No. 1812 B MEMORANDUM. DEPARTMENT OF CUSTOMS, CANADA. OTTOWA, 24th August 1914. To Collectors of Customs and others concerned: New Regulations under the Customs Dumping Clause. The Regulations heretofore made as to to exemptions from Customs Special duty (or dumping duty) under paragraph 7 of Section 6 of the Customs Tariff, 1907, as set forth in Memo. 1407 B, 1506 B and Memo. No. 1652 B, are repealed and the following Regulations are made and established in place thereof - in effect 1st September, 1914, viz: Under the Special duty provisions of the Customs Tariff, the Special duty (or dumping duty) is not to apply in the following cases, viz: a. When the difference between the fair market-value and the selling-price of the goods to the importer in Canada does not exceed five per cent, of their fair market-value. Provided that the whole difference shall be taken into account for Special duty purposes when exceeding five per cent. Provided further that Special duty or dumping duty under the Customs Tariff shall without Exemption allowance apply to articles of a class or kind made in Canada, when admitted free of ordinary duty and shall also apply without exemption allowance to round rolled wire rods of iron or steel. w.s. JOHN M. DOUGALD, Commissioner of Customs. The Dumping Clause of the Tariff and „Regulations thereunder." The Provisions of the Customs Tariff, 1907, in regard to Special Duty or Dumping Duty are as follows: Sec. 6. In the case of articles exported to Canada of a class or kind made or produced in Canada, if the export or actual selling-price to an importer in Canada be less than the fair market-value of the same article when sold for home consumption in the usual and ordinary course in the country whence exported to Canada at the time of its exportation to Canada there shall, in addition to the duties otherwise established, be levied, collected and paid on such article, on its importation into Canada, a special duty (or dumping duty) equal to the difference between the said selling-price of the article for export and the said fair market-value thereof for home consumption; and such special duty (or dumping duty) shall be levied, collected and paid on such article although it is not otherwise dutiable. Provided that the said special duty shall not exceed fifteen percent ad valorum in any case; Provided also that the following goods shall be exempt from such special duty, viz: a. Goods whereon the duties otherwise established are equal to fifty per cent ad valorum ; b. Goods of a class subject to excise duty in Canada; c. Sugar refined in the United Kingdom; d. Binder twine or twine for harvest binders manufactured from New Zealand hemp, istle or tampico fibre, sisal grass or sunn, or a mixture of any two or more of them, of single ply and measuring not exceeding six hundred feet to the pound. Provided further that excise duties shall be disregarded in estimating the market-value of goods for the purposes of special duties when the goods are entitled to entry under the British Preferential Tariff. 2.,,Export-price" or ,,selling-price" in this section shall be held to mean and include the exporter's price for the goods, exclusive of all charges thereon after their shipment from the place whence exported directly to Canada. 3. If at any time it appears to the satisfaction of the Governor in Council, on a report from the Minister of Customs, that the payment of the special duty by this section provided for is being evaded by the shipment of goods on consignment without sale prior to such shipment, the Governor in Council may in any case or class of cases authorize such action as is deemed necessary to collect on such goods or any of them the same special duty as if the goods had been sold to an importer in Canada prior to their shipment to Canada. 4. If the full amount of any special duty of customs is not paid on goods imported, the customs entry thereof shall be amended and the deficiency paid upon the demand of the Collector of Customs. 5. The Minister of Customs may make such regulations as are deemed necessary for carrying out the provisions of this section and for the enforcement thereof. 6. Such regulations may provide for the temporary exemption from special duty of any article or class of articles, when it is established to the satisfaction of the Minister of Customs that such articles are not made or sold in Canada in substantial quantities, and offered for sale to all purchasers on equal terms, under like conditions, having regard to the custom and usage of trade. 7. Such regulations may also provide for the exemption from special duty of any article when the difference between the fair market-value and the selling-price thereof to the importer as aforesaid amounts only to a small percentage of its fair market-value. Regulations by Order in Council and the Department of Customs respecting Invoices, Entries, and Special Duty or Dumping Duty. 1. Invoices in duplicate properly certified shall be delivered at the Custom-house with the Bills of entry for all imported goods. 2. Every such invoice shall contain a sufficient and correct description of the goods, and in respect of goods sold by the exporter shall show in one column the actual price at which the articles have been sold to the importer, and in a separate column the fair market-value of each article as sold for home consumption in the country of export. 3. The "price" and "value" of goods in every case aforesaid are to be stated as in condition packed ready for shipment at the time when, and at the place whence, the goods have been exported directly to Canada. 4. When the value of goods for duty purposes is determined by the Minister of Customs under the provisions of the Custom Act, by reason of the goods being exported or imported under unusual conditions, the value so determined shall be held to be the fair market-value thereof. 5. In making Customs Entry the „Special Duty" may be shown by itself in the ,,net duty" column of the entry on the line below the article subject to Special duty or on the line below continuous numbers of articles subject to Special duty. 6. Goods of a class or kind made in Canada are subject to special duty, when sold for exportation to Canada at a less price than for home consumption in the country of export, whether such goods be otherwise free of duty or subject to specific or ad valorum duties with the exceptions stated in Clause 6 of the Tariff as herein before quoted. 7. By regulations in force from 1st. September 1914. - Under the Special Duty provisions of the Customs Tariff, the Special duty (or dumping duty) is not to apply in the following cases, viz: — When the difference between the fair market-value and the selling-price of the goods to the importer in Canada does not exceed five per cent of their fair market-value. Provided that the whole difference shall be taken into account for Special duty purposes when exceeding five per cent. Provided further that Special duty or dumping duty under the Customs Tariff shall without exemption allowance apply to articles of a class or kind made in Čanada when admitted free of ordinary duty and shall also without exemption allowance apply to round rolled wire rods of iron or steel. 8. Bonafide samples admitted without Special duty. Articles of merchandise for use bonafide as samples for sale of similar goods are to be admitted without Special duty wever, to ordinary duties as heretofore.) (Subject, ho 9. Advance in Market-value after purchase of goods by importer not subject to Special duty. The amount to any advance in the market-value of goods between the time of their purchase by the importer and the date of their exportation to Canada shall not be subject to Special duty after 9th November 1914, provided the goods have been exported in the usual course and the actual date of purchase established to the satisfaction of the collector by contracts or other sufficient documents produced for his inspection and attested to. Provided, however, in respect of goods subject to an ad valorem duty, that the ordinary duty shall be collected (as heretofore) on the fair market-value of the goods as at the time of their direct exportation to Canada-under the provisions of sections 40 and 41 of the Customs Act (Revised Statutes of Canada, 1906, Chapter 48). 10. Rule to be observed (for Special Duty purposes only) in comparing Fair Market-value with „Export-price”. In computing the difference for special Duty purposes between the „Fair Market-value" in the country of export and the Selling-price to the importer in Canada" the fair market-value of goods is to be estimated on the usual credit basis, except when the article is universally sold in the country of export for cash only, in which case the fair market-value is to be estimated on a cash basis; Provided that a bonafide discount for cash not exceeding two and one-half per cent when allowed and deducted by the exporter on his invoice may be allowed in estimating the fair market-value of goods for duty purposes. EXAMPLES: 1. Hats sold for Home Consumption at $ 100.- on credit, subject to 7% cash discount, would be liable to Special duty if sold to purchaser in Canada on usual credit at $93.- but would not be liable to Special duty if sold to a purchaser in Canada for $93. cash. 2. Machinery sold for Home Consumption at $ 100.- on credit, subject to 22% Cash discount, would not be liable to Special Duty if sold to a purchaser in Canada for $93,- cash, as the ,,difference" does not exceed 5% after raising the Cash-price ($93.-) by 21⁄2% to its Credit equivalent. 0 JOHN M. DOUGALD Commissioner of Customs. |