Music Trade Review
Issue: 1904 Vol. 39 N. 22 - Page 39
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
39
THE MUSIC TRADE REVIEW
INVOICE VALUE AND COMMISSIONS.
Another Important Ruling by the United
States Board of General Appraisers Which
Will Interest Importers.
(Special to The Review.)
Washington, D. C, Nov. 21, 1904.
Small goods importers while more particularly
interested in the case involving the status of com-
missions, now before the United Slates General
Board of Appraisers, in which a recent hearing
was held in Philadelphia, because the test in-
voice covers their own line specifically, the ap-
pended decision has an important bearing. Both
entered value and commisions are passed upon
by the board, and in referring- to the question of
classification they say the general rule followed
is that "under section 7 of the customs admini-
strative act the entered value of imported mer-
chandise, when higher than the invoice value, is
not only the minimum value upon which ad va-
lorem duties must be assessed, but will deter-
mine the classification of the goods rather than
any lower invoice or appraised value, when the
classification is dependent upon or regulated in
any manner by value." Then in respect to com-
missions it was held that "non-dutiable commis-
sions appearing in an invoice become part of the
entered or dutiable value when voluntarily in-
cluded by the importer upon entry."
The complete, text of the decision, which was
handed down November 10, covered a protest
against the New York collector of customs, be-
ing written by Wasle, G. A., as follows:
"The merchandise in question was * * *
assessed for duty at 20 cents each and 40 per
cent, ad valorem under paragraph 153 of the
tariff act of 1897, as valued at more than $3 per
dozen, and claimed to be dutiable at 10 cents
each and 40 per cent, ad valorem under the same
paragraph, as being valued at more than $1.25
and not exceeding $3 per dozen. Upon the basis
of the invoice value, which was approved by the
appraiser, the goods involved are valued at a
fraction less than $3 per dozen. The importers,
however, included in the per se value of the
merchandise, upon entry, an amount equal to a
non-dutiable commission of 5 per cent., separ-
ately stated in the invoice, which brought the
entered value of the goods up to something over
$3.14 per dozen. The importers have not alleged
or attempted to prove that such addition upon
entry was made through inadvertence or as the
result of a clerical error, and contend merely
that the goods should be classified upon the basis
of their invoiced and appraised value.
"Section 7 of the customs administrative act of
June 10, 1890, provides that 'duty shall not
* * * be assessed in any case upon an amount
less than the invoice or entered value.' Such
entered value, when higher than the invoice, is
not only the minimum value upon which ad
valorem -duties must be assessed, but, as appears
to have been settled, will determine the classifi-
tion of the goods, rather than any lower invoice
or appraised value, when the classification is
dependent upon or regulated in any manner by
their value. Kimball against Collector, Roebling
against United States. To the end that customs
officials may have the benerit of an accurate
statement of the foreign market value from im-
porters, said section 7 imposes penalties for a
failure to declare the true value upon entry. If
the invoice value is not sufficiently high, import-
ers, with some exceptions, are, by the same sec-
tion, permitted to raise it by addition in the
entry and avoid penalty. Such declared value
then becomes binding upon the importer and
duties will not be assessed upon a less amount.
"It is plain that if the value could be stated
tentatively in the entry and withdrawn when
found to exceed the appraised value, it would en-
courage guesswork and defeat the object of the
law. If a non-dutiable item on an invoice is in-
cluded in the entered value through manifest
clerical error, or under duress, the importer, it
would seem, is not bound by his act, but a volun-
tary addition must of necessity be held conclu-
sive. In the case before us no explanation of the
addition is offered, and we think it must be as-
sumed to have been voluntary. There is nothing
in the record to suggest duress or that the addi-
tion of commissions was not deliberately made
by the importer in the belief that the invoice
value was too low. The case is similar in prin-
ciple to Vantine against United States, where
non-dutiable transportation charges were held to
be properly a part of the entered or dutiable
value when voluntarily included by the importer
upon entry. The protest is overruled and the
collector's decision affirmed."
A few weeks back The Review referred to the
application of George Borgfeldt & Co., New York,
for permission to inspect the evidence on which
the invoice values of large importations were ad-
vanced a few months ago by a board of three
general appraisers. Counsel conferred with
Secretary of the Treasury Shaw in Washington
last week and expects to receive a final answer
shortly. If Mr. Shaw refuses the permission de-
sired, it is likely that an effort will be made to
bring the matter to the personal attention of
the President. The case has attracted a great
deal of attention from both importers and offi-
cials, because it opens up an entirely new phase
of customs administration. If the request is
granted it would be an abandonment of the prin-
ciple of secret reappraisement which has been
jealously guarded by the Treasury Department
against repeated protests by importers, who de-
clare that they have been made to suffer unjustly
on account of it.
TALKING MACHINES IN LIBERIA.
Reuter's representative has had an interview
with Sir Harry H. Johnston, who has just re-
turned to England on the conclusion of a journey
to Liberia, undertaken with a view to ascertain-
ing the possibility of the development of the re-
sources of the negro republic. According to Sir
Harry, the most popular article of trade on the
Liberian coast at the present time is the talking
machine. Every well-to-do native possesses one
or is expecting one to arrive, and one of the first
inquiries made as to each fresh steamer's arrival
is, "Has she brought out any new records?"
GOLD MEDAL
Ji
W
A
R
D
E
D
Stella 6 Mira Music Boxes
AT THE
Louisiana Purchase Exposition
Dealers
will
find
it to
their
interest
to write
for
catalogues
of these
two
lines
Miraphone Combining Mira Music Box and Victor Talking Machines
JACOT MUSIC BOX CO
39 Union Square, New York
39
THE MUSIC TRADE REVIEW
INVOICE VALUE AND COMMISSIONS.
Another Important Ruling by the United
States Board of General Appraisers Which
Will Interest Importers.
(Special to The Review.)
Washington, D. C, Nov. 21, 1904.
Small goods importers while more particularly
interested in the case involving the status of com-
missions, now before the United Slates General
Board of Appraisers, in which a recent hearing
was held in Philadelphia, because the test in-
voice covers their own line specifically, the ap-
pended decision has an important bearing. Both
entered value and commisions are passed upon
by the board, and in referring- to the question of
classification they say the general rule followed
is that "under section 7 of the customs admini-
strative act the entered value of imported mer-
chandise, when higher than the invoice value, is
not only the minimum value upon which ad va-
lorem duties must be assessed, but will deter-
mine the classification of the goods rather than
any lower invoice or appraised value, when the
classification is dependent upon or regulated in
any manner by value." Then in respect to com-
missions it was held that "non-dutiable commis-
sions appearing in an invoice become part of the
entered or dutiable value when voluntarily in-
cluded by the importer upon entry."
The complete, text of the decision, which was
handed down November 10, covered a protest
against the New York collector of customs, be-
ing written by Wasle, G. A., as follows:
"The merchandise in question was * * *
assessed for duty at 20 cents each and 40 per
cent, ad valorem under paragraph 153 of the
tariff act of 1897, as valued at more than $3 per
dozen, and claimed to be dutiable at 10 cents
each and 40 per cent, ad valorem under the same
paragraph, as being valued at more than $1.25
and not exceeding $3 per dozen. Upon the basis
of the invoice value, which was approved by the
appraiser, the goods involved are valued at a
fraction less than $3 per dozen. The importers,
however, included in the per se value of the
merchandise, upon entry, an amount equal to a
non-dutiable commission of 5 per cent., separ-
ately stated in the invoice, which brought the
entered value of the goods up to something over
$3.14 per dozen. The importers have not alleged
or attempted to prove that such addition upon
entry was made through inadvertence or as the
result of a clerical error, and contend merely
that the goods should be classified upon the basis
of their invoiced and appraised value.
"Section 7 of the customs administrative act of
June 10, 1890, provides that 'duty shall not
* * * be assessed in any case upon an amount
less than the invoice or entered value.' Such
entered value, when higher than the invoice, is
not only the minimum value upon which ad
valorem -duties must be assessed, but, as appears
to have been settled, will determine the classifi-
tion of the goods, rather than any lower invoice
or appraised value, when the classification is
dependent upon or regulated in any manner by
their value. Kimball against Collector, Roebling
against United States. To the end that customs
officials may have the benerit of an accurate
statement of the foreign market value from im-
porters, said section 7 imposes penalties for a
failure to declare the true value upon entry. If
the invoice value is not sufficiently high, import-
ers, with some exceptions, are, by the same sec-
tion, permitted to raise it by addition in the
entry and avoid penalty. Such declared value
then becomes binding upon the importer and
duties will not be assessed upon a less amount.
"It is plain that if the value could be stated
tentatively in the entry and withdrawn when
found to exceed the appraised value, it would en-
courage guesswork and defeat the object of the
law. If a non-dutiable item on an invoice is in-
cluded in the entered value through manifest
clerical error, or under duress, the importer, it
would seem, is not bound by his act, but a volun-
tary addition must of necessity be held conclu-
sive. In the case before us no explanation of the
addition is offered, and we think it must be as-
sumed to have been voluntary. There is nothing
in the record to suggest duress or that the addi-
tion of commissions was not deliberately made
by the importer in the belief that the invoice
value was too low. The case is similar in prin-
ciple to Vantine against United States, where
non-dutiable transportation charges were held to
be properly a part of the entered or dutiable
value when voluntarily included by the importer
upon entry. The protest is overruled and the
collector's decision affirmed."
A few weeks back The Review referred to the
application of George Borgfeldt & Co., New York,
for permission to inspect the evidence on which
the invoice values of large importations were ad-
vanced a few months ago by a board of three
general appraisers. Counsel conferred with
Secretary of the Treasury Shaw in Washington
last week and expects to receive a final answer
shortly. If Mr. Shaw refuses the permission de-
sired, it is likely that an effort will be made to
bring the matter to the personal attention of
the President. The case has attracted a great
deal of attention from both importers and offi-
cials, because it opens up an entirely new phase
of customs administration. If the request is
granted it would be an abandonment of the prin-
ciple of secret reappraisement which has been
jealously guarded by the Treasury Department
against repeated protests by importers, who de-
clare that they have been made to suffer unjustly
on account of it.
TALKING MACHINES IN LIBERIA.
Reuter's representative has had an interview
with Sir Harry H. Johnston, who has just re-
turned to England on the conclusion of a journey
to Liberia, undertaken with a view to ascertain-
ing the possibility of the development of the re-
sources of the negro republic. According to Sir
Harry, the most popular article of trade on the
Liberian coast at the present time is the talking
machine. Every well-to-do native possesses one
or is expecting one to arrive, and one of the first
inquiries made as to each fresh steamer's arrival
is, "Has she brought out any new records?"
GOLD MEDAL
Ji
W
A
R
D
E
D
Stella 6 Mira Music Boxes
AT THE
Louisiana Purchase Exposition
Dealers
will
find
it to
their
interest
to write
for
catalogues
of these
two
lines
Miraphone Combining Mira Music Box and Victor Talking Machines
JACOT MUSIC BOX CO
39 Union Square, New York
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