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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 transhipped 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.
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