CO129-531-15 Chinese customs- proposed agreement with Hong Kong 9-7-1931 - 17-1-1932 — Page 27

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year, was that foreign gooda re-exported abroad in their

original packages within three years of the date of import-

ation received, on complying with certain formalities,

drawback certificates entitling them to a refund or 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 Thina) Tsingtao, as

having #foreign status.

Trade davies, the need for drawbacks on native cargo re-

exported abroad disappeared, and the Chinese Government

decided to withiraw also the similar privilege hitherto

accorded to foreign imports. As regards the effect of

this withdrawal on foreign trade generally, eiquiries

made by the Commercial ounsellor 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 a parent ly that re-exports of duty-

paid cargo to foreign countries were negligible. Chile

I have no information as to the particular position of

Hongkong in regard to this point of the re-export abroad

ith the abolition of the Coast

/of