MEMORANDA BY THE SECRETARY OF CUSTOMS ON DRAWBACKS UNDER THE CUSTOMS REGULATION ACT.

Appendix to the Journals of the House of Representatives, 1871 Session I, G-25

G.—No. 25

MEMORANDA BY THE SECRETARY OF CUSTOMS ON DRAWBACKS UNDER THE CUSTOMS REGULATION ACT.

PRESENTED TO BOTH HOUSES OF THE GENERAL ASSEMBLY, BT COMMAND OE HIS EXCELLENCY.

WELLINGTON.

1871.

G.—No. 25.

Wellington, 4th November, 1871. The object of the proposed addition to the drawback clause, I suppose, is to enable exporters to ship away from the warehouse under-bond goods in smaller packages than those in which they arc usually imported. If this be the object, the amendment is not necessary, as the provisions of section 91 of " The Customs Regulation Act, 1858/' enable this to be done. It allows owners of goods in bonded warehouses " to sort, separate, pack, and repack any goods, and to make such alterations therein as may be necessary for the preservation, sale, shipment, or disposal of them. Such goods to be repacked in the packages in which they were imported, or in such other packages as the Commissioner shall permit." Goods are at present constantly repacked in the warehouse, both for removal under bond from port to port in New Zealand, and for exportation. The Hon. Mr. Vogel. W. Seed. Wellington, 6th November, 1871. In the United Kingdom, drawback is only allowed on the following five articles, viz. :—On Beer, Coffee roasted, shipped as stores or removed to the Isle of Man for home use, Plate of Gold or Silver wrought in the United Kingdom, Sugar refined in the United Kingdom, Tobacco manufactured in the United Kingdom (not being Cavendish or Negrohead Tobacco manufactured in bond), upon which the duties have been paid, when exported by any licensed manufacturer, or deposited in any Bonded Warehouse for Ships' Stores, packed in complete cases, each containing not less than 80 lbs. net weight. In Victoria, drawback is only allowed on seven articles, viz. : —On Coffee, Chicory, Tea, Sugar, Wine, Bice, and Hops. In the United States of America, drawback is allowed on warehoused goods which have paid duty, but have not been removed from the bonded warehouse. They must have remained in the uninterrupted custody of the Officers of Customs, and be exported directly from such custody. A deduction of 1 per cent, is made when the duties are returned. Drawback is also allowed on articles wholly manufactured of imported materials, on which duties have been paid, on exportation, equal in amount to the duty paid on such imported materials, less 10 per cent, thereof. In New South Wales, drawback is allowed on all articles except Spirits and Tobacco. The Regulations, however, are very strict: for not only must the goods be in original packages, but in the case of general merchandise, they must have remained unopened from the time when they were first imported. In New Zealand, under the clause now added to the Tariff Amendment Bill, tlic Drawback Regulations will be infinitely more liberal than those of the United Kingdom, of Victoria, or of the United States of America, and will, practically, be as liberal as those of New South Wales ; as, besides Spirits and Tobacco, only a few articles (and those are such as are largely produced and manufactured in the Colony, viz. Ale and Beer, Bacon, Hams, Cheese, Biscuits, Cordage, Soap, Leather, Beef and Pork salted, Coffee roasted and ground,) will be excluded from the privilege of being exported for drawback. In the United Kingdom, in Victoria, and in New South Wales, as also in this Colony, goods may be sorted, separated, packed, repacked, or altered in the warehouse, for convenience of sale, preservation, or shipment. Goods are constantly repacked in the warehouse, both for home consumption and for removal coastwise, or for exportation under bond: the only limitation being, that the packages must not be less for exportation than those in which they can be legally imported. It will therefore be seen, that there is no necessity for the proviso on this head, which has been proposed to be added to the drawback clause above referred to. I ought, perhaps, to mention, in connection with the Repacking and Drawback Regulations, that in Victoria the shipment of drawback goods is attended to by special officers, who have to be paid by the exporting merchant. Special officers, also paid by the merchants, are appointed to superintend the repacking of goods in the warehouse. In New Zealand no charges are made by the Customs for these services. The Hon. Mr. Vogel. W. Seed.

MEMORANDA ON DRAWBACKS, BY THE SECRETARY AND INSPECTOR OF CUSTOMS.