66
COURT DECISIONS.
the transportation 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 e Maxwell (11 Fed. Cas., 5838).
Again, in the case of reciprocal commercial agreements between the United States and foreign countries, it is the rule that goods are not entitled to the benefit of such agreements unless they be the products of the treaty nation and are directly imported from it. Nevertheless, it seems to be settled doctrine that if goods are originally shipped and destined for the United States and such fact is evidenced by consular invoices and through bills of lading a transshipment of them en route not amounting to a commingling of the goods with the commerce of the country of transshipment does not alter their status as a direct importation from the country of origin. The necessity for transship- ment of goods, and that such transshipment should not be considered as an interruption of their direct importation, was recognized by the Treasury Department as early as May 27, 1899 (T. D. 21186), and has been scrupulously followed ever since by the Board of General Appraisers. In re Montagne & Son (T. D. 21565, Aug. 31, 1899); In re Hermann Brothers (T. D. 22447, Aug. 15, 1900): In re The Florida Brewing Co. (T. D). 23473-a, Jan. 21, 1902); In re Morello (T. D. 24971, Feb. 2, 1904): In re Leerburger Brothers (T. D. 25510, July 28, 1904).
If merchandise from a foreign country shown by consular invoices and through bills of lading to be destined for the United States may be transshipped without losing its character as an importation from the country of original shipment; if under reciprocity treaties with foreign countries goods may be admitted as directly imported from the place of origin although they have been transshipped in other coun- tries, it would seem that there could be no sound reason for refusing the same consideration to goods from an American possession invoiced on through hills of lading for the United States and merely trans- shipped en route. To bold that Philippine products so transshipped are not directly imported from the islands, or that their transshipment, compelled by the laws of trade, constitutes a breach of the condition for their direct shipment, would be, in effect, to hold that Congress contemplated that commercial relations between the United States and its oriental possessions, for the well-being of which it stands pledged, should be hampered by conditions not exacted from foreign countries for the welfare and business prosperity of which the nation is in no way responsible. Such a holding we are not prepared to make in the absence of language which would leave us no other alternative. That the term "direct shipment" was not designed to restrict carriage to one vessel, but to insure that the goods imported into the United States should be the identical goods exported from the Philippine
COURT DECISIONS.
262
67
Islands is evidenced to some extent by the language used in the pro- viso relating to articles unpacked while en route by accident, wreek, or other casualty, or so damaged as to necessitate their repacking. This proviso declares that such articles—
shall be admitted free of duty upon satisfactory proof that the unpacking occurred through accident or necessity and that the merchandise involent is the identical merchan- dise originally shipped from the United States or the Philippine Islands, as the case may be, and that its condition has not been changed, except for such damage us may have been sustained.
"Direct shipment" means no more than "directly imported," and if Philippine products invoiced for the United States on a through bill of lading have been so transhipped as not to permit of their com- mingling en route with the commerce of any other country, the condi- tion for direct shipment has been fulfilled according to the purpose and meaning of the statute. That the condition was based on "direct shipment" rather than on "a through bill of lading" was, in all proba- bility, due to the fact that the former was a broad term while the lat- ter was limited and would not cover the case of importations carried in vessels owned or chartered by the importers and which therefore had no technical bills of lading.
The fact that the law provides that "direct shipment" shall include shipments in bond through foreign territory contiguous to the United States shows no more than that the legislature was not forgetful of trade contingencies and that it was mindful of making provision for the free admission of the goods even if they should pass to the control of a carrier in contiguous territory who might not be bound by the original contract of lading.
The rule that the unnecessary transfer of a cargo insured by a particular vessel from that vessel to another avoids the policy of insurance has no application here. In such cases the insurer selects his risk by the terms of his contract of insurance and very properly no other risk can be substituted for it without his consent unless necessity compels a substitution beneficial to him as well as to the insured.
The decision of the Board of General Appraisers is affirmed. MONTGOMERY, Presiding Judge, and HUNT, BARBER, and DE VRIES, Judges, conenr.
No comments yet.
Private notes are available after approval.