The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-05-10
From the Boston Daily advertiser.
United states Circuit Court.
October Term, l949


GEORGE NJ BARNARD EFT AL. Us. MARCUS MORTON.
This case came before the court upon state
lnent of facts, by which it appeared that two in
voices OF Havana sugars were consigned to the
plaintiffs by merchants residing at Halifax, Nova
Scotia, subject TO ad vaorem duty Of thirty per
cent.
That upon arrival they appraised for the
assessment of duties by adding to the market
value in Cuba the charges incurred there, freight
from there to Halifax and the charges at Halifax.
The plaintiffs. considering this mode of valuation
unauthorized by law, paid the duties assessed
der protest, and brought this action against the
collector to recover 50 much was unlawfully de-
manded.
The plaintiffs, contended that upon proper con-
struction Of the statute, Act of lS42, section l6)
the valuation for the assessment of duties when
goods were imported from place other than that
of production or manufacture, should be the mar
ket value i'll the principal market of the country Of
production manufacture at the time of the export
alton to the United States with the addition of the
charges at the place of such exportation or other
wise at the place of produce, and tbatin neither
should the freight TO the intermediate port be
added. So that, in the present case, the sugars
should be taken at their value in Cuba nj the time
when they shippeI from Halifax and to this
should be added, for the assessment of duties only,
the charges at Halifax, at the place of shipment
In Cuba N
The defence placed principally upon the in
structions Of MIR. Walker, when Secretary of the
Treasury, and subsequent confirmatory directions
of MIR. Meredith, to whose attention the case was
early presented by the plaintiff.
SPaAGUE, I'LL is plain that the time when the
valuation is to be made is that of the expectation
TO the United States, and the standard the market
value in the country of production at that time.
The only question Is as to what shall be added TO
| this valuation.
The law says to this value shall be added the
| usual cost and charges.
II it were not for the subsequent proviso in the
statute, (Which applies to like this the valu
alton would be in all the market value the
| place of exportation, which would include the
charges Cuba the freight thence; and TO thip
should be added the charges at Halifax bat the
proviso alters the standard of value by dec laring
that, when the place Of expectation is not that OF
production, the value shall be taken in the place of
production at the time of expectation. Nothing is
said about costs and charges in the proviso, and
therefore only the and charges the place of
expectation can be added
The principal question is, whether the freights
from Cuba 10 Halifax can be added. This item
constitutes part Of the value Of the merchandise
in Cuba and IL is not Of the costs and charges
incurred at Halifax. II the standard were the mar
ket value in Halifax would of course be included,
but the standard is the market value in Cuba, il
Is necessarily excluded, and cannot come in at all
except as charge incurred at Halifax. IL Ia ad-
mitted that il the sugars had been shipped from
Cuba TO the United States, freight could not be
added. and there is mo- more reason why il should
be in the present case.
| Upon examination Of the statute l cannot resist
the conclusion that the construction which has been
| given 10 IL by the Treasury Department. and u
now conended for in behalf OF the United States is
erroneous.
| This opinion understand 10 be in accordance
with the decision of the circuit court of the United
States at New York, in recently decided
In the present case the duties should have been
assessed the market value Of the sugars in Cuba
az the time when shipped from Halifax with the
addition Of the usual charges at Halifax, and for
the excess which was unlawfully demanded and
paid the PLAINTIFF entitled to Judgment
Messrs. G. G.. and r. G. Loring, for the plain
tas; Mr. Lunt, United States attorney, for the de-
fendant.