In Gsell v. Insular Collector of Customs (1915), the U.S Supreme Court examined whether a tariff law applied to goods imported into the Philippines from other countries, including those that were part of the United States. The plaintiff, Mr. Gsell, argued that as per Section 3 of the Tariff Law Act passed by Philippine Commission in 1902, import duties should not be imposed on his goods brought from Hong Kong because they were originally produced in America and merely transshipped through Hong Kong. However, both lower courts ruled against him stating that since these goods entered Philippines via a foreign port i.e., Hong Kong; they are liable for customs duty regardless of their origin. The Supreme Court upheld this decision affirming that under existing laws at that time any merchandise coming into Philippines from another country was subject to duty irrespective of its place or production or previous location within US territory before being exported elsewhere.

In the dissenting opinion for Gsell v. Insular Collector of Customs, it was argued that the Supreme Court should not have jurisdiction over this case as it pertains to a matter in the Philippines, which at that time was an unincorporated territory of the United States. The dissenting justices believed that matters concerning territories should be left to local courts and legislatures rather than being decided by federal institutions such as the Supreme Court. They also disagreed with majority's interpretation of tariff laws and felt they were applied incorrectly in this instance. Furthermore, they expressed concern about potential implications on future cases involving U.S territories if decisions like these are made by federal entities instead of territorial ones.