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XIII. Foreign merchants purchasing produce up the country must, as soon as the purchase is completed, in person tender at the first inland Customs' barrier (on the route towards the port of shipment) a memorandum showing the amount they have bought, and the port at which it is to be shipped; and a pass being then issued to them by the barrier, this must be viséd at every other barrier along the line, until the produce arrives at the barrier nearest the port, viz., Kiu-kiang or Hankow, where, according to Treaty, it must pay its transit duties; it may then pass the barrier and be shipped.

If foreign merchants having purchased produce inland do not in person tender the memorandum of the goods, the barrier is not authorized to issue a transit duty certificate, and the charges leviable at the different barriers it may pass will have to be paid.

XIV. Native produce carried by foreign merchants from a river port to Shanghae, if it has been purchased up the country by the foreign merchant, will have paid the transit duty at the river port of shipment; proof of payment will have been furnished as it passed the last barrier.

If it should have been purchased at the river port, the inland duties will have been paid by the Chinese who brought it down; so that in either case no (transit) duty need be levied at the river ports. But on arrival at Shanghae, the export duty due at the river port of shipment must be paid, and half-tariff (transit) duty deposited in the Government Bank. In the event of the produce in question being exported to a foreign country within the time allowed (the Customs) shall, when satisfied that the packages remain in their original condition, and that there has been no breakage, removals, part-withdrawals, or change in them, refund the half-duty deposited.

If the goods be sold in Shanghae, or not exported within the time allowed, the half-duty will be carried to the account of duties levied on re-imports; and if they be exported within the time allowed, but be found to have undergone any such changes as above described, a full export duty will be levied on them besides.

XV. (A.) In addition to powder, shot, guns, small arms, and implements of war generally, with saltpetre, spelter, and salt, the carrige of which by foreign merchants is prohibited by the Supplementary Treaty (tariff rules) on the river, oil, hemp, iron, steel, grain, provisions, timber, and copper cash, must be for the time being prohibited articles, and no trade therein or transport thereof permitted along the river; neither are foreigners authorized to buy and sell native craft.

(B.) If foreign merchants hire native craft for the purpose of loading them with goods, they must give notice to their Consuls at Chin-kiang, Kiu-kiang, or Hankow, and the Customs (of the

port in question) will make out (a paper), showing the number of vessels and the number of packages (by them to be conveyed), and without examination of the cargoes will issue a certificate. On arrival at the port of destination, Chin-kiang, Kiu-kiang, or Hankow, as the case may be, the Customs will examine both foreign and native craft, to see whether their numbers and the numbers of the packages correspond (with those stated in the certificate).

If they do not, then, as provided in Article IX, in addition to the infiction of the penalties incurred for breach of Treaty, the foreign vessel concerned will be refused permission to trade any more on the Yang-tze-kiang.

Native craft hired in Shanghae to do trade with Chin-kiang, Kiu-kiang, or Hankow, come under this rule.

(c.) The Chinese Government is at liberty to seize or fire upon foreign vessels unauthorizedly proceeding to places occupied by outlaws, and anchoring off them.

(D.) Native craft entering the river in company with foreign vessels, if not chartered by foreign merchants, are to be dealt with according to Chinese law, nor will it be in the power of foreign merchants to shelter them.

(E.) The payment of the local taxes to which native productions have been for years past subjected, the same not being an extraordinary impost on foreign trade, must not be resisted by Chinese traders on the ground of their dealings with foreign merchants. (In this matter) even less must foreigners interfere. XVI. Same as No. X in printed copy.*

(4.) Regulations (sanctioned by Mr. Bruce) regarding Transit Dues, Exemption Certificates, and Coast Trade Duties.

Peking, October 9, 1861. NOTICE is hereby given, that the following are the arrangements sanctioned by Her Britannic Majesty's Envoy Extraordinary, Chief Superintendent of Trade, &c. &c., regarding Transit Dues, Exemption Certificates, and Coast Trade Duties;

I. Transit Dues.-1. It is at the option of the British merchant to clear foreign imports to an inland market, or native produce to a port of shipment, either by payment of the different charges demanded at the Inland Custom-house, or by one payment of a half-tariff duty as provided in Tariff, rule 7.

2. In the case of native produce, the memorandum to be presented at the first inland barrier may be there deposited by the merchant himself or his agent, native or foreign; but whereas it is alleged that both native and foreign transit dues have been totally

* See Page 100.

evaded by the sale of produce in transitu after entry at a barrier as for shipment at a Treaty port, the memorandum tendered must be in the form of a declaration, signed by the firm or merchant interested, and to the effect that the produce therein specified and entered on date, at barrier for shipment at port, is the property of the undersigned firm or merchant, and that the said firm or merchant engages to pay the half-tariff transit dues thereon.

This form will be provided gratis by the maritime Customs at every Treaty port, and issued on the Consul's application by the Superintendent of Customs.

3. Native produce carried inwards from a port cannot be cleared by a transit duty certificate, whether in charge of native or foreigner; it is liable to all charges imposed on goods in transitu by the Provincial Goverments through whose jurisdiction it passes.

4. Foreign imports not protected by transit duty certificates are liable to the same charges.

5. No transit duty is leviable on foreign imports or native produce carried up or down the Yang-tze-kiang between Shanghae and the ports on that river now open under provisional rules; but foreign imports carried inland from either of these ports, or from the interior to either of these ports, pay foreign or native transit dues, according as they are certificated or uncertificated.

II. Exemption Certificates.-The exemption certificate protects duty-paid foreign imports, re-exported to any port in China, against all further exaction of duty by the Maritime Customs. Native produce carried coastwise must be accompanied by a certificate that the export duty has been paid at the port of shipment; and on leaving the 2nd port for a 3rd or 4th port, by a certificate that the coast-trade duty, as below defined, has been paid at the 2nd port. This latter certificate will be granted by the Customs, if the condition of the produce imported remains unchanged, and will exempt the produce it covers from all further exaction of duty by the Maritime Customs.

III. Coast-Trade Duty.-1. Native produce carried coastwise pays full export duty at the port of shipment; and, at the port of entry, coast-trade duty, the amount of which is declared to be half import duty.

2. If the produce in question be entered at the 2nd port as for re-exportation to a foreign market, the payment of coast-trade duty is to be regarded as a deposit during a term of 3 months, before expiring of which the produce must be reshipped for a foreign port; and the merchant will thereupon immediately recover the amount of the coast-trade duty lodged with the Customs. If the term expire without shipment of the produce, the said amount will be carried to the account of Customs revenue, and the produce, if subsequently shipped to a foreign port, will pay a full export duty.

3. If the produce, though shipped within the term allowed, be found to have been subjected to unauthorized changes of quality, condition, &c., the coast-trade duty lodged will not be returned, and an export duty, as upon all other produce leaving the port, will be levied.

4. If, on the arrival of the produce at the port of entry, loss of the export duty certificate be alleged, the export duty can be lodged with the Customs until the Customs authorities shall ascertain the fact from those of the port of shipment.

5. Native produce, accompanied by a certificate that the coasttrade duty has been paid at the 2nd port, may be carried to any other port or ports in China, without payment of further duty to the maritime Customs.

6. Native produce carried from Shanghae to Hankow, or Kiukiang, or vice versa, pays a full import or export duty, and coasttrade duty. While the river trade continues under the Provisional Rules now in force, these duties will be levied at Shanghae. If the produce in question be entered for re-export to a foreign port, the coast trade duty will be deposited and refunded as provided in clause 2 of this rule.

(5.) Revised Provisional Regulations for British Trade in the Yangtze River.

Peking, October 9, 1861. Of the 10 Articles drawn up in March last, Articles I to VI stand as before.

Articles VII is modified as the Prince of Kung proposes. Articles VIII and IX stand as before, the latter being the last but one of the Regulations.

Articles X, XI, XII, XIII, and XIV, proposed by the prince, are rendered necessary by the notification respecting transit dues, exemption certificates, and coast-trade duties.

Article XV is in part only adopted; British trade in oil, hemp, steel, iron, provisions, timber, and copper cash, and the hire and purchase of native vessels being authorized under the following rules:

(A.) Oil, hemp, steel, iron, provisions, timber, and copper cash, may be transported under the following conditions :

The shipper shall give notice of the quantity he desires to ship, and of the port of its destination, and shall bind himself by a bond, such shipper being agent of a mercantile firm established in China, or, if not so, by a bond, with 2 sufficient sureties, to the value of the quantity shipped, to return, within 3 months from the date of shipment, to the collector at the port of shipment, a certificate to be issued by him, with an acknowledgment thereon of the discharge of the cargo specified at the port of destination, sub

scribed and sealed by the collector at the latter port, or, failing the due return of the certificate, to forfeit a sum equal in value to that of the goods shipped; and the vessel concerned will be deprived of the river-pass, and prohibited from farther trading on the river. (B.) In the case of native junks chartered or purchased by British subjects to convey produce to or from ports on the Yang-tze-kiang, the Customs at the port of departure shall, on application of the Consul, issue to the party concerned a special junk-pass. But the said party must deposit with the Customs a bond, such party being agent of a mercantile firm established in China, or, if not so, a bond, with 2 sufficient sureties, to the value of the vessel and cargo, to return, within 2 months from the date of this bond, to the collector at the port of departure, the junk-pass issued by him, with an acknowledgment thereon, subscribed and sealed by the collector of the port of destination, of the arrival of the junk and discharge of her cargo, or, failing the due return of this certificate, to forfeit the sum specified in the bond, or deposited with the Customs.

Article XVI corresponds with the original Article X, and will stand.*

(6.) The Prince of Kung to Mr. Bruce. Hien-fung, November 20,

1861.

(Translation.)

THE Prince of Kung makes a communication.

The 12 Articles affecting trade on the Yang-tze, together with the 5 Articles affecting trade at the northern and southern ports, which after due deliberation were decided on (or, agreed to) by the Foreign Office, were laid before the Throne, and approved on the 12th instant (14th November).

His Highness has written to the Ministers superintending trade at the northern and southern ports respectively to abide by them in every particular, and it now becomes his duty to enclose copy of each set of Regulations to His Excellency the British Minister, who, he trusts, will direct the British Consuls at the different ports to take action accordingly.

A necessary communication, addressed to the Hon. Mr. Bruce, &c.

Hien-fung, 11th year, 10th moon, 18th day (20th November, 1861).

(7.) Notification of the British Consul.

British Consulate, Shanghae, January 4, 1862. THE undersigned is authorized by His Excellency the Naval

* See Page 672,

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