In the 1963 case Department of Alcoholic Beverage Control for California et al. v. Ammex Warehouse Co. of San Ysidro, Inc., et al., the U.S Supreme Court ruled in favor of the Department of Alcoholic Beverage Control (ABC). The ABC had revoked a liquor license from Ammex Warehouse due to violations related to selling alcohol to individuals who intended to transport it into Mexico without paying necessary taxes and duties, which was against California law. The court held that this action did not violate any constitutional rights or federal laws as claimed by Ammex Warehouse because states have broad power under the Twenty-first Amendment to regulate liquor distribution within their borders and prevent evasion of its own liquor regulations even if they affect foreign commerce.

The dissenting opinion in the case of Department of Alcoholic Beverage Control for California v. Ammex Warehouse Co. argued that the majority's decision to uphold a state law prohibiting importation and sale of liquor within one mile from the Mexican border was unconstitutional. The dissenters believed this law violated both the Commerce Clause and Equal Protection Clause, as it discriminated against businesses located near international borders without any substantial justification related to public health or safety concerns typically associated with alcohol regulation. They also pointed out that such laws could potentially lead to arbitrary restrictions on commerce based solely on geographical location, which would be detrimental to free trade principles underpinning our economy.