693.003/570
The Chairman of the American Delegation
(Arnold)
to the Acting Secretary of
State
Peking, June 10,
1919.
[Received July
24.]
Sir: I have the honor, referring to cabled
instructions received by the Legation in regard to the rules of the
revised tariff to confirm my suggested reply to the Department,
which reads as follows:
“Your June 6–12 a.m. [noon.] Revised
rules can be identified by word ‘wholesale’ before word
‘market’ in second line84 of
Rule I.
Rule IV on a separate sheet85 reads as
follows: The importation of opium and poppy seeds is
absolutely prohibited. The importation of the following
articles is prohibited except under bond by qualified
medical practitioners, druggists and chemists: Morphia and
Cocaine and Hypodermic Syringes; Anti-opium Pills containing
Morphia, Opium or Cocaine; Novocaine, Stovaine, Heroin,
Thebaine, Ghanja, Hashish, Bhang, Cannabis
indica, Tincture of Opium, Laudanum, Codeine,
Dionin and all other derivatives of Opium and Cocaine. This
rule number four contains 64 words. Revised draft contains
38 pages and rules are numbered page 39.”
Rule IV was not embodied in the draft rules, to be appended to the
revised tariff, which were three in number, as forwarded to the
Bureau, for the reason that as stated in the minutes of the meeting
of the Commission of December 20, the Chinese Delegation considered
it necessary to secure the special consent of the Treaty Powers to
the addition of this rule, as it fell beyond the powers of the
Commission to more than express an opinion on the subject. A copy of
these minutes was forwarded to the Department by me under date of
February 27.86 The
Chairman of the Commission informs me that the Chinese Government is
securing from the Treaty Powers the consent to the Rule IV
simultaneously with their ratification of the revised tariff. For
this reason I suggested that the Legation cable the Department
adding this rule and have also added it to the copy of the rules
which are being enclosed with this despatch.
I am enclosing a copy of a subsequent issue of the proposed revised
import tariff as published by order of the Inspector General of the
Chinese Maritime Customs.86 Rule IV has not been incorporated in the rules
as printed in this draft, for reasons as above stated, and also a
copy of the original draft with Rule IV added, as well as the
[Page 663]
errate, which is inserted
on the inner side of the title page.87 A copy of the minutes of the
meeting of December 20, at which the revised tariff was unanimously
agreed to by the delegates to the Commission, is also attached.88
I tender to the Department my humble apologies for the inconvenience
which the Department has experienced in not receiving the original
copies mailed December 27.
I have [etc.]
[Enclosure—Extract]
Rules Annexed to the Proposed Chinese Import
Tariff
Rule I
Imports unenumerated in this Tariff will pay Duty at the rate of
5 per cent, ad valorem; and the value
upon which Duty is to be calculated shall be the wholesale
market value of the goods in local currency. This market value
when converted into Haikwan Taels shall be considered to be 12
per cent, higher than the amount upon which Duty is to be
calculated.
If the goods have been sold before presentation to the Customs of
the Application to pay Duty, the gross amount of the bonâ fide contract will be accepted as
evidence of the market value. Should the goods have been sold on
c. f. and i. terms, that is to say, without inclusion in the
price of Duty and other charges, such c. f. and i. price shall
be taken as the value for Duty-paying purposes without the
deduction mentioned in the preceding paragraph.
If the goods have not been sold before presentation to the
Customs of the Application to pay Duty, and should a dispute
arise between Customs and importer regarding the value or
classification of goods, the case will be referred to a Board of
Arbitration composed as follows:—
- An official of the Customs;
- A merchant selected by the Consul of the importer;
and
- A merchant, differing in nationality from the
importer, selected by the Senior Consul.
Questions regarding procedure, etc., which may arise during the
sittings of the Board shall be decided by the majority. The
final finding of the majority of the Board, which must be
announced within fifteen days of the reference (not including
holidays), will be binding upon both parties. Each of the two
merchants on the Board
[Page 664]
will be entitled to a fee of Ten Haikwan Taels. Should the Board
sustain the Customs valuation, or, in the event of not
sustaining that valuation, should it decide that the goods have
been undervalued by the importer to the extent of not less than
7½ per cent., the importer will pay the fees; if otherwise, the
fees will be paid by the Customs. Should the Board decide that
the correct value of the goods is 20 per cent, (or more) higher
than that upon which the importer originally claimed to pay
Duty, the Customs authorities may retain possession of the goods
until full Duty has been paid and may levy an additional Duty
equal to four times the Duty sought to be evaded.
In all cases invoices, when available, must be produced if
required by the Customs.
Rule II
The following will not be liable to Import Duty: Foreign Rice,
Cereals, and Flour; Gold and Silver, both Bullion and Coin;
Printed Books, Charts, Maps, Periodicals, and Newspapers.
A freight or part freight of Duty-free commodities (Gold and
Silver Bullion and Foreign Coins excepted) will render the
vessel carrying them, though no other cargo be on board, liable
to Tonnage Dues.
Drawbacks will be issued for Ships’ Stores and Bunker Coal when
taken on board.
Rule III
Except at the requisition of the Chinese Government, or for sale
to Chinese duly authorized to purchase them, Import trade is
prohibited in all Arms, Ammunition, and Munitions of War of
every description. No Permit to land them will be issued until
the Customs have proof that the necessary authority has been
given to the importer. Infraction of this rule will be
punishable by confiscation of all the goods concerned. The
import of Salt is absolutely prohibited.
Rule IV
The importation of Opium and Poppy Seeds is absolutely
prohibited. The importation of the following articles is
prohibited except under bond by qualified medical practitioners,
druggists, and chemists: Morphia and Cocaine and Hypodermic
Syringes; Anti-opium Pills containing Morphia, Opium or Cocaine,
Novocaine, Stovaine, Heroin, Thebaine, Ghanja, Hashish, Bhang,
Cannabis indica, Tincture of Opium,
Laudanum, Codeine, Dionin, and all other derivatives of Opium
and Cocaine.
