Document: 337 U.S. 154 69 S.Ct. 995 93 L.Ed. 1276 EMPRESA SIDERURGICA, S.A., et al.v.COUNTY OF MERCED, CALIFORNIA, al. No. 327. Argued Feb. 9, 1949. Decided May 31, Appeal from the Supreme Court of State California. Mr. Scott D. Kellogg, Oakland, Cal., for appellants. James E. Sabine, San Francisco, appellees. Justice DOUGLAS delivered opinion Court. 1 There was a cement plant in Merced County, California, which sold to petitioner—a corporation Colombia—for export South America. An license obtained and letter credit favor seller deposited here. Title passed, possession taken urchaser. A company, common carrier, employed do dismantling packaging shipment. As proceeded, shipments were labeled with appellant's name as consignee rail carrier. 2 Respondent acting under California statute1 levied personal property tax on year 1945—1946. The date March 5, 1945. On that 12 per cent had been shipped out county. That portion relieved tax. balance taxed. included 10 dismantled created or prepared shipment, 34 but not crated 44 dismantled. But before end January, 1946, all by port en route America ocean 3 Article I, § 10, Cl. Constitution provides part that, 'No shall, without Consent Congress, lay any Imposts Duties Imports Exports, except what may be absolutely necessary executing its inspection Laws * *.' Appellant claimed this laid an therefore unconstitutional. It paid protest brought suit recover it. trial court, holding entire assessment day, granted judgment appellant. reversed. 32 Cal.2d 68, 194 P.2d 527. case is here appeal. 28 U.S.C. 1257(2), U.S.C.A. 1257(2). 4 '* goods cease general mass state, subject, such, jurisdiction, taxation usual way, until they have shipped, entered carrier transportation, another started upon such transportation continuous journey.' Coe v. Town Errol, 116 517, 527, 6 475, 478, 29 715. test fashioned determine validity Commerce Clause nondiscriminatory state we noted Richfield Oil Corp. Board Equalization, 329 69, 79, 67 156, 91 80, it equally applicable cases arising either Art. (The Import-Export Clause) prohibits Congress laying 'Articles exported State.'2 5 Under enough there intent export, plan contemplates exportation, integrated series events will See Turpin Burgess, 117 504, 835, 988; Cornell Coyne, 192 418, 24 383, 48 504. immunity runs process exportation transactions documents embraced Fairbank United States, 181 283, 21 648, 45 862; States Hvoslef, 237 1, 35 459, 59 813, Ann.Cas.1916A 286; Thames & Mersey Marine Ins. Co. 19, 496, 821, Ann.Cas.1915D, 1087. Delivery packages exporting shipment abroad, A. G. Spalding Bros. Edwards, 262 66, 43 485, 865, delivery oil into hold ship furnished foreign purchaser carry supra, held sufficient. entrance articles stream marks start exportation. Then certainty are headed their destination diverted domestic use. Nothing less suffice. So purpose property. Nor sufficient due course fully executed. taxed dismantled, otherwise journey date. might still market. fact diversion would entail breach contract, already journey, country increases expectation eventuate. prospect, no matter how bright, does movement shores neither nor committed. 7 Some reliance apparently placed dismantler licensed interstate commerce employment loading railroad cars seaboard. Hence need whether intermediate process. 8 Affirmed. 9 FRANKFURTER, dissenting. Though figures speech aid analysis, dispense When seeks leave agree privilege so ceases when enters 'the stream.' problem decision point has reached. Export-Import (Art. 10) embodies phase accommodation between Union; can applied only considering bearing particular exertion power fulfillment frustration purpose. mechanistic formula, derived phrases 715, elsewhere culled, advances us little toward solution concrete problem. 11 peculiarly ill-fitted mechanical disposition; presents unusual circumstances giving rise contentions. involves sale Colombian contract describes 'all machinery, equipment, removable structures, facilities, spare parts, supplies miscellaneous items comprising' Yosemite Portland Cement Plant located at Merced, 'excluding land situated' various other specified items. appellant urges objects sale, collectively referred plant,' should regarded interdependent parts organic whole like 200-inch telescope cyclotron. Since separate usefulness comparable supporting member structure link productive designed, part—in 14 eventual total 123 carloads—makes virtually certain rest follow. In argument, degree equivalent marked bulk cargo, grain timber, whatever cargo latter sort actually left even then separately loss value part. certainty, moreover, conformity prescribed ritual significant: 'The sea normally best evidenced same exist though involved.' qualization, 82, 163, 80. 13 submitted Superior County agreed statement facts leaves doubt comprising 'cement plant' interdependent, contends, consisted merely collection machines pieces equipment could individually installed plant. Tending establish position provisions indicate existing carefully apart Chinese puzzle fitted together again Colombia exactly way 'Contractor shall take least one photograph each machine piece said also after dismantled.' 'All separations made joinder, cutting disassembling effect weakening reassembled Contractor match-mark look itemized list attached issued War Production Board. Those items, ranging thousand-ton kilns locomotives friction tape, seem things independently useful; assigned dollar these values equals price 'plant.' Appellee insists, many original excepted cannot considered unit. resolved issue interpretation urged reached conclusion based interpretation: 15 'I think payment proceeding change place complete building, disconnected materials completion economically imperative. This mere preparation exportation; action 'been transportation' demanded Errol endorsed 16 'If assured, became twelve corpus building sent abroad. Whatever possibility plaintiff torn down carried off premises sell them re-erect rendered extremely improbable appeared kept built used reassemble old one.' 17 presented contentions Without explicitly rejecting contentions, machinery alluded above-quoted Court's 'another basis decision.' Its open, therefore, two very different interpretations. 18 1. exercised right law draw own inferences uncontroverted thus found called 'plant' really equipment. If did, not, course, reinstate findings order raise interesting question Clause. Affirmance amply supported bare citation firm, itself confer taxation. 19 2. view successive removed State's taxing power. say, 'Upon Court, makes difference since remaining parts.' Surely doubtful proposition; presents, rate, difficult adjustment local needs protection exports interference. 20 Between possible interpretations situation lies simple Constitutional troublesome one. record presented, assume pass embrace unnecessarily hypothetical issue. We should, remand resolution crucial depends decide. Cf. City Hammond Schappi Bus Line, Inc., 275 164, 72 218. Rev. Tax. Code 1939, Div. §§ 103, 106, 201, 202(e), 405. meaning 'export' Clauses. 83, 80 cited.

Category: 7