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VALUES AND COMMERCE OF PEARLS 365
The
proper classification of half-pearls has also been a matter of
controversy. This question was brought before the Board of General
Appraisers in New York on a protest* entered in 1897 against the
imposition of a duty of 20 per cent, on several lots of so-called
half-pearls imported during that year. This duty was imposed under
Section 6 of the Tariff Act, providing for a duty of 20 per cent, on
"unenumerated partly manufactured articles." The petitioner claimed
that half-pearls were dutiable at 10 per cent, ad valorem, "either
directly or by similitude or component of chief value, under paragraph
436, or as precious stones, under paragraph 435 of the Tariff Act."
After hearing the testimony of a number of competent and reliable
experts connected with some of the leading houses dealing in precious
stones and pearls, the appraisers decided that the evidence showed that
pearls, being the product of animal secretion, could not properly be
denominated stones, and that they were not in fact so designated
commercially. At the same time, half-pearls could not be looked upon as
"pearls in their natural state," since time and labor had been expended
in their production; it was, therefore, evident that paragraph 436 did
not apply to them. For this reason the original ruling was reaffirmed.
In
1902 a duty of 60 per cent, was levied on an assorted lot of
half-pearls under a new ruling which brought them by similitude under
the provisions of paragraph 434 of the Tariff Act, providing a duty of
60 per cent, on "jewelry . . . including . . . pearls set or strung." A
protest was entered against this ruling also.2 In the
meanwhile Judge Lacombe had given the opinion to which we have alluded
above, and the Board of Appraisers upheld the duty of 60 per cent.,
basing their decision upon the fact that the material of half-pearls
was similar to that of pearls in their natural state or of pearls set
or strung, thus satisfying the requirements as to similitude of
Section 7 of the Tariff Act. The same section provides that, in case
two or more rates of duty shall be applicable to any imported article,
it shall pay duty at the highest rate, and therefore the 60-per-cent.
rate applying to pearls set or strung was imposed, instead of the
10-per-cent. rate on pearls in their natural state. In both of these
cases an application for a review was made to the United States Circuit
Court.3
DUTIES ON PEARLS IN VARIOUS COUNTRIES, MARCH, IQ08
Basis. Amount in money U. S.
of the country. currency.
Great Britain...............................Free
British India................................Free
Australia.................................. Free
New Zealand...............................Free
1 General Appraisers 4166. * Suits Nos. 2781 and 3324.
1 General Appraisers 5148.
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