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(c) Foreign goods under Chinese Customs exemption certificate, landed at Hong Kong from one treaty port for transhipment to another treaty port must be transhipped so as to reach their treaty port destination within a time limit of one year from the date of issue of such exemption certificate. Should such goods fail to reach their treaty port destination within such time limit they shall on arrival be held liable to import duty.
(d) Chinese
goods under Chinese Customs documents, landed at Hong Kong from one treaty port for transhipment to another treaty port, must be tran- shipped so as to reach their treaty port destination within three months from the date of the original shipment. Should such goods fail to reach their treaty port destination within such time limit they shall on arrival be regarded as having lost their native status and be treated accordingly.
(e) In special cases, foreign or Chinese goods passing through Hong Kong, in transit from one treaty port to another, may, on permission first being obtained from the Chinese Maritime Customs, be allowed to be sold in Hong Kong. Foreign goods thus sold, if under exemption certificate, shall be entitled to drawback of the duty originally paid to the Chinese Maritime Customs, according to the regulations governing the issue of drawbacks on foreign cargo.
ARTICLE X.
For the better prevention of smuggling across the land frontier of the Colony the Hong Kong Government will select in consultation with the Commissioner of the Chinese Maritime Customs certain places of entry for goods or livestock.
Whenever it is found that any goods or livestock have been brought across the land frontier of the Colony from China unaccompanied by proper Customs documents the Hong Kong Government will seize such goods or livestock as security for the payment of such dues as may be mutually agreed upon. If such dues are not paid the Hong Kong Government shall be entitled to recover them on behalf of the Chinese Maritime Customs by proceedings against the owner or by sale of the goods or livestock.
ARTICLE XI.
(a) The Chinese Maritime Customs will take active steps to prevent the illicit entry into the Colony from China of intoxicating liquor, opium, compounds of opium, morphine, and tobacco and will co-operate with the Hong Kong Government in controlling the traffic in these articles by sea and by land.
(b) The Hong Kong Government will continue to take active steps to prevent the illicit entry into China of arms and munitions of war, and will co-operate with the Chinese Government in controlling the traffic in such articles by sea and by land.
ARTICLE XII.
For the promotion of accurate knowledge and in the interests of the Chinese revenue the Hong Kong Government will, so far as the conditions of the free port admit of it, collect and publish statistics of imports and exports.
ARTICLE XIII.
Office and warehouse accommodation for the examination and storage of goods carried by the Kowloon-Canton Railway and for the payment of duties thereon will be provided at reasonable rates by the Hong Kong Government. Such duties will be collected by the Chinese Maritime Customs under regulations to be mutually agreed upon, under the following general conditions :—
(a) Goods leaving Kowloon for China by train stopping at no intermediate station
in British territory shall pay Customs import duty prior to departure.
(b) Goods arriving at Kowloon from China uncovered by Customs documents shall
pay Customs export duty prior to release.
(c) Goods leaving Kowloon by train that stops at intermediate stations in British territory and goods placed on the train at stations in British territory other than the Kowloon Station may pay duty either at Kowloon or at the Chinese frontier station at Shumchun.
(d) Goods not covered by Customs documents, which leave Shumchun for stations in British territory other than the Kowloon Station, shall pay duty at Shum- chun.
ARTICLE XIV.
It is agreed that for purposes of payment of duty and dues to the Chinese Maritime Customs in Hong Kong the rate of exchange between the Haiknan tael and Hong Kong currency shall not be at less favourable rate than the rate in force in the Canton Custom House.
ARTICLE XV.
If in any application to the Chinese Maritime Customs in Hong Kong a false declara- tion is made regarding quantity, quality, nature, or value of any dutiable goods or articles carried or intended to be carried by rail, launch, junk, or other means, the Govern- ment of Hong Kong shall, upon request being made by the Chinese Maritime Customs, seize the goods or articles in respect of which such false declaration has been made as security for the payment to the Chinese Maritime Customs of such dues as would be payable under the regulations of the Chinese Maritime Customs if the seizure had taken place in China. If such dues are not paid the Hong Kong Government shall be entitled to recover them on behalf of the Chinese Maritime Customs by legal proceedings against the owner or legal against the goods or articles. The person who made the false declaration shall also be liable upon conviction at the prosecution of the Hong Kong Government to a fine and imprisonment.
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