Directory_and_Chronicle_1913 — Page 91

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THE BRITISH COMMERCIAL TREATY WITH CHINA

less than one year from date of payment of duty, shall free the goods from all taxation, examination, delay, or stoppage at any other Native Custom-houses passed en route. If the goods are taken to a place not in the foreign settlements or concessions of an Open Port, for local use, they become there liable tɔ the Consumption Tax described in Section 8.

If the goods are shipped from an Open Port, the certificate is to be acceptel by the Custom-house concerned, in lieu of the Export Surtax mentioned in Section 7.

Junks, boats, or carts shall not be subjected to any taxation beyond a small and reasonable charge, paid perio lically at a fixed annual rate. This does not exclude the right to levy, as at present, tonnage (Chuan Chao) and port dues (Chuan Liao) on junks.

Section 4.-Foreign opium duty and present lekin which latter will now become a surtax in lieu of lekin -shall remain as provided for by existing Treaties.

Section 5.-The British Government have no intention whatever of interfering with China's right to tax native opium, but it is essential to declare that, in her arrangements for levying such taxation, China will not subject other goods to taxation, delay, or stoppage.

China is free to retain at important points on the borders of each province-either on land or water-offices for collecting duty on native opium, where duties or contribu- tions leviable shall be paid in one lump sum; which payment shall cover taxation of all kinds within that province. Each cake of opium will have a stamp affixed as evidence of duty payment. Excise officers and police may be employed in connection with these offices; but no barriers or other obstructions are to be erected, and the excise officers or police of these offices shall not stop or molest any other kinds of goods, or collect taxes thereon.

A list of these offices shall be drawn up and communicated to the British Govern- ment for record.

Section 6.—Lekin on salt is hereby abolished and the amount of said lekin and of other taxes and contributions shall be added to the salt duty, which shall be collected at place of production or at first station after entering the province where it is to be consumed.

The Chinese Government shall be at liberty to establish salt reporting offices at which boats conveying salt which is being moved under salt passes or certificates may be required to stop for purposes of ex umination and to have their certificates risél, but at such offices no lekin or transit taxation shall be levied and no barriers or obstructions of any kind shall be erected.

Section 7.--The Chinese Government may recast the Export Tariff with specific duties as far as practicable on a scale not exceeding five per cent. ad valorem; but existing export duties shri not be raised until at least six months' notice has been given.

In cases where existing export duties are above five per cent. they shall be reduced to not more than that rate.

An additional special surtax of one half the export duty payable for the time being, in lieu of internal taxation and lekin, may be levied at time of export on goods exported either to foreign countries or coastwise.

In the case of silk, whether hand or filature recled, the total export duty shall not exceel a specific rate equivalent to not more than five per cent, ad valorem. Half of this specific duty may be levied at the first Native Custom House in the interior which the silk may pass and in such case a certificate shall be given as provided for in Section 3, and will be accepted by the Custom-house concerned at place of export in lieu of half the export duty. Co oons passing Native Custom-houses shall be liable to no taxation whatever. Silk not exported but consumed in China is liable to the Con- sumption Tax mentioned in Section 8.

Section 8.-The abolition of the lekin system in China and the abandonment of all other kinds of internal taxation on foreign imports and on exports will diminish the revenue materially. The surtax on foreign imports and exports and on coastwise exports is intended to compensate in a measure for this loss of revenue, but there

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