 81 S.Ct. 1316, 6 L.Ed.2d 288 (1961), in which the Supreme Court had held that, consistent with the Commerce Clause, a state may apply a “closed-door” statute such as § 7-301 to a foreign corporation engaged in both intrastate and interstate business. Equating Yangming’s activities with “intrastate” business, the trial judge concluded that Yangming could constitutionally be barred from suing in Maryland courts.
Yangming appealed to the Court of Special Appeals. Before consideration in that court, we issued a writ of certiorari.
II.
As pointed out above, under § 7-301, a foreign corporation that has not complied with § 7-202 or § 7-203 is barred from suing in Maryland if the corporation “is doing
... any intrastate, intérstate, or foreign business in this State.” This Court, however, has not given § 7-301 an entirely literal construction. Specifically, this Court has not construed § 7-301 as listing three, disjunctive factors, any one of which, if present, could bar an unregistered or unqualified corporation from suing in Maryland courts. Instead, we have held that § 7-301 embodies a test for determining whether a foreign corporation is "doing business” in Maryland.
See G.E.M., Inc. v. Plough, Inc.,
228 Md. 484, 486, 180 A.2d 478, 480 (1962). Under this test, § 7-301 bars an unqualified or unregistered foreign corporation from suing in Maryland courts only if the corporation is doing such a substantial amount of localized business in this State that the corporation could be deemed “present” here.
See, e.g., S.A.S. Personnel Consult, v. Pat-Pan,
286 Md. 335, 339-340, 407 A.2d 1139, 1142 (1979);
G.E.M., Inc. v. Plough Inc., supra,
228 Md. at 488-489, 180 A.2d at 480-481.
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ELDRIDGE, Judge.
Maryland Code (1975, 1985 Repl.Vol.), § 7-202(a) of the Corporations and Associations Article states that, before doing any interstate or foreign business in Maryland, a foreign corporation shall “register” with the State Department of Assessments and Taxation (the Department).
Section 7-203(a) of the Corporations and Associations Article provides that, before doing any intrastate business in Maryland, a foreign corporation shall “qualify” with the Department.
Finally, under § 7-301 of the same Article, if a foreign corporation is doing or has done “any intrastate,
interstate, or foreign business” in Maryland without registering or qualifying, then neither the corporation nor any person claiming under it may maintain a suit in any court of this State.
The principal question raised in this case is whether Yangming Marine Transport Corporation (Yangming) is doing business in Maryland within the meaning of § 7-301, and is thereby barred from maintaining this action because of its failure to register or to qualify. A second question, to be reached only if the first question is answered in the affirmative, is whether such prohibition, as applied under the circumstances of this case, is inconsistent with the Commerce Clause of the United States Constitution, Art. I, § 8, cl. 3.
I.
Yangming exists under the laws of the Republic of China and is headquartered in Taipei, Taiwan. The parties have stipulated that, at all times relevant to this case, Yangming was “engaged in the transportation of goods by sea for hire in foreign commerce.” Yangming is represented in the United States through its agent in New York, Solar International Shipping Agency, Inc.
Yangming operated a weekly container shipping service between several ports on the East Coast of the United
States, including Baltimore, and various ports in the Far East, including ports in Korea. Yangming’s agent in Baltimore was Maher Shipping, Inc. Maher’s duties included husbanding cargo for Yangming’s vessels and arranging port services, facilities, and supplies for Yangming’s vessels while in the Port of Baltimore.
Yangming advertised its weekly container shipping service from Baltimore in several publications that circulated among Baltimore freight forwarders, steamship agents, ocean carriers, and others engaged in foreign commerce by sea. The advertisements contained Maher’s address and telephone number, and disclosed Maher’s agency relationship with Yangming.
During port visits to Baltimore, Yangming’s ships expended sums of money for Maryland Bay Pilots, tugs and berthing, loading and unloading, ánd refueling and reprovisioning. Additionally, Yangming shipped cargo from other states as well as Maryland inside containers that traveled by train or truck between the various shippers’ premises and the Port of Baltimore. At all times relevant to this case, Yangming had no resident agent in Maryland and had neither registered nor qualified to do business in Maryland.
Yangming’s suit against the defendant Revon Products, U.S.A. (Revon), arose out of a dispute over freight charges. In early 1982, a Korean seller agreed to ship certain goods freight prepaid to Revon in Baltimore. The goods were to travel on one of Yangming’s vessels. Because of an unrelated dispute between Yangming and the seller Yangming refused to deliver the original bill of lading. Consequently, Revon could not obtain title to the goods. When the goods arrived in Baltimore in the Spring of 1982, Maher informed Revon that the seller had not paid the freight charges and that Revon would not receive the goods until it discharged this $6,000 obligation. After Revon issued a check and obtained the goods, the seller claimed that it had indeed prepaid the freight and asserted that Revon could not deduct the $6,000 from the contract price. As a result, Revon stopped payment on the check.
In March 1985, Yangming filed a complaint in the Circuit Court for Howard County to recover the $6,000 from Revon. In a motion to dismiss, Revon asserted,
inter alia,
that the trial court lacked “personal jurisdiction” over Yangming. In its supporting memorandum, Revon explained that Yangming was “doing business” in Maryland without registering or qualifying with the State Department of Assessments and Taxation, in contravention of §§ 7-202 and 7-203. Hence, Revon concluded that, under § 7-301, Yangming could not maintain this action.
In December 1985, the trial court granted Revon’s motion to dismiss. Relying on federal diversity cases, the trial judge concluded that, because Yangming’s activities in the Port of Baltimore amounted to “doing business” in Maryland, Yangming was required to register under § 7-202 or to qualify under § 7-203. As Yangming had taken neither step, the trial judge held that § 7-301 barred Yangming from bringing an action in any court of Maryland. The trial judge also rejected Yangming’s claim that the application of § 7-301 would place an unconstitutional burden on interstate and foreign commerce. In reaching this decision, the trial judge relied on
Eli Lilly & Co. v. Sav-On-Drugs,
366 U.S. 276, 81 S.Ct. 1316, 6 L.Ed.2d 288 (1961), in which the Supreme Court had held that, consistent with the Commerce Clause, a state may apply a “closed-door” statute such as § 7-301 to a foreign corporation engaged in both intrastate and interstate business. Equating Yangming’s activities with “intrastate” business, the trial judge concluded that Yangming could constitutionally be barred from suing in Maryland courts.
Yangming appealed to the Court of Special Appeals. Before consideration in that court, we issued a writ of certiorari.
II.
As pointed out above, under § 7-301, a foreign corporation that has not complied with § 7-202 or § 7-203 is barred from suing in Maryland if the corporation “is doing
... any intrastate, intérstate, or foreign business in this State.” This Court, however, has not given § 7-301 an entirely literal construction. Specifically, this Court has not construed § 7-301 as listing three, disjunctive factors, any one of which, if present, could bar an unregistered or unqualified corporation from suing in Maryland courts. Instead, we have held that § 7-301 embodies a test for determining whether a foreign corporation is "doing business” in Maryland.
See G.E.M., Inc. v. Plough, Inc.,
228 Md. 484, 486, 180 A.2d 478, 480 (1962). Under this test, § 7-301 bars an unqualified or unregistered foreign corporation from suing in Maryland courts only if the corporation is doing such a substantial amount of localized business in this State that the corporation could be deemed “present” here.
See, e.g., S.A.S. Personnel Consult, v. Pat-Pan,
286 Md. 335, 339-340, 407 A.2d 1139, 1142 (1979);
G.E.M., Inc. v. Plough Inc., supra,
228 Md. at 488-489, 180 A.2d at 480-481.
Earlier, this test was considered analogous to the statutory “doing business” test, used before the enactment of the present Long Arm Statute,
to determine whether a foreign corporation was amenable to service of process in the State.
See
Code (1957), Art. 23, § 92(b);
G.E.M., Inc. v. Plough Inc., supra,
228 Md. at 486, 180 A.2d at 480.
See also
22 Op.Att’y Gen. 262, 264 (1937). The “doing business” test under § 7-301, however, can no longer be considered analogous to the test for determining whether Maryland may assert personal jurisdiction over a foreign corporation. Chapter 532 of the Acts of 1967 repealed the statutory “doing business” test for service of process. Moreover, under Code (1974, 1984 Repl.Vol.), § 6-103(b)(l) of the Courts and Judicial Proceedings Article (the Long Arm Statute), Maryland may now assert personal jurisdiction over a foreign corporation that “transacts any business” in the State. This Court has repeatedly stated that
§ 6-108 represents a legislative effort to expand the boundaries of in personam jurisdiction to the maximum extent permitted by the Due Process Clause of the Fourteenth Amendment.
Camelback Ski Corp. v. Behning,
307 Md. 270, 274, 513 A.2d 874 (1986), remanded on other grounds, —- U.S.-, 107 S.Ct. 1341, 94 L.Ed.2d 512 (1987);
Mohamed v. Michael,
279 Md. 653, 657, 370 A.2d 551 (1977);
Geelhoed v. Jensen,
277 Md. 220, 224, 352 A.2d 818 (1976);
Krashes v. White,
275 Md. 549, 558-559, 341 A.2d 798 (1975);
Lamprecht v. Piper Aircraft Corp.,
262 Md. 126, 130, 277 A.2d 272 (1971);
Harris v. Arlen Properties,
256 Md. 185, 195-196, 260 A.2d 22 (1969);
Vitro Electronics v. Milgray,
255 Md. 498, 504-505, 258 A.2d 749 (1969);
Gilliam v. Moog Industries,
239 Md. 107, 111, 210 A.2d 390 (1965). Therefore, the “transacting business” test under § 6-103(b)(l) requires far fewer contacts with the State than did the “doing business” test. Auerbach,
The “Long Arm” Comes to Maryland,
26 Md.L.Rev. 13, 33 (1966);
Snyder v. Hampton Industries, Inc.,
521 F.Supp. 130, 137 (D.Md.1981),
aff'd,
758 F.2d 649 (4th Cir.1985).
See S.A.S. Personnel Consult v. Pat-Pan, supra,
286 Md. at 338 n. 1, 407 A.2d at 1141 n. 1. Consequently, under § 7-301, a foreign corporation is “doing business” in Maryland only if the corporation conducts a significantly greater amount of local activity in Maryland than would be necessary for Maryland to assert personal jurisdiction over the corporation.
As previously mentioned, under our cases an unqualified or unregistered foreign corporation is barred from suing in Maryland courts only if the corporation is engaged in a substantial amount of localized business activity in Maryland. In
G.E.M., Inc. v. Plough Inc., supra,
the plaintiff, a foreign manufacturer, had neither qualified nor registered. The plaintiff had no address, property, warehouses, offices, or telephone listing in Maryland; its products entered Maryland by common carrier through interstate commerce; its salesmen operated in Maryland, but had no authority beyond solicitation; its only activities beyond solicitation involved monitoring compliance with Fair Trade agreements, the occasional distribution of promotional materials, and the allowance of discounts for participation in advertising programs. 228 Md. at 486-488, 180 A.2d at 480-481. On these facts, the Court held that the plaintiff was not “doing business” in Maryland. 228 Md. at 488, 180 A.2d at 481. The Court commented that mere solicitation does not constitute “doing business.” As to the conduct beyond solicitation, the Court stated: “[Activities merely incidental to, and directly connected with, the solicitation of interstate sales ... do not meet the test implicit in the statutory language in question.”
Ibid.
The plaintiff in
G.E.M., Inc. v. Plough, Inc.
had contended that “to apply the bar to a corporation doing wholly interstate business would violate the Commerce Clause.” 228 Md. at 489, 180 A.2d at 481. By holding § 7-301 inapplicable in
G.E.M.,
the Court avoided this contention. Nonetheless, by construing the “doing business” test so as not to encompass the plaintiffs conduct, the Court indicated that a foreign corporation doing wholly interstate business is not “doing business” in Maryland, at least unless a significant proportion of the corporation’s activities occur in this State.
More recently, in
S.A.S. Personnel Consult, v. Pat-Pan, supra,
we held that § 7-301 did not bar a suit brought by a nonresident personnel agency that solicited business in Maryland and referred one employee to a Maryland employer.
In reaching this decision, the Court echoed the concern, expressed in
G.E.M., Inc. v. Plough, Inc.,
that § 7-301 should not be construed to bar a suit brought by a foreign corporation not engaging in a significant amount of business in Maryland (286 Md. at 339, 407 A.2d at 1142): “Foreign corporations which merely solicit orders or sales, or engage in activities in Maryland directly related to such solicitation or sales, including the interstate delivery of goods, have ... been held not to be ‘doing business.’ ”
In sum, we have interpreted § 7-301 as allowing a foreign corporation, not engaged in significant business activity in Maryland, to maintain an action in the courts of this State despite a failure to register or qualify. We see no reason to construe § 7-301 differently in the case of a corporation that is engaged wholly in foreign commerce. Consequently, we hold that, under § 7-301, an unregistered or unqualified foreign corporation that engages in either interstate or foreign business activity in Maryland is barred from suing in the courts of this State only if the corporation also engages in localized business activity in Maryland such that it is “doing business” here.
III.
Yangming maintains that it is engaged in transportation in international and foreign commerce, only. According to Yangming, its use of containers does not alter this conclusion, as containers are recognized as instrumentalities of foreign commerce. Additionally, Yangming contends that its activities in the Port of Baltimore, including those performed by Maher (husbanding cargo, arranging port facilities, services, supplies, etc.), and the use of tugs and pilots, are “essential and necessary to ... foreign commerce” and thus do not constitute “doing business.” (Brief, p. 8).
Revon, on the other hand, concedes that Yangming is engaged in foreign commerce. Revon maintains, however, that the trial court was correct in concluding that Yangming’s activities in the Port of Baltimore constituted “doing business.”
In
S.A.S. Personnel Consult. v. Pat-Pan, supra,
286 Md. at 339, 407 A.2d 1139, we explained the “doing business” test for purposes of § 7-301 as follows:
“A determination whether a particular act or set of acts constitutes ‘doing business’ depends upon the facts of each individual case, and rests not on a single factor, but
rather on the nature and extent of the business and activities which occur in the forum state.
White v. Caterpillar Tractor Co.,
235 Md. 368, 372, 201 A.2d 856, 858 (1964);
State
ex rel.
Bickel v. Pennsylvania Steel Co.,
123 Md. 212, 218, 91 A. 136, 138 (1914). Factors which may be taken into account include the payment of state taxes; the maintenance in the state of property, an office, telephone listings, employees, agents, inventory, research and development facilities, advertising, and bank accounts; the making of contracts; and the extent or pervasiveness of management functions including supervision and control of distributors and services for customers within the state.
Gilliam v. Moog Indus., Inc.,
239 Md. 107, 109, 210 A.2d 390, 391 (1965);
White v. Caterpillar Tractor Co.,
235 Md. at 373, 201 A.2d at 858;
Thomas v. Hudson Sales Corp.,
204 Md. 450, 464-65, 105 A.2d 225, 231 (1954). Where there is solicitation, shipment of goods, and an extensive set of activities or management functions, foreign corporations have been held to be ‘doing business.’
White v. Caterpillar Tractor Co.,
235 Md. at 374, 201 A.2d at 859;
Thomas v. Hudson Sales Corp.,
204 Md. at 465-66, 105 A.2d at 231.”
In the present case, there is no dispute as to the nature or extent of Yangming’s activities. Yangming has an agent and, in connection with its shipping activities, enters into contracts in Maryland. There is, however, no evidence that Yangming pays taxes, maintains property, inventory, or research and development facilities, or engages in management functions in Maryland. Yangming has no office, telephone listing, bank accounts, or employees in Maryland. Moreover, as shown by the record, Yangming’s attempts to solicit business were by advertising in national publications. There was much less effort to solicit business in Maryland than that involved in
G.E.M., Inc. v. Plough, Inc., supra.
Thus, on the whole, Yangming’s activities resemble the conduct that was found not to constitute “doing business” in
G.E.M., Inc. v. Plough, Inc.
Admittedly, this case differs from
G.E.M.
in that the plaintiff in that case shipped
goods into Maryland by common carrier, while in this case, Yangming is the common carrier by which others ship their goods into Maryland. Nevertheless, we find this distinction insignificant given the insubstantiality of the local business engaged in by Yangming.
Moreover, Yangming’s activities in the Port of Baltimore are integral and necessary parts of its wholly foreign shipping business, a business obviously within the ambit of the Commerce Clause.
See, e.g., Japan Line Ltd. v. County of Los Angeles,
441 U.S. 434, 445-446, 99 S.Ct. 1813, 60 L.Ed.2d 336 (1979) (“containers ... are instrumentalities of foreign commerce, both as a matter of fact and as a matter of law);
Wash. Rev. Dept. v. Stevedoring Assn.,
435 U.S. 734, 743-744, 98 S.Ct. 1388, 1395-96, 55 L.Ed.2d 682 (1978) (stevedores are instruments of interstate commerce);
Foster, et al. v. Davenport, et al.,
63 U.S. (22 How.) 244, 246, 16 L.Ed. 248 (1859) (“towing was but the prolongation of the voyage of the vessels” engaged in interstate or foreign commerce).
See also Texas Transp. Co. v. New Orleans,
264 U.S. 150, 44 S.Ct. 242, 68 L.Ed. 611 (1924).
In sum, Yangming’s activities in the Port of Baltimore were necessary and essential to its activities in foreign commerce; the shipowner’s activities in Baltimore were not sufficiently distinct from its foreign commerce or sufficiently localized in Maryland to constitute “doing business” within the meaning of § 7-301.
Because of our holding that Yangming was not doing business in Maryland within the meaning
of §§
7-202, 7-203 and 7-301 as contraed by the Court, and thus Yangming did not have to qualify or register in order to maintain this suit, we do not directly reach the Commerce Clause issue raised by Yangming. Nevertheless, it must be acknowledged that the Court’s construction and applications of the Maryland statutory scheme in this and prior cases obviously are influenced by constitutional considerations. Our construction and applications are in accord with the principle that a court will, whenever reasonably possible, construe and apply a statute to avoid casting serious doubt upon its constitutionality.
See, e.g., Heileman Brewing v. Stroh Brewery,
308 Md. 746, 763-764, 521 A.2d 1225 (1987);
In re Criminal Investigation No. 1-162,
307 Md. 674, 685, 516
A!2d 976, 982 (1986);
Davis v. State,
294 Md. 370, 377, 451 A.2d 107, 111 (1982);
Pickett v. Prince George’s County,
291 Md. 648, 661, 436 A.2d 449, 456 (1981);
Prince Geo’s Co. v. Chillum-Adelphi,
275 Md. 374, 383, 340 A.2d 265 (1975).
The Supreme Court has consistently taken the position that a “closed-door” statute such as § 7-301 cannot, under the Commerce Clause, apply to unregistered or unqualified foreign corporations engaged in wholly interstate or foreign commerce.
Allenberg Cotton Company, Inc. v. Pittman,
419 U.S. 20, 95 S.Ct. 260, 42 L.Ed.2d 195 (1974);
Eli Lilly & Co. v. Sav-On-Drugs, supra,
366 U.S. 276, 81 S.Ct. 1316, 6 L.Ed.2d 288;
Dahnke-Walker Milling Co. v. Bondurant,
257 U.S. 282, 42 S.Ct. 106, 66 L.Ed. 239 (1921);
International Text-Book Co. v. Pigg,
217 U.S. 91,109-115, 30 S.Ct. 481, 485-487, 54 L.Ed: 678 (1910);
Sioux Remedy Co. v. Cope,
235 U.S. 197, 35 S.Ct. 57, 59 L.Ed. 193 (1914);
Crutcher v. Kentucky,
141 U.S. 47, 11 S.Ct. 851, 35 L.Ed. 649 (1891).
See Steinwender, Stoffregen & Co. v. Ritchey,
Daily Record, Sept. 14, 1940, at 2, col. 1 (Cir.Ct. of Balto. City Sept. 13, 1940) (invalidating Maryland’s former registration and qualification scheme except as applied to intrastate commerce);
Thorneycraft v. Emery Air Freight Corp.,
122 Ariz. 408, 409, 595 P.2d 200 (1979). In light of the Supreme Court’s opinions, it is questionable whether, under the Commerce Clause, § 7-301 could validly be applied to bar this action by Yangming.
As Yangming was not doing business within the meaning of § 7-301, and thus was not barred from bringing this suit, Revon’s motion to dismiss should not have been granted.
JUDGMENT OF THE CIRCUIT COURT FOR HOWARD COUNTY REVERSED. APPELLEE TO PAY COSTS.