Petition 6419-R of Deimel Linen Mesh System Co. (San Francisco)

Before the First Division, July 27, 1945 No. 50380. Petition 6419-R of Deimel Linen Mesh System Co. (San Francisco). [MAJORITY — Oliver, P. J.] Opinion by Oliver, P. J. At the trial the customhouse broker testified that he prepared the entry which covered two invoices of shipments of handkerchiefs; that the undervaluation occurred only in connection with the entry of the merchandise covered by one of the invoices, the prices appearing thereon being made up of material and labor costs; that both prior to and after entry the president •of the petitioner company had conferences with the customs officials with respect to the value of the merchandise; and that the appraiser indicated that he considered the invoice values, proposed by the petitioner, too low by 10 percent, attributable to higher labor cost. The president, in order to establish a test case, caused the merchandise to be entered at the invoice values, which were advanced by the appraiser. An appeal to reappraisement was thereupon filed, but, after further consideration, same was abandoned. The court held that the undervaluation on entry in this case was the result of an honest difference of opinion between the importer and customs officers and that there was no intent to defraud the revenue of the United States or to conceal or to misrepresent the facts of the ■case or to deceive the appraiser as to the value of the merchandise. The petition was therefore granted.