"The words nei ti' (inland) in the Clause of Art. VII of the Rules appended to the tariff, regarding carriage of imports inland, and of native produce purchased inland, apply as much to places on the sea coasts and river shores as to places in the interior not open to foreign trade; the Chinese Government having the right to make arrangements for the prevention of abuses thereat."
No fresh modification has been introduced since the Chefoo Convention, as regards articles of ordinary trade. But a special agreement regarding opium was concluded, in 1885, between Lord Salisbury and (the Marquis) Tsong Ki-tze, then Chinese minister in London, in the following terms:--
"It is agreed that foreign opium, when imported into China, shall be taken cognisance of by the Imperial Maritime Customs and shall be deposited in bond, either in warehouses or receiving hulks which have been approved of by the Customs, and that it shall not be removed thence until there shall have been paid to the Customs the tariff duty of Tls. 30 per chest of 100 catties, and also a sum not exceeding Tls. 80 per chest as Lekin.
"It is agreed that, the aforesaid Import and Lekin duties having been paid, the owner shall be allowed to have the opium repacked in bond under the supervision of the Customs and put into packages of such assorted sizes as he may select.
"The Customs shall then, if required, issue gratuitously to the owner a Transit Certificate for each such package, or one for any number of packages, at the option of the owner.
"Such certificate shall free the opium to which it applies from the imposition of any further tax or duty while in transport in the interior, provided that the package has not been opened and that the Customs seals, marks and numbers on the packages have not been effaced or tampered with. Such certificates shall have validity only in the hands of Chinese subjects, and shall not entitle foreigners to convey or accompany any opium in which they may be interested, into the interior.
"The Chinese Government undertakes that when the package shall have been opened at the place of consumption, the opium shall not be subject to any tax or contribution, direct or indirect, other than or in excess of such tax or contribution as is, or may be hereafter, levied on native opium."
Great Britain reserved power to terminate this agreement, at any time, "should the Transit Certificate be found not to confer on the opium complete exemption from all taxation whatsoever while being carried from the port of entry to the place of consumption in the interior," as provided; but no occasion to enforce the right has arisen. The arrangement is understood to have worked satisfactorily.
The allusion made, however, in the concluding sentence of the Convention, to the collection of ulterior duties at the place of consumption, opens up another phase of the question.
The imposts which those who negotiated our early treaties had in view were, evidently, Inland Customs levies en route. But it was soon found that the officials were imposing an additional tax, called Lekin. The practice began, apparently, at the time of the Taeping Rebellion, under the guise of a war tax; and imports were subjected to it even within the precincts of the port. Merchants resented this, contending that it neutralised the Treaty, and that to collect it at the very port of entry amounted to an additional import duty. It would appear from the language of Tseng Kwo-fan's Note that he was disposed to agree with the merchants. Foreign Authorities seem to have found difficulty, however, in challenging what was pleaded as an autonomous right. The battle was, moreover, a difficult one, for the reason that no Chinaman dared give evidence, so that it was difficult to present a specific case. These motives may help to explain the following Clause 1 of the Trade Section of the Chefoo Convention, by which a partial remedy was sought to be applied.
"With reference to the area within which, according to the Treaties in force, Lekin ought not to be collected on foreign goods at the open ports, Sir Thomas Wade agrees to move his Government to allow the ground rented by foreigners (the so-called concessions) at the different ports, to be regarded as the area of exemption from Lekin.
That arrangement was promptly challenged, as constituting an admission pregnant with ulterior danger; and a clause in the Opium Convention (of 1885) reserved it "for further consideration." To declare Lekin inadmissible within the area of the foreign Settlements was, in fact, to admit its legality outside their limits; while its exaction within those limits might be contested as an infraction of existing stipulations. The supposition that goods could be legally subjected to further exaction--not only within the Settlements, but within a larger area--was already precluded by the very title of Import Duty. Would the French, to adopt an apt illustration, think we fairly carried out the treaty under which claret is admitted into London on payment of a given duty, if we levied another 24 per cent. directly it reached the City? The cessation of such a practice was a matter for diplomatic insistence; and would be dearly purchased by the admission proposed. Such an admission would give away, moreover, the whole question of terminal charges. To admit a right of imposing octroi and excise on goods, directly bulk was broken, was to admit a power of neutralising the Treaty by imposing terminal charges equivalent to the Barrier Taxation which the Transit Clause was designed to preclude.
These objections evidently carried weight, not only with our Government but with Foreign Powers. Clause VI of the Convention provided that
"The date for giving effect to the stipulations affecting the exemption of imports from Lekin taxation within the foreign settlements [and the collection of Lekin upon opium at the same time as the tariff duty upon it] will be fixed as soon as the British Government has arrived at an understanding on the subject with other foreign Governments."
But that understanding was never reached. Several of the Powers promptly notified our Government that they would not consent, and the arrangement was dropped.
31, Lombard Street,
31st March.
R. S. GUNDRY.
Page 150
Page 151
14
"The words nei ti' (inland) in the Clause of Art. VII of the Rules appended to the tariff, regarding carriage of imports inland, and of native produce purchased inland, apply as much to places on the sea coasts and river shores us to places in the interior not open to foreign trade; the Chinese Government having the right to make arrangements for the prevention of abuses thereat."
No fresh modification has been introduced since the Chefoo Convention, as regards articles of ordinary trade. But a special agreement regarding opium was concluded, in 1885, between Lord Salisbury and (the Marquis) Tsong Ki-tze, then Chinese minister in London, in the following terms :--
"It is agreed that foreign opiumn, when imported into China, shall be taken cognisance of by the Imperial Maritime Customs and shall be deposited in bond, either in warehouses or receiving hulks which have been approved of by the Customs, and that it shall not be removed thence until there shall have been paid to the Customs the tariff duty of Tls. 30 per chest of 100 catties, and also a sum not exceeding Tls. 80 per chest as Lekin.
"It is agreed that, the aforesaid Import and Lekin duties having been paid, the owner shall be allowed to have the opium repacked in bond under the supervision of the Customs and put into packages of such assorted sizes as he may select.
"The Customs shall then, if required, issue gratuitously to the owner a Transit Certificate for each such package, or one for any number of packages, at the option of the owner.
*Such certificate shall free the opium to which it applies from the imposition of any further tax or duty while in transport in the interior, provided that the package has not been opened and that the Customs seals, marks and numbers on the packages have not been effaced or tampered with. Such certificates shall have validity only in the hands of Chinese subjects, and shall not entitle foreigners to convey or accompany any opium in which they may be interested, into the interior.
*
*
*
*
*
*
*
"The Chinese Government undertakes that when the package shall have been opened at the place of consumption, the opium shall not be subject to any tax or contribution, direct or indirect, other than or in excess of such tax or contribution as is, or may be hereafter, levied on native opium."
Great Britain reserved power to terminate this agreement, at any time, "should the Transit Certificate be found not to confer on the opium complete exemption from all taxation whatsoever while being carried from the port of entry to the place of consumption in the interior," as provided; but no occasion to enforce the right has arisen. The arrangement is understood to have worked satisfactorily.
The allusion made, however, in the concluding sentence of the Convention, to the collection of ulterior duties at the place of consumption, opens up another phase of the question.
The imposts which those who negociated our early treaties had in view were, evidently, Inland Customs levies en route, But it was soon found that the officials were imposing an additional tax, called lekin. The practice began, apparently, at the time of the Taeping Irebellion, under the guise of a war tax; and imports were subjected to it even within the
15
precincts of the port. Merchants resented this, contending that it neutralised the Treaty, and that to collect it at the very port of entry amounted to an additional import duty. It would appear from the language of Tseng Kwo-fan's Note that he was disposed to agree with the merchants. Foreign Authorities seem to have found difficulty, however, in challenging what was pleaded as an autonomous right. The battle was moreover, a difficult one, for the reason that no Chingman dared give evidence, so that it was difficult to present a specific case. These motives may help to explain the following Clause 1 of the Trade Section of the Chefoo Convention, by which a partial remedy was sought to be applied.
"With reference to the area within which, according to the Treaties in force, lekin ought not to be collected on foreign goods at the open ports, Sir Thomas Wade agrees to move his Government to allow the ground rented by foreigners (the so-called concessions) at the different ports, to be regarded as the area of exemption from lekin.
That arrangement was promptly challenged, as constituting an admission pregnant with ulterior danger; and a clause in the Opium Convention (of 1885) reserved it "for further con- sideration." To declare Lekin inadmissible within the area of the foreign Settlements was, in fact, to admit its legality outside their limits; while its exaction within those limits might be contested as an infraction of existing stipulations. The supposition that goods could be legally subjected to further exaction--not only within the Settlements, but within a larger area-was already precluded by the very title of Import Duty, Would the French, to adopt an apt illustra- tion, think we fairly carried out the treaty under which claret is admitted into London on pay. ment of a given duty, if we levied another 24 per cent. directly it reached the City? The cessation of such a practise was a matter for diplomatic insistance; and would be dearly pur- chased by the admission proposed. Such an admission would give away, moreover, the whole question of terminal charges. To admit a right of imposing octroi and excise on goods, directly bulk was broken, was to admit a power of neutralising the Treaty by imposing terminal charges equivalent to the Barrier Taxation which the Transit Clause was designed to preclude.
These objections evidently carried weight, not only with our Government but with Foreign Powers. Clause VI of the Convention provided that
"The date for giving effect to the stipulations affecting the exemption of imports from lekin taxation within the foreign settlements [and the collection of lekin upon opium at the same time as the tariff duty upon it will be "fixed as soon as the British Government has arrived at an understanding on the subject with other foreign Governments."
But that understanding was never reached. Several of the Powers promptly notified our Government that they would not consent, and the arrangement was dropped.
31, Lombard Street,
31st March.
R. S. GUNDRY.
146
Page 150Page 151
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