CO129-531-15 Chinese customs- proposed agreement with Hong Kong 9-7-1931 - 17-1-1932 — Page 129

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goods ex-exported in their original packages within three

years of the date of importation received, on complying with

certain formalities, drawback certificates entitling them to

a refund of the import duty paid at the port of entry into

China. A similar privilege was accorded to native goods

re-exported abroad within one year from the date of importation

in respect of coast trade duty paid at Shanghai or other port.

The term "re-exportation abroad" was held to apply not merely

to foreign countries, but also to the ports of Dairen and

(until its restoration to China) Tsingtao, as having a foreign

status. With the abolition of the Coast Trade duties, the

need for drawbacks on native cargo re-exported abroad

disappeared, and the Chinese Government decided to withdraw

also the similar privilege hitherto accorded to foreign imports.

As regards the effect of this withdrawal on foreign trade generally, enquiries made by the Commercial Counsellor to this Legation amongst Shanghai merchants led to the conclusion that

it was not likely to be serious; no very great importance

appeared to be attached to the abolition of the drawback

system, the position being apparently that re-exports of duty-

paid cargo to foreign countries were negligible. While

I have no information ar to the particular position of Hong Kong in regard to this point of the re-export abroad of foreign imports, it would not seem therefore that the elimination of the provision for such drawbacks in Article

XVI (d) is likely to have any serious consequences.

I have the honour to be,

Sir,

Your Excellency's obedient servant,

(Sd). E.M.B. Ingram.

In the absence of H.M. Minister.