British areas generally are not as exacting in regard to invoices as certain other foreign countries, notably the Latin American areas, but, even in most British territories, it is necessary to fill in all the items specified on the prescribed form of invoice. The forms vary from area to area, though frequently they may be very similar. The exporter must, therefore, supply himself with the exact form specified for the region to which each shipment goes. These variations of the required forms have been outlined under the different dominions, territories, colonies, etc., treated in this bulletin, and a facsimile of the necessary documents1 for each is shown at appropriate places in the text.

No consular visa is required on documents covering shipments to any part of the British Empire.

In connection with the recent extension of preference between the various parts of the British Empire, some of the various smaller areas are now requiring a statement on the prescribed invoice form certifying as to origin necessary even when the goods are of nonBritish origin.

"To order" bills of lading are commonly used throughout the British Empire and are protected under the laws of the different dominions, colonies, and protectorates. The general advice is that this form of bill of lading be endorsed in blank and not " to order of the consignee ", since in the event of dishonor of the draft, it may be difficult to obtain a discharge of the bill of lading.

American goods are subject to the general or highest tariff rates in all British areas having more than one scale of duties. There is, therefore, no disadvantage of any higher rates of duty when goods are shipped indirectly, via the ports of another country.

DUTIABLE VALUE

The valuation of goods is probably the most important point to scrutinize when preparing documents for British destinations, especially for the dominions. Since most of the duties are levied according to the value in most of these areas, what constitutes “value of goods" is of prime importance.

The value upon which the duties are assessed varies considerably throughout the Empire. In most cases the "home market " or "domestic" value prevailing in the country of origin is taken, but with somewhat different definitions of that value, with the cost of packing and delivery to the importing vessel frequently also included. To illustrate the range of definitions of home market value in the various British areas, the Union of South Africa defines the value as the market price at which, at time of exportation, such or similar goods are offered for sale for consumption in the country whence exported, to all purchasers in the usual wholesale quantities in the ordinary course of trade in the principal markets", etc.; while in Australia, 66 domestic value" is the amount for which the seller of the goods to the Australian purchaser is selling or is prepared to sell for cash at the date of exportation the same quantity of iden

66

1 Forms for the different areas are obtainable from Unz & Co., 24 Beaver Street, New York City, Thomas Groome & Co., Inc., 105 State Street, Boston, or any other stationer specializing in shipping forms; or they may be printed locally if the form is followed exactly.

tically similar goods to any and every purchaser in the country of export for consumption in that country. Thus, a special reduction in price to quantity buyers is recognized for duty purposes in Australia, but not in the Union of South Africa. On the other hand, the United Kingdom bases its ad valorem duties on substantially the c.i.f. value plus certain landing charges, and a few other areas, including the Irish Free State, use the straight c.i.f. value of imports for customs purposes.

The allowances for discounts vary in different areas. In Canada, for instance, no discount or deduction is allowed which is not shown, allowed, and deducted on invoices covering sales for home consumption in the country of export, in the usual and ordinary course of trade, and cash discounts are not allowed to be deducted in any case; while in New Zealand, no deduction is allowed because of any special arrangement concerning the exportation of the goods or because of the exclusive right to their sale within a certain territory, or any other consideration by which a special reduction in price may be obtained.

In the United Kingdom there is no specific regulation regarding discounts, but the customs will not allow discounts greater than they may consider reasonable for the particular goods involved. Generally, such discounts must be in accordance with, or similar to, discounts allowed on similar goods in the British markets.

A full definition of value is found under each area in the body of the text of this handbook.

SPECIAL OR DUMPING DUTIES

Most of the Dominions have enacted antidumping provisions, in the interests of the Treasury revenue and as protective measures to local industries. In all of these, importations at prices below those prevailing in the market of origin that operate to the detriment of local industries are liable to the imposition of additional or dumping duty equal in amount to that difference. When these conditions are not all present, the practice varies. In Canada, additional or dumping duty may be applied if the goods are of a kind or class made or produced in Canada, and if the export or actual selling price is less than the "dutiable value " as prescribed for customs uses. In the Union of South Africa, the imposition of dumping duties is dependent upon whether the Minister of Finance is satisfied that the goods are of a class or kind produced or manufactured in the Union and that detriment may result to an industry of the Union. In Australia and New Zealand, the goods must be of a kind or class produced or manufactured in Australia or New Zealand, their sale resulting in detriment to local industry.

Under certain conditions, antidumping measures have also been invoked in Canada, and to a lesser extent in South Africa, against imports from certain countries having depreciated currencies, and in some areas dumping duties may be applied when freight and other concessions have been granted in the exporting country on exported goods.

Outstanding is the Canadian practice of establishing arbitrary official valuations, by fixing minimum import values on certain

products or specifying a certain amount to be added to the "true invoice price of specified goods, either throughout the year or during particular seasons.

Full details of the different provisions of the Dominion laws against dumping are found in the text of the present study.

FREE PORTS

There are four important points in the British Empire that are centers for transshipping, where all but very limited classes of merchandise (principally tobaccos and spirits) may be freely brought in and reshipped without customs limitations. These are Gibraltar, at the entrance to the Mediterranean; Aden, at the entrance to the Indian Ocean; Singapore, off the Malay Peninsula; and Hong Kong, off South China. The economic importance of these free ports has been developed by their transit and transshipment trade, and every encouragement is offered to this trade through liberal customs provisions.

MARKING AND PACKING FOR FOREIGN MARKETS

For many years, certain parts of the British Empire have had very rigid requirements regarding the marking of goods to show the country of origin, British India and Ceylon having the most severe regulations. Latterly the United Kingdom has required an indication of origin on a steadily increasing number of commodities. In other parts of the Empire the regulations are less stringent, requiring counter-indication of origin only when there is otherwise a suggestion of British origin; still others merely prohibiting false indication of origin and false trade description of the goods. A very few minor territories have no merchandise marks legislation of any

kind.

To prevent any charge of misrepresentation as to British origin, all goods sent to any part of the British Empire should be legibly and conspicuously marked with the legend "Made in U.S.A.", which is acceptable throughout these areas as an indication of American origin, although there are special regulations in certain areas regarding the size and frequency of its application to the wrappers and the goods. This is becoming increasingly true in the United Kingdom. In addition certain areas, notably Australia, have special regulations requiring specified goods to carry "trade descriptions." The full marking requirements for each area will be found in the text of this handbook.

Imperial units of measure are in use throughout the British Empire. Care should therefore be exercised in marking and in invoicing goods to specify the kind of measure used, for instance, imperial gallon or American gallon. In certain areas and for specified products, marking in American units is prohibited.

In general, when the duties are specific in form, i.e., so much per pound, hundredweight, ton, etc., they are assessed on the net weight of the goods. Since the packing, therefore, seldom enters into the question of duty on goods shipped to the British areas, it can be planned solely with a view to the delivery of the goods to the con

signee safely and in good condition. With few indicated exceptions there is no penalty against packing more than one kind of goods in one shipping case, provided all goods are separately shown on the documents.

Marks on the outside packing cases are in most cases left to the judgment of the shipper. Such marks, numbers, and weights as are on the cases, however, must correspond entirely to those shown on all shipping documents.

ENTRY AND WAREHOUSING AT DESTINATION

The exporter's responsibility should not end entirely when he has packed his goods and delivered them into the custody of the transportation company for transmission to the consignee in the foreign port. Most of these areas have a very limited time before imports must be definitely declared for entry, whether for consumption, for warehousing, for transit, or transshipping. As a matter of fact, in many cases the customs law expects that the importer will make a formal request to enter his goods before they have been landed, this entry being his passport for landing them. For this reason it is important that the shipping documents arrive at least by the boat which carries the goods and, if possible, they should go by faster means and be in hand when the merchandise arrives.

Failure to declare the goods promptly may result in their being conveyed by the customs authorities to a King's warehouse and stored at the importer's expense. Then, if not declared for some form of entry within a given period, generally within 1 month from arrival, they may be sold at public auction after due notice to the importer if he is known or can be located, unless he is able to persuade the customs to leniency.

It may not always be convenient for an importer to clear for consumption and pay the duties on the whole or even part of a shipment immediately upon arrival. He may then enter the goods for warehousing in a bonded warehouse where they may remain, in most cases, for a period of from 1 to 3 years without payment of duties, and even then may usually be rewarehoused, under permit, for a further period of about the same length of time.

CUSTOMS PENALITIES

Fines and penalties may almost always be avoided if the documents are properly and carefully filled out and forwarded promptly, and the goods are packed in accordance with those documents. At least, the importer will not be at fault, and can disclaim responsibility for any fine or forfeiture when the goods arrive in port of entry. However, even with the best of care, errors and disputes occasionally occur. Since in most of the British areas goods are seized as a part of the penalty for many violations of the customs law, and unless claimed by the owner and action to regain possession is begun within a specified period, they become the property of the Government, it is important that the exporter know the procedure required to repossess goods that have been seized, but not actually confiscated.

FINES AND APPEALS

When fines have been unjustly imposed or duties inequitably assessed there is usually an opportunity for appeal, provided the action is taken promptly, but the time for redress is very limited, and the owner of the goods must act at once upon learning of any customs difficulty involving his goods, to instruct his consignee or other representative in the country to take the necessary steps for safeguarding his interests. Cases have been known where the importer, finding that some customs difficulty has arisen with regard to a given shipment, has preferred to allow the shipment to be abandoned and go to customs auction. Where that condition is suspected, it becomes of utmost importance for the exporter to take action promptly in his own name, where the regulations allow that, or through the local correspondent of his bank or other agent on the ground.

Once the final opportunity for a claim or appeal has been neglected, and the penalty has been collected or the goods actually confiscated, the possibility of refund or restitution as a result of commercial or official effort is very slight. Particularly is this the case in those smaller British areas where, as an incentive to vigilance, customs employees are regularly given a share in the extra duties or penalties collected for irregularities they have discovered.

REEXPORTATION OF GOODS-REFUND OF DUTY

When delivery of goods is not accepted for any reason, or when it becomes necessary to return or reexport merchandise because of flaws in goods or their unsuitability, because they are not according to order, or for any other cause, it is important to know what charges must be paid before the goods can be shipped from the country, and whether any refund of duties paid may be obtained. It may be that the charges against the goods are too heavy to make this return profitable, and it may be found preferable to dispose of the goods to another purchaser within the country, or to make a settlement satisfactory to the original importer. In most of the British areas, when unused goods in original containers are presented for reexportation because not according to order or unusable or unsalable in the country, a refund of the duties paid, in whole or in part, may be obtained. Canada, the Irish Free State, and South Africa are noiable exceptions to this general rule. In the United Kingdom refund is restricted to contract goods which are not according to order and are returned to seller. Certain of the smaller areas limit the amount of the refund to a specified percentage of the duties paid at time of importation.

It is also customary in many of these areas with industries manufacturing for export, to grant drawback of duties in whole or in part when raw or semi-manufactured materials are reexported in the form of advanced or processed products. The amount of this drawback and the articles on which it is obtainable vary with the area in which the manufacture and export occur. The United Kingdom has no general drawback system on exports of raw materials processed or otherwise advanced in value, such as in the United States and Canada, where a drawback of 99 percent of the duty may be obtained