III. CUSTOMS DIVISION.

386. The necessity for this division arose out of the provisions of law authorizing the Secretary of the Treasury, in cases of unascertained duties, or duties or other moneys paid to a collector of customs under protest and appeal in excess of the sums required by law, to refund such excess out of the Treasury. The consideration of numerous cases of appeals from the decisions of the collectors of customs forms, perhaps, the most important duty of this division, although it is charged with many other important duties affecting the administration of the customs laws and the transaction of business in the numerous custom-houses. The proper execution of these duties on the part of the responsible head of the division requires legal knowledge and training, in order the more properly to deal with numerous questions arising as to the construction of statutes, and in the application of the decisions of judicial tribunals affecting points at issue between importers and the collectors of customs. It likewise requires a thorough knowledge of the customs laws and regulations, of the usages of trade, and to some extent the routine of commerce in foreign countries. The examination which is given in these cases in the office of the Secretary of the Treasury, through this division, is, in numerous instances, preliminary to the judicial determination of the questions in the courts. The importer who has paid his duties under protest can only have a standing in court after appeal to the Secretary of the Treasury within the required time, and after the decision of the latter on the case presented, adversely to his claim. It becomes, therefore, a matter of the greatest importance that the questions presented be carefully considered by well-trained minds, and with due regard to well-settled principles of law. A want of knowledge of such principles, or an imperfect

judgment, even in a case of exceeding small amount and seemingly unimportant, may involve the Government in a loss of revenue incalculable in amount, through the appli cation of the conclusions reached to a class of importations in the future, the extent of which can in nowise be within the reach of conjecture. At the same time, an overzealous regard for the money interests of the Government, which grasps at the idea of increased and increasing revenue, while well-settled principles of law are overlooked or carefully ignored, may, on the other hand, involve the Treasury in the hopeless and expensive litigation of hundreds of suits involving the class of importations affected.

387. It is provided by law that the decision of the collector of customs at the port of importation and entry, as to the rate and amount of duties to be paid on the merchandise entered, and the dutiable costs and charges, or as to the rate and amount to be paid on the tonnage of any véssel, or as to all fees, charges, and exactions whatever, shall be final and conclusive against all persons interested therein, unless the owner, master, commander, or consignee of such vessel, or the owner, importer, consignee, or agent of such merchandise, shall, within ten days after the ascertainment and liquidation of duties, give notice in writing to the collector on each entry, if dissatisfied with his decision, setting forth therein distinctly and specifically the grounds of his objection thereto, and shall, within thirty days after the date of such ascertainment and liquidation, appeal therefrom to the Secretary of the Treasury. (R. S., §§ 2931, 2932.)

By a recent act it is provided that this shall not apply to an exaction of tonnage tax, where the Secretary and the Attorney-General shall be satisfied that such exaction was in contravention of treaty provisions. (Act June 19, 1878.)

388. And it is further provided that the decision of the Secretary of the Treasury upon such appeal shall be likewise final and conclusive, unless suit shall be commenced for the recovery of such moneys claimed to have been illegally exacted within ninety days after his decision. And no suit can be maintained until after such decision shall be rendered, unless that decision shall be delayed more than ninety days from the date of the appeal, in case the entry was made east of the Rocky Mountains, or more than five months in case of an entry west of those mountains.

389. In order to understand more clearly this matter of protests and appeals, and the duty of the Customs Division in regard thereto, it is well, perhaps, to refer briefly to what is required of a merchant at the port of entry in respect of a consignment of imported goods.

390. All goods brought within the jurisdiction of a port of entry, with purpose to unload the same, are subject to entry at the custom-house; and only the owner or importer, consignee or agent, can be recognized as entitled to enter the same. The person designing to make such an entry must produce to the customs officers the original invoice of the merchandise, properly authenticated, together with the bill of lading, and make an entry of the goods in writing, under oath. This entry is required to specify the name of the vessel, and of her master, in which, and the port or place from which, the merchandise was imported; the particular marks, numbers, denomination, and dutiable value, including charges of each particular package or parcel; or if in bulk, the quantity, quality, and value, including charges thereon, particularly specifying the spe cies of money in which the invoice thereof is made out. The entry must be subscribed by the person making it, if the owner or consignee, in his own name; or if another person, in his name as agent or factor for the owner or

consignee. Such entry is made on a prescribed form. After a comparison of the same with the invoice and bill of lading, if found correct, the duties are estimated and indicated on the face of the entry, and, with the papers and a permit for the delivery of the goods on payment of duties, the same is transmitted to the naval officer of the port, if there is one, for revision, whose duty it is to check the entry, invoice, and permit, if he finds them correct. The papers are then returned to the collector's office, where the appropriate oath is administered, and the packagesone in ten-are designated to be sent to the appraiser's store for examination, which are marked on the entry, invoice, and permit. The amount of estimated duties having been registered in the naval office, as a check upon the collector, and deposited with the cashier, together with the custom-house fees, and the proper bond having been executed in cases where bond is required, the permit is signed by the collector, and then sent to the naval officer to be countersigned, when it is delivered to the importer.

391. This is the process substantially, in a simple form, of entry for consumption, which is varied under certain anomalous circumstances; such as the want of an invoice, owner's oath, &c. The importer can only receive his goods on payment of the duties estimated and of the fees. He may pay the same, and if dissatisfied he can, within the ten days limited by statute, file with the collector the written protest already described. Following this protest, if he demands a refund of duties, his next step is, within the given time, to appeal from the collector's decision to the Secretary of the Treasury. This appeal is ordinarily in the form of a simple letter, stating the importation, the name of the vessel, the particular entry, the decision appealed from; in other words, briefly the ground of his complaint, and such facts as will identify the entry. No particular

form is, however, necessary. This appeal is referred to the Customs Division, in the office of the Secretary of the Treasury. Before its consideration in that division, the collector of customs of the port at which the entry was made is called upon for a report, particularly as to whether a protest was filed within the proper time. A copy of such protest is also called for, and information is requested of any facts from which the division can judge. of the merits of the claim. As can be readily imagined, these appeals are multitudinous in number; for with each entry and protest an appeal must be made, in order to obtain the refund in the particular case, although the question at issue may be precisely the same in a large number of cases. The decision by the Secretary, however, of one appeal, may dispose of a score of cases, or more, involving one and the same class of merchandise. But the protest must be carefully scanned in each case; for the Secretary's authority to refund, as well as the importer's ability to maintain suit in court against the collector, is limited, under the statute, to the sufficiency of the protest. The question of the need and sufficiency of protests has been much dwelt upon in numerous decisions of the courts in these cases; and these and other decisions involving questions which have arisen in the consideration of the tariff acts now constitute, as far as they go, a sure rule for the guidance of Treasury officers, as well as of officers of customs. The number of appeals annually made to the Secretary of the Treasury in these cases is about five thousand.

392. Besides the duty with respect to appeals in customs cases, this division is charged with the examination and approval of bonds given by persons desiring to establish private warehouses, for the storage of imported goods on which the duties have not been paid. Applications for the establishment of such warehouses also receive consid