CO129-383 - Public Offices - 1911 — Page 263

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5.

COURT DECISIONS.

(T. D. 81505.)

Philippine cigars-Direct shipment.

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UNITED STATES UNITED CIGAR STORES CoNo.266).

COREGS 16. MAY 11

PHILIPPINE CIGAR TRANSSHIPPED AT HONGKONG, a Direct-SHIPMENT.

In the enactment of the provisions of the tariff act of 1909 that relate to com- merce between the United States proper and the Philippine Islands, the Congress will be presumed to have had in mind the actual requirements of trade in the Philippines as these may call for transshipment of merchandise; and having in view too, the recognized benevolent intent of legislation affecting the archipelago, that shipment must be deemed a direct shipment from the Philippines to the United States when the consignment was forwarded on a through bill of lading from Manila to New York, but by reason of a trade requirement was transshipped at Hongkong; and so the goods fell within section 5, tariff act of 1909, making them free of duty.

United States Court of Customs Appeals, April 10, 1911.

APPEAL from a decision of the Board of United States General Appraisers, G. A. 7026 (T. D. 30643). [Decision affirmed.]

D. Frank Lloyd, Assistant Attorney General (Chorles Duane Baker on the briel), for the United States.

Maz J. Koller, Sol M. Stroock, and Henry L. Moses for appellee.

Before MONTGOMERY, HUNT, SMITH, BARBER, and DE VRIES, Judges.

SMITH, Judge, delivered the opinion of the court;

A verified consular invoice dated Manila, P. L., June 25, 1909, shows that the United Cigar Stores Co., a corporation organized under the laws of New Jersey, purchased at Manila from the Philippine Co. (Ltd.), at a cost of $3,387.25, inclusive of packing and other charges, 225,000 cigars, manufactured from tobacco the growth and product of the Philippine Islands. It appears from the bill of lading in evidence that the cigars so purchased were delivered at Manila on June 25, 1909, to the Pacific Mail Steamship Co. for carriage from that place 10 New York, shipment thereof to be by the steamship Korea to San Francisco and thence to destination by transshipment. As the Korea had left Manila on June 19, 1909, and was lying at Hongkong at the time the bill of lading was executed, the Pacific Mail Steamship Co. placed the cigars on board the Fuensang and caused them to be trans- ported by that vessel to Hongkong, where by lighters they were immediately transferred without landing to the Korea. The Korea carried the goods to San Francisco, whence, under entry for imme- diate transportation in bond, they were forwarded by rail to New York. At New York the cigars were entered for immediate consump- tion, and the collector, after liquidating the entry as "free," delivered the goods to the importer, who sold them for $9,500. Subsequent to the sale by the importer the collector of customs, believing that the