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toms at the proposed port of importation, who, after careful consideration thereof and any investigation deemed necessary, shall forward the application with his recommendation to the Federal Narcotics Control Board, Treasury Department, Washington, D. C. Such application must state the amount of the stock on hand, the usual requirements for the ensuing six months, and the necessity for the proposed importation.

Upon request, the Collector of Customs may furnish to the applicant a certified copy of the approved application for use under the laws or regulations of the exporting country.

Regulation 5. Procedure on Arrival and Delivery from the Appraiser's Warehouse.--Immediately upon the unlading of crude opium from the importing vessel, the customs officer shall carefully examine the packages, note their condition, seal the packages, and cause them to be transported under customs guard and by bonded cartment to the appraiser's watehouse where they shall be placed in a separate and specially protected inclosure.

The appraiser shall issue such special regulations to his employees as will insure the safe-keeping of the packages while in the warehouse.

No delivery of crude opium to the importer from the appraiser's warehouse shall be permitted until the Deputy Collector of Customs in charge of the building and an assistant appraiser shall be satisfied and so note on the delivery permit after personal examination that the importer has taken all proper precautions for the safe transportation of the crude opium from the appraiser's warehouse to the importer's premises or to the premises of the common carrier if shipment is to be made.

Until otherwise ordered, however, the procedure now followed in the case of shipments of crude opium in bond between the ports designated in regulation 2 for imports will not be disturbed.

Except as specially provided in these regulations, the procedure in the case of coca leaves shall be the same as in the case of merchandise generally.

Regulation 6. Entries.-Crude opium may be entered only for consumption or for transportation in bond between the ports designated in regulation 2 for imports. Entry of either crude opium or coca leaves shall not be permitted unless the application to import has been approved by the Federal Narcotics Control Board nor unless the merchandise has been properly described in the manifest of the importing vessel or carrier.

Coca leaves, however, may be entered either for consumption or warehouse or for transportation in bond to any of the ports designated in regulation 2.

Regulation 7. Importations of Unusual Amounts.- No amount of crude opium or coca leaves which may be imported within any certain period as necessary to provide for medical and legitimate uses only will be fixed by the Board at present, but special explanation of importations of unusual amounts of such articles either in single shipments or in the aggregate will be required and carefully investigated by the Board.

Regulation 8. Reports of Stocks on Hand and Probable Future Requirements.--Importers shall render to the Board, as soon as practicable after December 31 of each year, or oftener if specially required, a report of the stocks or narcotic drugs on hand and an estimate of the probable requirements for medical and legitimate uses for the next year or any other period that may hereafter be specially designated.

(3) Exports Regulation 9. No Exportation Without Previous Approval.—No person shall take out of the United States on his person or in his baggage'or offer to any carrier for transportation out of the United States, nor shall any carrier receive for exportation or export out of the United States, any narcotic drug unless and until an application for permission to export shall have been approved by the Federal Narcotics Control Board.

Regulation 10. Applications.-Applications in triplicate for permission to export narcotic drugs shall be made under oath on an approved form, stating all the material facts, and addressed to the nearest Collector of Customs sufficiently early to permit of orderly procedure and any necessary investigation. With this application, the shipper's export declaration in due form shall also be submitted, together with any import license (and a translation thereof if in a foreign language) or a certified copy of any such license, that may have been issued by the country of destination, or other evidence that the merchandise is consigned to an authorized permittee.

Verification by an American consular officer of signatures on foreign import licenses will not be necessary, if such licenses bear the official seal of the officer signing them.

After careful consideration of such application, and after any investigation deemed necessary, the collector shall forward the application to the Board with his recommendation.

Regulation 11. Labeling of Packages.—In lieu of the marking on the outside of the packages required in the previous regulations (T. D. 38381), the inner packages shall be labeled in a legible and conspicuous manner to show the narcotic character of the contents.

Regulation Opening and Inspection of Packages.—The Collector of Customs may require packages offered for export to be opened and may inspect the contents thereof.

(4) In Transit Shipments Regulation 13. In Transit Shipments Transferred in the United States or Remaining on Board the Transporting Vessel.-Each in transit shipment under section 2, subsec. 5, of the act, will be considered by the Board on its individual merits, but in general the regulations governing exports will be applied so far as practicable, except that the Collector of Customs may permit narcotic drugs, other than smoking opium or opium prepared for smoking, to be retained on board a vessel arriving from a foreign port which are shown on the manifest to be destined to another foreign port.

Articles in transit manifested merely as drugs, medicines, or chemicals, without evidence to satisfy the Collector that they are non-narcotic, shall be detained and subjected at the carrier's risk and expense to such examination as may be necessary to satisfy the Collector whether they are of a narcotic character. With a view to avoiding such inconvenience, the carrier should not accept in transit shipments of such articles unless accompanied by properly verified certificates

of the shippers, specifying the items in the shipment and stating whether narcotic or not.

(5) General Regulation 14. Importations or Exportations by Mail Prohibited.The importation or exportation of narcotic drugs in the regular mails or by parcel post will not be permitted.

Regulation 15. Vessels' Stores.—Collectors may permit narcotic drugs in reasonable quantity and properly listed as medical stores of vessels to remain on such vessels if satisfied that such drugs are adequately safeguarded and used only for medical purposes. Smoking opium or opium prepared for smoking shall be seized, however, whenever and wherever found.

Regulation 16. Custody and Disposition of Narcotic Drugs Forfeited or not Claimed.-All narcotic drugs which are forfeited in proceedings for condemnation, or not claimed as provided by law, or which are summarily forfeited as provided in subdivision (d), subsection 2, section 1, of the act, shall be reported to the secretary of the Board on a form provided by the Treasury Department for that purpose, and retained by the officer reporting the same as custodian for the Board pending their disposition. Two committees, each consisting of three employees of the Treasury Department, shall be appointed by the secretary of the Board, the duties of each of which shall be to examine, weigh, inventory, and destroy such drugs as he may direct. Each committee shall make report to the secretary of the Board of all such drugs destroyed immediately upon completing such destruction.

Regulation 17. Violations of the Law to be Reported.-Collectors of Customs shall report to the United States attorney and to the Board any violations of jie law which they may discover.

Regulation 18. Compliance with Other Laws and Regulations Applicable is Necessary.—All regulations of or action by the Board is subject to the provisions of the customs, internal revenue, and other laws and regulations applicable.

Regulation 19. Emergency Regulations Superseded.—These regulations supersede the emergency regulations published in T. D. 39154, of June 12, 1922.

Regulation 20. Previous Licenses Valid.-Authorization to import or export issued prior to the taking effect hereof by the Division of Customs, Treasury Department, under the provisions of the regulations published in T. D. 39154, of June 12, 1922, will continue valid. 6. Publication

The Board issues a pamphlet of 10 pages, "The Narcotic Drugs Import and Export Act,” obtainable from the Superintendent of Documents, Government Printing Office, Washington, at five cents each. 7. Inquiries Address inquiries to Federal Narcotics Control Board, Washington, D. C.

681

CHAPTER 67

UNITED STATES SHIPPING BOARD

1. Origin and Mission

The United States Shipping Board was established by the Shipping Act of 19161 for the purpose of encouraging, developing, and creating a naval auxiliary and naval reserve and a merchant marine to meet the requirements of the commerce of the United States with its territories and possessions and with foreign countries, and to regulate carriers by water engaged in the foreign and interstate commerce of the United States.

2. History

The Shipping Act of 19161 created the United States Shipping Board, consisting of five members, to be appointed by the President, and authorized such board, with the President's approval, to have constructed and equipped in American shipyards and navy yards, or elsewhere, giving preference to domestic yards, or to purchase, lease, or charter, vessels suitable, "as far as the commercial requirements of the marine trade of the United States may permit, for use as naval auxiliaries or Army transports, or for other naval or military purposes, and to make necessary repairs on and alterations of such vessels,” with certain limitations. The act also authorized the Shipping Board to form under the laws of the District of Columbia “one or more corporations for the purchase, construction, equipment, lease, charter, maintenance, and operation of merchant vessels in the commerce of the United States," with capital stock not to exceed $50,000,000.

The board was further charged to investigate ship construction, domestic and foreign, marine insurance, the navigation laws of the United States with rules and regulations thereunder with a view to recommending amendments thereof, and the legal status of mortgage loans on vessels with a view to "improving the security” of such loans.

The board was charged with the determination of whether any person, not a citizen of the United States and engaged in transportation by water:

(a) Has violated any provision of section 14 of the act in regard to rebates, use of "fighting ships," retaliation against shippers, or unjust or unfair discrimination; or

(b) Is a party to any combination, agreement or understanding involving deferred rebates or any other unfair practice designated in said section 14, in such transportation, and that excludes from admission upon equal terms with all other parties thereto, a common carrier by water which is a citizen of the United States and which has applied for such admission.

The board was empowered to disapprove, cancel or modify any agreement, or any modification or cancellation thereof, whether or not previously approved

1 Act Sept. 7, 1916 (39 Stat. 728).

by it, that it finds unjustly discriminatory or unfair as between carriers, shippers, exporters, importers, or ports, or between exporters from the United States and their foreign competitors, or to operate to the detriment of the commerce of the United States, or to be in violation of the act, and to approve all other agreements, modifications or cancellations thereof.

The board was empowered to alter any rate, fare, or charge demanded by any common carrier by water in foreign commerce which is discriminatory between shippers or ports, or unjustly prejudicial to exporters of the United States as compared with their foreign competitors, and to make an order demanding discontinuance of such discriminatory or prejudicial rate, fare, or charge.

The board was given similar power with reference to prescribing reasonable regulations.

Similar powers were bestowed as to interstate commerce by water.

The board was required, upon complaint, to investigate the action of any foreign government with respect to privileges afforded and burdens imposed upon vessels of the United States engaged in foreign trade whenever it appears that the laws, regulations, or practices of any foreign government so operate as to deny to vessels of the United States equal privileges in foreign trade with vessels of such foreign countries or other foreign countries either in trade to or from the ports of such foreign country or in respect to the passage or transportation through such foreign country of passengers or goods intended for shipment or transportation in such vessels of the United States, either to or from ports of such foreign country or to or from ports of other foreign countries, to the end that, by suitable recommendations to the President, equal privileges in these matters may be secured by diplomatic action.

The board is empowered by subpoena to compel the attendance of witnesses and the production of books, etc.

The act prohibited, while the United States is at war or during a national emergency, the transfer or placing under foreign registry or flag any vessel owned in whole or in part by any citizen of the United States, including a corporation, or in any wise the disposal of control, to any one not a citizen, of any such vessel or any vessel documented under the laws of United States, or any shipyard, dry dock, ship-building or ship-repairing plant or facilities, or the entry into any agreement for the construction within the United States of a vessel for any one not a citizen of the United States during the war or emergency, or the entry into any agreement vesting in any one not a citizen of the United States the controlling interest or the majority voting power in a corporation organized under the laws of the United States or of any state, territory, or district or possession thereof, and which owns any vessel, shipyard, dry dock or ship-building or ship-repairing plant or facilities, or the causing or aiding any vessel constructed in whole or in part in the United States, which has never cleared for a foreign port, to depart from a port of the United States before it has been documented under the United States laws, without the approval of the board.

The President by proclamation a declared the national emergency, contemplated in the act, to exist on February 5, 1917.

2 39 Stat. 1815.

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