7. Chinese merchandise or products brought from Chinese treaty ports to Tsingtao shall pay no duty as long as they remain inside German territory; but if these Chinese merchandise or products pass the German frontier into the interior of China, they shall pay according to existing treaties.

8-Chinese merchandise shipped from Tsingtao, and having paid accordingly export duty, shall be provided with a receipt, on the producing of which it shall pay, on being landed at a Chinese treaty port, a coast trade duty according to existing treaties.

9.-For European and other non-Chinese merchandise, on being shipped to Tsingtao from a Chinese treaty port, the import duty paid at the latter port shall be refunded by drawback according to Article 26 of the German-Chinese Treaty of 1861. On being imported to Tsingtao such merchandise shall pay no duty, so long as it does not pass the German frontier into the interior of China. On being re-exported from Tsingtao to other places outside China, such merchandise shall pay no export duty.

10. Chinese merchandise or products having been shipped from a Chinese treaty port to Tsingtao and re-shipped from there to places outside China, shall on this occasion pay no export duty, in case that documentary evidence is produced of their having paid export duty at the treaty port from which they came. 11. The Maritime Customs Office at Tsingtao shall take no part in the collection or administration of tonnage dues, lighthouse dues, or port dues. the same duties and taxes (likin) which are levied on opium in Chinese treaty 13. The Maritime Customs agrees to levy on all opium brought to Tsingtao 12. The Customs tariff in vigour in the Chinese treaty ports shall be applied likewise by the Maritime Customs Office at Tsingtao.

ports. The duties and taxes collected on opium which enters into consumption inside the German territory shall be collected by the Maritime Customs for account of the German Government, and be paid over to the latter at certain intervals, to be fixed at convenience.

14.-The Government of Kiaochow agrees to set apart for the Maritime Customs Office sufficient space at Tsingtao for building offices, lodgings for the staff, with suitable room for garden, stables, and servants quarters. The amount to be paid for the sale or lease of such ground is to be settled locally by mutual agreement.

15. The Chief of the Customs Office and the members of the staff shall be free from any obligation to act as jurors or assessors or from any other personal services.

16. The Maritime Customs Office at Tsingtao, as designated in the above Articles, shall take charge of the collection of duties, taxes, or likin on all Chinese-built vessels (junks) coming to Tsingtao or to other places in the bay of Kiaochow and on all merchandise brought in such vessels. The duties, taxes, and other charges collected from Chinese-built vessels or from merchandise brought by them to Tsingtao shall not exceed the charges which have hitherto been levied from such vessels and such merchandise at Tsingtao or in other places of the bay of Kiaochow. Should at any time the charges levied on Chinese-built vessels and on merchandise brought by them at other ports in the province of

Shantung be less in amount than such charges in the bay of Kiaochow, the latter shall be reduced to the amount levied in those other ports.

17. The aforesaid Maritime Customs Office at Tsingtao shall be charged likewise exclusively with the granting and issuing of transit passes for merchandise going into the interior of China, as well as for merchandise coming from the interior of China to Tsingtao; and this office will be charged as well with all and every function, right, or capacity which appertain in the treaty ports to the so-called Chinese Customs Taotai.

18. For the transit passes mentioned in Article 17 the duty according to existing treaties-i.e., half of the amount of export or import dutyshall be collected by the Maritime Customs Office at Tsingtao.

19. The procedure to be observed in case of frauds or contraventions committed by merchants against the Maritime Customs rules shall be settled hereafter by a separate Agreement, but it is understood in principle that all judicial procedure rests with the German tribunals at Tsingtao.

20. In view of the possibility that with the development of commercial activity at Kiaochow new requirements may arise which are not to be foreseen, it is understood that the present Agreement bears a provisional character, and that both parties to it agree to introduce amendments as soon as required for the purpose of remedying inconveniences which may arise in the practical execution of this Agreement.

(A)-Agreement about the establishment of a maritime customs office at Tsingtao: inland waters steam navigation.-Annex A.

APRIL 17TH, 1904.

1.-The Kiaochow Customs having been formally authorised to function in Tsingtao are now empowered to issue inland steam navigation papers: steamers thus permitted to ply on the inland waters are to be guided generally by the rules and regulations of July and September 1898† and the additional rules of September 1902,‡ but more especially by the regulations herebelow set forth.

2.-Steamers about to ply in the inland waters are required to deposit their national papers, Foreign or Native, with the Customs, and will receive in exchange, on written application, the Inland Waters Certificate; such Certificates are valid for one year, and a fee of Tls. 10 is payable on first issue and Tls. 2 for each annual renewal. Tonnage Dues are payable once every four months.

3. Such certificated steamers may ply either (a) freely in the Tsingtao waters, or (b) according to regulations (1) from Tsingtao to a place or places inland and back, and (2) from Tsingtao to a place inland, thence to a Treaty port, thence to a place inland, and thence back to Tsingtao. On making due No. 1898/17, ante.

Annex C to British Commercial Treaty of September 5, 1902 (No. 1902/7, post).

report to the local Customs or Tax Office, and paying local Dues or Duties, they may land or ship cargo or passengers at any recognised places of trade passed on the voyage, but they may not ply between inland places exclusively without special authority. If visiting another Treaty port on any such inland voyage, the Customs at such port are to be duly reported to and all port regulations, national and native, complied with.

4. Whenever certificated steamers quit or return to Tsingtao, they are to clear from and report to the Kiaochow Customs, handing in Outward and Inward Manifests of cargo, reporting places to be called at or called at, and paying the prescribed Duties. Opium and contraband goods are not to be carried inwards or outwards: if carried, the goods are confiscable and the vessel subject to a fine of $500, a second offence entailing withdrawal of Inland Waters Certificate and privileges.

5.-Certificated steamers are required to carry the Imperial Chinese Post Office mails free of charge, and the Postal Department of the Kiaochow Customs is empowered to transact all required postal business in this connexion independently and/or in communication with the Colonial Post Office.

6. The Colonial Government will assist the Kiaochow Customs to suppress smuggling more especially the smuggling of Opium and contraband,-and accord special facilities to develop the legitimate business of the Postal Depart

(B)-Amendment to the agreement re the establishment of a custom house in

Tsingtau.

DECEMBER 1ST, 1905.

PREAMBLE.-The Chinese and German Governments being anxious to amend the Agreement of the 17th April 1899, with a view to putting the relations between the Colony of Kiaochow and the Chinese Customs on a still better basis, have agreed to the amendments represented in the following Articles.

The basis of this arrangement is that the Chinese Government on its part (1) agrees to pay to the German Government a certain proportion of the Import Duties on goods, Opium included, landed in the German territory, and (2) consents to the modifications of Treaty-port Customs practice and principles which said Articles establish; and that the German Government on its part, in consideration of the Chinese payment and consent, undertakes to facilitate the working of the Imperial Chinese Customs establishment established and operating in the German territory and to aid in safeguarding the Revenue legitimately payable.

With the object of carrying out the necessary amendments, the undermentioned Articles, duly agreed to by both parties, have been made.

ART. I.-After the delimitation of the Tsingtau free area by the German officials, the Chinese Maritime Customs established in the German territory will levy all the Duties payable on goods passing outside the free area, and the Chinese Government will hand over annually to the German officials at Tsingtau 20 per cent. of the net Import Duties collected, as shown by the statistics of Kiaochow Customs, as its contribution to the expenses of the territory. This percentage will be fixed for the present provisionally for five years, and payment will be made in quarterly instalments after the end of each quarter. If this arrangement, fixing the contribution at 20 per cent., should at any time seem to either party to require amendment, notice is to be given to the other before the beginning of the fifth year, in order to afford time for reconsideration.

ART. II.-The limitation of the free area, which is to be established at the Great Harbour, and its probable extension later, on account of the progressing harbour works, will be made as convenient as possible for carrying on Customs work.

ART. III.-On articles which are Duty free by existing Customs Tariff no Duty will be levied.

The following are Duty free:

FOR THE GERMAN TROOPS.

(a) Articles for arming and outfitting the troops, including Uniforms, if directly ordered by the military or naval authorities and if accompanied by Certificate of the Colonial Government.

(b) Stores and Provisions ordered by the military or naval authorities in anticipation of future requirements, if accompanied by Certificate of the Colonial Government.

FOR THE GENERAL PUBLIC.

(c) Machinery, Plant, as well as Parts of Machinery, Implements and Tools required for manufacturing, industrial, and agricultural purposes; also all Building Materials, Fittings, and other articles for public and official works. A written Bond for the value of the goods must in each case be handed to the Customs certifying that the articles are solely for use in the German territory. If, later, they are to be conveyed into China, they must be declared to the Customs and pay Import Duty. Failure to do so will involve enforcement of the Bond for recovery of double the amount of Duty on the value specified in it.

(d) Articles (Vehicles and such-like) passing to and fro between the free area and outside, solely for ordinary repairs; but they are to be reported to the Customs officers, that their passing may be noted.

(e) All postal parcels imported and destined for private use in the German territory, if the Duty which has to be taxed in accordance with the attached declaration does not exceed $1 (value $20). The Customs are at liberty to examine such parcels and verify declarations as occasion demands.

(f) The personal luggage of passengers, declared as not containing dutiable or contraband goods; it will only be examined in cases where the Customs consider it specially necessary.

ART. IV.-The regulations laid down in Arts. 5, 7, and 9 of the Agreement of 17th April 1899 as to levying of Import Duty are hereby modified, in so far that the free Duty area is limited to the free area. Payment of Duty therefore will be made according to circumstances, either when leaving the free area or, if to be landed elsewhere, before landing. By the payment of the Duty the goods pass into free circulation, and out of Customs control. Provision having been thus made for effective collection of Duty in Tsingtau, Customs Stations on or near the frontier will, under the provided conditions, be unnecessary, and the question of establishing such can for the time being be postponed; such Stations as are required for the control of junk traffic are excepted.

ART. V.-For manufactories which are erected outside the free area, arrangements are to be made according to which manufactures will not be treated less favourably than if they came from the free area. Labour in the German territory is free of tax; consequently manufactures made in the German territory from raw materials which have been imported from the hinterland or by sea into the German territory are, at reshipment, only subject to such Duty payment as China has by Treaty claim for on the raw material. A list of articles entitled to be treated as raw material will, if needed, be drawn up by the Customs and ART. VI.-All trading and shipping facilities and privileges which are granted in Chinese coast ports are to be extended to the German territory, with such modifications as local conditions may require.

ART. VII.-In cases of fraud and offences against the Customs regulations, the procedure will be conducted in accordance with the spirit of the "Joint Investigation Rules of 31st May 1868"-a Colonial officer specially named by Colonial authorities and revised annually at the end of each year.

ART. VIII. It is understood that this Agreement is an amendment of the the Government to take the place of the Consul.

original Agreement of 17th April 1899, made in accordance with Art. 20 of the latter, which, unless where modified hereby, remains in full force.

Signed and sealed at Peking this first day of December nineteen hundred and five by Baron MUMM VON SCHWARZENSTEIN, His Imperial German Majesty's Minister, on behalf of the German Government, and by Sir ROBERT HART, Bart., G.C.M.G., Inspector General of Imperial Chinese Customs, on behalf of the Chinese Government.

[SEAL.]

[SEAL.]

(Signed)
(Signed)

A. v. MUMM.
ROBERT HART.

(C)-Ordinance regulating procedure in customs matters in the Kiaochow

territory.§

DECEMBER 2ND, 1905.

I.-GENERAL RULES.

§ 1.-All goods imported by sea into or exported from the German territory, with only such exceptions as are specified below, are subject to Duties on im

§ Translation from German text. As printed in Customs, this Ordinance is headed Annex A, and bears a notation that it was Issued by the Colonial Government on 2nd December 1905, and accepted by the Inspectorate General of Customs."