United States v. G. Falk & Brother

Background

Falk & Brother, an importer of leaf tobacco, brought goods into New York and stored them in a bonded warehouse without paying duty. Some shipments arrived before and some after July 24, 1897. When the tobacco was withdrawn after a new tariff law took effect, the customs collector calculated duty based on the tobacco’s recorded weight at entry, not its lighter weight at withdrawal after evaporation. The importers protested, and the dispute moved through administrative and lower federal courts.

Reasoning

The main question was whether duties for weight-based imports are measured at entry or at the later warehouse withdrawal when weight can change by evaporation. The Court looked at two tariff provisions. An 1890 law had said duties for warehoused goods should be levied on weight at withdrawal. Congress reenacted that language in the 1897 tariff but changed the single word "withdrawal" to "entry." The Court held that change, along with long-standing executive practice, shows Congress meant duties to be calculated by the weight at entry. The Court also addressed a statute that forbids allowance for loss in a bonded warehouse, but found the tariff wording controlled the result. Therefore evaporation in storage does not lower the duty.

Real world impact

The ruling means importers of goods measured by weight must pay duties based on the weight recorded when they entered the country, even if the merchandise later loses moisture in storage. Customs collectors can continue assessing duties using entry weights. The case was sent back to the lower court for final handling consistent with this decision.