# United States v. Lies

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United States Supreme Court
170 U.S. 628
United States v. Lies
This case comes here by virtue of a writ of certiorari, issued to the circuit court of appeals for the Second circuit. It arose out of a conflict of views between the collector and the importers as to the manner of classification and the rate of duty to be imposed upon an importation of tobacco.
The importers had imported through the port of New York a certain amount of leaf tobacco, which was classified for duty by the collector of that port, a portion at 75 cents and another portion at 35 cents per pound, under paragraphs 246 and 247 of Schedule F. of the tariff act of March 3, 1883 (22 Stat. 488, 503, c. 121). As the decision herein does not turn upon those provisions, they are not set forth.
The importers were dissatisfied with the matter of classification, and with the duties imposed, and therefore, pursuant to section 14 of 'An act to simplify the laws in relation to the collection of revenues,' approved June 10, 1890 (26 Stat. 131, 137), gave notice in writing to the collector, setting forth therein, by way of protest, distinctly and specifically the reasons for their objections. Section 15 of the same act provides for a further review.
The sections of the act, so far as material, are set forth in the margin.
The protest made by the importers was a detailed and comprehensive statement, and it was evidently intended to cover all possible objections and claims upon the subject of the proper duties to be collected from and the classification of the tobacco.
The board of appraisers, on the 18th July, 1893, decided the various questions raised by the protest of the importers, and held, among other things, that the bales of tobacco had been properly opened and examined by the appraiser, although only one bale in ten had been examined; that a fair average had been made under section 2901 of the Revised Statutes, and, while the examination might not have furnished a precise description of the goods, the board held there was no reason to suppose that it was not as favorable to the importer as to the government. All the questions were decided against the importer, with the exception that the decision of the board closed as follows: 'In the absence of the merchandise and of any evidence to impugn the returns of the appraiser, or to show the character of the tobacco, we find that the returns were correct, and, in accordance therewith, we hold that in the reliquidation the lots must be prorated according to such returns; that is to say, that the proportion of the aggregate weight of the total number of bales examined in a lot, to be dutiable at 75 cents or 35 cents a pound, shall be estimated according to the proportion of the number of bales examined and returned by the appraiser as containing upward of 85 per cent. or less of wrapper tobacco. To this extent the protests are sustained; otherwise, the decisions of the collector are affirmed.'
It is now claimed by the government that the direction in regard to the reliquidation, as above quoted, and which was favorable to the importer, was erroneous, and that the result of prorating, as directed in the decision, will be to reduce the amount of theduties to be collected on account of the tobacco.
The importers were dissatisfied with the decision of the board in overruling their protest as to the rate and amount of duty chargeable on the tobacco, and therefore, on August 15, 1893, they applied to the circuit court of the United States, sitting in the city of New York, for a review of the questions of law and fact involved in such decision. The government made no application of any kind, although the order of the board showed upon its face that, in respect to prorating, it altered the decision of the collector, and to the extent of the alteration it was favorable to the importers. The circuit court, upon reading and filing the application of the importers, made an order that the board of appraisers h ould return to that court the record, together with a certified statement of facts in the case and their decision thereon; and, in pursuance of that order, the board made return of the record, etc., and, after such return had been made, the importers filed a petition stating their desire to present further evidence in the matter, and an order was entered that it be referred to General Appraiser Sharpe to take and return to the court such further evidence as might be offered.
The only evidence taken before the general appraiser was 'the entry in this case by the Rotterdam, June 30, 1890, entry number 104,642, and the invoice and other papers accompanying the same or thereto attached, with the exception of the protest.'
No further proceedings were taken in the circuit court until the 19th of December, 1895. At that time the importers had become convinced that they could not succeed upon their appeal, and, as appears from the order of the court when the case came on for hearing and determination before it, they 'conceded in open court that there was no error in said decision of the board of general appraisers, and it having been contended on behalf of the collector and secretary of the treasury that the said decision of the board of general appraisers should be reversed for manifest error therein; and the court having ruled that the collector and secretary of the treasury, or either of them, could not be allowed to impeach or in any way object to the said decision of the board of general appraisers, because they had not proceeded under the statute to seek a review of such decision of the said board of general appraisers; * * * it is ordered, adjudged, and decreed that the decision of the board of general appraisers be, and the same is hereby, in all things affirmed.'
It appeared in the record that no application, pursuant to section 15 of the act above mentioned, for a review of the decision of the board of general appraisers, had been made by the collector or the secretary of the treasury.
An appeal having been taken, by the government, to the United States circuit court of appeals for the Second circuit from the judgment of the circuit court, the judgment appealed from was in all things affirmed. 38 U.S. App. 655, 20 C. C. A. 651, and 74 Fed. 546. Upon the application of the government, a writ of certiorari from this court was issued, and the case brought here for review.
Sol. Gen. Richards, for the United States.
W. Wickham Smith, for appellees.
Mr. Justice PECKHAM, after stating the facts in the foregoing language, delivered the opinion of the court.

## Notes

* ↑ Sec. 14. That the decision of the collector as to the rate and amount of duties chargeable upon imported merchandise, including all dutiable costs and charges, and as to all fees and exactions of whatever character, (except duties on tonnage,) shall be final and conclusive against all persons interested therein, unless the owner * * * give notice in writing to the collector, setting forth therein distinctly and specifically, and in respect to each entry or payment, the reasons for his objections thereto, and if the merchandise is entered for consumption shall pay the full amount of the duties and charges ascertained to be due thereon. Upon such notice and payment the collector shall transmit the invoice and all the papers and exhibits connected therewith to the board of three general appraisers, * * * which board shall examine and decide the case thus submitted, and their decision or that of a majority of them, shall be final and conclusive upon all persons interested therein, and the record shall be transmitted to the proper collector or person acting as such, who shall liquidate the entry accordingly, except in cases where an application shall be filed in the circuit court within the time and in the manner provided for in section fifteen of this act.
Sec. 15. That if the owner, importer, consignee, or agent of any imported merchandise, or the collector, or the secretary of the treasury, shall be dissatisfied with the decision of the board of general appraisers, as provided for in section fourteen of this act, as to the construction of the law and the facts respecting the classification of such merchandise and the rate of duty imposed thereon under such classification, they or either of them may, within thirty days next after such decision, and not afterwards, apply to the circuit court of the United States within the district in which the matter arises, for a review of the questions of law and fact involved in such decision. Such application shall be made by filing in the office of the clerk of said circuit court a concise statement of the errors of law and fact complained of, and a copy of such statement shall be served on the collector, or on the importer, owner, consignee, or agent, as the case may be. Thereupon the court shall order the board of appraisers to return to said circuit court the record and the evidence taken by them, together with a certified statement of the facts involved in the case, and their decisions thereon; and all the evidence taken by and before said appraisers shall be competent evidence before said circuit court; and within twenty days after the aforesaid return is made the court may, upon the application of the secretary of the treasury, the collector of the port, or the importer, owner, consignee, or agent, as the case may be, refer it to one of said general appraisers, as an officer of the court, to take and return to the court such further evidence as may be offered by the secretary of the treasury, collector, importer, owner, consignee, or agent, within sixty days thereafter, in such order and under such rules as the court may prescribe; and such further evidence with the aforesaid returns shall constitute the record upon which said circuit court shall give priority to and proceed to hear and determine the questions of law and fact involved in such decision, respecting the classification of such merchandise and the rate of duty imposed thereon under such classification, and the decision of such court shall be final, and the proper collector, or person acting as such, shall liquidate the entry accordingly, unless such court shall be of opinion that the question involved is of such importance as to require a review of such decision, etc. 'The balance of the section is rendered obsolete by the act of 1891, providing a circuit court of appeals, to which such appeals now go instead of to this court. 26 Stat. 826; Supp. Rev. St. pp. 901, 903, § 6.)
This work is in the public domain in the United States because it is a work of the United States federal government (see 17 U.S.C. 105).
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