The Archive · 1924

The Customs Incubus on Trade

the' EUitor of the "Nosrn-Cuiva Datty News."

Sir,—It frequently happens that you devote two or three columns your paper to reproducing trade reports emanating from the Commissioner of Customs at such places as for instance Wuhu, which ro-Ports convey, to the uninitiated, the impression that these are flourishing ports of trade in the way such ports are regarded in Europe America. Asa matter of fact the statistics are misleading. The bulk of the revenue returns collected at such places are merely likin levies under another name, that is to say they are taxes collected by the Peking Government through the medium of the Chinese Maritime Customs on Chinese goods and on produce passing from one port la China to another. That such ports fare treaty ports and that the means. of transit are steamers or other vessels of a foreign type is the reason the Customs and not the Peking (or Native Customs) author-3s collect these taxes, Under treaty the import of foreign goods and/or export of good: abroad from such treaty ports stipulated for on payment. of the treaty tariff duties, but in order to provide for these privileges an expensive staff of the Chinese Maritime Customs is maintained at many of these places, entirely out of proportion to the value of the trade they are there to deal with and consequently their main efforts are Jdirected to taxing Chinese trade en route, When the inland waters of China were formally declared to be open to steam traffic (foreign and Chi ese) it was thought by many officials well as merchants—that this must of necessity mean that an amalgamation of the then existing schemes of taxing native goods in transit_must follow, but the Maritime Customs who' saw their venue derived from this source in danger strenuously opposed the only logical interpretation of the concession obtained by the British Minister and up to to-day the efforts have been allowed to preys In no other country of the world is the internal or domestic trade subjected to such varying systems of taxation dependent on the medium employed to carry the trade in question. To explain—if a merchant wishes to ship some goods or produce from, say, Shanghai to Nanking, he has to select betwee Several methods of transport all coming under different systems of taxation, and he is thus forced not only to consider which transporting medium gives him the cheapest price for carriage but also which system of taxation taxes him the least. That is to say, if by steamer, he pays Chinese Maritime Customs duties; if by railway, paying likin taxes; if by native "junk, paying native boat or if by boats up through the creeks paying—?

It was this state of things the opening of Inland Waters was intended to end and which it has been prevented from doing by the numerous official interests who fatten on the trade of China regardless of the real interests of the country. Not the least offender in this respect is the Chinese Maritime Customs.

progressive Inspector General of Customs had it" in his power from about 1900 onwards to seize the opportunity given by the Inland Water Concession to free the internal trade of China from these vexatious levies, but the whole efforts of the Service have been on the contrary directed to cementing on the unfortunate public not only the levies then in force but adding others under the guise of taking over and controlling the various Native Custom houses. Whereas in the old days the Chinese public always had the option of "burning down". a Custom house or likin station when levies became unbearable, they are now faced with the fron' band and resolute front of the Maritime Customs backed by the active support of the Powers' naval From press reports it appears that the Chinese Chambers of Commerce are to have a meeting at Tsinanfu in September and one, if not the principal, subject for discussion is to be the coming Tariff Revision Conference. This interest on behalf of their national concerns is warmly to be commended, provided the Chinese delegates' start jour with the determination to. remove internal taxation of goods in Yeturn for an agreed-on increase in the tariff on imports and, secondly, that they make provision for the proper spending of the revenue derived not only from any increase in the import taxation but from the total revenue, Given that they assume these functions the coming Tariff ference will then have a clear issue before them namely (a) Provision of Ports of Foreign Entry. where vessels can enter direct from for= eign countries, and discharge their imports and load exports and (b), abolition of all taxation on goods native or foreign carried coast or river in China. Any temporary loss. in revenue will be more than made. up in a few. years.by the greater flow of trade inwards and outwards resulting from the moval of these latter handicaps, this aspect of the question cannot be too strongly impressed on the delegates, who be: entrusted with the tariff revision provided for by the Washington Conference, Tam, ete

Text read from the printed page and cleaned; old type leaves the occasional error.

Your account