United States v. Sischo

Background

The United States sued to collect a $6,400 penalty from the captain of a vessel that brought into the country one hundred five-tael tins of opium prepared for smoking without listing them on the ship’s manifest. The District Court and the Circuit Court of Appeals had ruled that smoking opium was not “merchandise” under the manifest law and that, being outlawed, it had no value; both courts entered judgment for the ship’s master. The Supreme Court agreed to review the question.

Reasoning

The Court addressed whether opium prepared for smoking counts as merchandise that must be entered on a ship’s manifest and whether it can be treated as having value for penalty purposes. Relying on the manifest statutes and later acts, the Court explained that manifests exist so the Government can know what arrives without searching, and that the statutory language covers goods physically capable of import. The Court rejected the view that outlawed goods are necessarily excluded, held that smoking opium is merchandise, and accepted that foreign market value may be used as evidence of value.

Real world impact

As a result, ship masters must include smoking opium on vessel manifests, and they can be held liable for penalties equal to the value of unreported contraband. The ruling reverses the lower courts and supports customs enforcement practices that use market value to fix penalties. The opinion does not hinge on any separate criminal conviction shown in the record.