Monarch Luggage Co., Inc. v. United States
United States Court of International Trade
715 F. Supp. 1115 (1989)
- Written by Gonzalo Rodriguez, JD
Facts
Monarch Luggage Company, Inc. (Monarch) (plaintiff) imported luggage articles into the United States. The import invoices included charges such as buying commissions paid by Monarch to Prosperous, a company that Monarch claimed to be its bona fide Taiwanese buying agent. The United States Customs Service (customs) (defendant) calculated duties for Monarch’s imports based on the full invoice values, including the buying commissions. Monarch challenged customs’ determination, arguing that buying commissions should not have been included for purposes of calculating duties. During trial, witnesses testified that Prosperous never held title to any of the merchandise and bore no risk of loss. Further, testimony established that Prosperous did not have the authority to independently purchase merchandise for resale. Additionally, a witness testified that until 1981, the two companies were adding together the commissions and the price of goods, rather than invoicing separately for each. After 1981, the companies changed this practice and began invoicing for each separately.
Rule of Law
Issue
Holding and Reasoning (Musgrave, J.)
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