rate of duty imposed thereon shall be in accordance with the deci Court of Customs and Patent Appeals, and any necessary reliquidati made. The provisions of this subdivision shall apply only in the ca plaints filed after the effective date of this act."

Nothing in these amendments in any way affects the provisions of s (c) and (d) of section 516 in the Hawley bill, and we recommend the without change in section 516 revised as indicated above.

Section 526. Merchandise Bearing American Trade Marks. Ameri Rights: We recommend the addition of a new subdivision (d) to this read as follows, the need and purpose of which we believe to be ma obvious:

"The holder of patent rights under the laws of the United States application to collectors of customs or the Secretary of the Treasury r information of importations as will permit him to proceed again infringement of such rights."

At the hearing before the Finance Committee on Valuation on June 1929, the American Tariff League went on record in favor of the aband foreign value as the primary basis for the assessment of ad valor Instead, therefore, of repeating here the evils and objections to the con of foreign value we refer to the testimony presented to the commi valuation hearing by Mr. John G. Lerch, representing the Ameri League, which appears on pages 25-49 of the printed record on the hearings, and to the printed statement embodying our recommenda reasons for a change to United States value which appears on pages 21 valuation record. For purposes of reference, and for the record, we re our proposed redraft of section 402, making United States value th basis of ad valorem duty assessment with American selling price and cost of production the first and second alternatives:

Sec. 402. Value.-(a) For the purposes of this act the value of merchandise shall be

(2) If the United States value can not be ascertained to the satisfac appraising officers, then the American selling price of any similar or c merchandise manufactured or produced in the United States.

(3) If neither the United States value nor the American selling pr ascertained to the satisfaction of the appraising officers, then the cost of p (b) The United States value of imported merchandise shall be th which such imported merchandise or imported merchandise closely r or competitive with, the particular merchandise under appraisement offered for sale, packed ready for delivery, in the principal market of t States to all purchasers, at the time of exportation of the imported me in the usual wholesale quantities, and in the ordinary course of trade, w ance of estimated duty at time of entry.

In determining value on the basis of merchandise closely resemblin petitive with the merchandise under appraisement, such adjustment made as are necessary to equalize differences.

(c) The American selling price of any similar or competitive me manufactured or produced in the United States shall be the price, incl cost of all containers and coverings of whatever nature and all other cost and expenses incident to placing the merchandise in condition packed delivery, at which such merchandise is freely offered for sale to all in the principal market of the United States, in the ordinary course of in the usual wholesale quantities in such market, or the price that the man producer, or owner would have received or was willing to receive for such dise when sold in the ordinary course of trade and in the usual wholes tities, at the time of exportation of the imported merchandise.

For the purposes of this subdivision (c) any imported merchandise for in this act shall be considered similar to or competitive with the merchandise if such imported merchandise displaces domestic merch accomplishes results substantially equal to those accomplished by the merchandise when used in substantially the same manner.

In determining value on the basis of merchandise closely resembling petitive with the merchandise under appraisement, such adjustments made as are necessary to equalize differences.

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Nothing in these amendments in any way affects the provisions of (c) and (d) of section 516 in the Hawley bill, and we recommend the without change in section 516 revised as indicated above.

Section 526. Merchandise Bearing American Trade Marks. Amer Rights: We recommend the addition of a new subdivision (d) to thi read as follows, the need and purpose of which we believe to be m obvious:

"The holder of patent rights under the laws of the United States application to collectors of customs or the Secretary of the Treasury 1 information of importations as will permit him to proceed again infringement of such rights."

At the hearing before the Finance Committee on Valuation on June 1929, the American Tariff League went on record in favor of the aban foreign value as the primary basis for the assessment of ad valo Instead, therefore, of repeating here the evils and objections to the co of foreign value we refer to the testimony presented to the comm valuation hearing by Mr. John G. Lerch, representing the Amer League, which appears on pages 25-49 of the printed record on the hearings, and to the printed statement embodying our recommend reasons for a change to United States value which appears on pages 2 valuation record. For purposes of reference, and for the record, we r our proposed redraft of section 402, making United States value t basis of ad valorem duty assessment with American selling price and cost of production the first and second alternatives:

Sec. 402. Value.-(a) For the purposes of this act the value of merchandise shall be

(2) If the United States value can not be ascertained to the satisfac appraising officers, then the American selling price of any similar or c merchandise manufactured or produced in the United States.

(3) If neither the United States value nor the American selling pr ascertained to the satisfaction of the appraising officers, then the cost of p (b) The United States value of imported merchandise shall be th which such imported merchandise or imported merchandise closely or competitive with the particular merchandise under appraisement offered for sale, packed ready for delivery, in the principal market of States to all purchasers, at the time of exportation of the imported m in the usual wholesale quantities, and in the ordinary course of trade, v ance of estimated duty at time of entry.

In determining value on the basis of merchandise closely resemblin petitive with the merchandise under appraisement, such adjustmen made as are necessary to equalize differences.

(c) The American selling price of any similar or competitive m manufactured or produced in the United States shall be the price, inc cost of all containers and coverings of whatever nature and all other cost and expenses incident to placing the merchandise in condition packed delivery, at which such merchandise is freely offered for sale to all in the principal market of the United States, in the ordinary course of in the usual wholesale quantities in such market, or the price that the man producer, or owner would have received or was willing to receive for such dise when sold in the ordinary course of trade and in the usual whole tities, at the time of exportation of the imported merchandise.

For the purposes of this subdivision (c) any imported merchandise for in this act shall be considered similar to or competitive with the merchandise if such imported merchandise displaces domestic merch accomplishes results substantially equal to those accomplished by the merchandise when used in substantially the same manner.

In determining value on the basis of merchandise closely resemblin petitive with the merchandise under appraisement, such adjustment made as are necessary to equalize differences.

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struction or use to the imported merchandise. Except for the lim this estimate shall be based on the price at which merchandise, dom ported, is offered for sale, the estimator is given the widest latitude his estimate. The objections to this new provision in the definition States value because of the indefiniteness, uncertainty and arbitrarin under it will immediately be obvious, and we, therefore, recommen nation of this estimate provision from any definition of United S adopted by the committee.

It is to be noted further that this new definition of United State permitting that value to be based on the price at which domestic r is offered for sale will practically preclude the use of the American s as defined in subsection (g) of section 402.

Finally, the new definition of United States value in the Hawle for the determination of that value at the time of importation into States of the imported merchandise instead of at the time of exports merchandise to the United States as has heretofore always been every definition of dutiable value. The practical operation of this which the duty would be assessed on merchandise at the time of its i into the United States will evitably mean the assessment of differing duty on merchandise costing the same in the country of origin and the country of origin on the same day but which was shipped to diff in this country. One of these ports might be on the Atlantic seabos other on the Pacific coast, and, if during the interval after the goods the Atlantic port and before the ship destined to the Pacific port & unloaded its cargo the merchanside in question had advanced in price, port importation would be subjected to a higher amount of duty than on the consignment at the Atlantic port. To the extent that the tar this would certainly be regarded as a geographical discrimination.

In conclusion, then, we recommend to the committee that unless o or a similar plan, based upon facts all of which are ascertainable United States is adopted, that the definitions of value as they now section 402 of the tariff act of 1922 be used exactly as they appear in t

Section 510 of the tariff act of 1922, eliminated in toto in the H This section was omitted from the Hawley bill because of the adop new section of that bill, 402 (b), "Finality of appraisers' decision." line 4.) In the preceding discussion, we have fully considered and se objections to this subdivision. We renew our objection to it and deletion. If our proposed new section 402, providing for bases of va all of their facts within the United States, is adopted, there will be need for section 510 of the act of 1922. If, however, our proposed pla is not adopted, and "foreign value" or "export value" is retained i there will be every need to retain this section.

While it has been applied in but few instances, it has been a trem in the administration of our customs laws, and we believe the ascerta foreign or export value would be impossible without it. In the ev continued use of "foreign value" and/or "export value, we request tion of section 510 of the tariff act of 1922.

Section 304, marking of imported articles: With the exception of two we believe that this section in the Hawley bill is an improvement over as it appeared in the tariff act of 1922. The Hawley bill has, howeve the very desirable provision of the law of 1922 that the marking be "in permanent" and also that it be placed in such position on the impor that it will "not be covered or obscured by any subsequent attac arrangements." These we think are essential for proper administrat section.

It will also be noted that the Hawley bill has inserted at the end sion (a) of this section after the provision permitting the Secretary regulations "and subject to such exceptions as may be made ther believe that this provision which places in the hands of the Secretary the power to state which articles are to be marked and which need not be ma result in serious injury to the domestic interests and a nullification of th