tured and/or sold by it and to be exported to Canada, the stated percentage of sugar, sirups, and/or glucose content being calculated in each separate shipment on the net contents of the packages.

In consideration of the admission of the above-mentioned goods into Canada at the respective declared percentages of sugar, sirups, and/or glucose content without sampling of each consignment, but subject to occasional sampling for official test, I hereby undertake on behalf of the said____

(Name of company) that due notice will be given to the Commissioner of Customs at Ottawa, Canada, before the composition of the goods is altered in any detail.

(Signature)

Currency Certificates. The following currency certificate should be furnished by the American shipper, if requested by the Canadian importer. If not furnished by the shipper, the Canadian importer will be required to obtain one from his bank in Canada, to be attached to the invoice, showing the rate of exchange on date of shipment:

Date__

certify that at the date of exportation of the goods described in the within or annexed invoice, the true value of the currency in which the invoice is made out, as compared with the standard dollar of Canada, is at the rate

of_.

per--

(Dollars-cents)

- (Unit of currency of invoice) –

NOTE. The currency referred to in this certificate is that of the country from which the goods are exported direct to Canada and in which the home consumption value is shown on the invoice.

United States shipper's export declaration.-Every exporter is required to execute a United States shipper's export declaration (form 7525) except for parcel-post or mail shipments. These forms may be purchased in pads of 100 each, for 25 cents, from customs branches of the United States Treasury Department, located in the customhouse or other official Government offices. The standard requirement of the United States calls for two copies of the declaration to be made out-an original and a carbon-both of which are filed with the collector of customs at port of exportation. On shipments by rail to Canada the customs authorities of that country sometimes request an extra copy of the export declaration to accompany the shipment for their information. It is reported that certain railway lines running into Canada require additional copies of the declaration on shipments routed over their lines. Many concerns have found it advisable to keep a carbon copy of each export declaration for their own files, for use in the event the shipment or any part of it is returned to them, when such a carbon would help in securing duty-free clearance of the goods.

DUTIABLE VALUE

The fair market value (which is the value for duty) to be shown on invoices is the fair market value of the goods at the time and place of their direct exportation to Canada, under like conditions, in the usual and ordinary course in the country of exportation. This valuefor new and unused goods, however, must in no case be less than the actual cost of production of similar goods at date of shipment direct to Canada, plus a reasonable advance for selling cost and profit, the minister (of national revenue) to be the sole judge of what may constitute a reasonable advance ", and his decision is final; must not be less than the fair market value determined by the governor in council under the authority to fix the rate of discount which may be applied to published or listed prices of manufacturers or producers; nor less than the value fixed where the goods are not sold for use or consumption in the country of production, or are sold or imported in or under any other unusual or peculiar manner or condition; or under the authority to fix the values for duty of any class. or kind of goods not entitled to enter under the British preferential tariff or any lower tariff, where it appears that such goods are being imported into Canada, either on sale or on consignment, under conditions which prejudicially or injuriously affect the interests of Canadian producers or manufacturers. In estimating the value for duty, no discount or deduction will be 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.

Under this provision, instructions were issued by the Canadian commissioner of customs directing Canadian customs collectors not to recognize cash discounts for duty purposes, and cash discounts are no longer allowed to be deducted for duty purposes on importations into Canada.

Terms should be printed or stamped at the head of the invoiceif that is the practice in the home market-and not in the body thereof. If the exporter does not show the cash discount deducted and the invoice is prepared exactly like his domestic invoice, the importer can take advantage of the cash discount, when remitting, without making the goods subject to dumping duty.

The value and price include the cost of cartons, cases, and coverings of all kinds, and all expenses incurred in preparing the goods, packed ready for shipment, at the time and place of direct exportation to Canada.

If the selling price to the Canadian purchaser is higher than the fair home market price, the import duty would then be based on the higher selling price.

Specific duties are, in most cases, based on the net weight of the goods, except where the tariff includes the container in the weight for duty.

Increased valuation where territorial agents exist in home market. The Canadian customs regulations provide that where goods are sold in the home market to special or exclusive territorial agents. and not to jobbers generally, the price of the goods, as sold to such agents in the country of export, may be increased by 5 to 10 percent

(5 percent is the usual advance) to represent the fair market value for regular duty on importations into Canada. Increases made under these conditions are held by the Canadian customs authorities to be not subject to special or dumping duty.

Freight allowances.-The Canadian regulations require exporters to Canada to show on invoices the amount of any freight prepaid on the goods and also the amount of any freight allowance made by exporters to Canadian purchasers. This information is required in order that the Canadian customs collectors may determine the actual selling price of the goods to the Canadian purchaser in the country of export. The following details as to freight (giving the amount in each case) should be noted by the exporter on the invoice: Freight prepaid and charged; freight prepaid and not charged; and freight allowed.

According to the Canadian Department of National Revenue, there have been hundreds of cases where American manufacturers have not shown any freight allowances on their invoices, although they allow their Canadian as well as their domestic customers to deduct freight when paying for the merchandise. Because freight allowances are regularly made in the home market, many American firms evidently do not realize that they are violating the Canadian law by failing to show freight allowances on their Canadian invoices. If freight allowances are granted and not shown on the invoices, the goods will be liable to seizure.

Official valuations.-The Canadian customs authorities have established fixed or additional valuations for many products for the purpose of assessment of customs duties, excise and sales taxes, and dumping duties. Notable among such products are most fresh fruits and vegetables on which the values are fixed according to the season. These values are set at fixed amounts or at a specified amount per unit over and above the invoice value, and imports invoiced below that value are subject to additional or dumping duties. Information regarding these valuations may be obtained by interested American exporters by request to the Division of Foreign Tariffs, Bureau of Foreign and Domestic Commerce, Washington.

ANTIDUMPING PROVISIONS

The dumping clause of the Canadian tariff provides that customs officers shall assess a special or dumping duty on imported goods of a class or kind made or produced in Canada, if the export or actual selling price is less than the values defined under "Dutiable value.” Dumping duty, where applicable, is equal to the difference between the said values and the selling price to the Canadian purchaser, with the qualification that the maximum dumping duty shall not exceed 50 percent of the accepted value. Dumping duty would apply under the above conditions even if the goods are not liable to regular import duty.

Goods of a class subject to taxes under the Canadian excise act are exempted from special (or dumping) duty.

Goods the produce or manufacture of Australia are not subject to dumping duty in Canada, nor does dumping duty apply to goods produced in New Zealand, unless previous notice is given that imports would be injurious to Canadian producers or manufacturers

of similar goods and no satisfactory remedial measures are put into effect by the New Zealand Government within 30 days.

Excise duties or taxes are to be disregarded in estimating the value for dumping or other duty purposes.

"Export price" or "selling price" means the exporter's price for the goods exclusive of all charges thereon after the shipment from the place whence exported directly to Canada.

If at any time it appears, to the satisfaction of the Minister of National Revenue, that payment of the special duty is being evaded by the shipping of goods on consignment without sale prior to such shipment, the Minister may authorize such action as is necessary to collect on such goods the same special duty as if the goods had been sold to an importer in Canada prior to their shipment to Canada. It is further provided:

If at any time it appears, to the satisfaction of the minister, that any person owning or controlling or interested in a business in Canada and also in any other country, or any person carrying on a business in any other country, and owning or controlling or interested in a business operating in Canada, and by reason thereof is enabled to import goods for further manufacture or assembling or for resale, and while complying with the legal requirements on importation disposes of such imported goods, whether in the form as imported or as further processed, assembled, or manufactured, at prices below the duty-paid value thereof as entered at customs, plus, if any, the cost of processing, assembling, or further manufacturing in Canada, the Minister may declare the goods of such class or kind were and are on importation subject to an additional special or dumping duty not exceeding 50 percent and authorize such action as is deemed necessary for the collection thereof.

The "fair market value" as shown on invoices is to be increased on account of exchange for regular duty purposes when United States currency is appreciated in relation to the Canadian dollar; and in cases where payment is accepted in Canadian funds or where the exporters absorb the premium of exchange, dumping duty (equal to the exchange difference) is to apply if the goods are of a class or kind made or produced in Canada. Where currency is depreciated. regular duty will be based on the par value for the American dollar of 100 cents Canadian, but the depreciated currency surtax (or dumping duty) will not apply unless the exchange discount on the United States dollar exceeds 5 percent in terms of Canadian money. Allowances for freight or other transportation charges, when made generally to purchasers in the home market under like conditions, at varying rates depending on destination of the goods, are to be disregarded in computing special or dumping duty, provided that the amount of such allowance must not be deducted for regular duty

purposes.

LABELING, PACKING, AND MARKING

Certain good, imported into Canada, must be marked, stamped, branded, or labeled with an indication of country of origin in legible English or French words, in a conspicuous place, which must not be covered by later arrangement, and must be as indelible. and permanent as possible.

The goods required to bear an indication of origin are wooden or fiber lead pencils, building brick, rubber gloves, imitation totem

poles and copies or replicas thereof, paper bags, empty paper or paper board folding or set-up boxes or cartons, and empty plain or corrugated fiber or fiber board boxes for use as containers, and toilet paper in rolls or interfold packages, toothbrushes and toothbrush handles, printed or lithographed matter of all kinds (if over 1 inch in length or width), including books and pictures, decalcomania transfers, and dry transfers, when imported into Canada.

With the exceptions noted below, the mark of origin may be applied by direct printing or by means of an indelible rubber stamp. Blind-embossed or die-stamped indications of origin on printed or lithographed matter (except on Christmas or greeting cards) are not permitted, but if the material itself is blind-embossed or diestamped the indication of origin also may be blind-embossed or die-stamped. The marking on building brick may be applied to any one of the six sides; but if it is placed on a glazed surface it must be pressed into the brick, as the use of an indelible rubber stamp on a glazed surface would not be regarded as a means of permanent marking.

On articles other than printed matter the usual marking is "Made in U.S.A." On printed or lithographed inatter the usual marking is "Printed in U.S.A." or "Printed in Chicago, Ill.", or "Blank & Blank, Printers, New York, N.Y.", or " Blank & Blank Printing Co., U.S.A." (or, as provided in the regulations, the name of the producer of printed matter followed by the name of the country, or the name of the producer of printed matter followed by the city or town and State in which the printer is located). On lithographed matter the phrase "Lithographed [or the abbreviation litho.] in U.S.A." is acceptable. The fact that a catalog bears the name and address of the firm producing the goods illustrated is not sufficient evidence that the catalog itself was printed in the United States to meet these marking requirements.

Loose-leaf mimeographed sheets containing freight rates are regarded by the Canadian Department of National Revenue as printed matter, and each sheet is required to bear the words "Printed in U.S.A." or some similar phrase to indicate the country of origin. The mark of origin on imported decalcomania and dry transfers 1 inch or less in any dimension, and on all decorative transfers, may be applied to the back or carrier portion thereof, or on each sheet or roll. Transfers (not decorative) over 1 inch must bear the mark on the face of each transfer. Ceramic or enamel transfers are not required to be marked with an indication of country of origin. Goods manufactured outside Canada, which bear a name or trade mark that is, or purports to be, the name or trade mark of a manufacturer, dealer, or trader in any British country, are prohibited from importation unless the name or trade mark is accompanied by an indication of the country of origin or production. As an example, an article such as a metallic bottle opener might have lettering stamped thereon without making it subject to the marking regulations, but if the name or trade mark of a Canadian firm were stamped on the article it would be prohibited from importation unless such name or mark was accompanied by an indication of the country of origin. Manufacturers of advertising novelties in particular should be careful to comply with these regulations.