In the 1924 case Kunhardt & Company, Inc. v. United States, the U.S Supreme Court ruled on a dispute regarding import duties on sugar cane syrup. The plaintiff, Kunhardt & Co., imported sugar cane syrup and was charged with an import duty under paragraph 181 of the Tariff Act of October 3rd, 1913 as if it were molasses testing above fifty-six degrees by polariscope (a device used to measure optical properties). However, Kunhardt argued that their product should have been classified under paragraph 182 which imposed a lower rate for syrups not otherwise provided for in this section. The court held that since there was no evidence showing that Congress intended to classify such products differently based on their use or quality rather than their nature and characteristics at time of importation; therefore they affirmed the decision made by Customs officials to charge higher rates according to paragraph 181.

In the dissenting opinion for Kunhardt & Company, Inc. v. United States, it was argued that the majority's interpretation of Section 25(a) of the Tariff Act was incorrect and overly broad. The dissenting justices believed that this section should not be interpreted to include all forms of sugar as "sugar," but rather only those specifically listed in the statute itself - raw or unrefined sugars. They contended that refined sugars were a different product entirely and thus should not fall under this provision's purview. Furthermore, they disagreed with the majority’s view on how customs duties should be assessed on imported merchandise when its value has been enhanced by further processing after importation but before entry into U.S commerce – arguing instead for a more limited application based solely on transaction value at time of importation.