Evening star., 1944-05-24
Customs Court Ruling
Seen voiding Millions
In Import Duty Claims
By the Associated Press

NEW YORK, May 24.--Possible
claims aggregating millions OF doll
lars collected as duty on imports
from nations with controlled cur
rencfes have been wiped out BY a
decision of the United States Court
of Customs and Patent Appeals,
custom experts said yesterday.
The decision. handed down by
Judge Joseph E. jackson In WASH
lngton Monday, specifically settles
some $4,000, 900 in claims by import
eres OF British products during the
period from March 4 to June 2l,
1910.
However, customs circles said the
courts ruling will have far-reach-
ing effect on imports from "a score
of other nations, including Arpen-
tina, Brazil. Chile, Uruguay, Iran.
China. Mexico and Australia. II ia
expected to affect materially i'm
ports OF hides from South America
into the United States.
On September 3, 1899, the British
government published laws for con-
troll Of currency which set an "offi-
ciaf' value on the pound sterling
when converted into currencies of
other countries. At the same time \
Britain permitted a lower "free
rate" for conversion of pounds into
other currencies when valuinp in
voices of British products purchased
for export.
Whisky Not on Free Rate
The British law allowed the free
rate" on all commodities for export
excepting whisky, rubber, lutte. tin
and furs, which were valued under
the official" rate. The "oficial'
rate Of the pound in terms of Amer
ican dollars was at the time $4.03,
while the free" rate dropped as low
as So for the pound. This practice
allowed purchasers of British prod
ucts for export to invoice their
goods at the So rate for purposes of
paying customs duties In the United
States.
During, the approximately four
months, the Federal Reserve Bank
certified to the Treasury Depart
ment both the "official' and sfreen
rates for conversion of the pound
into dollars. However, the Secretary
OF the Treasury selected the higher
$4.03 a pond rate and instructed
customs collectors to convert Brit
ish invoices at that rate for collec-
ton of duties.
Importers OF British products
claimed they had purchased prod
ucts in Britain at the "frees rate
and that the goods should be so
valued for payment Of American
customs duties.
Rao Represented Government.
A test case was tried before the
United States Customs Court. It
was filed by John Barr, importer of
Woolen cloth. The lower court de-
cided in favor Of the importer and
the case was appealed. The Govern
ment was represented by Paul p.
Rao, assistant attorney general, in
the appeal heard before the Court
OF Customs and Patent Appeals.
| The unanimous decision by she
higher court is said by experts on
customs laws to be far-reaching be-
cause 1t fixes the Secretary of the
Treasury as the authority to direct
the rate at which collectors of Gus
toms shall convert invoices after the
rate has been certified by the Fed
eral Reserve Bank. Judge Jack
sons opinion said the authority of
the Secretary Of the Treasury is mot
subject to judicial inquiry"
Customs experts say thousands of
invoices covering imports of goods
from foreign multiple rate" coun-
tries have been held in suspense by
the Government, which collected
duties estimated at the higher on
ciaP rate Of conversion directed by
the Treasury.