CUSTOMS. (20490.) Music imported by mail in violation of copyright laws. [Circular No. 5.] TREASURY DEPARTMENT, January 4, 1899. To collectors and other officers of the customs: You are hereby instructed to keep an accurate record showing name and address of addressee, titles of publications, name and address of sender, from whom received, date of reception, and final disposition of all musical publications received by mail and held by you for violation of the copyright laws, under the joint regulations of the Treasury and Post-Office Departments (Synopsis 19514), and to report same to the Department on the first day of each month, beginning on February 1 proximo. W. B. HOWELL, Assistant Secretary. (20491.) Refined lead produced from imported ores, and set aside under provisions of section 30, act of 1897, dutiable at 14 cents per pound on withdrawal for consumption or if not exported within six months from receipt of the ore in the United States. TREASURY DEPARTMENT, January 4, 1899. SIR: Referring to your predecessor's letter of the 6th of July last, relative to the contention of the Balbach Smelting and Refining Company, that refined lead produced from imported ores and set aside under the provisions of section 30 of the act of July 24, 1897, and the regulations of June 15, 1898 (Synopsis 19501), may be withdrawn for consumption on payment of duty at the rate of 14 cents per pound on the quantity so withdrawn, and not on the quantity of lead shown by assay to have been contained in the imported ore used in the smelting, I inclose a copy of an opinion rendered by the Attorney-General, under date of December 29, 1898, to the effect that, when the refined metal produced from imported lead ore is not exported within six months from the receipt of the ore, the regular duties must be paid on the ore. The Department concurs in the above opinion, and you are hereby instructed to take action accordingly. Respectfully, yours, COLLECTOR OF CUSTOMS, Newark, N. J. W. B. HOWELL, DEPARTMENT OF JUSTICE, Washington, D. C., December 29, 1898: The SECRETARY OF THE TREASURY. SIR: Section 29 of the tariff act of July, 24, 1897 (30 Stat., 151) reads as follows (p. 210): "SEC. 29. That the works of manufacturers engaged in smelting or refining metals, or both smelting and refining, in the United States may be designated as bonded warehouses under such regulations as the Secretary of the Treasury may prescribe: Provided, That such manufacturers shall first give satisfactory bonds to the Secretary of the Treasury. Ores or metals in any crude form requiring smelting or refining to make them readily available in the arts, imported into the United States to be smelted or refined and intended to be exported in a refined but unmanufactured state, shall, under such rules as the Secretary of the Treasury may prescribe, and under the direction of the proper officer, be removed in original packages or in bulk from the vessel or other vehicle on which they have been imported, or from the bonded warehouse in which the same may be, into the bonded warehouse in which such smelting or refining, or both, may be carried on, for the purpose of being smelted or refined, or both, without payment of duties thereon, and may there be smelted or refined, together with other metals of home or foreign production: Provided, That each day a quantity of refined metal equal to ninety per centum of the amount of imported metal smelted or refined that day shall be set aside, and such metal so set aside shall not be taken from said works except for transportation to another bonded warehouse or for exportation, under the direction of the proper officer having charge thereof as aforesaid, whose certificate, describing the articles by their marks or otherwise, the quantity, the date of importation, and the name of vessel or other vehicle by which it was imported, with such additional particulars as may from time to time be required, shall be received by the collector of customs as sufficient evidence of the exportation of the metal, or it may be removed under such regulations as the Secretary of the Treasury may prescribe, upon entry and payment of duties, for domestic consumption, and the exportation of the ninety per centum of metals herein before provided for shall entitle the ores and metals imported under the provisions of this section to admission without payment of the duties thereon: Provided further, That in respect to lead ores imported under the provisions of this section the refined metal set aside shall either be reexported or the regular duties paid thereon within six months from the date of the receipt of the ore. All labor performed and services rendered under these regulations shall be under the supervision of an officer of the customs, to be appointed by the Secretary of the Treasury, and at the expense of the manufacturer." After directing my attention to the last proviso of this section, you submit the question whether, in case the refined metal set aside as the product of imported lead ore is not reexported within six months from the date of the receipt of the ore, the regular duties must be paid on the imported ore or the refined metal produced therefrom. The proviso reads: "Provided further, That in respect to lead ores imported under the provisions of this section the refined metal set aside shall either be reexported or the regular duties paid thereon within six months from the date of the receipt of the ore." The doubt as to the proper construction of the proviso arises from the position of the word "thereon." This word follows the words "refined metal." Does it refer to them or to the ore which is the subject of the proviso? This must be determined by a reading of the entire section, in the light of the act of which it is a part. Section 29 provides, primarily, a method for smelting imported ores in bonded warehouses for exportation without the payment of duties. Incidentally, there is provision for the removal of the refined metal for domestic consumption, upon entry and payment of duties. The primary object being the smelting of the imported ores in bond, the ascertainment of the refined product, and its exportation, without the payment of duties, a method is provided for determining, from day to day, the actual product of the imported ores smelted. This is done by making an allowance of 10 per cent for wastage in the refining process, and requiring each day a quantity of refined metal equal to 90 per cent of the amount of imported metal smelted or refined that day to be set aside as the equivalent, in refining form, of the imported ore. The exportation of this refined metal cancels the warehouse bond and exempts from duties the imported ores out of which it is made; but if it is removed from the bonded smelter for domestic consumption, there must be a proper entry and the payment of the regular duties. Of course, when the refined metal is removed from the bonded smelter for domestic consumption, there is a departure from the primary purpose of the section, and the product of the bonded smelter, instead of being exported, enters at once into competition, in the home market, with the product of the nonbonded smelter. The nonbonded smelter, if it uses imported ore, whether alone or along with domestic ore, has to pay a duty on the full amount of the imported ore, no allowance being made for estimated wastage in the subsequent process of refining. In other words, the lead produced in a nonbonded smelter bears the total duty paid on the lead contents of the imported ore as ascertained by assay on importation, without any abatement on account of loss incurred in the smelting. The subject of the proviso is "lead ores imported under the provisions of this act." It is with respect to such ores the special provision is made. Six months from the receipt of such ore the refined metal set aside must be reexported or the regular duties paid. On what are "the regular duties" to be paid, upon the imported ore or the refined metal produced therefrom? Obviously, upon the former. Within six months from its receipt, it must be smelted and the refined metal exported, or the regular duties on the ore paid. On what could "the regular duties" be paid except upon the imported ore? It alone was the dutiable article, the thing actually imported, the thing on which "the regular duties" would have been paid had it not gone into the smelter to be refined for export. The view that the duty must be paid on the imported ore is supported by the concluding phrase of the proviso, "within six months from the date of the receipt of the ore." The duties are to be paid, not within six months from the setting aside of the refined metal, but within six months from the receipt of the ore. The bonded smelter was created to refine ore for exportation. Ore imported for this purpose goes into the smelter free of duty. It escapes the regular duties for a purpose, and in the case of lead ore this purpose must be carried out within six months or the exemption ceases, the regular duties must be paid, and the imported lead ore and its refined product placed upon the same footing with lead ore imported in the ordinary way and its product. Other considerations will suggest themselves, but these are sufficient to explain the conclusion I have reached, that when the refined metal produced from imported lead ore is not exported within six months from the receipt of the ore, the regular duties must be paid on the ore. Respectfully, JOHN K. RICHARDS, Solicitor-General. Approved: JOHN W. GRIGGS, Attorney-General. (20492.) The proportion of bullion smelted in bond to be set aside must be equal to 90 per cent of the dutiable metal or metals contained in such bullion. TREASURY DEPARTMENT, January 4, 1899. SIR: The Department is in receipt of your letter of the 24th ultimo, relative to the interpretation by your office of the provisions of article 2 of the regulations of June 15, 1898 (Synopsis 19501), for the setting aside of 90 per cent "of the dutiable metal or metals contained in imported ores or crude metals as shown by assay, smelted or refined each day." It appears that, in the case of imported lead bullion, entered for smelting and refining in bond, your office requires the setting aside of a quantity of lead equal to 90 per cent of the gross weight of the bullion so entered, and you contend that such practice is in accordance with section 29 of the act of July 24, 1897, and the above-cited regulations. In reply, you are informed that the true intent and purpose of the law and regulations referred to is to require the setting aside of 90 per cent of the dutiable metal or of each of the dutiable metals shown by assay to be contained in the imported bullion smelted or refined each day, and not of a quantity of only one dutiable metal (lead) equal to 90 per cent of the gross weight of the imported bullion. You are, therefore, instructed to bring the practice at your port into harmony with the true intent and purpose of the law and regulations as set forth above. Respectfully, yours, COLLECTOR OF CUSTOMS, Newark, N. J. W. B. HOWELL, Assistant Secretary. (20493.) Drawback on dress bindings. Drawback on dress bindings manufactured by the Velutina Bias Company, of New York City, wholly from imported velveteens or corduroys, dyed or in the gray. TREASURY DEPARTMENT, January 4, 1899. SIR: On the exportation of dress bindings manufactured by the Velutina Bias Company, of New York City, wholly from velveteens or corduroys imported, dyed or in the gray, a drawback will be allowed equal in amount to the duties paid on such imported materials used, less 1 per cent of such duties. The entry under which the merchandise is to be inspected and laden must show, separately, the marks and numbers of the shipping packages, together with the number of gross lineal yards of binding which corresponds in width and length of piece, and identifying mark in each shipping package. The number of cartons containing such binding and the number of yards in each carton must be shown, and each carton must be marked to indicate the width and length of the binding contained therein, and the distinctive mark adopted for the purpose of identifying the special line of goods of the importation from which the binding was made. The drawback entry must show, separately, the number of gross lineal yards of binding exported, of corresponding width and identifying mark, the respective quantities of the same in square yards, and the width and identifying mark of the imported material from which each description of binding was manufactured. Such entry must further show, in addition to the usual averments, that the exported merchandise was manufactured and packed for shipment in the manner set forth in the manufacturer's sworn statement, dated October 18, 1898, filed with the collector of customs at New York. In liquidating entries, the quantities of the several kinds, qualities, and values of imported materials used, which may be taken as bases of allowance of drawback, may be the quantities declared in the drawback entry, after expert official verification, with 3 per cent added thereto to compensate for loss incurred in the manufacture. The examination of the exported merchandise will be made at the factory by an inspector and the examiner in the appraiser's office who passes the line of goods in question. Samples may be taken as ordered by the collector for comparison with the goods identified as shown by the record of manufacture, and for such further tests as may be deemed necessary. After examination, the shipping packages will be duly corded and sealed and sent to the exporting car or vessel under proper supervision. Respectfully, yours, W. B. HOWELL, (1209 i.) Assistant Secretary. COLLECTOR OF CUSTOMS, New York, N. Y. |