FABRIQUE NATIONALE FN7—jProduction Sales & Reports Subject To Val A. From M. Reference Your Date October. Browning Bigelow memo (Ogden) Browning October 11, 5 1951 I have noted and taken for my files copies of following which are being returned herewith: John R. John R. copies Rafter letter, October 4 Rafter letter, October 3 of 6 affidavits the conveying JOHN TELEPHONE: WHITEHALL R.RAFTER COUNSELOR AT LAw 8 Brubge Direct, October Mr. Val A. Browning, J.M. & M.S. Browning Qgden, Dear Utah. Mr. Now ]}, York 4 1951 Company, Browning? Supplementing my letter of to your letter of September 24th and its ing the proposed liquidation of the J.M. Company: vised wrote which 4-85094 yesterday in reply enclosure, regard& M.S. Browning In addition to a new affidavit from FN or reaffidavits from FN and Schroeder Freres, about which [I to you yesterday, there are three other customs matters should be borne in mind and attended to in due course. First, when your trademarks have been assigned by the J.M. & M.S. Browning Company to the Browning Arms Company, the assignments should be recorded with the Commissioner of Patents. and, when they have been returned to you, certi- fied abstracts be furnished any, (as to of the title showing Commissioner each such of assignment Customs, so that should he may notify the customs officers at all ports of entry of the assignment of the trademarks. I shall be glad to attend to this matter with the Commissioner of Patents as well as with the Commissioner of Customs, if you so desire. the well Browning Second, the original commercial invoices, if as the consular invoices) should be made out Arms Company at St. Louis, Missouri, be sent to that company at that address. [I make commendation, because on each entry at St. Louis tive of the there is no Browning Arms other invoice immediately bring and that, CGustoms. if he learns it Therefore, to if of Company must state different from the any the FN such different attention sends you a of the and should to this rea representa- under oath that consular invoice invoice, he will invoice as Collector commercial of well as a consular invoice, the commercial invoice should be available to the Browning Arms Company at St. Louis for comparison with the consular invoice, to make sure that there is no difference between them in any essentials. of course, a copy A. Browning of any Browning such Arms commercial Company Third, if at any Ogden, invoice may Utah, merchandise if was October ]}, also sent be necessary entered 1951 or under to the bond for desirable. warehousing by the J.M. &. M.S. Browning Company and will remain in bond after the J.M. & M.S. Browing Company has been liquidated, title to that merchandise should be assigned by the J.M. & M.S. Browning Company to the Browning Arms Company before the former has been liquidated. In addition to a formal assignment of title to any such merchandise,it is recommended that you consult your customs broker at St. Louis as to the form and the of transfer recognized port of New of such merchandise York the transfer by the Collector of which Customs of such will at be that required port. merchandise, At from a customs standpoint, is usually effected by having the importer (J.M. & M.S. Browning Company) sign a “warehouse withdrawal for consumption" for each entry in question, authorizing the transferee (Browning Arms Company) to withdraw the merchandise covered by the entry in question. Those withdrawals are filed with the Collector of Customs and are then stamped by him "blanket authority". A copy of such a "with drawal™ is enclosed. It would be well, however, to consult your customs broker at St. Louis on this subject, in order to conform connection me again. to If the any with practice other the at customs proposed that port. matter should liquidation, you occur will Jue. 2 Rf Sincerely JRR:BEL Bne. yours, to me hear in from Ooteber 3rd, Ur. John Val Browning, Jee & MLS. Browning Company, Boite Postale 72, Herstal-lezg~Liece, Dear Mr, Browning: Because the Browning Arms Company, instead of the J.M. & 8.8. Browning Company, will soon be import~ ing shotguns from Belgium, is» Val A. Browning has requested me to gend to you and to him any suggestions I may have re| garding Preres Latest prices trade f affidavits of for exportation and in Belgium; those affidavits. the prices for exportation to Belgium, have been relating Browning aimply to all Gompany intended PN forms of the guns has to of copies not should new importing from that the be of unless used inland form a shotguns forms revised of therein referred for es Stator enclosing been show the revised and reviewed enclosing I am the United changed, types Schroeder appraiser. customs J.S. and Schroeder Freres relative. to to the United States and for inland These also T am the #*N and by supplied accordingly have T and until of information the for be to affidavits new to, either trade in affidavit & M.5. which the J,4%. J.Mé.& ¢.5. Browning Belgium, which is Company is no longer importing them and that the Browning Arnis Comipany Unless there has been a change in is now importing them. for exportation to the United States either , prices, therefore this form of affidavit is the Belgium, in trade inlend or for It should be executed only one which should now be used. original sand copies the and copies of number usual in the (except one copy to be retainedby you) should be sent to mo for exanination. in prices ag On above the other referred hand, to, if the there has revised been a change forms of affi-+- davite relating to the new prices should be used and the ion affidavits should be executed and sent to me for examingt executed until be not should They to. referred above as Mix. John Val the new after foras cthnereor With October : Srowning become prices have best regarda, nave worded oeen effective. accordingiy. yours, sincersly F (alemed) ia #4 . ot JOAN eS Fe ERS 8, 2% The 3, 1951 revised M. Bigelow Val A. October Browning Browning 5, 1951 The attached copy of letter to John Val and copies of affidavit forms which were sent over to him were received this morning from Mr. Rafter. I have glanced through them but would like to have them back for further study and of for my files. affidavits if You you so can keep desire. the extra Ve B. Aw copy of forms JOHN R. RAFTER Counselor at Law & Bridge Street, October Mr. Val A. Browning, J.M. & M.S. Browning Ogden, Utah. New York 4, 1951 Company, Dear Mr. Brownings September Supplementing my letter of yesterday in reply to your letter of 24th and its enclosure, regarding the proposed liquidation of the J.M. & M.S. Browning Company: In addition to a new affidavit from FN FN and Schroeder Freres, about which I wrote to you other customs matters which should be borne in mind Browning with the fied First, abstracts of matter with Customs, if the you of entry consular Missouri, when your trademarks Company to the Browning Commissioner of Patents Commissioner 4 of title Customs, showing of the assignment so that Arms and, each have been of assigned by the J.M. Company, the assignments should when they have been returned to such assignment should & M.S. be recorded you, certi- be furnished to the he may notify the customs officers Patents as as with Commissioner of the trademarks. Commissioner so desire. or revised affidavits from yesterday, there are three and attended to in due course. well I shall be glad the to at attend all ports to this of Second, the original commercial invoices, if any, (as well as the invoices) should be made out to the Browning Arms Company at St. Louis, and recommendation, should be because sent on to that each entry company at St. at that Louis address. I make a representative of this the Browning Arms Company must state under oath that there is no other invoice different from the consular invoice and that, if he learns of any such different invoice, he will immediately bring it to the attention of the Collector of Customs. Therefore, if FN sends you a commercial invoice as well as a consular invoice, the commercial invoice should be available to the Browning Arms Company at St. Louis for com parison with the consular invoice, to make sure that there is no difference between them in be sent any essentials. to the Browning Of course, a copy of any such commercial Arms Company at Ogden, Utah, if necessary invoice may also or desirable. Mr. Val A. Browning by the J.M. & M.S. Browning Company and to form of transfer of such merchandise, Third, October if any merchandise was will entered remain under in bond bond 4, 1951] for warehousing after the J.M. & M.S. Browning Company has been liquidated, title to that merchandise should be assigned by the J.M, & M.S. Browning Company to the Browning Arms Company before the former has been liquidated. In addition to a formal assignment of title to any such merchandise, it is recommended that you consult your customs broker at St. and York Louis as recognized the effected withdrawal the by the Collector transfer of by having the importer for consumption" for such merchandise from a customs of Customs (J.M. each at that & M.S. Browning entry which port. will standpoint, in question, be At the port Company) is required of New usually sign a "warehouse authorizing the transferee (Browning Arms Company) to withdraw the merchandise covered by the entry in question. Those withdrawals are filed with the Collector of Customs and are then stamped by him “blanket authority". A copy of such a “withdrawal” is enclosed. It would be well, however, to consult your customs broker at St. Louis on this subject, in order the proposed to conform {If any other liquidation, to the practice at that customs matter should occur to me you will hear from me again. Sincerely /3/ JRR: BL Enc. port. yours, John R. Rafter in connection with J OHN R Z RA COUNSELOR AT TELEPHONE: FTER WHITEHALL : LAW 8 Bridge Aree, Dt October ir. Val A. Browning, JM. & M.S. Browning Ogden, Utah. Dear Mr. Browning: 2ith and its dation of the In 1951 Company, reply enclosure, J.M. 3, to & M.S. your letter regarding of the Browning September proposed liqui- Company; IT am enclosing for your information a copy of my letter of today's date to John Val Browning, which I sent by air mail addressed to him care of JM. & M.S. Browning Company, Boite Postale 22, Herstallez-Liege, Belgium. T am also the forms of affidavits John Val Browning The I a enclosing which enclosures shall write best copies are to my of each letter of to self-explanatory. you again Sincerely yours, lative to two or three other the proposed liquidation. With two ACC sompanied points in tomorrow connection regards, re- with 4-5094 pre prene OGDEN, & UTAH September Mr. John 8 Bridge New York R. Rafter Street 4, New York Dear Rafter: Mr. For tax purposes, it J.M. & M.S. Browning therefore, carry on has been Company. the 24, deemed advisable to liquidate the The Browning Arms Company will, importing business in the future. Attached please find a copy of a memo dated September 24 which briefly sets forth some of the procedure adjustments to accomplish the transfer of the importing business to the Browning Arms Company. If you have any additions or suggestions, we shall appreciate having them, More specifically, we would appreciate having you review the form of the affidavits to be certain that they are appropriate to this occasion. Attached please find the original affidavits by Mattlet of FN as follows: On On On Browning Browning Browning Attached On On please Superposed Shotgun (2) Automatic Shotgun (2) Superposed High Grade Shotguns (1) find Schroeder the original affidavits by as follows: Superposed Shotguns Browning Automatic Shotgun We do not find the Schroeder affidavit on the Browning high grade Superposed shotguns, but it will follow essentially the same form as the others. Rather than delay matters to obtain the affidavit from St. Louis, purpose. form, We the would FN we consider Probably the especially affidavit Guerre has always very ungainly. A memo of September that invite which the Schroeder your begins, attached specimens affidavits attention "The will to Fabrique the will need serve no second Nationale the revision in paragraph of s d'Armes de confined its sales....." This paragraph may become suggested paragraph is submitted by the attached 25 if it meets with your approval. I would appreciate having directly to John Val with you two send your copies to suggestions myself. on the affidavits Mr. John R. September -2- Rafter on the outline memo of September suggestions If you have I that in order in duplicate, again send them to myself, Val. to John instructions appropriate them and transmit Kindest JM. & Val A. regards, M.S. Registered Air Mail BROWNING Browning President VAB/co/avwe 24, may COMPANY 24, 1951 please consider September SUGGESTED CHANSE SECOND FPabrique confined Nationale its sales exportation te that country. JM. & and these M.S. of two That buyer firms present time all sales have Arms Company such Browning MR Ti /awe MBB and de Browning United AFFIDAVIT Guerre automatic States has Company FN of been or represent America either the the has always shotguns to same one Arms interests. (November of and are Ogden, being Utah made and for buyer in the Browning since been 1951 PARAGRAPH d'Armes the Browning IN 25, St: to Company, At 1, the 19517) the Louis, Missouri. Subject M. A. From M. Bigelow Browning Val & John Browning A. V. Browning, To (Liege) Browning Reference September Date 19521 24, The following is a preliminary list of the maneuvers deemed necessary in transferring the importing business to the Browning Arms Company. I have attempted to indicate which of the several offices should carry out the maneuvers and will appreciate additions or suggested changes. It is my understanding that in those maneuvers to be accomplished by the Belgian office, John Val will use this list to prepare for the actual procedures in order that they can be put quickly inte effect when he receives a cable to make the agreed changes. 1. It by is my understanding that John Val on the necessary contract of ports Notify New affidavits The new importer, as office through (4 copies) office. — Belgian affidavits Company - Ogden entry Val has been or arrangements. should of informed will be and Rafter. office. - Ogden trade-mark Transfer office. Belgian by - contract FN Transfer be in course. of name the be might It Val the a Browning good idea Arms te prepare these as soon as possible and send them to Rafter for inspection with instructions that they be forwarded to Ogden with Of course, if they need correction, any comments Rafter may have. Rafter will immediately work the problems out with Val and FN Note Val. John affidavit changes according to Transfer of miscellaneous Transfer of General Transfer of FN It is suggested that Bond attached - second the memo. Ogden paragraph of. the office. - Ogden office. Company Browning Arms a shipment leaves to if the insurance Term invoice in suggested prior ~- Belgian to office. Liquidation arrives subsequent to it, the billing should be made to the If a billing should be received by the Browning Arms Company. it will merely to its liquidation, t subsequen Parent Company and mee MAB, VAB, & JVB to request that FN rebill the shipment with Lynn Baxter’s approval. Browning September 24, 1951 This meets Arms. There is some question as to whether FN invoices should be directed to the Browning Arms Company at Ogden or at St. Louis. Advice on this matter will be given in the near future. Company Close out auditors. Parent Transfer pay Hospital insurance Ogden offices. roll Withdraw Parent George Simpkins Confirm Company that also of importer Ogden policy, from State attorney. office | books employees Missouri JM be - Ogden Federal Firearms License now gives it the right to import Management of any miscellaneous income Procedure liquidation - Ogden office. Lynn to Liability Employer's of ~- Ogden office St. with Louis = by Insurance. office held by - Ogden with Browning office. Arms to Parent subsequent to will be determined with Baxter. family royalty determined. on Supers - Ogden office. Exact procedure to JOHN TELEPHONE: R.RAFTER COUNSELOR AT WHITEHALL LAW 2» © v3 a hw? a ais a e U rv) ave ALS. Vj re ae. let we tT \ VY 2 CA lue' t OU. VY ¥ ys S1Lorn CLU LA . © OS RS f4 > See Net “~~? =~ et ~}“| rn ; an : Ls nN L ty © PNAS a AXE >. a ; hm a See 2? ee > 7 2 a ; CAL aX 7 wD CA whee Y ~ * Sas ae Ny aches Sac? *, Sane KS 1 3 J pan Ne 3 2 none ° {> er wn ** add son! tf Mie\ 3 7” on t, iiRAN A CAO V3 Nd i bode A : “a £ >| wr] 7 ee te 7 ‘ATH ¥¥L whe 17 fr CF ~ 4-5094 v 7) = T% t & - % ode and w + aa ee Ci bs. Pe > mieo ¢ z — % a rar anT f.9 vw) Bw LLL ok Ps , se, ~ ~ 7 NAF odes r™ f-— ed AT ie) COUNSELOR LAW + Ue mo, : | 1 1 " Wong VA. wr} , JE Th} Z R_RAFTER ae o | I tH) = JOHN { L + J WHITEHALL 4-5094 STATEMENT PRESENTED BY COMMERCE AND INDUSTRY ASSOCIATION OF NEW YORK, INC. COMMITTEE ON WAYS AND. MEANS HOUSE OF REPRESENTATIVE S WASHINGTON, De. Co CUSTOMS SIMPLIFICATION ACT OF 1951 = He Re 1535 AUGUST The Commerce and known as The Merchants! Catastre 13, 1951 hatapiovies ‘of New York, Inco, formerly Association of New York, has existed since 1897. icon is recognized as the Chamber of Commerce for the New York Natanpe}tien and, Its States. interested approximately includes membership in importing merchandise The Port of of the import trade of the United viduals located within of the countrye This erated ment from abroad. is the point States of entry for ee the Metropolitan Area but a substantial siacy hae also those in other parts and indie | consistently with representatives of our government Association, through handling of goods to obtain the act in the commercial of imported efficient interests relationships The Association to do business part ane and markets. directly are 1000 firms which United in the traders Import countries cordial foreign its importers eign New York of group largest the represents we believe, It of us, thus Import and Customs arriving with those who place their products improving and efficient inducement our economic as from fore as well the prompt , has coop- and individual own merchants a significant with Committee our considers merchandise Customs to customs to friendly relations establish with on our treat— nations those countries. The number of recommendations as Committee to possible of this Association has made changes in the Tariff Act a of 1930 2 a to bring about this members of Congress objective. These © recommendations and to government officials. have been presented We are pleased to find that some of these proposals have been incorporated now under tions consideration have not Sion in this | that been by your considered proposed present bill trative features of the Sideration, filed at some is not Apparently, of merit future sufficient intended date, of The legislation are of to sufficient a general other and other Department. themselves, as Act to the extent and Treasury proposed contains to have the passage of errors and sniggions is randum to bring to attentionof your it the early parts purpose of this Committee. Many of will the Committee satisfy ast comment consider the believe desirable. upon principal to bring about ritation and by United States an of the a basis upon tempt to increase of bill, bat the which on importers which and foreign foreign voods the efficiency and our to as announced by handling have, confine bill expeditious annoyance find sections features The purpose is those the so the teports, many occasions, eetiane might enter customs this service, We Departacnt, reducing been in that modifications we thus alike memoe= to whatwe treasury of exporters of the remarks those the of the bill they shouldbe approved as réccunenied by the Treasury Department. stad been an some reading, con= justify are upon eaeiude in there which, adminis which, essential amendments it will the sections that as to certain for of several however, call inclue of this Association organizations with We find, shiek their recommendations which interested importance that the bill recommenda= justify revision bill. the other It is the understanding Tariff by this Association Congress Homuiktee, measure. the in H.R. 1535, to the ire experienced attempting country. and the This to ate apparent 6 oe e desire to make our tariff laws reasonable and workable, which this Association that the present in that 2, has measure, devoted with its efforts for years, some modifications, SECTION is a significant Our comments will be 10, Section 13, Section 2. REQUIREMENT confined Lk, to the Section following 17, and tion 2 would make amendment uncertainty step in the existing and indefiniteness 206 law but considers DUTY CASES in language which Secthere should be a fur= of the present methods of investigations PR ecsicy Desartaies will i ist have, as a rule, more 3 yearse Dumping investigations are an American industry which that the kutitee time = in some cases begun upon the suggestion than of deny that investigations extended has been adversely affected by the importation merchandise at less the of than its fair value. the Antidumping Act, namely, or to prevent being established. of the the under industry Section Section of the Antidumping Act which would aul t eve importers do not believe purpose sections: OF INJURY IN DUMPING AND COUNTERVAILING The Association does not oppose the changes We sail Wh believe direction. Section ther is an aim toward conditions It believes of often it into the United States of is recognized to prevent which will keep The "findings" over long periods that injury an American such is : to American industry from of dumping in recent years have been few in number, thus indicating that the "complaints" filed by American industry, or initiated by the Administration, have not been justified in most caseSe The difficulty for an importer lies in the fact that during the period of investigation he mast import his merchandise at his own riske & Whether ae or not dumping Will be assessed, is completed. remains From In other that is being words, the an importer as tant Many osutines Abie develops in the initiation is no longer uncertainty dates sold until the dumping of dumping in which investigation is issuedby the that there United States is reasonto believe that at less fair value. means than its of a dumping investigation, in effect, able in merchandise except who they of a merchant are subject to dumping to bring to what his liabilityto the importers and the amount that a suspicion the importations if the investigation merchandise be assessed, an open question the moment Treasury Department, duties duties will government under may be at some are placed in this position not take issue the dies do not dare to importations e This Association does Antidumping Act, but believes in a finding tively beyond of dumping, a reasonable given a reasonable the substance of the that in all fairness there should be a time limitation placed on the investigation, sults with such finding times opportunity or that, if the investigation reshall not be applied retroace Thus,we recommend to continue that an importer in business in which study is being made as to the existence during the or non-existence be period of dump- inge SECTION 10. DRAWBACK ON EXPORT OF IMPORTS NOT ORDERED This Section proposes an amendment to Section 313 of the Tariff Act of 1930, reaches as amended, an importer the merchandise tion, in a condition does this Section and refers not conform proposes to the of merchandise which contraryto what he ordered; that to samples to include, class or specifications. as subject In addi- to draweback, dise which is shipped without the consent of the consignee. is, merchan= The Section weve Waleed the Sia Su whicl Sovenmudivo: sual < be vatereed ts aul custody for benefit of draw-back from 30 days to 90 dayse — oh tion 313, We find no objection to the liberalization but we believe there that of these parts should be a further of Sec- liberalization in the time limitations fixed in Section 313. This subject was before 1,612, introduced in the bill, it understanding, is our 8lst Committeee However, tain parts of the measure your Committee to we were the House of Representatives in bill H.R. 1949. Congress by Mre Lynch on May 10, was taken up consideration not assured by the Treasury had the Department's consider the inclusion for of Department approval, those parts That by your that cere and we now ask in the measure bee fore youtle The present made from imported chandise, law provides that merchandise duty=paid merchandise, must be exported within the imported merchandise exported for draw-back, or from substituted domestic 3 years from the date used or for which domestic merchandise mer= of importation was of sub- stituted. Fab Giersere » the present period of only one year, from the for the statute, in subsection (b), allows the date the dinafarturer receives production or manufacture of designated material, articlee It is the recommendation of this Association the that a completed these periods be extended respectively to 5 years and 3 yearse In a letter addressed to this Association, ary 2h, 1950, by the Hon. Walter A. Lynch, communication received of the Treasury, following by your the Hone Committee under dace of Februe there was attached a copy of a from John Se Graham, the then Acting Secretary in which Mr. Graham makes the statements: "The Department perceives no objection to allowing a period of 3 years instead of 1 year for use of the imported duty-paid — a 6 » merchandise and for the manufacture or production of the exe ported articlese In fact a 3-year periodis now permitted in the case of sugar under the authority of Proclamation Noe 2566 issued by the President on August 7, 192, and Treasury Decision 50703 issued by the Secretary of the Treasury on August 12, 1942. No administrative difficulty has been ex= perienced in that comnection. "The Department also perceives no objection to allowing a period of 5 years after importationof the imported merchandise instead of 3 years in which to export the completed article. "If either the amendment providing a 3-year period for the use .of the imported duty=paid merchandise and for the manufacture or production of the exported articles, or the amendment pro» viding a 5«year period in which to export the completed articles is adopted, it is suggested that suitable language be incorporated in the amendment limiting its application to transactions as to which the previous time limit shall not have expired such prior limitation confusion is to the enactment considered and administrative We recommend thatthese tw SECTION 13. wi as portance .e ‘The difficulties in the determination have known been We believe changes Some avoid be made in the pending measures 02 the proposed which have to importers, upon of the Tariff Act of amendment been experienced which ad valorem the records considered a hazard the of foreign riving at basis United States. are it has been representatives a definite duties and foreign of upon which certain have manuface on the part show appealed imports assessed of of the United States. Administration will governments ime over the years officials, abroad to attempt to enter the markets that of first customs which the difficulties." to amend Section considers of value to the point where manufacturers into to amendedo The Association turers amendment. in order VALUE Section 13 proposes 1930, of the necessary would many cases in in for aid ar- be received a to change ae @ The purpose of the proposed amendment, the determination of value basis of Will be possible to ascertain more promptly duties which is to be paid long a change advocated to bring the it in harmony imposition of and complicated in the with duties under the present under, are removed The basis valuation modern from procedure. cases, far upon imported what from only to the goods. the and to has over the well as the that it the amount of Tariff free the years foundby customs as is This Association has sectionof become it, extent and definitely conditions The value statute, as we understand namely, international commerce. of of valuation which has created most portation for that it concerns market goods that sold within theree of the problems The Treasury of the definition of this conditions country in many rendered realities of an intricate decisions is what is described in the present law as "foreign value". value, of 1930 question officials, the Department has already informed the Committee Act for in the home countryof ex- consumptione The law presently requires that foreign value must be ascertained, or its non-existence established, before ized for the determination of duties. familiar with the conditions in which they do not participate. reluctant to disclose information importer should have no Department that at least ican Treasury sifiedas a friendly country) any other basis under Obviously, of value most which merchandise Manufacturers concerning interest. It is one foreign can be utile importers are un» is sold in a market abroad are naturally a market in which a matter of record government the Amer- in the (properly clas- resented the attempt on the part of our goverment to examine the books and records out details as to sales for home consumtion. of its nationals The United to ferret States Customs * re. Appraiser mst rely for the obtained from foreign or by It is always determination aaietactivens. investigations conducted doubtful that ‘curers and this Reports abroad fact have been information reaches on the part of the investigation had to make repeated transmitted by them to abroad have commentary as and | erroneous, This to what visits customs agents on the difficulties are or exporter necessary to for consideration, judicial decisions originally reached by administrative The use of foreign value requires United one States, another. and market It is reached abroad conditions difficult to see have the the conditions the in- duties. United arrive number been and at or It is, howwhich and the United to realizes based upon market the in the in understanding one courts because officials perform their apparent when the a known is not a reflection on the ability these facts it of certain markets within the scope of the present valuation provision. which manufac- is incomplete the foreign manufacturer been presented foreign and to be earnestness with which even more the informatione States was not satisfactorye are abroad. found initially representative agents agents formation ists between importers, from its agents a proper through Treasury and complete cooperation that in connection with ever, States or received by the Treasury Department Treasury the by United direct upon information in spite of the earnest efforts which are made the willing to provide of this value either accurate hands of customs officers, by importers o ex= States a decision These difficulties of cases which have the frequency with at variance with those officialse an attempt to reach different from those decisions existing in the abroad which are even different how of any basis equality can be from @ obtained in attempting United States in this er under to match present & a "foreign economic value" structures with valuation as they exist in the abroad and value" from countrye It has been suggested that the exclusion of "foreign the valuation provisions of the Tariff Act would result in a loss enue in those cases where "foreign "export would value". show The Association differences of these perience and in discussions ference in amount tion have available statistics provisions would for with any period importers be negligiblee of sales would be less than those found under a "foreign located in mind creased to find in would We must deterring effect on to de-~ Failure for months, that - customs inconveniences incident in many cases years, a foreign value be found or its state the that at present to do more business that and more of of this the ine officers has been noneexistence this basis and of importers The Association valuation a reduction in ates importations with manufacturers abroade elimination in revenue elimination to handle and of customs on the part of customs and officers from the time in ad- Congress and increase expense exist- abroade and delays net result in the States by be encouraged consump- United caused than of home the as the by reasonof the permit dif- as well revenue venture the ex-= provision, of expedition wouldbe an consider general that definitions loss requirement on of certain new define on the basis must which value" the "foreign value" established. that the Congress of "foreign value, due to the greater the imports acca other hand, but In the light found On the time, than valud' and the ap= it is believed values officers will to be higher bill, ministering value not been found in this ing lawe bear does has between "foreign valued! and"export plication itions proposed value" of rev- believes provision expenditures. we we as establishes value" "foreign of elimination The major the basis of valuation what is know as "export value", which is similar in its definexcept ition to "foreign value" Customs, through the United States voices of foreign in- The suppliers are made a part of the entry of merchandise. are subject to examination upon de= customs officers not only tare informae importers States The fore them data as to all dise from same importations other countryo but also have be- importer entered by a particular tion on the merchandise the authorities. customs to authorities. mand by customs information as to the sales of imported available of United The records to readily be will merchandise of merchandise abroad must be cleared from shipments as all Tnasmuch the United Stateso sales it concerns that same of the kind of merchan- | Foreign manufacturers would be less reluctant to divulge ine formation concerning although in most for such information would cases in their possession within would have all necessary The delays, ity to arrive on the basis details confusion, would be absent in the use Valuation customs officers a reasonable time after importation of which to appraise and uncertainty of "export unnecessarye the as existed at a decision, be Thus, of exportation. as of the date is determined goodse transactions States, to the United export their in the value". the imported resulting case from the inabil- of "foreign value", The Association strongly recommends the adoption of Section 13 insofar as it establishes "export value" as the primary basis of appraisemente The Association has language of certain parts in bringing bill. about the several suggestions of Section 13, desired to make as to the and they are offered simplification which to assist is the aim of this & -u- & “ey We recommend as to Subsection following it thereof, should 02(e) "United States Value", changes: 19, line the word be the . | On page lieu (c), 25, strike "profits". out the word In support of \{ "profit" and insert, this proposed Value" in Section — only one profit, when calcue in amendment, noted: (a) The definition of "United States of the Tariff Act of 1930, provides for an allowance for iprofits", ieee, not necessarily lating that kind of value; (bo) The definition of "United States Value" in Section 13 of HeRe 1535 provides for an allowance for " commission" (underlining ours), iee€o, one or more, when calculating that kind of value3 (c) By virtue of the definition of the term "purchasers at wholesale" on pages 22 and 23 of HeRe 1535, the selling price, from which "United States Value" as defined in Section 13 of that bill is calculated, may be a price to retailers and, hence, Will sometimes include two profits, ieee, an importer's profit and a wholesaler's profite mer- | On page 20, lines 1, 2 and 3, strike out the words "imported e undergoing appraise= chandise of the same class or kind as the merchandis ment" States dise (a) of phrase merchandise". or similar it should be noteds amendment, suggested of this -~ support "such the words in lieu thereof, and insert, In relation to the imported merchandise whose "United Value" the "such signifies is being same calculated, class or kind" the phrase is much or similar merchandise". that both the merchandise less The which “imported merchan- specific than former phrase is being the merely appraised the merchandise which may be considered in connection with allowance for profit and general expenses must be imported and the and that they must have common characteristics which distinguish them from other species or varieties of merchandise. It does not signify that the merchandise which may be so considered must resemble the example, any Size, weight, merchandise from England. merchandise", merchandise quality, automobile of the same On the which is in respect of value. class or kind as a Rolls Royce imported other which appraised or evenin respect from any foreign country hand 9 the phrase "such is "produced in the same as defined on pages fies merchandise being etc.e, or of For is imported similar 23 and 2); of H.R. 1535, country signi- — as the ¥ = 4 ; EA © a "of merchandise undergoing appraisement" and which is, at least, like materials" and "used for the same purpose" and "of approxi-e mately equal commercial value"; The selling price, from which the (b) of imported merchandise is calculated under "United States value" the terms of Section 13 of H.Re 1535, must be a price of "such or similar merchandise". it is umnecessary Hence, like nor to consider and unreasonable to similar merchandise the is neither (c) The phrase “imported merchandise which merchandise undergoing appraisement but which is merely of the same class or kind, when determining the allowance for profit and general expenses involved in such an appraisement; of the same class or kind" is too vague and indefinite a delineation of merchandise which may be so considered in such an appraisement and will undoubtedly be the subject of various result in much needless litigatione On page lent" and "of" 20, line 22, we recommend be inserted On page "at the time and will that between of exportation from the word 2b, line 20, interpretations "which" the words "equiva- to the United States". to the end of the Sub- section, page 21, line 4, there be inserted in place of the present language the following: ‘which is comparable with and most resembles the merchandise undergoing appraisement in construction and use, With ape propriate weight, adjustments material, other differenceso" in value construction, — for differences quality, in texture, close relationship On page to each other and to be compared with- The intent of this suggestion is to bring the articles in as size, use, as possibleo 21, lines 1), 15, 16, 17, 18, 19 and 20, strike out the words | : "(2) an addition for general the usual expenses and profit equal to that which producers in the country of production whose products are exported to the United States usually add in sales, in and wholesale quantities trade, of merchandise in lieu and in the of the the merchandise undergoing same appraisement 3" insert, the words: thereof, general ordinary class course or kind as of ' © "(2) go @ an addition for general expenses and profit equal, in percentage, to that which is usually added in sales in the the country of production, in the usual wholesale quanti-= ties and in the ordinary course of trade, of such or similar merchandise, or, if there are no such sales of such or similar merchandise, of merchandise of the same class or kind which most resembles the merchandise undergoing ap= praisement 3" On page 22, line 10, strike out the word "all". On page 22, line 12, before the word "purchaser", insert the words "seller or", ee | On page 22, line 13, after the word "law", insert the words for (B) reasonably limit the number or classes of purchasers" Qn page 22, lines 13 and 15, strike out "(B)" and "(CG)" and insert, "(C)" and *(D)", respectively in lieu thereof, the word after 2h, 23, line On page out strike "appraisement", the comma and insert, in lieu thereof, the word "and". On page 2h, line 1, after the word "person", insert the words "and is and, after the word "materials", insert the words "and cone struction" » in this gested the mits, for your section Association SECTION 1h. tion of as this basis of selling affects the Association visability advisable, them VALUE NOT TO BE BASED “American -— its reservation and as to your such changes changes Committee, if ON AMERICAN SELLING in are sug- time per-~ PRICE noted that Section 1) proposes price" as the a very small not wish at this exclusion that other of theme The Association has % & submit consideration Le cs may be will ‘ % | The Association makes the language — from basis segment the of appraisement. of the importing time to take law. the eliminaInasmuch interests, a position on the ade @ -1h- eo SECTION 17. AMENDMENTOF ENTRIES AND DUTIES ON UNDERVALUATION Several years that Section avoid the mis-statements termed of “penalty duties the recommendation eliminated or modified importers through upon to innocent Section 17 of the present bill undertakes the automatic imposition of additional duties, to often times aptly duties". Association to minimize the trespassed on the declaration of what he toms additional of valuee The desire advanced 189 of the Tariff Act of 1930 be imposition eliminate ago this Association purposese believes work incident substantive Under that right the Treasury Department, in its to the amendment of entries, has of an importer considers to be proper the practice, present to make an affirmative of his goods for well described value which has been cus= by the Treasury Department in its report to your Committee, an importer corrects sure his entered value original entryo The procedure which would be established by the sroputed nea would be for the what he considers by filing customs an appraiser to be the proper to amend valuee between value after the facts have been developed less operation papers for and taking Collector the officers entered value to of most amendments and importers as to the and analyzed. proper It is a use= an importer to amend an entry by preparing additional further in the filing with of Customs, steps when the same ment or importer, value in the liquidation sary by reason these would be eliminated in the would need would result, of duties. amended The of those papers without can be accomplished by the of the automatic to be to his The basis is an agreement all customs amendment injury to the acceptance the govern- of the appraised existing procedure is made neces-= imposition of additional duties proposed bill, in which entries However, there be reduced to the cases a minimume and since = is a minimmof ~ as < entries as to which ableto an importere An importer of to be what he considers the & the right of amendment may desire value to make of his shouldbe avail- an affirmative merchandise which record he may not have been in a position to do at the time of arrival of the goods from abroad. A taxpayer is allowed a liberal time in which to amend his income tax return and such is true as to most, reports involved. The time and where clear taxes his merchandise his merchandise leaves are is with for entry purposes. in which exceedingly short promptly, on the market an importer if not all, a very limited Consequently, and requirements for an importer must the enter necessity of putting and avoiding the expense of storage, time to assemble his in which facts if he should receive information or documents, subsequent to entry, which are of a character which should form part record of the of placing those of his facts the documents should have into record by entry. before the merchandise or under the observation of the Appraiser. change in this right in this the the if he desires, The retention government of the benefits of value the word on the recommend "requested" to of this the We make meet his opportunity a formal amendment may be made at any time merchandise comes no recommendation that the valuation of any importer have determination amendment will of the proposed amendment because the vast. Treasury Department be to sub= part right the of of cases wouldbe handled We further stitute covering time provision but we strongly urge amend, a statement the law an amendment invoice manner. majority by to the present importer of his his Under or entry, as suggested of the that page in place by the not deprive Appraiser. 29, line of the word 11, changed "required". oe following iteness The Association two features recommends which in the handling will aid of questions the inclusion in Section in establishing 17 of the certainty and defin- of values (a) That the Appraiser indicate on all his returns what basis of appraisement was value, United States value, customs officers adopted by him; of value to wit, export comparative value or constructed valuee Thus, an importer will be informed as to the attitude of the Customs Appraiser and need not make inquiry to find out what valuation was used. This would impose no hardship on the inquiries in this and save time through on the part the avoidance of of importers or their (bo) A limitation of time in which an Appraiser should act representatives. in the should direction determination of valuee The Appraiser has Simplification of the valuation provisions, | often failed to make his report of value as long as 6 years after importa~ tion. as recome mended in Section 02 herein, would enable the Appraiser to act within a reasonable both the government and quired to make his time. It would be to the interests of the importer if the Appraiser were re- report within 120 days from the date entry, and in the absence of a report by that time be provided that the entered value will become the of it should appraised valucée We believe the government at earliest the disposition affect payment to shippers been obligations to moment, especially when those of merchandise for which he made has Obe The eulverka tity which attaches to the prese means that an importer does not know the value upon which assessed, in some cases, for after the importation 20. CONVERSION This conversion purposes. problem made possible of his years | has completed. SECTION of should know abroad. ent procedure are an importer the ligations duties that The OF CURRENCY Section proposes of foreign question to change rate existing currencies into of conversion currency to the Treasury Department, of a proper the United inasmuch of conversion which States has law as to the method dollars presented for duty a serious as a determination must be is in harmony with the provisions © = of Section 522 of the Tariff Acte course, arisen worlde The rates because changes of exchange = The obstacles in this field have, of of the disturbed in velas of are products currency conditions currencies, currency of disturbed world throughout controls conditions and the multiple which were not in the contemplation of the lawmakers when they enacted Section 522 of the present Tariff Act of 1930. It may well be that Section 522 is not wholly adequate question more to meet exists assurance such the of claritye adequacy are time not or is of the opinion sufficiently toward currency for the a change determination by the to be assessed on imported at moment is too indefinite study is made fore ascertainment a thorough participation ticipation we in an recommend no in the action be existing other the same amendment provides any world to conditions justify law. any The is of great fixation hand, is to deal with those conversion of importance, exceeded of the of the currency the goods. We believe that and uncertain to justify any by the Congress as to the extent and the effects structure of the United taken this at time States. toward the rate situation action of of bee eS sich par- amendment of Sece - reiterates sections duty Accordingly, tion 522 of the present law. The Association at and agreement as they action of value international on the tariff that stabilized of duties only the on the or not the proposed currency present but, as to whether The Association affect conditions, of the that the purpose law which of this memorandum the present bill proposes = 18 = to amend. The Association does not recognize that changes which should be made in the provisions ever, extent that legislation tend a simplification of customs ported goods without loss to the we in full are to the to support of the of changes revenue such in law changes. these are the of the Tariff Act. recommended in the procedures government, we only Howe proposed affecting repeat im- that August Mr. John 8 Bridge New York R. Rafter Street 4, New York Dear Mr. Rafter: Your letter of of the progress August of H. 13 R. received, 1535. and we will be 15, interested I am enclosing copy of an excerpt from the Journal curious to know whether the decisions of the U. S. 1951 to learn of Commerce and am courts mentioned might have applied in our case where the Belgian tax of transmission is included in the foreign value upon which we pay duty. This would amount from $.30 to 4.50 per Automatic shotgun and about $.75 per Superposed gun of difference in duty. Sincerely VAB/co/dh Enc. Val A. yours, Browning OURNAL OF COMMERCE A In the first place ee Kose erent Johnson where the taxes which do not apply on exported merchan~- dise. However, U. S. courts, he pointed out, ruled that in their appraisers do appraisals. not value there cases tax foreign said, have includes to inter- include have the JOHN TELEPHONE! R_.RAFTER COUNSELOR AT WHITEHALL LAW WAY th 5 eir ial = ry VA. e > ATA v CA ¥¥ ‘@) le 4 VY + TEAC ¥ nail &> YL ~~ @ cy % Be WE : I -OK a \ © 7 Seco! A) LNAty} LV {}Y? ~~ a * * a| Wit LePp C A i . f DU > 7 ~ +Fao & dn es. 4 & , a ~ a } 7? Y 4 mS? i ZR f e} 14 j a cy Ose 6. i rae Pa Ea EA O e do =~ t aiee! bta a eq “~ Q Ld 4-5094 August Mr. John 8 Bridge New York R. Rafter Street 4, N.Y. Dear Mr. Rafter: Thank you for your proposed amendments With regards, letters H. R. 1535, which you We will be interested ments in this matter. best VAB/co/dh of August of the definition 1 and expect to submit to hear from you 3 together 6, 1951 with the value of United States Yours sincerely, to in in two the Ways and Means Committee. regard to any later develop- Val A. Browning JOHN TELEPHONE: R.RAFTER COUNSELOR AT LAW { P * Cc Op 4 De Yr > wo 7 eas iG rs WHITEHALL 4-5094 s 2 PROPOSE <Doo Wrywi or my First page insert, Second in 19, lieu page merchandise chandise undergoing it OFYW VALUE" IN line 25, strike thereof, 20, imported We £ ae, ATTRATOR AMENDMENTS BES THR DEPTNTITT THE INITION SOT TON 13 of H.R. the word \@ OF 1535. the out word "profit" "profits". Amendment: On of, % TT Amendment: On and cs ak the lines l, of same the ame words “such or similar In support of the be noted; (a) The an should for necessa arily kind of nd or of "United allowance for "opotita’, only one in the mer- lieu ae there-~ - definition value; as merchandise". of of the Kind inse: first in Section 02(e) vides ass these Tariff profit, Act when proposed States amendments, value" of 1930, lies, pro- calculating Tat that (ob) The definition of “United States value" in Section 13 of H.R. 1535 provides for an allowance for "any commission" (underlining ours), i.e., one or more, (c) By "purchasers when calculating virtue of the at wholesale” that kind of value; definition of the term on pages 22 and 23 of H.R. 1535, the selling price, from which "United. States value" as de fined in Section 13 of that bill is ealeulated, may be a price to retailers and, hence, will sometimes include two profits, Lls@e,y an importer's profit and a wholesalertg profit. it support be noted: (a) In relation kind” is much should of ~ in whose "United States the phrase "imported or the less to second the of the imported sugcested merchandise amendments, value” is being calculated, merchandise of the same class specific than the phrase « A "such merely or similar merchandise”. signifies that both the The former phrase merchandise which is being appraised and the merchandise which may be ee in connection with the allowance for profit and general expenses must be imported and that they must have comuon characteristics woich distinguish them — other species or varieties of merchandis It does not Signify that the merchandise which nay be go considered must resemble the merchandise which is being appraised in respect of sige, weight, ude ahd etes., or even in respect of value. For example, any automobile imhoc. any foreign country is merchandise of class or kind as a Rolls Royee imported eland. On the other hand, the ar merchandise", as pe Sean on 2h. of HR. duced 1535, signifies merchandise in the same country (>) The selling as the phrase "such pages 23 and which is merchandise going appraisement" and which is, at least, "of materials" and "used for the same purpose” and approximately equal commercial value;" States value” of price, imported from which merchandise is the "pro-= under- like "of "United calculated under the terms of Section 13 of H.R. 1535, must be hai of "such or similar merchandise". Hence, it s nndecss eee and unreasonable to consider merchan-~ ies which is neither like nor similar to the merhandise undergoing appraisement but which is merely of the same class or kind, when se tase nite the allow-~ nee for profit and seneral expenses involved in such an appraisement}; same coy class delineation in. such in much 2 subject an of pi ar ase She k « . ' ‘imported merchandise of the n 2 77 is too vague and indefinite a m erchandise which may be so considered aisement and will undoubtedly be the us interpretations and will result # 3 litigation. JOHN TELEPHONE: R._.RAFTER COUNSELOR AT LAW & b AU oa Brown * d Beas Ua Nc OF I ~ e 52 ody s &) RBrown SUS ox a e aa fe 5& oa i OF a ~~ “UCUS Laws ~ f ~ a LC U i. T WHITEHALL 4-5094 JOHN R.RAFTER COUNSELOR AT TELEPHONE! Bridge Street Naw JULY Val A. Browning & M.S. Browning den, Utah. ing ir. my 2054 Company, This l. as is to: a reply to your letter of June The prospect of enactment this year "Customs Simplification Act of 1951"; 2. The kind of dutiable your importations under the 3. value. The method After this 27, locality of consulting which are H.R. 1535 this year. Treasury Department, value terms most the two Though which is that in calendar will request- H.R.1535- of with to dutiable associations touch in legislation I am convinced that, at this time, about the prospect of enactment of it is generally sponsoring that persuade the Committee on Ways and Means to there appears to be considerable doubt that Senate's of kind business actively llth, which would apply of that bill; calculating relating to customs matters, no one has any definite idea the rks ih Browning: advice the 4-5094 LAW 8 ar WHITEHALL permit expected that the bill, will soon hold eee es the condition consideration by that on of 1%, body and passage this year of such a relatively unimportant bill as H.R. 1535. At least, no one with whom tT have discussed the matter gives it more than an even chance of enactment this years [In any event, several months would probably be required for such legislation and you should have ample time to make whatever new arrangements, if any, might seem advisable with respect to your importations, in the light of that bill's progress through Congress. import from described appraised that bill If and when Belgium and H.R. sell in your letter amending Section at “United of States 1535 in June becomes the of law, the States, guns lth, would, in my ‘the Tariff Act value", 02 United as defined in which you opinion, be in the Section of 1930. manner 13 of Me. Val A. Browning That kind of at the time dutiable value, you will note, of exportation of your suns to » possibly, within United States), at ninety days which "such after their importation or similar merchandise States for domestic consumption", less the in the definition of that kind of value. hat the be the phrase "freely hasers at wholesale", price at which or the resold”. wholesale", as You will in primarily, otherwise purchasers who than at retail, that means, or even with territory also defined sold note that buy but offered that the term of allowances preYou will also for restrictions in which the section would be the United that for industrial that, if there sale", as de- which "limit merchandise may "purchasers bill, use are at means, or no for resale such pur- chasers, it then means "all other purchasers for resale", i.e., for resale at retail. Finally, you will note that the term "such or similar merchandise", as defined in that section of same bill, country among as the other merchandise things, merchandise which is being "foreign It will thus be seen value", as defined in that, if your suns our present tariff "United States defined, restrictions which would value", as now a) prevent now produced them from are in appraised. being not law, i had no the appraised repugnant the two at to "United States value", as defined in H.R. 1535, but, on the contrary, are expressly permitted by the terms of that definition. I refer to the requirement that the guns be resold at prices fixed by you and the limitation of your sales to retail dealers only, to the exclusion of all jobbers. It is accordingly are sufficient my opinion that the sale of to exhaust your supply, the selection, as the question should your guns in this country to approximately 3000 retail dealers, whose credit rating and trade position are most satisfactory to you and whose requirements satisfy H.R. the 1535. definition Stated of "United States differently, value", as would fully found in described in your letter, of as many customers as you are able to supply is not a restriction on the sale of your suns which would take them out of a "freely offered" category but is simply a reasonable business practice. Tt would undoubtedly be so regarded by the appraiser, if, Turning value", as ducted from prescribed as defined seems now in allowances the price unlikely, to H.R. the method 1535, involved at which in it the of determining shouldbe such a arise. "United States observed calculation Browning ever Arms that must Company be the sells de- Mr. Val your guns the A. United Browning Browning St. Louis, Company sells in States, and the from not be noted, and Ze neral expenses made by sellers Browning Arms eee are are value" of Under those on or circumstances, might of the J.M. & guns kind permit in M.S. St. Louis, appraisement for the "United States offered for at use, in sale from profit for than other States "United this the country It guns. rather value" than for the im- country. of price selling the if Company, Browning imported permit to enough imported from any as your imported calculated be as addition usual is freely not is which the which merchandise merchandise ported to worded so evidently sale,or and Company any such sellers, of the same class there which is appraiser the by broad is will ation M.S. & mine). (underlining it ag Company. described is J.M. the in or same class the appraiseundergoing of imported merchandise kind as the merchandise ment;" Arms Browning guns such and general expenses in such market on for profit by sellers "the addition usually made which at price deducted be to for market the to guns the item first The principal the in this country of similar merchandise which is freely offered for sale in the principal market of the United States, in which case the usual addition for profit and general expenses of undergoing of the merchandise the importer in the calculation. necessarily be involved there would be no however, of your guns, other than sellers, would appraisement, In the appraisement The and real question, therefore, expenses", is which whether the "the appraiser such addition would de- from the Browning Arms Company S selling price, is. the ition made by that company only or is the whole amount ined in that price for the profits and general expenses of pany. C0 O 9 Qu a te general any of expenses general OO SOR¢t¢S aA a aa, ct PS o Q 05 ay. © wn profit and profit the occasion to consider other seller. the J.M. & M.S. Browning Company and the Browning Arms mo wets The singular form of the words “addition” and "profit" at the profit and general expenses of the Browning ee ails may be deducted. On the other hand, the pee purpose of Section 13 of H.R. 1535 to reach the same value, (2s dutiable chandise any of indicates enter is the at the into if "United other that the calculated, possible, States kinds all basic domestic should appraiser might of think an value", dutiable selling be by profits price deducted. appraisement of value in as if and from differently. I it were defined general which hold imported appraised expenses "United the that latter mer- at section, which States view, value" but Mr. "the tion Val A. Browning allowance for Because of this uncertainty about = the definiin expenses" addition for profit and general calculated have I 1535, of "United States value" in H.R. for (1) with an allowance viz. that kind of value in two ways, Browning M.S. & J.M. the of both expenses and general the profits (2) with an allowand Company, Company and the Browning Arms the Browning Arms of expenses and general for the profit ance Ld Company the make To only. latter your by value", & the J.M. allowance on be entry first this newly at and and profits Company of reconsideration should assume defined “United States delivery" all means, of both general. expenses Company. Arms the Browning for transportation expenses and other usual to the place of shipment insurance the place by should, you allowance the of costs usual "the but correct; is the deducting Browning M.S. On safe that you side, the and from of of the guns "ylace of delivery" that the IT have concluded terminal are shipped to you from Belgium is the railroad which the and is not the place at which they cross at St. Louis (or Canadian border States) en route to deducted accordingly such costs from Antwerp that the "place also note Please other port of arrival in the United In my calculations I have Louis. any St. St. to Louis. shipment” of of such guns may be the factory in Liege, rather than the.port of for these costs would be case the allowance inwhich Antwerp, charges freight and inland by the amount of trucking increased from the factory to Antwerp. Such an increase would depend on your ability, if you so desired, to purchase the guns delivered to you at the factory, rather than f.o.b. Antwerp, at a price which would be less than the f.o.b. Antwerp price to the extent of such trucking and inland freight charges. It is, therefore, suggested that you an affirmative or negative answer the following question thereon: "Tf the invoice value factory Even if that may still be question possible transportation and inland of price the informme whether FN makes on your consular invoices to freight or value, the point is merchandise included in the at is the as at is to now answered in the obtain an allowance insurance from the price same of delivery?" factory the or the Lt affirmative, for the costs of in Liege to you ascerSt. Louis; and I recommend that, at you ir convenience, ht charges from Lieg tain what the trucking and inland freig! to Antwerp usually amount to per gun. standard As requested by you, automatic shotgun and Antwerp to with data lith to me of June After calculations, occur and other are based on the CPR prices of June me to accompanying your letter from and insurance of transportation They plain rib. in the schedules and on the costs St. to you. With as Louis, you have shall best supplied They 26th. I my calculations cover your plain your standard superposed shotgun be glad M. an to Srowning's Bigelow to this letter. opportunity to examine attached are had by answer any questions these which regards, Sincerely yours, igs A. afl 6 letter may yur2 With allowance DTATN PLAIN AMANHDARTN STANDARD the iLtLon for ATTTOWVATTC AUTOMATIC general Company expenses of both J.M. and Browning Arms Company; Browning Arms Company 2ddition for J.M. Arms fh, Transportation ee b Antwerp to mS Sige tax... 5 ¥ hy & SCi116 United Gucy St. 3. profit: & M.S. Company and . net selling d . from : : > befe T2686 3.00 weak value Ad | (§ 7.31) s States ates general 7 and price (# insurance SHOTGUN profits Browning Louis s SOOTATITS mee ($54.19 valorem dutyef divided by (15%) 1.15) equals equals valorem Total duty With allowance for general expenses of Browning Less of Arms Company addition Browning for Arms net selling profit and Company price general expense Transportation and insurance from Antwerp to St. Louis EG ESO CER 6 6s 6 ee e 8s value plus ad valorem duty value (#64.50 divided by 1.20) valorem duty es Ad (total duty) (20%) equals equals ct (ENA ne —— fr : O @ moby Cm ks . allowance aes pany for the addition Company ‘ transportation net selling profits Browning an pri : profits and gener M8. mee Co Company ($39.17) and : Antwerp to St. Lo excise tax... °. Ad for expenses of both J.M. & M.S. and Browning Arms Company: tates value plus States value ($105.60 valorem duty ad valorem ¢ c a duty by @ lage 11,.83 (20%) 1.20) With allowance for the addition for profit an general expenses of Browning Arms Company only: TS a? * Browning Arms ition for profit and general of Browning Arms Company Ad valorem rance from ad valorem duty value ($133.08 divided by duty (total duty equals equals > 188.80 J. Mc. & M. S. BROWNING OGDEN, CO. UTAH June Mr. John 8 Bridge New York R. Rafter Street Dear Mr. Rafters 4, New have your which later not been accustomed computation. you may date we think I to having can, the however, KAT Ocean freight Inland It is my from The figures above understanding Insurance boundary confirm of exact figures mention necessary approximate to St. on the figures Antwerp United from Antwerp to a the basis. need are as follows: figures needed. continental interpretation of States gun you the United Louis Louis to the price f.0.b. Antwerp. Antwerp. We are able and insurance paid by St. per States . At (Detroit) continental (Detroit) the exact For the purpose of showing us an example of the duty computation consideration, I would suggest the following figures: Ocean Freight freight from heh? Montreal to Detroit in to figures Montreal to are the of my to Montreal Antwerp that from Antwerp from Insurance boundary might from freight Freight You of June 19 and suggests and insurance mentioned use to demonstrate the method of computation. will be able to substitute the exact figures. The price FN charges us for the guns is a pay the insurance between the factory and give the following figures on the freight ourselves; TR 1951 York Mr. Val Browning has handed me your letter that I give you the information on freight your letter. We 26, » LO a They to Insurance from Total insurance Detroit per gun Please let me know if give to complete your Antwerp & to freight there is files. With kindest Bigelow Val Mail A. Browning S$ Antwerp further M. ec: Air from any Vice MBB/co/awe Detroit : information regards, Browning President to «13 e1.40 which we | can J Bon JASN. Hi if 49 £ . ¢ AT LAW <* ‘; # WHITEHALL TELEPHONE: FTER RR i RA OHN Ry ‘ ae : WARS ge6! y # af id Pe iy June Mr. J~M. Val Ogden, Dear A. & M.S. Browning, Browning Utah. Mr. 1951 the receipt Company, Browning: This will letterof June would 19, like llth Before to know acknowledge and its making the enclosure. the requested approximate cost of your calculations, to you per I gun of transportation and insurance from Belgium to the (not to St. Louis) in the United States port of arrival for the plain standard automatic and the plain ribbed it should superposed guns, respectively. If the price which FN charges you for the suns is a price f.o.b. Antwerp,th item of cost which I need for my calculations should include only ocean freight and marine insurance from Antwerp include to not the United only also any inland to the Belgian An ocean States. Otherwise, freight and transportation seaport. examination marine and insurance insurance of the schedules from me again from but Liege accompanying your letter leads me to believe that the missing item of cost is included either in the "factory" price or in the "JM $ margin" there stated and probably in the latter. have You received will the hear above time I shall endeavor fully as possible. With kind to requested answer your several after [I at which (af ~ questions regards, Sincerely 7 JRR:BL promptly information, yours, KO as 4-5094 Te xe +4 wUNG@ 2 te T a te fe. John 2 Yee’ eas & Bridge £ ; a MEW | Piuwmw Dear af hs sat KR. tRafter. <x ’ Street pty tty Pa} TORS "Te then wn & ef > %E yr ite eo 4 Safterxrs Me. According 2: 30} i9Si ee) to recent Commerce, 4, + 14, Secretary $ the Customs e 2 infermation of the obtained Treasury Simplification Snyder Act from this the columns year. You is exerting of f the Journal of pres sure upon Congress willLl recall that during will fall under, figures what my last visit to Nev t possible effects of this Act on our importetions of shotguns, and certain ter ve conclusions were reached, You may have information as to the possibili but in any event, we think it timely to request you to write us your Opinion . * as to what end further, provisions to and one of our duty would be. take of the Act a concrete Superposed models our importation example covering and demonstrate of one shotguns of our by actual Automatic models our it may be well to refresh your memory on one or two points concerning our sales methods for the purpose of determining under what method of valuation our duty would be assessed. Keviewing briefly then, the J. M. & M. 5S. Browning Company purchases shotguns from F. N. under an agreement whereby J. M. & M. S. Browning Company has the exclusive right to purchase guns from F. N. for resale in the United States of America. This company is the importer and pays the duty as assessed at the present time on the basis of the foreign value. company then sells the guns to the Browning Arms Company, which saies agency, The Browning otates, and on the amount been the policy Arms It has Company who meet certain to come. I mention standards. then of this of the resells We speak sale the the guns Browning of them excise tax The importing is the exclusive of 11% to sell is to dealers throughout es qualified dealers. Arms Company based. the United to dealers There are about 3,000 of them with whom we actively carry on business at the present time, and although we will sell to any dealer who meets the standards of credit and who does a reasonable volume of business with us, it is not general.y our practice to sell to just any one without investigation. Especially the last severai years the demand for our guns has been so great that we have favored the type of dealer who we think will do us the most good throughout the years these things so that there can be no confusion as to the possible interpretation of the words “freely offered". The guns are not freely offered to jobbers. If there is the slightest shadowof doubt that the fact that we cannot sell to every Tom, Dick and Harry, who sets himself up as a dealer without investigation, would preclude us from falling under the U, &. Act, Arms value provisions of the The Browning possible. we would, of course, want to know it as soon as Company is actuaily @ national jobber or wholesaler practice the usual follows and of carefully for examples the Pre-regulatory (January) and Automatics, and Superposed Guns. lain Rib Superposed Guns. on prices CPR the calculations your dealers, selecting are Schedules of Comparisons of Standard Automatics, Lightweight reto 1991 14, June | Rafter R. John Mr. With this information will you kindly write us (1) your present opinion as to the possible enactment of the Act this year, (2) the method of calculating duty ~ ¥ 7 ee 3 f & eae > oe ne 4 +3 £ wee i a? ont btn 2 gin Kon he a rey an actual (5S) and to“ our m business, apply would whichme %you® think the Act underC calculation as to how we would be affected customswise. > * * With best % . i ae ae ss personal x a = 2 £ regards, 4 P se i sil aie é ty ‘ de 2 e ¥ ia ee ¢ is vei * sincerely yours, M. S. & M. ar ¥ BA VAB/co/dh f ATS ys Enc ry mS f , £ e ai I ar BROWNING By ty : a « — erownz President bs of z ‘ AC } ; COMPANY ‘. + JOHN ’ R._. RAFTER COUNSELOR AT TELEPHONE: WHITEHALL LAW 8 Bridge Hive, Wa May Mr. JeM. Val Ogden, Dear A. & M.S. Browning, Browning Utah. Mr. 24, York 1951 Company, Browning: I am enclosing for your information two copies of my letter of today's date to M. Bigelow Browning, regarding certain affidavits, a consular invoice of shotguns, and a memorandum relating to rifles, which accompanied his letter to me of May 21st. Browning's As indicated letter, all in my reply documents to M. referred Bigelow to appear to be in good order and there should be no problem of any consequence in connection with the appraisement of the shotguns or rifles in question. With best regards, Ge Rp Sincerely JAR: BL Enc. Air Mail yours, 4-5094 F # 2Benny LS om ra ~~ pet iusay Spppestt ¥ ae ul é VEGen, =q My ee & 44, &. are c32 24 Es i ae aad care! a, ai e? a rs 3 wees # f ADu set ae & rex s% HES ee #4 <4 OFL Pos it os he © ali et 3 io tras e Bite vith reapecs he Bpove #MGnG Lone: aft ry 3 age ta Pe 2 - i *% + RP * be tx, 3 ILE d & ae enclosures ie sie # ily set i Ew —73 aCcor 4]Si. pa ey L aay p 3 ta ai 1 my : ® Ds 4 ie a. & ei SY 7787 * ex b as "3 ee ~ aks, tht Bm & # Bars. : EErs 23 tefucg as85 fe 195 pie %, i” £tm Fu 2 a in 7 4 ish one % ak ters 268 eae i ix ey reape this eennection, ks . 2 ia a oP res he ee *. 2 Mow ere eS£4 ise are $n c¥o 1 L +55 f one i yar a 3 superposed & ae kore #8 ES ba specif 2 es c és BAOae eS > aes “ry 2 Last iG & <a tude > : S 7 rs a 7% = Sul % gi ead Sy = Spit 8 “yes hg # &§ &iS & BUG no - ay ey 23 ot3, nat the 3 % > GK fs z & < were fe : a Beé x ae 3 ~ # o% at F << og - x y wees 2 , ey ae ae Pat i oeEe!ks Re Tat bbyny i - eh ee [7 be ees i => LF it S ae er es Be iC pp ile: Bs ee ed fa “i “Py CaF" cam. i elLeit es, ‘geod “ fo e, 84 te be: J CE SAF ce ta ee bet ew Sze en £3 ae r 7S €3Z 2% p= £6 x %, Mr. M, de . Blegelow 2S ae 3 Jee Ogden, ‘Ee % & rae cia as MLSs ey Ee 2, 1951 May 2lst, aoe ming ER Brownine Utah. DearSo ae ¥r, = Set * May ek * Vompany,ca "Her e Hanae SPowning gee of letter your have { likewise 1950, 15, of December you to memorandum the several referred to. enclosing to, as well as the 1951, and the copy affidavits therein referred eonsular invoice of May 12, two copies of the of Mr, Goddard's After careful examination of all enclosures accompany~ and ing your letter, I am ef the opinion that the affidavits consular invoice are in good order and that you should experience no difficulty with respect to the appraisement of the shotguns covered by the above-mentioned consular involee or the rifles to understand that 1950. matters with one now Belgium the to respect were to with shotguns rifles gold and you on November inlaid offered" affidavit regarding the rifles that the prices at whicn they are diseount of other hand, Belgian franes 10% the home were for dealera in question to all rifles consumption home for and 1450, 1260 the to respect signature, mine) (underlining ali. smell appraiser, two the with other the [ memorandum, Goddard's shipped PH'a Mere apecifically, and states May 15, 1951, dated “are latter In thia conneetion, however, there are which, conceivably, may be questioned by superposed is the Mr. Srom refers. letter your whieh respectively, in a lesa Qn the consumption. apparently exported to if, therefore, the appraiser raises this country last November. et y to oD-a maye be openecessar 1% ce of ae time, ue of aedifferen ex. question this ane. ge eee a ipa ie aide Haas — “rt a eee a ae iS + tain the = ;. from rif + 3 : 4 #N exportation sicnature Oo a to So are oa "Gd f sy Bd z 3 £% ks a sae supplementary Hom thi ainn sy ks en aa aan # affidavit ~ Ban “gta hh me age 1%, Py hw 4 oF “pers ~ : prices cold iniaid = — ee Su : the indicating = ¢ oy, ete, ee te, ES of sOuntry. as far ssrA Eu. e% the concerned, shotguns superposed I note with according that, to the above-men- for sale consular involoe, they are apparently not offered tioned as owever, that condition fer home consumption in Belreium., in enly two such above-mentioned suns are consular included invoice, in the I — shipment asswune that covered the by the appraiser iselow will inlay merely to in stated the their than at require price you (11) "Unit nat to rg of column she amount tpiyial to those sold at Browning of pice add Without cums, the gonsul ar value" or the | Lo invoice gola inlay, other In 4 e words, to be. too appears of duty involve @ in this matte: warrant a finding that such guns ere not similar to in Boleium and an appraisenent consumption for home "forcicn value of “coat production” rather f think in question, Referrine further to the rifles r's appraise the that Pris affidevit on that sub ject fully answers memoranntioned above-me eas esbodied in Mr, Goddard's gueations, dum, exeept poasibly for the exportation of those similar in that rifles for afficavit. Gepnee of home this the difference in point rifles from Zelgium anc consumption letter are in Belciun, being mailed of time between the offers of as to referred to Val A. Er. for ir. St. Louis, Browning at Ogden and to your company your letter, mpanying acco: es enclosur and all att tention, Goddardta are um, memorand ntioned above-me s except the eopy of Mr. Goddard' mail. air ed register by likewise being sent to St. Louis sea% TS a 5%, dl iteeh ota SS ean a8 Ed Air bgt ot Mail at regards, Sincerely yours, (signed) JOHN a From JOURNAL EXPORT BRUSSELS, OF & COMMERCE, September RULED (Cable to Journal Sept. 13.--The 1950 LUXEMBOURG BELGIUM, BY LICENSES 14, of Commerce) Belgian Ministry of Economic Economic that the Belgo-Luxembourg announced Affairs of export system a introduce to had decided Commission to enable today, starting products, for certain lieenses guarantee to s Government and Luxembourg the Belgian to the domestic goods produced of domestically supplies market, Among forth steel the be in products for which required are soap, sheets and ingots, export licenses will hence-~ matches, yarns, iron and rubber and tanned hides, in There has been some shortage in the past Belgian home market and speculation. hoarding these weeks on products as a result the of ~ ek uc now OGDEN, UTAH Mr. John R. Rafter New York 4, New Dear Mr. & Bridge Street York Rafters I am addressing this letter to you for You might send your reply in duplicate Attached please find the following convenience to Mr. addressed to him, Fabrique Nationale d'tarmes Affidavit - Browning Automatic Fabricue : Nationsle d'Armes Affidavit - Browning é Shotgun Automatic Automatic Shotgun 2s Shotgun Affidavit - Browning to Freres Fabrique Nationale d'Armes | Affidavit - Browning Shotgun Superposed Fabrique Nationale d'tArmes Affidavit ~ Browning Shotgun Superposed Superposed Shotgun also very Above) Freres Affidavit Fabrique Nationale d'Armes Affidavit - High Browning Superposed Fabrique Nationale d'tArmes Affidavit ~ Browning 22 Consular Invoice these Supers papers was you Merchandise will increased Browning to Sechroeder of - as deduce Browning. Above) Schroeder (Amendment and A. papers: (Amendment From Val dated that of April in order. 15 our May Grade Models Gal. 12, 1951 (2 factory price on this year. These Shotgun Rifles copies) automatics affidavits reflect an increase in foreign value effective April 30. I would much appreciate it if you could examine the above affidavits to determine whether sometime Quite them of giving regular item. they ago we to our The are for the primary in a few 22 rifles brought They are for good will reasons. employees shipment I refer to is the second in our purpose not a postwar Mr. John May ~a~ Rafter R. 21, 1951 You may recall that the appraiser submitted a questionnaire history. I attach his request for information on this on the first shipment. I would appreciate knowing whether you consider the second shipment. affidavit as sufficiently complete reply. the 29th of around may arrive We have a shipment now en route which your opinion me give can you if appreciated much very It will be Mey. that you suggest I possible. as soon as just papers on the attached of interest the in Louis St. to directly papers send all of the above such consider you if only done be should this Naturally, haste. papers to be in proper order, They should be sent to the F. Goddard, Grant Mr. Attention: & M.S, Browning Company, J.M. 1718 Thank Washington you for Avenue, your St. attention Louis 3, and with Missouri. kind regards, Sincerely, M. Bigelow Browning Vice President MBB/co/awe Air Mail cc: Mr. Val A. Browning (Ogden)~ To Val From M. A. Browning Bigelow (Ogden) Browning Reference Date August 1, 1950 Attached please find a copy of a booklet by the INFORMATION CUSTOMS entitled, Treasury Department FOR EXPORTERS TO THE UNITED STATES, (Th John Grant Val F. Browning Goddard (Liege) TACs July Mr. John § Bridge New York Dear Mr. R. 19, 1950 Rafter Street 4, New York Rafters and your of July 14th, for your letter Many thanks ks. Adirondac the in you visit n to invitatio kind our that learned have I you from hearing Since and patent attorney in Hartford will also be away, the until trip my postpone to d so I have determine get at which time I shall of September, beginning in touch with you, Yours Val Sincerely, A. Browning President JOHN TELEPHONE! R.RAFTER COUNSELOR AT LAW JS Y edge Doel Mee Gk July Mr. Val c/o J.M. Ogden, Dear of WHITEHALL A. Utah. Mr. your Browning, & M.S. Browning 14, 1950 July l2th, 4 Company, Browning: I have proposed July 26th pect to be your visit to August I letter lth. to of Hartford and New informing York about me t am leaving for a vacation July 1/th and exaway from my office until August 20th. My address will be Lake Placid Club, Lake Placid, N.Y., where you may reach me by mail or telephone at any time during that period. If you can possibly arrange to visit me there, I shall be very glad to welcome you as my guest for as many days as you can spare and I think you would enjoy seeing that spot in the Adirondacks. Otherwise, of so course, desire. I shall Please come try to to make New York the mincerely oe to meet proposed you, if "detour". yours, CAA you 4-5094 July Mr. John RK. § Bridge New York Dear It is 1950 Rafter Street 4, New Mr. 12, York Rafter: very Connecticut, probable and New that York, I shall from be about in Hartford, July 26th until August 4th, I have at present nothing of any considerable importance to discuss with you, but would feel disappointed if I were not able to have our usual little visit together. I would appreciate you expect With best to be in it if your you will office at let me that regards. Sincerely, Val A. Browning President know time, whether J OHN RA R COUNSELOR LAW AT May Mr. Val c/o JM. Ogden, Dear WHITEHALL TELEPHONE: FTER A. (H.R. Browning Utah. Mr. closing Browning, & M.S. 9th, 1950 Co., Browning: for 8301), Knowing your interest in the your information and files a subject, I am encopy of the Bill called the Customs Simplification Act and Section 13 of Bill the subject originating in the Treasury Department, which was introduced in Congress on May lst and referred to the Committee on Ways and Means. this deals of "value". It would eliminate "foreign stand it, and would, among other things, with value",as we underliberalize "United States value”,as now defined in the tariff act, by the present limitations on the allowance for profit penses in connection with the sale of the imported removing and ex- merchan- dise in this country. The latter kind of value, in my opinion, would applicable to your importations and would not be unsatisfactory. It now appears, however, that this Bill reached Congress too late for enactment at the present session of Congress. At least, so those in a position to know seem feel about its prospects. Street to imply Journal that Perhaps of the May the 5th domestic enclosed will clipping also interest manufacturers of from you. sporting guns and rifles are not suffering from foreign but that, on the contrary, their sole worry is of ducks. With best the Wall It shot- competition a shortage regards, sincerely Se yours, MERE ee Aa seems fae to | 4-5094 2 MEMORANDUM SVs [xe Sf 20 eS Ls . -2a Sac, 7 c a Caecrcastes . Fook, Code eee ee pone F ees Wa A be 7 ae ee a fer $e ie eo anes Fleet Fie wi a alae aS iS . 6 (ae) es Pa weeFed JL c See a acre oe Zoe ee) Pa | JOURNAL OF COMMERCE, N.Y., MONDAY, Summary ot Customs Reform Bill These are the major provisions of the Customs Simplification Act of 1950 which has been referred to the House Ways and Means Committee and 1s expected to be formally introduced into \|\the House today. The following digest groups the act’s provisions F' according to subject matter with f/\a notation as to the relevant number of the section of the bill. as the equivalent of ‘‘export value’’ ascertained or estimated from sales or offers of other merchandise which is comparable in construction or use with the goods being appraised. In the case of ‘‘constructed value,’ the actual additional for general expenses, profit, and other charges are to be used, not prescrided percentages which may exceed the actual value. MAY 1, 198C Conversion of Currency Section 20 Present law \ making primary for of foreign quarterly the values gold coins, as published by the Treasury, the basis conversion of foreign currencies would be. repealed. The primary standard would he the par values of foreign curren6. Appraisers may use actual sales cies maintained pursuant to the instead “ef .offers in determining Articles of Agreement of the In‘“‘export value,’ ‘‘United States val- ternational Monetary Fund. In the | Section 2. case of currencies for which no An amendment stipulates that ue,’ or ‘‘compartive value.’’ 7, The term ‘freely sold or of- Fund par values are maintained, there will be no imposition of both and anti-dumping fered for sale’ is defined to per- and in the case of currencies with 4 | countervailing rates of exchange, the #|duties on particular merchandise to mit determination of value on the multiple would be con™/compensate for dumping or export. basis of sales or offers which are existing procedure #\subsidization. (Such action has unrestricted except for restrictions tinued materially unchanged. Pronever been taken, although it is ‘imposed or required by law, or lim- vision is made for'future applicaji/not specifically prohibited under) it the resale price or territory, or tion of any international rules for else are trivial with respect to the conversion when multiple rates are present laws.) maintained which may be estabof the merchandise to the Countervailing duties will be as- value lished in the Charter for an Interpurchaser. Lisessable only if an industry of the national Trade Organization. & The term “ordinary course of y/United States is being caused or f | threatened with material injury, or trade’’ is defined to mean the quan- | Dumping Blif establishment of an industry is tities in which being prevented or materially retarded. Countervailing duties will not be levied because of the ordinary remission or refund of taxes and. duties allowed on exports. )} Marking Requirements % | Section 3 #| The bill repeals entirely some of \ithe special marking provisions of ®ithe 1930 Act but retains the general marking requirements needed the greatest aggre- gate quantity of the merchandise is sold.. (Under present law, the usual wholesale quantity is the quantity in which the largest number of individual transactions occur). Chemical Products Section 14 sf Processing Taxes SeCtion 23 Present processing taxes.in the Internal Revenue Code on specified imported fats, oils and oil-bearing materials would be transferred to the section of the code dealing with other import taxes on fats and oils. These taxes would be converted into import taxes and provision is made for fixing of an equivalent import tax on the materials from which these oils are derived. (The present preference in favor of coconut oil derived from Philippine materials would be continued by an equivalent preference in the tax on Because of the elimination of “American selling price,’ a procedure is set up to provide equivalent Wito indicate to the consumer the rates to produce a degree of protection not less than that afforded country of origin. /| Also to be repealed are require- by the use of “American selling imported copra and coconut oil.) i iments relating to marking of medi- price’? when now required for variPicinal preparations. (At the present ous coal-tar products of the chemifitime, the Food and Drug Adminis- cal industry and for certain other The Tariff Commission Section 24 Aitration permits relabeling upon im- products. The bill would: would proceed immediately to asportation, under other statutory 1. Repeal the internal-revenue tax certain the equivalent rates which ® authority.) would be applicable to the various of 15c per pound on imported oleoclasses of import articles which are margarine. competitive at the time they are 2.Reduce the tax upon all ,adultSection 4 entered for consumpion. erated butter imported into the The bill would strike out a- 1930 The Treasury Department would United States, now 15c per pound, mM Act section providing for forfeiture also maintain g list of imported ar- to equal the internal-revenue tax M to the U. S. of liquors imported ticles which are competitive and imposed upon adulterated butter of a from any country under whose laws additional articles becoming com- domestic manufacture, now 10c per such goods, prepared in the U. &., petitive because of new production pound. Discriminatory Taxes \ Seizure of Liquors are denied entry. Duties and Reimports Section 5 Customs collectors would assess on goods reimported into the U. S., after having been exported from the U. S. with benefit of drawback of customs duties or with refund or remission of internal-reevnue tax, an amount of duty equal to amount.of drawback which is estimated would be allowable if the imported merchandise used in the manufacture or production of the in the United States would be added to the list and thereupon become subject to the duty at the rate applicable to competitive articles of the class in which it falls. 1930 Act provisions authorizing the President in certain cases to prescribe ‘‘American selling price’ as the basis of ad valorem duties on articles other than coal-tar products would be repealed. Manifesis Section 15 Existing law relating to the entry 3. Amend the Internal Revenue Code and 1980 Tariff Act to provide that the tax on distilled spirits shall be assessed on each proof ‘gallon only. 4. Provide for the imposition of a rectification tax on imported dis-| tilled spirits. 5. Eliminate internal revenue taxes on imported perfumes containing distilled spirits. 6. Reduce the internal revenue tax on imported filled cheese, now Sc a pound, to equal the tax on the domestic product, now ic a pound. > WO s Id1004) SSIISUO,A) JO PeHS and clearance Of Vesse zy ep ep qcie to aircraft from non-contiguous ({2uteq st TeAoidde |eury pues ‘uot “|-SIULLUOD +OUINIeyY 943 AQ peAord countries. 'j|-dB@ Ueeq SBY BOIAIOS OIJIOBVg-suP. SOUIT JUSPISeIG UBdIIEeUTY IOJ pie -diys JSVog 4soM B 32 SBIVVT ‘OD ‘J Section 16 je1esuexy GS 94} JO UOISI9AUODDIY The present limit of $100 would yeaoiddy uoisiaAuooay be raised :to $250 for shipments on|I which the Secretary of the Treas‘sinquiey pue uswerig 10 ury permits informal] entries withosje o81e0 Buipeo, dtys 93eu1a}[ lm ment would be disproportionate to out certified invoices yoes UM ‘WepIssuUy/Wep.1e}}04 the amount of dutv. pue diasajuy 0} SMIN L0dmMe -/MIOJION pue siowuljyeq ‘erydye Section 17 -elluUgq Woody HYoom yYyoes Y}Ieq U Section 6 oq [[IM [eSSeA B }eYU} SUBOU SIU, The bill would eliminate the pres‘OOIXOFL PUB BP The bill liberalizes requirements ent law authorizing amendment of on the entry of vehicles and similar, entries to increase or decrease the! “UBL ‘S8JBIG PSUs) 24} AOF OUT] oY JO JoseueUl [BIsUes JUBYSISSBe ‘See goods brought into the U. S.. by| entered value at any time hefore "Ty UBA “VY JAoqTy Aq JUeWIeDUNOUU travelers and on the transportation appraisement of the mrchandise. ue 0} BSurpi0o00e ‘juesseid ye Ss by non-residents of personal posses-! [|ATQJUOUL VOIIYY JO PBveSUL s[npeyo sion through the U. S. to other @ oprtaoid 0} pezerels i}| ATHOOA ; | countries, Sction 17 vi-oB oq [IM BinquivyY pue uUdsuUlelg ‘dio Undervaluation duties would be) pue wepssjsuy/uepseyjoy L -juy pue syiod oorxepy JO Jiny pu applied only in cases where there is % fions not only an undervaluation of the } 4SPOD 4YSemM UsaMjoq oUITT BOlIOU ey} JO SaodIAles YU sIO. entered value but also a failure on L[|-puvljoxy Section 7 yyuom 4xou surusulul0g the part of the importers to fur- 3ou} Goods brought in for permanent nish to the appraiser all informa- 4 VDIAIBSG SpusLXy non-commercial exhibitions on a tion available on the value of the [ duty-free basis would be covered by goods. ‘LT68-F ITPUSTHM 9 Tit bonds limitec to a five-year dura-| A decision that undervaluation Jequinu suoydeieay, “AeMpPBoig 6) tion. After the term of the bond, duties are due would le reviewable | ’ 42 ABPO} S9DIJJO HIOX MON SI uedg customs officers will no longer be| [IIM sieved Jo Jaquinu ®@ 10j ‘epeueRd required to check on the status of | by the Customs Court, and, if the finds that the undervalua‘oJuU0IO,, UL peyYsI[qey|sa used sB the goods. (At present, the bonds'| Court YoIyM ‘WITT ey, ‘SleHO1g eouReINns are of unlimited duration.) | tion was without any culpable negli“uy ‘poyury Aqtzeq AareyE Aq pu gence or intent to defraud, it may -YO9M 394} J2AO psoUNOUUe SBA [[B grant relief even if information was euoyde[s} V8[suIS B Ul yf UWialjuo withheld. The amendment would Section 8 also eliminate provisions for pre- pue seddrys & 0} a4B1 @ ojonb III The Secretary of the Treasury is sumption JBU} P8OIAIOS \eseIBHOIg V2duUeINSU of fraud and, authorizaauthorized to extend to ‘hree years| tion of seizure of goods in the case sUuLIvUL MoU BS JO JUSUIYSITGeIsT the period in which certain goods, | of a 100 per cent undervaluation, SOLBY SOURINSU] SULLA such as samples, allowed temporary but would remove the present ceilfree entry under bond, can remain| ing of 75 per cent on the amount in the U. S. ‘pud-HoeM VY} IDAO poounNotl (Under present laws, | of the undervaluation duty. these goods must be re-exported | Additional 1I9}eIS ‘WM uUuYyor juepIselg ‘ notices of appraise- -ue within six months, but the Secre-| ment would be required. sung JOJ eS uVsesq Sey VdUspUsdoT tary of the Treasury can allow an. -u[ Joull Jeduessed Mou Soury 4.10¢ -xq uvolIouly jo AueduioD 9039 additional six months). waye[eyjeq 394} JO pavAdrys “sse ‘AouInNgy 94} ye surpounery, 9yyZ the rate applicable to such merchandise on the date of importation. The Secretary of the Treasury may determine the amounts of duty equal to drawback or internal= revenue tax which shall be applied to articles or classes or kinds of articles, and may exempt from duty certain goods where the expense and inconvenience to the Govern- Informal Eniries Amendment of Entries Travelers’ Goods Duties on Undervaluation Non-Commercial Exhibi- Free Entry for Samples Commingled Merchandise ‘Supplies for Vessels suiyoune | souspuedepuy Section 9 Section 18. Duty and tax exemptions now alThe bill would continue the applilowed for equipment and repair ‘cation of the highest rate of duty parts for foreign aircraft would be on comingled merchandise and extended to foreign vessels. enumerate the mnaes by which the “IPATY 4SeVA ‘TE Aq y@ 831eYyOSIp pue peo, 0} enuT}UO [ITM SdIATEeS uBvlenzeusA s,AuBduUIO ‘gt ABW uo reg customs officer shall try to deter- ou} Ul SjessoA peainpsyos szeddiO surA,q 9 mine the quantity or value of each 03 class of merchandise. The period 9q [ITM Sul[Ies jseq Iey ysaly ou] United States consignees 15 would ‘edoiny 0} TL Avy Burjres ‘awo be allowed drawback of duties, at in which this segregation must be accomplished would he extended to adey ey} 9q [IM peor, 03 diys ysar the terms now provided for, on su, ‘uATyooIg ‘[eulWdIey, Ysn¢g goods sent to them without their 120 days. consent and which they send hack. Je ssreyostp puke peor [It It provides, however, for the ex- ') Tq The period in which the merchan- ception from the operation of this eperly, uvedoing pues iseq Ieq oy ~ j|dise can be expected would be ex- rule any part of the shipment when ut sdiys s1ey} Aepo, eat}oezjJe yey n= tended from 30 to 90 days. the collector is satisfied by proof peounouue sey ‘oD Uss}puPesqsy furnished by the consignee or his agent that such part is commerJaig Uas}puRigs] in proposed amendments would cially negligible, is not capable of st | The imake substantial changes in the segregation without execssive cost, will not be segregated prior to its [basis for determination of the er ivaluewof imported merchandise for use, and that the commingling was OF ithe ad val- not intended to avoid payment of of assessing purpose Any merchandise meeting @ Orem changes duties. major The duties. all these conditions shall be consid€ ‘are these: ered subject to the next lower rate Ss 1. “Foreign value’ and ‘‘Ameria free rate of can selling price’ would be elimi- of duty—including € inated if as- duty—applicable to the merchandise ‘export value,’ and pr icertainable, the with which it is commingled. be made would ipreferred method of valuation. e | 2. If neither ‘‘export value’’ nor 1s \‘United be Section 19 could value’ States of ascertained, appraisement would be al imade on ‘‘comparative value’’ be- | The authority of the collector is to reliquidate an entry 2r fore resort to “‘cost of production.’’ broadened ie of production’’ lor to correct a clerical error in ‘‘cost term (The lany entry or liquidation which is .-; would be changed as well to ‘‘con-. ‘discovered within one year after istructed value’’.) 3. In determining ‘‘United States the date of entry or within 60 days | | liquidation commission, after liquidation when actual e \value,’’ the r ‘profits, and are is made more than 10 months after other deductions date of entry. The bill would perl Ito be used, not arbitrarily limited mit such action not only for cleri- | J ‘amounts. 1 In. determining ‘‘United States Cal errors, as now provided, but | \value’’ of new lines in which there ‘also for mistakes of fact, or any| other inadvertence not amounting lis no previously established ‘rade, | ; ; of a the earliest actual sales of the 'to an error in construction wo — > Drawback of Duties |\Value uddiqs ID Puno Correction of Errors ? ' { 1 | i } | | merchandise undergoing appraise-|!#W, in any entry, liquidation, apment or similar merchandise may | Praisement, or other customs trans-. p|be considered ,|expiration portation. of if made before 90 days after the 2ction when such error is adverse im-|t0 the importer “and is manifest from the record or established by 5. “Comparative value’’ is defined! Written F evidence AGNV | | | +- * 4 dij JOHN R. RAFTER Counselor at Law 8 Bridge Street, March Mr. M. c/o J.M. Ogden, Dear Mr. Bigelow & M. S. Browning, Utah. Browning 21, New York 1950 Company, Browning: in reply to your letter of March 10th and its enclosure, answering mine of March 7th and referring further to the proposed changes in the kinds and definitions of dutiable value: When I discussed this matter with Mr. Val Browming and when 1 wrote to you on the same subject on March 7th, I did not have in mind the advantage which you are presently enjoying under appraisements at "foreign value", by virture of the comparatively recent devaluation of the Belgian franc. In other words, though I knew that the dollar equivalent of the "foreign value" of your importations is now somewhat less than your purchase prices, I seem to have assumed that this difference was unimportant and, perhaps, only temporary. it now appears, however, that you are concerned over the possibility of losing the advantage referred to, which you would lose, if "foreign value" were to be eliminated from the tariff law, and which, according to my calculation, is equivalent to the following Savings in duty per gun: Standard automatics Plain HMR Vent. Leightweight automatics Plain HMR Vent. Superposed Ribbed Vent. COrPL Mr. M. Bigelow Browning March 21, 1950 liy previous comments about the effect of the proposed cmnges in the kinds and definitions of dutiable value should accordingly be read in the light of the above changes in amounts of duties. With best regards, sincerely /s/ yours, John R. Rafter March Mr. John &§ Bridge New York RR, Rafter Street 4, New York Dear Rafter: Mr. Wish to acknowledge with thanks your letter of March anticipated legislation affecting customs procedure. already have discussed the problems February 28 with Mr. Val Browning. I do still not problem trend wish to somewhat or two develops, Significant attention, belabor indefinite, in order of next to information to the letter of December You understand I that We, Referring matters brought at only they a wish may time be up in when to to appreciate last paragraph of its attached schedule. feel concern changes as letter your considered will these my soon your very as 1950 relating to note that you I of legislative call course, on 7 10, outcome attention as the it comes legislative much letter of is a receiving to your March 7, I note that you do not feel that appraisal at "United States value" is likely to be disadvantageous to us. Again, although I am aware that the appraisal procedure is yet to be definitely determined and that dutiable values are likely to be redefined, wish to refer you to my 16 with the devaluation of the franc has position because it has effected can that we placed us in the dutiable at the You will note that a rather favorable value downward considerably. possibility of being appraised at a different dutiable value which may be perhaps closer to the factory price, We are also concerned that there may be incurred a great deal of red tape in establishing a new dutiable value, The guns are moving nicely at they are going out just about less, both the Superposed and American highest market. priced, substantial In We their are difference logical to expect that competition keener, the present time, As a matter as fast as they are coming in. automatic are high priced guns respective acutely to our postwar aware sales gun categories, in that the demand every near will of fact, Neverthe~ on the they are nearly future when it dollar be may better make is a the satisfied and pnchediclee we Sincerely, M. MBB/co/aw Air Mail ec; ce: M. V. A. A. Browning / Browning Bigelow Us ahaa Ce oe | “aes fit Browning fie = Te = LAL a si © a ss gem GL iE (JM PRICE SCHEDULES SELLING PRICE & SUPERPOSED WHOLESALE FRANC (AFTER DEVALUATION) REMAINING » SAME AS BEFORE $9.02 MARGH 10, 1950 EP tt KY TSM Ct AER Factory Dutiable Value Duty Duty Paid Cost 79.00 68.76 13.75 92675 61.00 70.54 14.41 95.211 JM 29.50 106,420 35255 27 «2h 130.66 14.637 109.45 135.70 145.03 @ Margin © off JM Seliing Excise Tax Total Cost BA BA 2h lh 122.25 Price Cost 39.50 22.5% $ Margin % off Dealer % Gombined % % Margin Company 69.00 $5.72 45.80 off off 20.0% 195.20 244.00 48.80 20.0% 175.20 219.00 Wholesale Retail Margin 50.17 25.Th 43.9% PRICE SCHEDULES (JM SELLING PRICE FNB AUTOMATICS & WHOLESALE FRANG (AFTER REMAINING DEVALUATION) SAME AS BEFORE) = $.02 MARCH 10, 1950 HMR VENT. Factory Dutiable Value Duty Duty Paid Cost JM G Margin JM Selling % off Excise Tax Total Gost BA @ BA Price Margin % off Wholesale Retail Dealer @ & Margin off Gombined Go, % off Margin oF BS ¥ 55.12 hd 33 9.65 60.77 44.31 9.65 47.8 10.17 11.26 16.1% 69.77 7.07 12.52 17.1% 13.29 8.06 11.00 15.3% 71.77 7.89 68.66 12.88 16.5% 73.17 8.60 77 hd 13.53 14.9% $1.35 86.77 16.03 16.5% 719.66 13.72 14.7% 90.97 121.30 97 28 129.85 93.36 124.250 102.75 137.00 25.0% 25.0% 25.0% 28.55 29.3% ah. 72 66,18 Cost $ 49.12 42.57 9.39 58.51 CALLAO 30.33 25 .0% 24.79 27 3% 68.83 32047 60.77 pe he ee. 26.5% 65.429 713.89 15.98 15.5% 34625 28,86 28.1% & December 7, 199 Mr. John RH. Rafter New York 4, N.Y. Dear Mr. Rafter: 8 bridge Street Attached hereto is a communication setting forth certain requests for St. Louis Customs Appraiser. Will suggestions which might occur from our ir. Goddard in St. Louis information by Mr. Kincaid, the you please examine it and make any to you. These suggestions should be forwarded to John Yal Browning at our Belgian address--Boite Postale 22, Herstal-lez-Liege, Belgium--with a copy sent out to us here in Ogden. John Val can then send the price lists on our guns and parts for the Belgian home consumption in triplicate to you and if after your perusal you have no objections, we will send a copy to the Appraiser in St. Louis. I cannot understand the Appraiser's apparent ignorance as to the value of the Belgian franc, and why he should request us to furnish him the information, but,of course, that we can very easily do. I am taking this occasion to wish you the seasons best Yours Val Encl. VAB/co/faw ec: John Val Browning greetings. sincerely, A. Browning I am, JOHN TELEPHONE: R.RAFTER COUNSELOR AT May Boite 4-5094 LAW 8 Drudge Htreet ew Mr. c/o WHITEHALL V.A. ban, Browning, & M.S. Browning Postale 17, York # 1949 Company, 22, Herstal- -~Lez-Liege, Belgium. Dear Nr. Browning: In reply to your letter the officials ng further to the appraisement nto the United States. read my I letters note that to you of for FN will value" by hori il my suggestions April 29th, of after having being applied to that they do not such approve Mauser uth rifles FN, and 20th, ascertaining what kind investigate the matter, FN, should that the dutiable value which is rifles is correct. I also note of of of referr- importe still of insist dutiable value is actually being applied to such rifles and for correcting the situation, RS 7 snouid appear that the wrong value, in kind orm amount, is r applied. Pinally, 7 note that they are sagt ie frapoaes to pursue the matter, through an official Belgian Commission, with representatives of the United States Government. If through an official Belgian Commission or otherwise, with the appropriate U.S. officials (preferably the Commissioner of Customs), your representations in the premises may not have been in vain. Indeed, such an inquiry, if it involves a voluntary disclosure by FN of the essential facts, should settle the matter amicably = perhaps without any penalties for a misstatement of the "foreign case. If there if should that be any they would not fall on FN but on as Will presently be explained. bLONn, will at at no if FN contact [ am will that the such accordingly in favor make it clear to the the rifles are its price to its selling agent the equivalent of that price. reason for the inquiry. being prove to penalties, importer of ha ve _ been however, the rifles, of such an investigaU.S. officials whom it entered and appraised in Belgium or, possibly, Otherwise, there would be Browning this 4 a ™ WU —) and With matter, respect please to possible than an conclusive upon all parties", Che importer within 30 days or within 60 days. penalties) for < 4 note praisement, there Hence, except would be unless by the in no undervaluation. penalties growing appraisement the out becomes of "final it is appealed from Collector of Customs case of additional a very duties recent (so-called However, there is a drastic provision in the Tariff Act of 1930 (Section 592), which is aimed primarily at fraudulent or false statements, whether written or oral, by either the shipper or the importer, whereby the Government is or may be deprived of any lawful duties. That provision, a copy of which is attached, provides for the forfeiture of all the imported merchandise to which the misstatement relates or the forfeiture of its value. The forfeiture value of such mer- chandise on duty is usually taken to merchandise. the If a misstatement be its on an invoice value invoice, plus the an entry or other- of the loss of wise is a flagrant violation of the above-mentioned provision, the Government's demand for forfeiture value is usually collect6a in full. If a misstatement is erroneous, e.g., due to misinterpretation, but is not deliberately so, the Government's demand is pending on revenue usually plus compromised a penalty the circumstances, degree if any) of of 100% in or the negligence but not at plus amount a smaller involved less than and the penalty the loss (de- extenuating of revenue. in my opinion, a statement by a foreign manufacturer in column (ll) of a consular invoice of a price to his selling agent for the country of exportation, as the current price for home conSumption, would be regarded as a violation of the above-mentioned provision, In this connection, please note that a claim by the Government under the above-mentioned provision may be made at any time within five years after the discovery of the alleged violation. in other words, there is virtually no time limitation on claims of this kind. Such a claim would also be retroactive in its effect, i.e., it would embrace all importations to which the alleged infraction of Section 592 was related. the For Government, cases the of smugesling Tariff Act of and 1930 other outright (Section 591) frauds also on pro- vides for the prosecution of the persons involved. IT am also enclosing a copy of that provision for your information, although there is no likelihood of it being invoked in connection with a matter such as we are now discussing. Mr. V.A. Browning In sion on your of the matter times and, I importations investigation result in conelusion, there is no reason for any apprehenpart of any adverse effect on your company because in question. You have proceeded properly at all am sure, the entered and appraised values of your have invariably been correct. If, therefore, an of the appraisement of the Mauser rifles should a finding that their "foreign value" is the which Schroeder Preres sells them for home consumption Belgium, your importations would not be affected. On hand, if that the kind of price in the at such an investigation should lead to the conclusion rifles have no "foreign value" and that a different dutiable value the different kind the "foreign value" ed, FN's of also be applicable tne dutiable value to of applies value, your your if to them, "cost it of is conceivable production", future importations. importations would be thereof, as you now understand to customs might other that In that case, no higher than and accept Lo. Of course, if an erroneous appraisement of the rifles was induced by a misstatement of FN which is not voluntarily correct- more apart from appraiser, which future closely you statements scrutinized possible that desire, I they annoyance in that letter should Trusting relating than am not your concern this Sincerely AIR MATL otherwise you. efforts gives yours, matters would to you the be; may satisfy but, be the information 55 agent, If attempts P yi LD W/IN AL any consignor, or other person to enter or Ae aN AT, ik LES a seller, owner, importer, consignee, or persons enters or introduces, or introduce, into the commerce of the United States any imported merchandise by means of any fraudulent or false invoice, declaration, affidavit, letter, paper, or by means of any false statement, written or verbal, or by means of any false or fraudulent practice or appliance whatsoever, or makes any false statement in any declaration under the provisions of section 485 of this Act (relating to declaration of any by law. the truth of such on such false entry) without statement, statement or as reasonable cause any material aids to or procures matter to the believe making thereto without reasonable cause to believe the truth of such statement, or is guilty of any willful act or omission by means whereof the United States shall or may be deprived of the lawful duties, or any portion thereof, accruing upon the merchandise, or any portion thereof, .embraced or referred to in such invoice, declaration, affidavit, letter, paper, or statement, or affected by such act or omission, such person or persons shall upon conviction be fined for each offense & sum not exceeding $5,000, or be imprisoned for a time not exceeding two years, or both, in the diseretion of the court: Provided, That nothing in this section shall be construed to relieve imported merchandise from forfeiture by reason of such false statement or for any cause elsewhere provided the under of provisions eg comm t Y ta¢ Bohs- oe a eit} 1 2 talse d Sa or Re vePra. seeti0o: ad any Paes ee vol of any ce kes false ma of or 03 FS 3 Te Ae ¥y gts. sie om i eka *' é £3 * be ae th ee of by such act bony! tion sa um excee P: bs Sie not ing , 9 toy on LAGrec ey declaration, ~*, | en portion P<PTLON wa Mey “ak } pest lal ie Di iB co x fa FRR, te re =! cee} cr 2 ke 5, Wa? sabe * | ae vot inda 4 ¢ . ¢ re P ©* E es ee g ieee tee e APRESS agave? aed GF hc cr qope iy m be ae ee Wh a oo o pew Band declaration to we i dod fe means the ced oyee “meana woatsoever, ‘ into, merchandise gnee . by te uce, pee or or pimah lmported — ne fraudulent paper, Lmporte: | ¢ to or eM: By States seller on ta Un ited. attempts consisnor, Oh 1er pers fae or Pras any acent, exceeding * two 7OOrs, That noth! Lt nh, or o2 such person for “os offense be imprisoned for a time not in the discretion of the court: section shall be construed from forfeiture by reason any cause elsewhere proviced PENALTY AGAINST fs GOODS, If any consignor, seller, owner, importer, consignee, agent, or other person or persons enters or introduces, or attempts to enter or introduce, into the commerce of the United States any imported merchandise by means of any fraudulent or false invoice, declaration, affidavit, letter, paper, or by means of any false statement, written or verbal, or by means of any false or fraudulent practice or appliance whatsoever, or makes under the provisions declaration truth of on such any false statement in of section 485 of this entry) without statement, or any such false statement without reasonable cause ment, whereof ful dise such or is the duties guilty United or any of any States as to reasonable aids or thereof accruing or may be or any portion thereof, embraced invoice, declaration, affidavit, Statement, or affected false paper or fraudulent invoice thereof by the to believe making of such act or or omission deprived upon of by means the the or referred to letter, paper, omission, law- merchan- such in or mer- chandise, or the value thereof, to be recovered from such person or persons, snall be subject to forfeiture, which forfeiture shall only apply to the whole of the merchandise or the value thereof in the case or package containing the particular article or articles of merchandise to which such fraud or statement relates. The arrival within the territorial limits of the United States of any merchandise consigned for sale and remaining the property of the shipper or consignor, and the acceptance of a false or by the consignee or the agent been made or of the consignor, or the existence of any other facts constituting an attempted fraud, shall be deemed, for the purposes of this section, to be an attempt to enter such mer- chandise offered. notwithstanding no the to any matter material thereto believe the truth of such state- act portion declaration (relating to cause procures willful is any Act actual entry has i “sNk : a Se Ae fh pete os Care tei 8 | 2 ; ae BeRe Rite wt Me « i r% cs A Hye RR a ey bus ors ats ” yvealue Pe % Le P< +] ke 9 P omy, 5a Si ee E Li nf we he “~ ee ¢ oe recov ere re! a eid Here, Fok a P% Yew’ ‘ft to ¥ rs Fs, o a he S ‘ae 4 i Pe &> et Ce eae * 8 at Ease 4, who ils 4: % Pe = « Fide thin “ a: a ae de oie e i‘ 2 lay, ai FZgayie aati, 23 ed ae Be Re ioe ce age gO ye : aa “t er am ry : vfe, at i # > 2 # > + Fe rt S90 4Me Pres Hy = thes & 2 rtie han 1186 4 Fray ae a Be “hist sal € > for of 263 a eye ys ( p>: ie Sa? By my wet tek ac ie- tae a Se yf Pr, EAE oF yy Crip RBo Y e% £ ep a a 3 Son as | oe ) Re RiP Se ake G © Ce te he ca * RAS Re ae a ay aie A > 5s a, hy z “sea > at CG eal a> of bath, gi to ‘ ite partici He% Lar ‘ ie fot omisaic rb} Se ist hae Rw a OL 2 es Sr allonily & Pre the act J ject 6 the ud 4 ae a7 or . We a © 9a ae F al a 53)% ee ety : i'd } ee # — Ag oy y bw te ms % fr or fe ey s a re he ae pes Dy a disse, ¥ Lee a& Ee Bost fi we & ye ei #, ea oo B hg oe bain 2 a te +4 Dy such ae A ro yt + qe EN i er ai 1e5 he ~ *~ TELEPHONE: RAFTER R JOHN LAW AT COUNSELOR 58 Bridge Street, New May Mr. V.A. Browning, c/o JeM.e. & M.S. Browning Boite Postale 22, Herstal-Lez-Liece, Belgium. tie | Ss 7 Vear Fe Mr. 13, York 4 letter of 199 Company, pbprownings T> 1 CT * am at last replying to your 25th, inquiring about the method of establishing of production" of high grade, hand-engraved Automatic shotguns Superposed shotguns superposed shotguns sets of barrels which you intend to no "foreign value", as that The of the WHITEHALL kind eS e import "export “cost of dutiable = Tariff Act of "(1) The cost e and which, value", or April "cost extra you believe, "United will States have value". production"of imported merchandise, value is defined in Section u02(f) of ~ e the sum of materials of, 1930, with the is 4 ~ “ and of 2 cy 2 mo ee of: fabrication, manipulation, or other process employed in manufacturing or producing such or similar merchandise, at a time preceding the date of exportation of the particular merchandise under consideration which would ordinarily permit the manufacture or production of the particular merchandise under consideration in the usual course of business; (2) centum The usual general expenses (not less of such cost) in the case of such or chandise; (3) The cost of all containers and (4) An addition for profit less than 10 similar coverings of per mer- what- ever nature, and all other costs, charges, and expenses incident to placing the particular merchandise under consideration in condition, packed ready for shipment to the United States; and of the (2) of (not sum of the amounts found under this subdivision) equal to the than 8 per centum paragraphs (1) and profit which ordin- arily is added, in the case of merchandise of the same general character as the particular merchandise under 4-5094 Vir e V * A @ Br owning 4 Ne country the in producers or manufacturers by consideration, or production who are engaged in the producof manufacture or same class of the of merchandise tion or manufacture lr’ na KL ments the = See | 2 and materials of cost first labor) must production" of "cost of the that note will You of may (which be be the above-defined described briefly for "a time ele- as preceding under conthe date of exportation of the particular merchandise or prothe manufacture sideration which would ordinarily permit consideration in the under duction of the particular merchandise usual course of business". there is a delay, however, of guns Hence, delay if there is no undue if the cost of materials and the time of exportation of between the period of production he guns which you will import, that element of the "eost of production" of those guns will probably be ascertained from the manufacturer's experience in producing those very guns. ieee such and or labor in making such or similar guns changes before the exportation of the suns in question, the later cost of materials and labor will probably be adopted as the first element of the "cost of production" The the general above-defined the in question. expenses, elements of which "cost of constitute the second production", include of all usual factory overhead expenses, selling expenses and administrative expenses "in connection with the creation, storage, sale and distribution" of guns like or similar to those which you will import; and those expenses must amount to not less than 10% of the cost of materials and labor. Please note, therefore, that no extraordinary expense is a part of production but that all usual general therein. or Note extraordinary from the frequency guns which also of is you a that, sales whether question will by FN import of to any fact, your and of the destination of the latter. lieve that this element of "cost of element, will in connection be ascertained from with the guns which of this element of cost of expenses must be included given expense is company and others which will identical be to guns, usual determined of regardless As a practical matter, I beproduction", like the first manufacturer's will import. the you experience The third of the above-defined elements of cost of production is the actual cost (to the manufacturer) of the cases, inner containers, packing material, and labor in packing and preparing Fcost for of shipment The fourth production" the and guns last consists which of of you the an will import. above-defined “addition for elements profit", of which Mr. VA. Browning must be not less than 8% of the cost of materials and labor and the usual general expenses and which must also be equal (in percentage of that cost and those expenses) to the profit which is ordinarily same general added in the character" pun manufacturers, or similar if selling any, as the prices cuns in Belgium, merchandise" definition of "cost which appears of of "merchandise question regardless by of of FN and the the other destin- Though the term“nmerchanhas never been satisfactorily meaning than the phrase "such ation for which the sales are made. dise of the same general character" defined, it obviously has a broader the in production". in the preceding It may, parts of therefore, be held to include automatic shotguns or superposed shotguns, as the case may be, of a lower grade than those which you will import and which are not hand-engraved. Furthermore, if FN is not the only manufacturer in Belgium of automatic shotguns or superposed shotguns, it may include such guns produced by the other manufacturer or manufacturers. Whatever meaning may be accorded to that term, the profit to be added in calculating the "cost of production" of the guns which you will import is supposed to be measured most same less of by frequently and be added the same in the percentage sales of the as general character by the manufacturers of the destination for which the sales the the profit merchandise in Belgium, are made. of which is the regard- Because of the vague meaning and uncertain application last of the above-defined elements of "cost of production", I recommend that your company inform the Appraiser at St. Louis of your intention to import such guns and of your belief that they will have no "foreign value", “export value", or "United dealers only and that inform him States value". In that connection, the appraiser informed particularly that the sale of such guns by country will be States value", restricted to retail suns will not be offered for sale to 6s of potential purcnasers, if any. restrictions sufficient to eliminate it tions which will be resold by the formation may now may be necessary be safely be imposed dealers in to should you in be this the. wholesalers or other classIf he does not deem such the application of "United on the prices this country, disclosed. of at which provided the restric- the guns may that such in- The appraiser may require letters or affidavits from FN and your company substantiating the statements which will thus be made to him. He will also probably require an affi- davit of FN stating the "cost of production" sun which you will import. In fact, he may ment of the latter kind be attached advice on to each of each require consular type that of a state- invoice of such guns which you will import. Instead, therefore, of attempting to devise a form of statement of "cost of production" which, in my opinion, will be satisfactory to him, I think it would be preferable to ask his of his requirements. that subject and to inform me Mr. V.A. Browning With respect to the superposed shotguns with extra sets of barrels, I assume that each extra set of barrels to which you refer consists of two barrels, one above the other, in gun. one piece IT barrels If these Such gun quire a rather gun such gun other that assume will be sold and its extra statement of separate and its hand, and extra he may its there will be only one that each are correct, the the "cost production" set of to assumptions than he and also you set require set gun as a unit at of barrels as of statements extra such of that of the barrels extra set price for its one extra appraiser the barrels, and an may entirety of “cost of be of both. and both each may as a production" On production"of stated each of regard respectively. "cost for set the separately. re- unit, of each The consular invoices and commercial invoices from FN to your company for the guns in question should be prepared in the same way as the consular invoices of your regular automatic shotguns, except that, if the guns in question have no "Poreion value", (a) column (11) of the consular invoices should so indicate, and (b) the question "Is such or similar merchandise offered or appears sold on in the face answered in the guns with extra the of home the market blue for home consular consumption?", invoice negative. Of course, if the sets of barrels are purchased form, which should be superposed shotin units consist- ing of one gun and its extra set of barrels at one each such unit, those guns and their extra sets of price for barrels should be so described on the invoices, both consular and commercial, and the invoice price should be so stated. However, if there ls no compelling reason for purchasing those guns and their extra sets of barrels in units as aforesaid, I think it would be preferable, from a customs standpoint, to buy the guns and the extra sets of barrels as separate entities with a separate price for each, in which case they should be so described on the invoices and their prices should be so stated. I make this observation, because there appears to be no tariff provision for shotguns with extra sets of barrels, which circumstance micht raise a doubt as to their proper dutiable classification and, probably, would lead to a request by the appraiser for a statement relating to the dutiable values of the guns and the extra sets of barrels, respectively. It may be, however, that you have already imported at St. Louis guns of one kind or another with extra perience voiced guided the to by how sets you your the in of barrels appraiser units, past as and there that aforesaid. experience you will in already know In case treat dealing them that with if this from they you ex- are may subject. in- be If there is any difficulty or delay in learning from Appraiser at St. Louis his requirements regarding a showing Mr. V.eA. of the that Browning "cost of production" do so production", you you advisable a of nevertheless to settlement with import from the a of guns guns business appraiser enter the such them of in as question, soon standpoint the at your By so as and question purchase of you I that, recommend deem their prices. it pending "cost At the same time, I recommend that you request permission of the customs officials at St. Louis to anend such entries so as to conform to whatever values the appraiser may ultimately decide are applicable you would avoid If there is any phase of this subject you, please let me hear from you. which is imposition of the appraised clear to to such guns. doing, the so-called penalties, if it should eventuate that values are higher than your purchase prices. »Lncerely 6 yours, not TREASURY DEPARTMENT BUREAU OF CUSTOMS WASHINGTON acne CUSTOMS FOR ore nr INFORMATION EXPORTERS TO UNITED UNITED GOVERNMENT THE STATES STATES PRINTING WASHINGTON : OFFICE 1950 For sale by the Superintendent of Documents, U. S$. Government Printing Office Washington 25, D.C. - Price 25 cents