Yoshida International, Inc. v. United States
| Decision Date | 08 July 1974 |
| Docket Number | C.D. 4550,Court No. 72-2-00314. |
| Citation | 378 F. Supp. 1155 |
| Parties | YOSHIDA INTERNATIONAL, INC. v. UNITED STATES. |
| Court | U.S. Court of Customs and Patent Appeals (CCPA) |
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Barnes, Richardson & Colburn, New York City (Schwartz & Lidstrom, New York City, and Glad, Tuttle & White, San Francisco, Cal., associate counsel; J. Bradley Colburn, Earl R. Lidstrom, Rufus E. Jarman, Jr. and David O. Elliott, New York City, of counsel), for plaintiff.
Carla A. Hills, Asst. Atty. Gen. (Andrew P. Vance and Frederick L. Ikenson, New York City, trial attys.), for defendant.
Before BOE, Chief Judge, and MALETZ and RE, Judges.1
The plaintiff has filed a motion for summary judgment challenging the validity of Presidential Proclamation 4074 promulgated August 15, 1971, which imposed a surcharge in the form of a supplemental duty in the amount of 10 percent ad valorem upon most articles imported into the United States from and after August 16, 1971. The merchandise involved herein—consisting of zippers—was imported from Japan and entered at the port of New York on August 17, 25 and 26, 1971. In addition to being assessed with duty at the rate of 23.5 percent ad valorem pursuant to item 745.72, Tariff Schedules of the United States, the merchandise in question was assessed with an additional duty of 10 percent ad valorem pursuant to item 948.00 which was added to the tariff schedules by Presidential Proclamation 4074.
The defendant has filed a cross-motion for summary judgment contending that Presidential Proclamation 4074 was lawfully authorized by (1) the "termination" authority delegated to the President by the Congress in section 350(a)(6) of the Tariff Act of 1930, as amended (19 U.S.C. § 1351(a)(6)) and section 255(b) of the Trade Expansion Act of 1962 (19 U.S.C. § 1885(b)); and (2) the authority vested in the President by section 5(b) of the Trading with the Enemy Act, as amended (50 U. S.C. App. § 5(b)).
Presidential Proclamation 4074 provides in relevant part (F.R.Doc. 71-12120):
Whereas, there has been a prolonged decline in the international monetary reserves of the United States, and our trade and international competitive position is seriously threatened and, as a result, our continued ability to assure our security could be impaired;
Whereas, the balance of payments position of the United States requires the imposition of a surcharge on dutiable imports;
Whereas, pursuant to the authority vested in him by the Constitution and the statutes, including, but not limited to, the Tariff Act of 1930, as amended (hereinafter referred to as "the Tariff Act"), and the Trade Expansion Act of 1962 (hereinafter referred to as "the TEA"), the President entered into, and proclaimed tariff rates under, trade agreements with foreign countries;
Whereas, under the Tariff Act, the TEA, and other provisions of law, the President may, at any time, modify or terminate, in whole or in part, any proclamation made under his authority;
Now, Therefore, I, Richard Nixon, President of the United States of America acting under the authority vested in me by the Constitution and the statutes, including, but not limited to, the Tariff Act, and the TEA, respectively, do proclaim as follows;
A. I hereby declare a national emergency during which I call upon the public and private sector to make the efforts necessary to strengthen the international economic position of the United States.
B. (1) I hereby terminate in part for such period as may be necessary and modify prior Presidential Proclamations which carry out trade agreements insofar as such proclamations are inconsistent with, or proclaim duties different from, those made effective pursuant to the terms of this Proclamation.
(2) Such proclamations are suspended only insofar as is required to assess a surcharge in the form of a supplemental duty amounting to 10 percent ad valorem. Such supplemental duty shall be imposed on all dutiable articles imported into the customs territory of the United States from outside thereof, which are entered, or withdrawn from warehouse, for consumption after 12:01 a. m., August 16, 1971, provided, however, that if the imposition of an additional duty of 10 percent ad valorem would cause the total duty or charge payable to exceed the total duty or charge payable at the rate prescribed in column 2 of the Tariff Schedules of the United States, then the column 2 rate shall apply.
C. To implement section B of this Proclamation, the following new subpart shall be inserted after subpart B of part 2 of the Appendix to the Tariff Schedules of the United States:
SUBPART C—TEMPORARY MODIFICATIONS FOR BALANCE OF PAYMENTS PURPOSES
Subpart C headnotes:
1. This subpart contains modifications of the provisions of the tariff schedules proclaimed by the President in Proclamation 4074.
2. Additional duties imposed—The duties provided for in this subpart are cumulative duties which apply in addition to the duties otherwise imposed on the articles involved. The provisions for these duties are effective with respect to articles entered on and after 12:01 a. m., August 16, 1971, and shall continue in effect until modified or terminated by the President or by the Secretary of the Treasury (hereinafter referred to as the Secretary) in accordance with headnote 4 of this subpart.
3. Limitation on additional duties— The additional 10 percent rate of duty specified in rate of duty column numbered 1 of item 948.00 shall in no event exceed that rate which, when added to the column numbered 1 rate imposed on the imported article under the appropriate item in schedules 1 through 7 of these schedules, would result in an aggregated rate in excess of the rate provided for such article in rate of duty column numbered 2.
4. For the purposes of this subpart—
(a) Delegation of authority to Secretary—The Secretary may from time to time take action to reduce, eliminate or reimpose the rate of additional duty herein or to establish exemption therefrom, either generally or with respect to an article which he may specify either generally or as the product of a particular country, if he determines that such action is consistent with safeguarding the balance of payments position of the United States.
* * * * * *
(c) Authority to prescribe rules and regulations—The Secretary is authorized to prescribe such rules and regulations as he determines to be necessary or appropriate to carry out the provisions of this subpart.
5. Articles exempt from the additional duties—In accordance with determinations made by the Secretary in accordance with headnote 4(a), the following described articles are exempt from the provisions of this subpart:
* * * * * *
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Item | Article | Rates of duty
| |------------------------------------
948.00 | Articles, except as exempted | 1 2
| under headnote 5 of this |------------------------------------
| subpart, which are not free | |
| of duty under these schedules | |
| and which are the subject | |
| of tariff concessions | |
| granted by the United | |
| States in trade agreements | |
| .......................... | 10% ad val. . . . | No change
| | (See headnote 3 of |
| | this subpart.) |
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D. This Proclamation shall be effective 12:01 a. m., August 16, 1971.
* * * * * *
Again, the Supreme Court in Schechter Corp. v. United States, 295 U.S. 495, 55 S.Ct. 837, 79 L.Ed. 1570 (1935), reiterated this principle in stating that the Congress cannot delegate its legislative authority to others to exercise the unfettered discretion to make whatever laws may be thought to be needed or advisable for the rehabilitation and expansion of trade or industry.
As domestic problems and international relations have become more complex throughout the course of the history of our country, it concurrently has been recognized that our three branches of government are coordinated parts of one government, and that these partners in purpose and objective must utilize, as needed, the assistance and efforts of the others in carrying forth the powers, duties, and responsibilities with which they have been initially invested. Thus, the legislative branch has delegated to the executive branch the powers, inter alia, to determine fair and just rates in interstate commerce, to proclaim an embargo on the sale of arms and munitions to foreign nations, to change rates of duties under prescribed procedures. Field v. Clark, supra; United States v. Curtiss-Wright Corp., 299 U.S. 304, 57 S.Ct. 216, 81 L.Ed. 255 (1936); Interstate Commerce Commission v. Goodrich Transit Co., 224 U.S. 194, 32 S.Ct. 436, 56 L.Ed. 729 (1912); Panama Refining Co. v....
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United States v. Yoshida Intern., Inc.
... 526 F.2d 560 ... The UNITED STATES, Appellant, ... YOSHIDA INTERNATIONAL, INC., Appellee ... Customs Appeal No. 75-6 ... United States Court of Customs and Patent Appeals ... November 6, 1975. 526 F.2d 561 COPYRIGHT MATERIAL OMITTED 526 F.2d 562 COPYRIGHT MATERIAL OMITTED 526 F.2d 563 COPYRIGHT MATERIAL OMITTED ... ...
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