32
22619 RECO REGO I JUL II
&
surround such a commercial conces kong was obliged by trade require- If merchandise from a foreign coun sion with safeguards which would ments, and of this practically preclude a substitution of can not be assumed to have been 1g-through bills of leading to be destined fact Congress try shown by consular invoices and goods and reasonably secure the rev- enue of both countries against fraud or shipping between the islands and the shipped without losing its character morant, taking into Account that for the United States may be trans- evasion. Accordingly admission free United States had been a into either country of articles the of a legislative Investigation and con- of original shipment; if under recipro
subject as an importation from the country growth or product or the growth, aideration for more than seven years. city treaties with foreign countries product, and manufacture of the other was conditioned upon their direct 16, 1904; Act of April 30. 1906; act ported from the place of origin sl [Act of March 8, 1902; act of April goods may be admitted as directly im- shipment" from the country of origin of April 29, 1908; Congressional Re-though they have been transshipped to the country of destination. The cord of March 23, 1909] term "direct shipment," considered by
in other countries, it would seem ibat itself, is open, however, to several
to
In the light of these facts, hold.there could be so sound reason for re- ing in view the settled policy go from an American prossession invoiced fusing the same consideration to gooda eroing our relations the Phil ippines, considering the boneficent through bills of lading for the trend of all congressional legislation
United States and merely trans- affecting them, and bearing in mind shipped en route. To hold that Phil. that transhipment at Hongkong of ippine products so transshiped are Philippine goods destined for the not directly imported from the is- United States was a trade necessity: compelled by the laws of trade, con- lands, or that their transshipment,
stitutes a breach of the condition for their direct shipmment, would he, that Congress
we think we would not be warrant- ed in giving to the condition the interpretation contended for
by
the United States or the Philippines, the Government. To do so would be in effect, to bold
to hold that Congress intended to contemplated that commercial re- impose condition which for lack lations between the United States and of adequate shipping conveniences its oriental possessions, for the
interpretations. It may mean that the goods must be carried from the Philippines to the United States or vice versa in a single vessel pro- Iceeding by the most direct route without stopping at way ports, or it may mean shipment in a single vessel following its usual and custom- ary course, or it may mean that the goods must be originally destined for and that without mingling with the commerce of any other place they must come as direct from the country of origin to the country of destination As commercial limitations may per- mit. Which of these meanings abould prevail as truly expressive of the legislative will depends on which of them beat given effect to the general policy of the Government and the main purpose of the law, and at the same time preserves the the full intention of the conditions As it can not be assumed that the statute contemplated the infliction of a condition with which it was com mercially impracticable, to comply, the feasibility of the condition under one meaning or another naturally be comes a subject of inquiry, and that į in its turn necessarily involves consideration of the actual commer cial method of carrying goods oetween the United States and the Philippines which confronted the lawmakers when the tariff act of 1909 was pass- ed.
their
was commercially impracticable and well being of which it stands pledged, therefore in effect frustrative of the should be hampered by conditions cot primary and principal purpose of the exacted from foreign countries for law. Our opinion in this behalf is the welfare and business prosperity of confirmed by the
attitude of the which the nation is in no way res courts as to transhipment and the possible. Such a holding we are not effect thereof on importations and prepared to make in the absence of directness. For a long time language which would leave us no judicial tribunals have appreciated other alternative. That the term "di- that the exigencies of transporta-rect shipment" was not designed to tion frequently require that goods restrict carriage to one vessel, but exported from other countries and
to insure that the goods imported. destined for the United States into the United States should be the shall be transshipped en route. In indentical. goods exported from the consequence the courts have held Philippine Islands is evidenced to almost uniformly that such trans-
some extent by the language used in the proviso relating to articles shipment does not change the status of the goods as an importation from unpacked while en route by accident, the country of the original shipment wreck, or other casualty, or so dam- if they have not mingled with the aged as to necessitate their repack- commerce of any other country and if ing. This proviso declares that such the official invoices and bills of lading shall be admitted free of
articles.
duty upon satisfactory proof that the un- packing occured through the acci dent or necessity and that the mer- chandise involved is the indentical merchandise originally shipped from
evidence that the United States It is a matter of history that when
was At the time of exportation in Spain and Portugal shared the Indies tended to be their final destina- between them Manils was the dom-tion. Miller v. Millar (17 Fed Cash., ivant and most important
9536); Gant v. Penslee (9 feb. Cas.. in the Orient. In time, however, 1143). More than that, it has been the United States or the Philippine
port
consequence
Islande, as the case may be. and that ita condition has not been chang- ed, except for such damage as may
have been sustained,"
judicially determined that notwith- standing such transshipment the trans- portation of the merchandise from the port of original shipment to the United States and the voyage from the country of origin to the country of destination must be regarded as continuous. Griswold v. Maxwell (Ilippine products invoiced for the United States on a through bill of lading Fed. Cas., 5838).
have been no transhipped as not to
"Direct shipment" means no more that "directly imported," and if Phil-
Great Britain gained a foothold in the Far East, the Suez Canal was con- structed, new avenues for commerce were opened up, and Spain lost her trade ascendancy. In Hongkong became a shipping termin- al and ultimately the Port of final destination for nearly all deep water craft trading with the Orient. As a result Manila ceased to be
Again, in the case of reciprocal shipping center, Philippine goods commercial agreements between the permit of their commingling enroute
with the commerce of any other i bad to be carried in British bot United States and foreign countries,
not country, the condition for direct ship toms, and the trade of the islands it is the rule that goods are
ment has been fulfilled sceording to with the outside world was forced entitled to the benefit of such agree- through Hongkong, to whichall min ments unless they be the products the purpose and meaning of the ports of adjacent territory were of the treaty nation and are directly statute. That the condition was based made tributary by the diversion to Imported from it. Nevertheless, it through bill of lading" was, in on "direct shipment" rather than on that port of shipping facilities. In seems to be settled doctrine that if
or
#
cat goods
and
all probability, dae to the fact that the very same year in which the
are originally shipped was passed the evidence discloses destined for the United States and the former was a broad term while that for the six months, ended Dec-such fact is evidenced by consular the latter was limited and would not ember 31 vessels of the Pacific Mail invoices and through bills of lading cover the case of importations car- Co. and of the Toyo Kisen Kaisha a transshipment of them en route ried in vessels owned or chartered made 25 trips from Hongkong to the not amounting to a commingling of by the importers and which therefore United States, and during the same the goods with the commerce of the had no technical bills of lading.
The fact that the law provided period only 7 trips from the Phil country of transshipment does not that "direct shipment" shall included ippines to the same destination. In alter their status as a direct impor their time-tables these companies extation from the country of origin, shipment in bood through foreign pressly direct attention to the fact The necessity for transshipment of territory contiguous to the United States shows no more than that the that their vessels call at Manila only goods, and that such transship-
legislature was not forgetful of trade about once a month and that those ment should not be
contingencles and that it was mind- not able to take advantage of the an interruption of their direct imful of making provision for the free. was recognized by the admission of the goods even if they monthly tripe should avall themse-portation, vas of "half a dozen lines of steam-
Treasury Department as early
should pass to the control of a carS ers" the vessel of which make trips May 27, 1899 (T. D 31186) and has rier in contiguous territory who between Hongkong and Manila every been scrupulously followed ever since might not be bound by the original two or three days. From this alone by the Board of General Appraiser contract of lading.
The rule that the It is apparent that vemels plying In re Montagne & Son [T. D 21565
transfer of between the Orient and the United Aug. 31, 1899); in re Hermann Bro Rates favor Hongkong as a shipping thers (T. D. 22447, Aug. 16. 1900] point and that only occasional trips In re Morello (T. D. 24971. Feb.
re Leerburger Brothers are made to Mila. Shipping out 1907) In
considered as
of the Philippines by way of Hong IT, D. 25510, July 28, 1904.
as
$
unnecessary
cargo
sport-
of fuse and aug} roma $13 318a e tu
od son o 03301d for a DESCONO IN
NT
VIT
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