Norwich bulletin., 1922-03-24
PRESENT METHODS OF THE
VALUATION OF IMPORTS

II was just 1UU years ago ana on q /
Friday, the 18th day of the month, |
that the measure establishing the pre-
sent system of determining the value
of merchandise imported into the
United States was introduced in Con-
Gress. and was made a law after
few weeks of debate.
True. says the Trade Record of The
National City Bank of New York. the
Customs Administration Act of 1888
passed by the First Congress under
the Constitution did provide as the
basis of valuation of imported mer-
chandise the actual cost or market
value in the place or country from
whence imported just as the present
law requires, but it was the under
valuations occurring under that orr
ginal law which led to the revision
introduced in Congress in 1922 Great
ing the consular invoice system
which provid2 that no gDods or
merchandise subject to ad valorem du-
ties and belonging to persons not re-
siding in the United States shall he
admitted to entry in the United States
unless the invoice attached thereto
shall be verified by the. oath of the
owner certifying its actual cost such
oath to be administered by a consul
or commercial agent of the Ulitcd
! States" in the country or port from
which the merchandise is exported to
/ the United States.
/ Complaints made by government Of
| ficials in 1921 that the law OF 1889
was being persistently violated through
! undbr by importers were
! quickly followed by the introduction
/ in 1872 of a measure requiring that
| persons in foreign countries exporting
merchandise 10 the United States
! should attach thereto an invoice and
should make oath before a consul of
the United States as TO the accuracy
of the invoice. And this plan which
became law IN 1928 has been q char
acteristic OF our customs laws from
that date to the present with the OK
ception Of a comparatively brief in
terVal, 1882. when a system Of home
valuation was established. but wheT
Secretary OF the Treasury Forward re-
ported to Congress- in 1912 that tuS
plan mad not met expectations tn'
new act then pending, land made q
law in August, 1S42l, restored the
1925 system requiring sd vsloren
duties to be based on the actual mar,
ket value or wholesale price a. tn
time when the goods were purchased
. in the principal markets of tho coun
I
certain additions of costs. charge
and commissions. and this system ha
continued with slight modification
down TO the present time.
. Under existing law, says an excel
lent summarizalio lion. of This subject is
/. sued by the United states Tariff Com
. mission in 1921 The importer present
: with his entry at The custom house a
: invoice, certified by a consular off
;, Ger, with a declaration by the export
. er as to correctness. showing the cos
), if the merchandise was purchased o
( at market value il il was otherwis
II obtained. The appraise. tat the Unite
u. States custom house, reports to tn
collector what ne deems TO be the az
tual market value or wholesale pric
of the merchandise at the time OF ez
portation TO the United States in tn
o principal markets of the countr
q whence the same has been importe
= though the statement of the Tarii
n Commission adds that the consula
certification of invoices provided b
f the legislation of 100 years ago no
n accomplishes little to aid the appraist
ment at the custom house, since abe
cause of lack of time and for otht
reasons it is not a check upon error
or frauds
. The methods by which other cour
>, tries determine the import values
y the merchandise entering their por
- differ greatly. A recent statement /
= our Tariff Commission indivates thi
: in Denmark, Sweden, Portugal Al
= gentina, Brazil and most of the Emf
. lish speaking colonies, systems qui
y similar to that of the United Stat
- are used; in Belgium and France dI
- ties are based on the valuation of Il
:, of the merchandise on arriving at h
- frontier; in Netherlands the cure
- price in that country at the date
arrival; and in Great Britain the pri
which an importer would pay for Il
s. article delivered in bond at the DO
lie of Importation; while the countri
= which levy no lad. valorem'' tart
IL duties accept for statistical and con
( mercial purposes the general stat
ments of their importers and exporte
2, as to the value of the meshandi
e, which they bring into or send out
4 the country. In the United Stat,
/ which has no export duties, the recor
tie of exports are based upon the Who'll
te sale or market value of the mercha
Dr. disc at the port from which it leav
lie the country.