Nissan Motor v. USA.

Nissan Motor v. USA

Prosecutor’s Case
 The machinery imported into the US by Nissan was not considered to be
“merchandize” that could be exempted from being charged duties
 The “installing” of the machinery is what defies the policies guidelines
stated in the Foreign Trade Zones Act.
 Nissan paid Custom duties in the amount of $3 million after the
machinery had been installed at the warehouse in the subzone.
 The US government does not condone efforts made by other companies
to take advantage of the deferred duty payments at the trade zones

Nissan’s Defence
 Took reference from the
Hawaiian Independent Refinery v. United States
to strengthen their claim
 Nissan executives believed that since all of their manufacturing was
being done within the boundaries of the subzone, so their machinery
was not applicable for duties