Document: 437 U.S. 443 98 S.Ct. 2441 57 L.Ed.2d 337 ZENITH RADIO CORPORATION, Petitioner,v.UNITED STATES. No. 77-539. Argued April 25, 1978. Decided June 21, Syllabus. Petitioner, an American manufacturer of consumer electronic products, filed a petition with the Commissioner Customs, requesting assessment under § 303 Tar ff Act 1930 countervailing duties on various products exported from Japan to this country. Petitioner contended that benefited bounties or grants paid conferred by because imposes commodity tax (an "indirect" tax) those when they are sold in country but "remits" exported, any shipment product being refunded upon subsequent exportation. Section provides whenever foreign pays "bounty grant" exportation country, Secretary Treasury (Secretary) must levy duty "equal net amount such bounty importation into United States. After rejection its request petitioner suit Customs Court, claiming Department had erred concluding remission Japanese was not grant within purview 303. The since "nonexcessive" (i. e., above otherwise due), did require duty. Relying Downs v. States, 187 496, 23 222, 47 L.Ed. 275, Court ruled petitioner's favor. and Patent Appeals reversed. Held : does confer meaning failing impose while imposing Japan. supra, distinguished. Pp. 450-462. (a) Secretary's statutory interpretation followed case has been consistently maintained basic countervailing-duty statute enacted 1897, administrative is entitled great weight. See Udall Tallman, 380 1, 16, 85 792, 801, 13 616. 450-451. (b) legislative history suggests term "bounty" intended encompass nonexcessive indirect tax. 451-455. (c) reasonable light purpose duty, viz., offsetting unfair competitive advantage would enjoy export subsidies their governments. In deciding 1898 taxes give exporter advantage, permissibly viewed as measure for avoiding double taxation exports—once once sale 455-457. (d) permissible today it 1898. re-enacted five times no modification relevant language, position incorporated international agreement every major trading nation world. It judiciary substitute views fairness economic effect remitting taxes. 457-459. (e) involve issue whether taxes, standing alone, have constituted exportation, dispositive case. 459-462. 64 C.C.P.A. 130, 562 F.2d 1209, affirmed. Frederick L. Ikenson, Washington, D.C., petitioner. Mr. Justice MARSHALL delivered opinion Court. 1 Under 303(a) Tariff 1930, 46 Stat. 687, amended, 19 U.S.C. 1303(a) (1976 ed.), required grant," mportation States.1 confers "grant" certain 2 * Commodity Tax Law Japan, 48 1962, see App. 44-48, variety goods, including at here, subject tax—a levied goods themselves, computed percentage manufacturer's sales price rather than income wealth purchaser seller. applies both manufactured imported Japan.2 On factory; taxed withdrawn customs warehouse. Only destined consumption tax, however. Products shipped exempt, if subsequently exported. Thus "remitted" exports.3 3 1970 petitioner, Customs,4 number country.5 alleged bestowed these by, inter alia, imposed January 1976, after soliciting interested parties conducting investigation pursuant regulation , CFR 159.47(c) (1977), Acting published notice final determination, rejecting request. 41 Fed.Reg. 1298 (1976).6 4 then statute.7 defended ground that, "nonexcessive," Department's terminology, exceed due; thus, example, $5 factory, return be whereas payment $8 government "excessive" $3. pointed out current version all respects unchanged Congress 1897,8 Secretary—in decisions dating back 1898—has always taken statute.9 5 cross-motions summary judgment, favor ordered assess specified complaint. 430 F.Supp. 242 (1977). court acknowledged longstanding statute. concluded, however, practice could sustained Court's decision 275 (1903), which held complicated Russian scheme sugar production sale, involving, among other elements, excise event 6 appeal Government, Appeals, dividing 3-2, reversed judgment remanded entry 1209 majority distinguished decide question constitutes examined language 1897 provision concluded "in determining conferred, result government's action controls." C.C.P.A., 138-139, F.2d, 1216. primarily "long-continued" "uniform" practice, id., 142-143, 146-147, 1218-1219, 1222-1223, secondarily congressional "acquiescence" through repeated re-enactment controlling 143-144, 1220, so include "a lawfully 303." Id., 147, 1223. 7 We granted certiorari, 434 1060, 1231, 55 760 (1978), we now affirm. II 8 undisputed adopted here less year passage T.D. 19321, Synopsis [Treasury] Decisions 696 (1898), uniformly over 80 years.10 This consistent considerable 9 "When faced problem construction, shows deference given officers agency charged administration. 'To sustain [an agency's] application [a] term, need find construction only one, even reached arisen first instance judicial proceedings.' " 616 (1965), quoting Unemploym nt Compensation Comm'n Aragon, 329 143, 153, 67 245, 250, 91 136 (1946). 10 Moreover, "practice peculiar weight involves contemporaneous [persons] responsibility setting machinery motion, making parts work efficiently smoothly yet untried new." Norwegian Nitrogen Co. 288 294, 315, 53 350, 358, 77 796 (1933); e. g., Power Reactor Electricians, 367 396, 408, 81 1529, 1535, 924 (1961). 11 thus whether, normal aids "sufficiently reasonable" accepted reviewing court. Train Natural Resources Defense Council, 421 60, 75, 95 1470, 1479, 43 731 (1975). Our examination history, overall persuades us initial far unreasonable; unable anything events time convinces abandon interpretation. A. 12 evolved two earlier provisions applicable imports. 1890, apparently protecting domestic refiners competition; provided fixed refined countries "pay, directly indirectly, [greater] of" raw sugar. ¶ 237, 26 584. Although debates focus sharply word "bounty," what evidence there Thus, one strong supporter increased protection producers heavily criticized "bounties" several European governments, attached concise description "The Bounty Systems Europe"; remarks indicated consisted amounts payments exceeded beets produced. 21 Cong.Rec. 9529, 9532 (1890) (remarks Sen. Gibson); 9537 (description). According description, French manufacturers "excise [of] $97.06 per gross ton[,] [b]ut ton . received drawback $117.60, clear $20.54 exported." Ibid. concept "net" bounty—that is, excess due—as trigger requirement emerged more clearly second provision, 1894. 1894, 1821/2, 28 521. 1894 extended sugar, well refined, coming "pays, thereof." A proviso made clear, were assessed already paid.11 author Senator Jones, expressly characterized difference between "net bounty" 5705 (1894) (discussing German system). greatly expanded coverage products. 5, 30 205, quoted n. 8, supra. There indications, retain criterion imposed. law deleted, provide levying equal amount" grant. And addition establishing responsive mechanism appropriate incorporate prior rule all. 14 carried forward originally passed House. extend Instead, merely modified fixed, [the export] bounty, much thereof may collected foreign] [the] [sugar], beet cane produced ." 1634 (1897). House Report unequivocally stated "equivalent country." H.R.Rep. 55th Cong., 1st Sess., 4-5 (1897) (emphasis supplied). 15 Senate deleted bill replaced general eventually law. 1733 (striking provision); 2226 (adopting 2705, 2750 (House amendment). indicate, that—aside extending provision—the intend change substance. Allison, sponsor amendment, explained "stricken bill," "the same paragraph substance [is] inserted [in] section [5], apply articles instead [sugar] alone." 1635. also 1732 White). Allison twice remarked he proposing "imitation" statute, 1719; 1674, later stated—in response whole "[the contemplated] reductions .," 1721 (answering Vest). 16 An additional indication Senate's intent can found discussion respect exports. Time "bounty"—and, correspondingly, 38¢ 100 pounds 27¢a See, 1650 Sens. Vest, Caffery), 1658 (Sens. Jones), 1680 (Sen. 1719 Lindsay), 1729 C ffery), 2823-2824 Aldrich Jones). These figures supplied itself, Allison), 1722 (letter utilized proponents opponents measure. frequently during Germany exempted exports $2.16 pounds, 27¢ figures. 1646 Vest), 1651 1697 (same), 2205 (same). Had Senators considered mere seems unlikely pounds.12 Especially opposition magnitude 27¢, 2203-2205 Gray), infer many magnitude. B 17 Regardless absolutely compelled interpret doubt purpose. Cf. Mourning Family Publications Service, Inc., 411 356, 374, 93 1652, 1663, 36 318 (1973). relatively face confirmed debates: offset 1674 2225 Lindsay) positioned establish rules accurately carry purpose, particularly sin e contributed very relied enacting Zuber Allen, 396 168, 192, 90 314, 327, 24 345 (1969). 18 type counteract, acting accordance shared assumptions day practice. theory underlying country's constitute subsidization Rather, As recent study prepared Committee Finance: "[The was] based principle consumed production, should rebate [and indirect] product, States own Federal state local collect, use exporting domestically goods." Finance, Executive Branch GATT Studies, 93d 2d 17-18 (1974). 20 intuitively appealing regarding widely abroad years enactment July 4, 1789, 3, (remission import products); Works Correspondence D. Ricardo 216-217 (pamphlets papers 1822); Smith, Inquiry Into Nature Causes Wealth Nations, Book Four, ch. IV (1776). without and, said "acquiesced" certainly acted it. At time, General Agreement Tariffs Trade (GATT),13 world; systems private expectations built assumption remissions substantial reliance interests, "not disturbed except cogent reasons." McLaren Fleischer, 256 477, 481, 577, 578, 65 1052 (1921); U.S., 18, S.Ct., 802. 22 Aside contention, discussed Part III, infra, inconsistent decisions, sole argument premised false rejected courts. particular, points "modern" suggesting create incentive some circumstances, criticism favoring rely direct taxes.14 But, assuming arguments view do demonstrate unreasonableness position. Even economists agree ultimate and—given present knowledge—it difficult, impossible, precise particular 13-14, 17; Marks & Malmgren, Negotiating Nontariff Distortions Trade, Policy Int'l Bus. 351 More fundamentally, area recently stated, issues involved applying complex, internationally, lack satisfactory fair, opposed 'unfair,' subsidy." S.Rep. 93-1298, p. 183 situation, task Secretary. III Notwithstanding foregoing considerations, different if, contends, contrary (1903).15 Upon close admittedly opaque case, believe presented here. laws were, noted, "very complicated." 502, 223. Much devoted exposition provisions, 502-512, 223-227, purposes features relevant: (1) Russia remitted exports; (2) received, addition, certificate entitling bearer sell Russia, quantity paying full due. transferable market v lue related forgiveness 25 Secretary, following value certificates themselves.16 Downs, importer, sought review, system countervailable He challenge Secretary.17 came before therefore, together granting benefit represented certificate, grant." Since question, neither nor focused carefully distinction conferral certificate. argues, broad nonexcessive, relies language: 27 details elaborate procedure importance facts appear maze regulations, viz.: permitted pay R. 1.75 pood, When produced, then, whatever process, manner, name disguised, exportation." 515, 228. preceding understood reside certificates. point "[t]he exporter] receives his [on market], say 1.25, exact Ibid.18 conclusion specifically endorsed Fourth Circuit's holding effect, 17, supra 29 "[T]he Circuit found: 'That obtained solely worth open 1.25 1.64 1.8 2.35 cents pound. Therefore hold secure inevitable resul action, money reward gratuity Russia.' concur expression opinion." 516, 229. Given cannot read broadest implications relies. our proposition excessive taxes—there, combination exemption certificates—is 31 below '[i]t maxim, disregarded, expressions, opinion, connection expressions used.' 134, 1213, Cohens Virginia, Wheat. 264, 399, 257 (1821). No argued indeed remembered, course, affirm decision, rested extent isolated statement 32 accordingly, 33 Affirmed. part: "(1) Whenever dependency, colony, province, political subdivision government, person, partnership, association, cartel, corporation, shall bestow, manufacture article merchandise otherwise, condition changed remanufacture paid, cases, imposed, grant, however bestowed. "(5) ascertain determine, estimate, each declare determined estimated. "(6) make regulations deems necessary identification collection duties. All determinations section, Commission subsection (b)(1) (whether affirmative negative) Register." ed.). 12-13, 30-31; Outline Taxes 128-129 (Tax Bureau, Ministry 1976). For rate ranges 20%. 13-14; Taxes, 131. adopt convention "remission" refund paid. delegated authority approval. 159.47 included television receivers, radio radio-phonograph combinations, radio-television-phonograph radio-tape recorder record players phonographs complete amplifiers speakers, tape-recorders, tape players, color picture tubes. 37 10087, (1972), 11487 (1972). part "on basis gathered conducted Regulations determination hereby bestowed, Japan." (1976). Suit 1975, authorizing manufacturers, producers, wholesalers seek review 516(d), 1516(d) 24, full: "That colony dutiable Act, ascertained, determined, declared Treasury, who needful duties." represents fifth re- nactment changes 1909, 6, 85; 1913, IV(E), 38 193; 1922, 303, 42 935; 687; 1974, 331(a), 88 2049. dispute either nature although 19729, 157 (1898); 20039, 534 43634, 56 Treas.Dec. 342 (1929); 49355, 73 107 (1938). importer Government bounties, relieved additio al prescribe, produces 521 added). Department). argues output factories subtracted cited Germany. show fact exhibit testimony single witness hearings 1896. Hearings Before Ways Means, 54th 617-618 (1896-1897). references anywhere debates; moreover, anyone contemplated existence appears deducted countervailed. exchange Vest illustrative: "Mr. VEST. What taking etc., Germany? ALLISON. Of course three-eighths cent pound—thirty-eight one-hundredths sugar—nor twenty-seven But less." note 2¢ Hearings, 617, tax—which concededly added 27¢—was vicinity pounds. Article VI(3) GATT, 1947, 61 A24, "[n]o territory contracting party reason borne like origin taxes." contend supersede conflict two. Brief 11. 351-355 (1975); Submission Border Adjustments Working Party Council Adjustments, Organization Economic Cooperation Development (1966), reprinted 93-116; Paper Submitted John Petty, Assn't Sec'y Twenty-First Annual Conference Canadian Foundation (1968), 117-138. Both consider (e. taxes) subsidies. 10, 37-38; Basic Instruments Selected Documents 186-187 (Supp.1961). G. S. Nicholas 249 34, 39 218, 63 461 (1919), broadly. 39-41, 220. concedes, liquor Great Britain 16-17, address fell Memorandum (1901), 49-51; 20407, 996, 997-998 22814, 184 (1901); 113 F. 144, 145 (CA4 1902). Downs' claim, Board Appraisers identified residing 22984, 405, 410-411, 413 145. noted "[i]t practically admitted main addressed production." 512, 227. latter covered production. amended cover 8.

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