CONSULAR
INVOICES.

(Con.)

MARKING OF
GOODS.

BILLS OF
LADING.

SHIPMENTS
IN BOND.

IMPORT TRAFFIC

States importer. Consular invoices are prepared in sets of four, the original and triplicate being retained by the Consul and the duplicate and quadruplicate handed to the shipper. These should be sent promptly to consignee. Invoices should itemize contents case by case to facilitate passing through U. S. Customs, i. e., packages should be numbered and the number mark and contents of each separately shown on invoices. The U. S. Customs tariff act at present in effect also stipulates that invoices for imported merchandise shall show:

The Port of Entry to which the merchandise is destined.

The time when, the place where, the person by whom and the person

to whom the merchandise is sold or agreed to be sold.

A detailed description of the merchandise.

The weights and measures of the country from which shipped. The purchase price of each item in the currency of the purchase. The U. S. Customs tariff is intricate and invoices cannot be in too great detail. Frequently lack of sufficient information will result in higher duties.

United States Customs laws require that all imported articles must have the name of the country of origin legibly marked in a conspicuous place. Containers, i. e., cartons, wrappers, cases, etc., must be marked with country of origin. A penalty is assessed when these requirements are not complied with, hence it is advisable to specially mention same when ordering goods. The United States railroads require that all packages be marked with full name of consignee and city of destination. When packages for interior destinations are received from abroad with abbreviations or blind marks the railroads amplify the marks as per shipping instructions and make a charge of 15 cents per package for so doing.

Bills of lading are issued at foreign point of shipment, usually in sets of three to conform with the regulations of the Steamship Company and the United States Customs Regulations. In no case is there less than two copies required, as one is required by the Collector of Customs at port of entry, and the other by the Steamship Company. In case bills of lading are delayed or missing, release can only be arranged against bank guarantee or if shipment is consigned "to order" a bond of indemnity. The guarantee or bond must be for 150% of invoice value. When bills of lading come to hand the Collector of Customs will issue an acknowledgment as evidence that liability under the guarantee or bond has ceased.

When goods are "in bond" they are under the control and ownership of the United States and remain so until cleared from Customs. For convenience of importers and to avoid congestion at seaports, the Government maintains Custom Houses and Collectors of Customs at many of the large interior cities. Railroad and Express carriers file a bond with the Treasury Department obligating themselves to deliver at "interior port of entry" (as such interior Custom Houses are designated in Customs parlance) only upon an "order" or "release" of the United States Collector of Customs, shipments which they transport "in bond" to interior points.

Goods to be transported "in bond" to interior should be consigned by foreign. shipper, both on consular invoice and bills of lading, "In Bond to

It will facilitate prompt delivery to have shipments so consigned, as the release of the goods at interior Custom Houses is usually accomplished in much less time than is possible at the congested Custom Houses at the seaboard.

To move goods "in bond" to "interior ports of entry," it is necessary for the carriers to make a simplified form of entry, commonly called "I. T." entry, meaning

SHIPMENTS IN

BOND.

(Con.)

GENERAL
ORDER

GOODS HELD

IN BONDED
WAREHOUses.

APPRAISER'S
STORES.

TARIFF ACT
OF 1922.

IMPORT TRAFFIC

"Immediate Transportation Entry." This simplified form of entry permits immediate transportation of the goods to an interior port of entry. A nominal charge is made for the Customs Entry.

When goods are not properly covered within a period of forty-eight hours after time the ship reports to the Collector of Customs, such goods are transferred from the ship to a bonded warehouse, which operation is for the purpose of promptly unloading vessel, and is known as "general order." In other words, "General Order" is a fixed rule that all goods will be stored in a bonded warehouse unless "entered" within the time specified in the Regulations of the Customs Department.

"Bonded" Warehouses are warehouses which give bonds to the U. S. Treasury Department to secure agreement to release merchandise only upon an order of U. S. Collector of Customs.

Entire lots or part lots of import shipments may be held in bonded warehouse for later payment of duties. To secure this privilege an "Entry for Warehouse" must be made. This is also a more simple and expeditious procedure than the so-called "duty paid" or "consumption entry."

Goods entered for warehousing in bond may be withdrawn from time to time in part lots, or total consignment may be withdrawn. When goods are held in bonded warehouses under an "Entry for Warehouse," goods are appraised at the time they enter the bonded warehouse; and when withdrawn from the warehouse, in whole or in part, the duty is paid at the time of withdrawal. In all cases where goods are placed in bonded warehouses the owner or importer should see that such goods are placed in a bonded warehouse that offers the minimum of costs. One of the important features of minimizing costs is to make a comparison between bonded warehouses as to insurance rates as well as storage and trucking charges.

Appraiser's Stores are established by the Customs Department at seaports and interior ports of entry, at which stores appraisers examine import goods for the purpose of determining the proper duty that should be assessed. A certain portion of each and every incoming consignment is required to move from the vessel to the appraiser's stores on bonded trucks. An examination is made of the merchandise by appraisers before the owner or importer has access to same. The appraiser's finding is reported to the Collector of Customs, indicating the character of the goods; however, in many cases, the Appraiser does not examine each and every package, but takes a representative portion of the consignment to the Appraiser's Store for examination, and then reports to the Collector of Customs, who applies duty on the complete consignment.

The Tariff Act of 1922 provides for the entry of certain kinds of goods free of duty, or, as commonly known, goods or articles on the "free list." In such cases, as a matter of precaution, an examination is made at the Appraiser's Stores, and if the examination confirms that such goods are on the "free list" they are delivered to the importer, or his representative, but if through mis-discription such goods are dutiable then the value is determined and the duty assessed by the Collector of Revenue.

The Tariff Act of 1922 (enacted September 21st, 1922) contains many important features that did not exist in the previous Tariff Act. In addition the Act, which is commonly known as a Protective Tariff Measure, materially increased the percentage of duty on a large number of articles that are imported into the United States; it also had the effect of adding duties to many articles that were previously on the "free list."

TARIFF

IMPORT TRAFFIC

Heretofore the duties as specified in the Custom Tariffs were fixed and could not be changed except by an Act of Congress. The creation of a United States Tariff Commission was authorized by the Tariff Act of September 21, 1922. This commission was subsequently appointed by the President. The United States Tariff Commission is authorized to investigate on its own initiative or on complaint, unfair methods of competition and unfair acts in the importation of articles into the United States or in their sale by the owner, importer, consignee or agent of either, the effect or the tendency of which is to destroy or substantially injure an industry in the UNITED STATES United States, or monopolize trade and commerce in the United States. Such are COMMISSION. declared by the recent tariff act (September 1922) to be unlawful, and when the existence of an unlawful condition or situation is established to the satisfaction of the President, he shall determine according to law, the rate of additional duty which will offset such method or act. If the President (probably assisted by the United States Tariff Commission) shall find extreme cases of unfair acts or methods, he shall direct that such articles imported by any person violating the provisions of the Tariff Act of September 1922, shall be excluded from entry into the United States. The United States Tariff Commission is also charged with the duty to ascertain and at all times to be informed as to whether any discrimination against the commerce of the United States is practiced by any foreign country. (Sections 315-316, Tariff Act of 1922.)

DISCRETION
RESTING WITH

PRESIDENT OF
UNITED STATES

The United States Tariff Commission has been in existence for a number of years, but their functions and activities did not become important until the "Valuation Clause" became a law through the enactment of the Tariff Act of 1922. Section 315-a Tariff Act of 1922, provides that whenever the President, upon investigation of the differences in costs of production of articles wholly or in part the growth or product of the United States and of like or similar articles wholly or in part the growth or product of competing foreign countries, shall find it thereby shown that the duties fixed in the Tariff Act of September 21, 1922, do not equalize the differences in cost of production in the United States and the principal competing country, he shall, by such investigation, ascertain such differences and determine and proclaim the changes in classifications or increases or decreases in any rate of duty provided in the Act of September 1922, shown by said ascertained differences in such costs of production necessary to equalize the same. Thirty days after the date of such proclamation or proclamations, such changes in classification shall take effect, and such increased or decreased duties shall be levied, collected, and paid on such articles when imported from any foreign country into the United States, provided, that the total increase or decrease of such rates of duty shall not exceed 50 per centum of the rates specified in the Act of 1922 or in any amendatory act. The President, upon investigation of the differences in costs of production of articles provided for in the Act of September 21, 1922, wholly or in part the growth or product of the United States and of like or similar articles wholly or in part the growth or product of competing foreign countries, is also authorized to proclaim that ad valorem duty shall be based upon the American selling price. (See Section 10 f-"Value of Imported Merchandise.")

Under such regulations as the Secretary of the Treasury may prescribe, the Collector or the Appraiser may require a verified statement from the manufacturer or producer showing the cost of production of imported merchandise, when necessary to the appraisement of such merchandise.

FOREIGN TRADE DEFINITIONS

AMERICAN
FOREIGN
TRADE

DEFINITIONS

AND RECOM-
MENDATIONS

AMERICAN FOREIGN TRADE

DEFINITIONS and RECOMMENDATIONS

The following American Foreign Trade Definitions and Recommendations were adopted at a conference participated in by the National Foreign Trade Council, Chamber of Commerce of the U. S. A., National Association of Manufacturers, American Manufacturers' Export Association, Philadelphia Commercial Museum, American Exporters' and Importers' Association, Chamber of Commerce of the State of N. Y., N. Y. Produce Exchange and N. Y. Merchants' Association, held in India House, N. Y., on December 16, 1919.

As the most certain means of insuring unmistakable clarity in terms and conditions of sale, the Conference voted to recommend to manufacturers and exporters that all use of abbreviated forms of export price quotations be abandoned, and that such terms be written out in full.

The Conference recognized, however, that this recommendation is not likely to be accepted generally at once; and therefore, in the hope of effecting a simplification and standardization of American practice, it adopted the following statement of definitions of the abbreviated forms in more common and general use in the export trade. The Conference strongly recommends to manufacturers and exporters that wherever abbreviated forms of export quotations are employed, the forms herein defined be used, as far as possible, to the exclusion of other forms.

These are, in their order, the normal situations on which an export manufacturer or shipper may desire to quote prices. It is understood that, unless a particular railroad is specified, the property will be delivered to the carrier most conveniently located to the shipper. If the buyer, for the purpose of delivery, or in order to obtain lower transportation charges, desires that the goods be delivered to a carrier further removed from the shipper and entailing a greater cost than delivery to the carrier most favorably situated, the carrier to which the buyer desires delivery of the goods should be named in the quotation. The term "cars or lighters," as used herein, is intended to include river, lake or coastwise ships, canal boats, barges, or other means of transportation, when so specified in the quotation. 1. When the price quoted applies only at inland shipping point and the seller DEFINITIONS OF merely undertakes to load the goods on or in cars or lighters furnished by the railroad company serving the industry, or most conveniently located to the industry, without other designation as to routing, the proper term is:

EXPORT
QUOTATIONS

"F. O. B. (named point)"

Under this quotation:

A. Seller must

(1) place goods on or in cars or
lighters

(2) secure railroad bill of lading
(3) be responsible for loss and/or

damage until goods have been
placed in or on cars or lighters at
forwarding point, and clean bill
of lading has been furnished by
the railroad company.

B. Buyer must

(1) be responsible for loss and/or
damage incurred thereafter
(2) pay all transportation charges,
including taxes, if any

(3) handle all subsequent move-
ment of the goods.

FOREIGN TRADE DEFINITIONS

2. When the seller quotes a price including transportation charges to the port of exportation without assuming responsibility for the goods after obtaining a clean bill of lading at point of origin, the proper term is:

"F. O. B. (named point) FREIGHT PREPAID TO (named point on the seaboard)”

3. Where the seller wishes to quote a price, from which the buyer may deduct the cost of transportation to a given point on the seaboard without the seller assuming responsibility for the goods after obtaining a clean bill of lading at point of origin, the proper term is:

"F. O. B. (named point) FREIGHT ALLOWED TO (named point on the seaboard)"

4. The seller may desire to quote a price covering the transportation of the goods to seaboard, assuming responsibility for loss and/or damage up to that point. In this case, the proper term is: