Document: 479 U.S. 130 107 S.Ct. 499 93 L.Ed.2d 449 R.J. REYNOLDS TOBACCO COMPANY, Appellantv.DURHAM COUNTY, NORTH CAROLINA, et al. Appellant v. DURHAM Nos. 85-1021, 85-1022. Argued Oct. 6, 1986. Decided Dec. 9, Syllabus Appellant, a New Jersey corporation with its principal office and only manufacturing facilities located in North Carolina, blends tobacco imported from foreign countries domestic producing finished products virtually all of which are consumed the United States. Upon importation, is placed under customs bond given by appellant, stored one or more customs-bonded warehouses owned maintained appellant appellee Forsyth Durham Counties, N.C., usually for 2-year period to permit aging. pays required duties upon withdrawal warehouses. Under Carolina statutes, present State on January 1 each year subject nondiscriminatory ad valorem property tax levied collected counties municipalities. In listing taxable personal 1983 counties, claimed that, ruling Xerox Corp. County Harris, 459 145, 103 523, 74 323, was immune state taxation federal constitutional grounds. The counties' supervisors denied claim, denials were upheld administrative appeals. Court Appeals affirmed, rejecting appellant's contentions that violated Import-Export Due Process Clauses, distinguished Xerox, reasoning it prohibited goods awaiting export, not those destined manufacture consumption. filed Supreme both notice appeal petition discretionary review. court granted motion dismiss lack substantial question petition. then this an another Appeals. Held: 1. This has appellate jurisdiction as Court's judgment, 28 U.S.C. § 1257(2), extends such review "final" judgment "rendered highest decision could be had . where drawn validity statute any ground being repugnant Constitution, treaties laws States, favor validity." Pp. 136-139. (a) properly challenged grounds Carolina's tax, there final validity. Cf. Japan Line, Ltd. Los Angeles, 441 434, 99 1813, 60 336. Pp.136-138. (b) Court, Appeals, proper 1257(2). A gives litigant right "directly involves arising Constitution States." absence positive assurance contrary grant appellees' constitutes merits affirming Appeals' determination lacked over appeal. 138-139. 2. Consistent Supremacy Clause, may impose non-discriminatory warehouse sale. holding supra, limited factual situation, is, taxed intended transshipment commerce. does contradict purposes statutory scheme governing promote commerce aid certain sectors American economic life. To invalidate would place tobacco, while aging, at distinct disadvantage tobacco; producers local taxpayers "subsidize" growers tobacco. Nor here conflict central purpose behind warehouses: ensure collected. statutes regulations guide monitoring movement proprietor's conduct respect guarantee collection revenues so comprehensive leave no room assessment taxes. 139-125. 3. Application violate Clause. focus Clause cases nature issue, imports. offend policies Clause: concern might interfere regulation commerce; fear account Federal Government will lose important source revenue; desire maintain harmony among disturbed if seaboard States merely flowing through their ports other favorably situated. Michelin Tire Wages, 423 276, 96 535, 46 495. 152-155. 4. comports taxing power exerted bears "fiscal relation" protection, opportunities, benefits State. light police, fire, services provided cities, clearly exists case. P. 156. No. 314 N.C. 540, 335 S.E.2d 21, affirmed. 85-1022, dismissed; reported below: 73 N.C.App. 475, 326 911. BLACKMUN, J., delivered opinion unanimous Court. Erwin N. Griswold, Washington, D.C., appellant. Rex E. Lee, appellees. Justice BLACKMUN case1 presents narrow but whether 2 * Reynolds Tobacco Company Winston-Salem, manufactures sale distributors authorized purchasers. App. Juris. Statement 26a. Virtually Id., 31a. Its process.2 3 shipped port entry secure payment import duties. See 19 1555 (1982 ed., Supp. III). transported truck rail 88 N.C.3 Because nearly requires two years. stores nonbonded same counties. It receives identical city county public 32a. 4 amount 60% rate generally applicable property.4 N.C.Gen.Stat. §§ 105-277(a) 105-285 (1985). Counties municipalities levy collect taxes, they must do manner uniform throughout 105-272. 323 (1982), 4-13. respective Boards Equalization Review denials. 15-23. 5 appeals (consolidated hearing) Property Tax Commission, sitting Board Review. again contended odds Xerox. however, found distinguishable because warehoused consideration case markets lodged temporarily country, whereas Reynolds' "nothing temporary about existence country." 35a-36a. id., 36a, likened facts, instead, Smelting & Refining Co. Contra Costa, 271 Cal.App.2d 437, 77 Cal.Rptr. 570 (1969), dism'd, 396 273, 90 553, 24 462 (1970), consumption upheld. 6 affirmed Commission's decision. re Co., 911 first rejected contention impost duty. 478-480, S.E.2d, 914-915. N.C.App., 482-483, 916-917. Following California Appeal's conclusion meant create "warehouse enclave" sold commerce, observed unfair "exempt aging bonded imposing these taxes domestically-grown ordinary warehouses." 483-484, 917. Finally, dismissed due process finding appropriate test " 'whether fiscal relation opportunities state.' 485, 918, quoting Wisconsin J.C. Penney 311 435, 444, 61 246, 249, 85 L.Ed. 267 (1940). dispute received benefit services, imposition did constitute violation. 485-486, 918. 7 subsequent 21 8 appealed Court.5 We postponed our hearing merits. 475 1009, 106 1181, 89 298 (1986). II 9 1257, lies (2) A. 10 initial jurisdictional presented sustained against claim applied Import-Export, Supremacy, concluded raised appeal, seem assured. Appellees contend, 1257(2) been established failed make 'an explicit timely insistence' courts State's statute, it, Constitution. Brief 12, Charleston Savings Loan Assn. Alderson, 324 182, 185, 65 624, 627, 857 (1945). argue authorities, situation lie. find argument unpersuasive. 11 336 (1979), faced similar challenge jurisdiction. asserted Japanese shipping companies immunity containers attack. 440, S.Ct., 1817. Contrary suggestion, appellants constitutionality applied, statute's 441, further "a within meaning when holds particular set facts application invalid grounds." Ibid. 12 like Line: explicitly drew into question, tax. also U.S., 149, 525; McCarty McCarty, 453 210, 219, n. 101 2728, 2734, 69 589 (1981). Thus, statecourt it. B 13 draws attention detail unresolved. made clear court, circumstances here, "highest court" 1257. exceptions pertinent State." 7A-30 (Supp.1985). As explains, interpreted viewed 11. Depending how dismissal characterized, lie or, hand, Appeals.6 14 have resolved we should decide practitioners ground. consider court's Michigan Long, 463 1032, 1037-1044, 3469, 3474-3478, 1201 (1983). With record, conclude 15 When confronted comparable Ohio, ruled Ohio Matthews Huwe, 269 262, 265, 108, 109, 70 266 (1925); Hetrick Village Lindsey, 265 384, 386, 44 486, 68 1065 (1924). Tumey 273 510, 515, 47 438, 71 749 (1927).7 Matthews, Chief Taft, Ohioan writing explained appropriateness Court: 16 "It infrequent determines dismissed, really without jurisdiction, taken regarded frivolous, different thing character consider." 109. 17 case: hear determined question. 18 therefore regard 85-1021 (from Carolina) one, 85-1022 Appeals) want III On merits, crucial issue Congress exercised pre-empt markets. "Constitution, Laws shall Pursuance thereof supreme Law Land." Const., Art. VI, cl. determining invoked pre-emption power, give primary emphasis ascertainment congressional intent. Rice Santa Fe Elevator Corp., 331 218, 230, 67 1146, 1152, 91 1447 (1947). manifested several ways. Ibid.; Louisiana Public Service Comm'n FCC, 476 355, 1890, 369 indications intent legislated comprehensively left supplementary legislation. supra. Pre-emption legislation impede objectives Congress. Hines Davidowitz, 312 52, 67, 399, 404, 581 (1941). undertaking analysis, mindful principle "federal field deemed preemptive regulatory persuasive reasons—either regulated matter permits conclusion, unmistakably ordained." Florida Lime Avocado Growers, Inc. Paul, 373 132, 142, 83 1210, 1217, 248 (1963); Merrill Lynch, Pierce, Fenner Smith, Ware, 414 117, 127, 94 383, 389, 38 348 (1973) ("So overlook body law relating sensitive interrelationship between adopted separate, yet coordinate, sovereignties"). Brown Hotel Employees, 468 491, 500-501, 104 3179, 3185, 82 (1984). 20 recently dealt examined "whether markets." 146, 524.8 At outset legislative history Warehousing Act 1846, Stat. 53, forerunner scheme, order uncover warehouse. observed: "The stimulated allowing transit remain storage, duty free, until resumed journey export." 150, 526. noted making country center world desired conceivable goal favorable geographic location Atlantic Pacific Oceans facilitate "transshipment goods." 150-151, Moreover, drafters Act, promotion went hand growth mercantile industries. 151, concluded: "To ends, willing waive reexported warehouse, defer, prescribed period, consumption." therefore, determine copiers export promoting related aiding analysis objectives. particularly relied earlier McGoldrick Gulf Oil 309 414, 664, 84 840 (1940), pre-empted York City sales oil bond, refined warehouse,9 ships' vessels aboard. noted, detract refiners freedom thus undermined advantage gained competition counterparts. 152, 527 (citing McGoldrick, 429, 669). Applying before waiver benefited merchants who used "as centers," gave them competitive importers using storage countries, promoted 153, 527. furthered Act's purposes, attempt remove benefit, occur taxation, incompatible goals. pre-empted.10 22 summary holding, rather broadly stated "state Congress' duties." 154, 528. sentence precludes regardless destination.11 what said above, accept 's quoted case, transshipment. 23 difficult, moreover, believe forming identified disserved makes sense discourage importer whose facilities, exemption exported. Similar hardly deter who, Reynolds, up years consumption, arguably part aging.12 Unlike completely free simply deferred.13 than charge detracts absolute duties, addition well considered nothing expected cost doing business. 156, 529 (POWELL, dissenting). Furthermore, harmful effects industry workers discouraging ships ports, Domestic tobacco.14 484, 917 ("Also, since governmental police fire forced provide subsidy excess million dollars Reynolds"). Permitting leads equal treatment One major goals, deferral importer's flexibility his goods. system prior pay cash unloaded vessel; paid, interest immediately accrue satisfied, officials sell charges. Cong. Globe, 29th Cong., 1st Sess., 790 (1846) (remarks Sen. Dix).15 What merchant ready funds he portion goods, often unfavorable market, raise money 792; see H.R.Rep. 411, 1-3 (1846). unsure ultimate destination penalized keeping use paid 792 Dix). By permitting defer time enabled importer, threat financial loss, return and, flexibility, encouraged facilities.16 25 difficult discern affect where, Given preparation occupy position looking best foreign, goods.17 event, created Act. allowed five years, able much time, depending demand market. 26 suggestion 155, 528 Not framework sufficient monitor entrance removal revenue, explain how, prevent receiving duties.18 3, And own 1152; 370, 1899. Although themselves controlling 8, 527, entrusted agency task promulgating carry out 1556, evidence completely. Fidelity De la Cuesta, 458 141, 153-154, 102 3014, 3022, 664 (1982). inferred, agency's comprehensive. Hillsborough Automated Medical Laboratories, Inc., 471 707, 716-718, 105 2371, 2376-2378, 714 current regulations, detailed, appear contemplate some concurrent arguably, even taxation.19 27 agree reasoned pertinent.20 Appeal metal-bearing ores concentrates treated smelting refining warehouse,21 others markets, Relying materials reenter exportation stream exempt taxation. Cal.App.2d, 481, Cal.Rptr., 601. "neither laws, nor precedents show for, appropriated to, processing reason why importer—deferral Government's collecting depend withdrawn 469-470, 593-594. become "enclave commerce," 470, 594, operator smelter "bounty" enable prevail "domestic smelters ores." 474, 596-597. So duties; receive suffer tobacco.22 hold consistent IV 29 turn remaining arguments violates Import-Export23 Clauses. 495 (1976), "adopted fundamentally approach claiming protection Clause." Limbach Hooven Allison 466 353, 359, 1837, 1841, 80 356 (1984); Washington Revenue Dept. Association Wash. Stevedoring Cos., 435 734, 752-754, 98 1388, 1400-1401, 55 682 (1978). approach, distinction Limbach: 30 repeat: think specifically abandoned concept constituted broad prohibition forms fell changed imports issue. new lost status sought imposed 'Impost Duty.' 360, 1842. 31 Michelin, Georgia assessed tires tubes kind inasmuch commercial relations governments; "merely ports" 285-286, 540-541. 32 seems indistinguishable terms policies. seen, falls alike single treatment. 286, 541. Having follows neither impairs revenue replaces own. Rather, means "by apportions beneficiaries according wealth." 287, If happens "incidental effect," ibid., importation prohibiting result function exchange exaction inland Framers 288, 542. failure assess shift burden consumers Carolina—a Michelin. 289, Accordingly, 33 'no longer transit.' Dept., 755, 1401 (quoting 302, 548). contends definition "in transit," fall scope Michelin's holding.24 reasoning, repeat, transitory it: reached State—indeed, county—of duty, after separates More importantly, automatic transit" can inferred confer 157, none scheme. strains although directly declaring directing Customs decided achieve effect roundabout fashion giving talismanic status. 34 merit claim. settled "the state." 249; R. Rotunda, J. Nowak, Young, Treatise Constitutional 13.2, p. 669 outside status, reasons above succeeds context addressed analysis. 35 36 ordered. (by appellant), Part II, infra. comes Bulgaria, Syria, Lebanon, Brazil, few places. 29a. Pursuant regulation, private party building designated storing 1555-1565 ed. III); CFR 19.1-19.12 officer supervises operation labor merchandise performed proprietor. prescribe, things, enter 19.6, records proprietor keep, 19.12, supervision perform, 19.4. divided eight classes. 19.1(a). types, Class 8. sheds cleaning, sorting, repacking 19.1(a)(8). exclusively 19.1(a)(2). customary course move areas. 30a. owns land thereunder, sole user, maintenance expenses them. 30a, Goods date 1557(a). Once withdrawn, unless practice areas App.90. made, incorporated weeks. 91. There took care file (No. 85-1021) 85-1022) 39a, 41a. informed Clerk advised "for merits," observes discusses dismissal. 11, acknowledge Doyle 426 610, 2240, 49 certiorari 616, 2243. requirement, note treating accords view dispositions. Hicks Miranda, 422 332, 344, 95 2281, 2289, 45 223 (1975). reinforce narrowness examined: copiers, plainly designed Latin America, operating instructions Spanish Portuguese, machines, constructed, type electric standard $100 convert machine sale, ever 147-148, 524-525. fact, Texas authorities began trade zone, continued send machines exhibited intention use. 148, 525. abroad, unlike concerned 422, 666, defined solely exportation, articles whole internal-revenue tax." 19.1(a)(6) (1986); 1311. remarked distinctions it—namely, "distinctions legal difference." According remark reveals unconcerned export. Taken context, comment suggests opposite us: option domestically significant, ship America; thus, McGoldrick. difference types importance, either accruing That demonstrated principally relied, District Columbia International Distributing 118 U.S.App.D.C. 71, F.2d 817 (1964), proscribed excise beverages embassies still 528, cited language U.S.App.D.C., 73-74, 819-820, enclaves taxation" housed therein removed, appeared fact international law, recognized Congress, diplomatic personnel 74, F.2d, 820. Arguably, then, additional quotation Fabbri Murphy, (5 Otto) 191, 197-198, (1877), inconsistent reading 24, notes counsel expressed opinion, response questions oral apply earmarked argues intend cover 17; Tr. Oral Arg. 11-12. questioning inquiring it—not occurrence argument—the facility County, discontinue stand, adversely. importing approximately 88-89. paying least "original package" doctrine barred inventory retained original package hands importer. prevented Reply 7, 9. suit seeking refunds 1980, 1981, 1982, protest 1984 1985, denied—an $519,059,527. 28a-29a. $42-48 million. $5 annually. 31, 34. (and "farm products") following product grown "an unmanufactured state" "owned producer." 2D 105-275(4) tends equalize record eligible 105-275(4). Even provision, footing long indication goals bill debated legislators counterpart's expense: foreigner safely cheaply, three compelled He finds customers; continuing invoicing cheaper can, always himself advantageous position, drive latter business." 1042 Huntington). 1166 Rep. Smith). criticisms, Senator Dix, sponsors Senate, benefit: "Whether produced, consequence far concerned, shown (storing cities) brought market materially less. This, believed, cannot readily shown. Whether home expense bringing same. processes perform. factories workshops sea; shipped, carried across ocean, sold, paid. charges exactions cases. store better condition, kept cheaper, questionable." 795. Dix (i.e., during period), immaterial offset 795-796. believing improved importers, disavowed discounted effect. pre-Warehousing system, high 40% value (1846), itself nine months. efforts House Senate require designate reexport use, attempts rejected. Journal 406-407 (1846); 1178 Rejection amendments maximum not, day degree probability shipment invoke exemption, whether, showing nevertheless annually release occurs. practical problems arise 25, difficulties. Here, manufacture. without, apparently, experiencing serious difficulty. For example, applicant proprietorship estimate "maximum taxes" time. 19.2(a) entirely supervisory control officers. 19.7, "liable Expenses read include 19.12(b)(3), security comply Treasury Regulations, event "any local, standard," control. dual possible contemplated regulations. entitled precedential value. affects weight, albeit limited, (1970); 2289. irrelevant consumption," 19.1(7) 1312(a), here. precedent warehouses, Trade Tariff 1984, Pub.L. 98-573, 2948, which, amended Foreign Zones ch. 590, 48 998, codified, amended, 81a-81u III), shows understood broad, i.e., provides held zone. While zones establish wider range operations. 81c Sturm, Administration 18.1, pp. 45-52 Note, Geo. Int'l L. Econ. 555, 564-565 buttresses statements passing amendment, line See, e.g., 129 Cong.Rec. 14501 (1983) (statement Tower); 98-267, (1983); S.Rep. 98-308, (1983), U.S.Code Admin.News 4910, 4945. Just Such piece dealing Consumer Product Safety GTE Sylvania, 447 102, 117-118, 13, 100 2051, 2060-2061, 64 766 (1980) (congressional explaining previous less weight enactment). focus: Texas, alone permitted businesses discouraged locating Bentsen) ("The Bentsen-Tower addresses very problem Texas"). valued actually jobs. harm industry, serve discriminate producers, appears justification entities. uses 525 (when threatened zone). "No shall, Consent lay Imposts Duties Imports Exports, except. ." U.S.Const., I, 10, argument, relies citation Columbia's 819-820), 'Congress complete remained custody officers customs,' ibid. Otto), 468). view, reliance misplaced. declined reach stream. citations restricted significant contention. concerning locality's turned reciprocity bring deal helpful either, involved itself, stored. 193. again, charge: officials' custody. 197-198.

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