Hale v. Bimco Trading, Inc.

Background

The dispute involves the State Road Department of Florida and companies who import cement into Florida. Florida passed a 1937 law requiring inspection of cement brought in from other countries and imposed a fee of fifteen cents per hundred pounds only on imported cement. A Florida company asked the state supreme court to force the Department to enforce the law, while an importer filed suit in federal court to stop enforcement and alleged the fee was far higher than inspection costs.

Reasoning

The core question was whether Florida could single out foreign-made cement for heavy inspection and a large fee. The Court found the law plainly discriminated against imported cement because domestic cement was exempt while foreign cement faced a burdensome charge. The state’s stated reasons—public safety and protecting local industry—did not justify treating foreign goods differently. The Court explained that the Constitution gives the national government authority over trade with other countries, and a state may not adopt measures that, in effect, keep out foreign goods. The federal court’s permanent injunction against enforcing the fee was therefore affirmed.

Real world impact

The decision stops Florida from imposing and collecting the discriminatory inspection fee on imported cement. Importers are protected from this state-imposed economic burden, and states are warned they cannot target foreign goods with onerous charges without a clear, local justification. The Court did not need to decide other constitutional objections raised about the law.