This law is of importance in that it grants to a Haitian, or a company to
be formed by him, the right to establish and operate a petroleum
refinery. By the terms of the law the machinery, fuel, materials, etc.,
necessary for the establishment of the refinery, as well as such
articles as are necessary for the proper operation of such a plant, are
to be admitted free of all duty.
The Government virtually grants the concessionaire a monopoly in the
kerosene oil trade, for, as soon as the refinery is ready to start, the
duty on refined oil is increased to such a figure that imported kerosene
can not compete with that locally refined.
In return, the concessionaire is required to pay into the Haitian
treasury the equivalent of what would be the duty charges on the
quantity of kerosene put on sale by the refinery, and the refinery is
required to sell its product cheaper than like quality could be
imported, as shown by the market price abroad.
Provision is made for the refining of such crude oil as may be found
here, but I understand that crude oil has never been found in workable
quantities, so recourse will have to be had to importing crude oil from
the States.
I understand that agreement has been entered into with American capital
and that it is the intention to commence the mounting of the refinery
plant here in early December, and refining will begin as soon thereafter
as possible.
[Inclosure.—Translation.]
law.
Nord Alexis, President of the Republic,
By virtue of article 69 of the constitution,
Considering that it is the duty of the state authorities to give the
greatest encouragement and protection to enterprises which shall
furnish employment and means of existence to a number of our
fellow-citizens;
Considering, moreover, that the enterprise which is the subject of
the present act will have, as a consequence, the improvement of an
article of daily consumption, and the augmentation of the revenues
of the State,
Upon the report of the secretary of state for finance and
commerce.
Has proposed, and the legislative corps has voted, the following
law:
Article I. The Government accords to Mr.
Edmond Roumain, in his own and proper name, the right to refine
petroleum, and to construct upon the littoral, or in the interior,
tanks for crude petroleum and its products.
Art. II. In case that concessions may be
accorded in future for sources of petroleum which could be found in
the country, and in case that the future concessionaires may not
desire to contract a refinery, Mr. Edmond Roumain shall be obliged:
- (1)
- To receive the crude petroleum that the concessionaire
would have delivered to him;
- (2)
- To store in tanks destined for the purpose the crude
petroleum in question, in consideration of a tax of 1 cent
American gold per month per 50 gallons, and this for all
expenses generally whatsoever of receipt into tanks, of
depot, and delivery to ships or car tanks;
- (3)
- To deliver to the parties concerned certificates of depot,
warrants, negotiable either here or abroad;
- (4)
- To purchase, upon the request of the depositors, their
certificates of depot, according to the market price of
petroleum.
Art. III. In case that the yield of the
sources of national petroleum, and that the obligatory purchase of
the above-mentioned certificates of depot give only an insufficient
quantity for his refinery, Mr. Edmond Roumain shall have the right
and exclusive privilege to import crude petroleum or its unfinished
products for refining in Haiti, and he may use this right during the
deep borings and the construction of pipe lines to carry to the
littoral the national petroleum which might be found.
Art. IV. The concessionaire, in the
interest of the State as well as in his own, as soon as he shall
commence the construction of the refinery in question, must push
with great activity the deep borings under the inspection of the
state’s engineers, except in case of “force majeure,” which he shall
have verified, and must cease the importation provided for in the
preceding Article III when the sources of national petroleum shall
be sufficiently abundant. This importation can be recommenced only
in case of the insufficiency provided for in Article III.
Art. V. As the petroleum refined in the
country is to be put on sale in our market cheaper than the
illuminating oil that could be imported, according to the figure of
the foreign markets, which will cause the importation of kerosene to
cease and deprive the State of the duties on that article, Mr.
Edmond Roumain agrees to pay to the State, in payments to be made
each three months, and according to the present tax, the equivalent
of the duties upon all the quantity of illuminating oil put on sale
in the country by the refinery.
Art. VI. As the conditions of cheapness
which petroleum refined in Haiti shall have, together with certain
commercial advantages which shall be given to consumers, ought to
augment the consumption in a little time, the concessionaire agrees
also to pay to the State the equivalent of the duties at the present
tax upon all the quantity coming from the refinery, which will be
consumed more than at present, thus allowing to the State a share of
the profits in the development and increase of the affairs of the
refinery.
Art. VII. An agent appointed by the
department of finances shall control, by the books of the refinery,
the quantity of illumination petroleum delivered for the interior
consumption of the country, and upon which the equivalent of duties
provided for in Articles V and VI shall be paid each three months.
The department may, besides, adopt any other system of control which
it might deem necessary.
Art. VIII. The degree of inflammability of
the petroleum in the present tariff, viz, 38° centigrade or 100°
Fahrenheit, having been found much too low to insure the consumer
against all danger, it is forbidden to put on sale in our markets
any illuminating oil under 48.8° centigrade or 120° Fahrenheit. The
state officials shall see that this prohibition is firmly carried
out.
Art. IX. The present duties on kerosene oil
having been found to be much too low, and the state authorities
wishing effectively to protect a new industry which has found so
much protection in other countries, the duties on illumination
kerosene shall in future be paid as follows:
|
P. |
| Kerosene illuminating oil at 48.8° centigrade or 120°
Fahrenheit, per gallon |
0.20 |
| Wharfage: |
|
| Case of 10 gallons in 2
cans |
.25 |
| Barrel of 50 gallons, the
barrel |
1.25 |
The new duties named above shall be applied when the petroleum
refined in our country is put on sale in our markets. The beginning
of this sale shall be notified by the concessionaire to the
department of finances, which shall apply the above-mentioned new
duties from that moment.
Art. X. The stock and stores, tools,
chemical products, the crude petroleum and its products for
refining, fuel, materials necessary for the construction,
exploitation, and maintenance of the refinery, or accessories for
the sale of the
[Page 906]
refined
products shall be admitted free of all duties and customs taxes, and
the products of the refinery which may not find a sale in our
interior markets may be exported free of duties; also all the
overplus of the national crude petroleum. At each importation of the
articles above indicated a list shall be submitted by the
concessionaire to the department of finances in order to obtain
their free entry.
Art. XI. The persons employed in this new
industry under whatever appellation shall be composed of at least
two-thirds Haitians.
Art. XII. If difficulties or contestations
shall arise concerning the interpretation or execution of one or
more clauses of the present law, they shall be settled by the
competent courts.
Art. XIII. The concessionaire may
constitute a joint-stock company after the forms and according to
the regulations established by law upon the subject.
Art. XIV. By reason, first, of the
proportional dues to be paid to the State for the exploitation of
the national petroleum; second, of the annuity to be paid to the
Government in virtue of Article V above mentioned; and third, by
reason of the participation of the profits reserved to the State by
Article VI of the present law the refinery, shares, and bonds of the
company provided for in Article XIII preceding, will be free of all
taxes and future taxes.
Art. XV. The present law revokes all law
and dispositions of law which are contrary to it, especially the law
of August 9, 1896, and will be executed under the supervision of the
secretary of state for finance and commerce.
Given at the Chamber of Representatives, Port au Prince, September 7,
1906, one hundred and third year of the independence.
The President of the Chamber,
S. Archer.
The secretaries,
G.
Desrosiers.
Louis Brutus.
Given at the national house, Port au Prince, September 13, 1906, one
hundred and third year of the independence.
The President of the Senate,
T.
A. Dupiton.
The secretaries,
R.
David.
Diogene Lerebours.
In the name of the Republic, the President of the Republic orders
that the above law of the legislative corps be vested with the seal
of the Republic, printed, published, and executed.
Given at the national palace,
Port au Prince, September 20, 1906,
one hundred and third year of the
independence.
Nord Alexis.
By the President.
The secretary of state for finance and
commerce.
F.
Marcelin.
