portation or exportation at the rates specified in the Chinese Tariff for Foreign trade for the time being in force. Goods forwarded to or coming from the interior under Transit Pass must pay the Treaty Transit Dues in addition to the Import or Export Tariff Duty.

§ 2. The Customs procedure is guided by the principles and follows the practice which are in force at the Chinese Maritime Custom Houses at the various Treaty ports, and Customs control wherever necessary is exercised by its officers.

§3.-Import and Export Manifests of all vessels made out in accordance with the provisions of the Treaties must be handed to the Customs. The Manifests to be signed either by the master of the vessel, who in that case is held. responsible, or by the agent of the vessel, in which case he will be responsible.

§ 4.-Junks repairing to the special points they frequent excepted, no vessel is allowed to work cargo until Import Manifest has been handed in to the Customs, nor to allow it to leave the ship outside the free area until Customs Permit has been issued. Applications for goods to be landed or shipped outside the free area must specify the locality-what jetty, etc.-they are to be landed at or shipped from.

II.-FREE AREA.

§ 5. The free area comprises the Great Harbour including the Moles, the wharf territory and the enclosing embankment, and the territory in front of the harbour as far as the chief railway embankment. It is limited in the southwest by a line between Inner Harbour and railway embankment near the junction of Rechternstrasse and Grosse Hafenweg, and in the east by a line between railway and enclosing dam near the block station. An extension of the free area is reserved for later use at any time according to requirement. The following are the boundaries of the area kept for possibly required extension in the future, viz., the railway embankment to the block station, including territory to be filled in on the one side to the extent of 200 mètres east of the enclosing dam; on the other side (west), to the railway viaduct off the Shansistrasse along the road to Oster's Slip, including small and large harbours.

§ 6. The free area shall not be made use of for dwellings, with the exception of those which are necessary for warehouse and wharf controllers, harbour, Customs, and police officers, nor for petty trade, with the temporary exception of a fixed number of Chinese street cookeries for the use of coolies. Factories are, in principle, allowed.

$7.-The Customs control within the free area, as well as at the exits, is exercised by the Chinese Custom House.

§ 8.-The Customs Duty account of all vessels must be settled within ten days of the ship's clearance, and Duty on all Imports passing beyond the free area paid.

$9.-Goods arriving by sea or from the hinterland, which are intended to be stored, sorted, and worked up in the free area, shall be notified to the Customs, who will then take them under supervision. At the time of the notification the following details have to be supplied: mode of conveyance by which the goods

arrived, and, if by sea, name of ship, name and address of consignee, date of arrival, number of packages, kind of packing, marks and numbers, and general description of the goods.

§10.-Goods which are destined to be exported by sea from the free area have to pass the Customs. Goods without Customs papers are not allowed to be received on board.

§ 11.-Traffic of every kind (carriages, carts, railway, junks, sampans, tugs, steamers, etc.) by sea and land frontier of the free area is subject to the supervision of the Customs.

III. DUTY-FREE GOODS.

§ 12.-On articles which are Duty free by Treaty 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 Government.

(b.) Stores and Provisions ordered by the military and naval authorities in anticipation of future requirements, if accompanied by Certificate of the 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, for ordinary repairs; but they are to be reported to the Customs officer, that their passing may be noted. (e.) All postal parcels imported and destined for private use in the Ger

man 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 the declarations as occasion demands.

§ 13. The personal luggage of passengers, declared as not containing either dutiable or contraband goods, is passed free of Duty and, as a rule, without examination; but the right of examination is reserved to the Customs in cases where it may be considered specially necessary.

Duty is leviable on articles carried in excess of those reasonably necessary for personal use or if expected to be sold.

IV. MANUFACTURES IN THE GERMAN TERRITORY.||

§ 14.-Manufactures in the German territory are only subject to Duty in so far as China is entitled to Duty on the raw material.

(a.) Chinese raw material landed in German territory from the hinter

land or non-Treaty ports and intended for use in a manufactory may be declared to the Customs and a Bond for any Duty payable on same deposited.

When the articles manufactured from this raw material come to be exported, they will pay Export Duty on the material used, and the Duty guaranteed by the Bond shall be cancelled. to that extent.

Duty guaranteed by the Bond must be paid or accounted for before the expiration of three years from its date.

It will be optional for the exporter to pay full Tariff Duty on the exported article instead of on the raw material used in its manufacture.

(b.) Any Import or Coast Trade Duty levied on raw material arriving

from Foreign countries or from the Treaty ports of China will be refunded at the time of exportation by sea of the manufactured articles made therefrom, provided that at the time of importation such material was duly declared at the Custom House as for use in a manufactory.

(c.) An arrangement will be made by agreement of Colonial and Customs authorities that when the various classes of manufactured articles are exported, the amount of raw material used will be fixed as a definite proportion and the Export Duty will be diminished accordingly.

(d.) The factories entitled to claim the treatment as specified above will be registered, and a list of them, revised as required and if needed, furnished to the Customs.

V.-OPIUM.

The im

§ 15.-Opium can only be imported by vessels in original chests. portation of smaller quantities than one chest is forbidden. All Opium on board of ships, including that intended for consumption during the journey, must, on arrival of the ship, be reported without delay to the Customs, who will supervise the transportation to the Customs godown of so much as is to be landed.

§ 16.-Opium from the German territory to China or from China to the German territory can only be conveyed by rail, on special Bill of Lading and as "Eilgut." It is forbidden to carry it as passenger's luggage. All Bills of Lading, etc., for arriving Opium are handed by the railway to the Customs in the German territory, who will notify the addressees.

§ 17. The consumption of Opium in the German territory is subject to special regulations.

Section IV (§ 14) rescinded and replaced by the Ordinance of April 17, 1907, printed below under (D).

VI.-ARMS, POWDER, EXPLOSIVES, ETC.

§ 18.-Arms, Powder, Explosives, and the like, as well as materials used in the manufacture of the same, must be declared on arrival and discharged and stored in accordance with the regulations of the Colonial Government.

§ 19. The export of Arms and Munitions of War of all kinds, as well as materials used in the manufacture of the same, from the German into Chinese territory is prohibited; exception is only made in the case of articles covered by Special Permit issued by the Commissioner of Customs in accordance with Chinese regulations.

§ 20. The storage of Arms and Explosives in the German territory, as well as the trade in the same, is subject to special regulations.

VII.-MAIL MATTER.

§ 21.-Mail matter may be landed or shipped by the Post Office at any time. § 22.-Postal parcels will be received by the Post Office only if accompanied by a declaration form viséd by the Customs.

§ 23.-Parcels destined for Tsingtau will be handed, immediately after arrival, by the Post Office to the Customs for assessment of Duty. The declaration form will be delivered to the addressee in the same way as other mail matter. The addressee will produce the declaration form at the Customs, and on payment of duty, if any (vide § 12, (e) ), the parcel will be delivered by the Customs. For such parcels as are destined for other places in the German territory where German Post Offices operate, the Duty payment of such parcels will be made, on application of the addressee, by the German Post Office, who will collect the Duty and a fee of 20 cents at the time of delivering the parcel.

§ 24. The importation of Opium, Arms, Powder, Explosives and the like, as well as materials used in the manufacture of the same, by Post is forbidden. In special cases the Government can grant an exception.

VIII. TANK KEROSENE OIL.

§ 25.-The Customs procedure for despatching tank ships, storage, and valuation of Kerosene Oil will be in accordance with the procedure in force at the Maritime Custom Houses at the Treaty ports.

IX.-OFFICE HOURS OF THE CUSTOM HOUSE.

§ 26. The Custom House is open for the receipt and issue of all Customs papers from 10 A.M. to 4 P.M. on all days, Sundays and holidays excepted. The Customs Bank is open on all weekdays from 9-12 A.M. and 2-4 P.M.

§ 27.-Vessels wishing to load or discharge on Sundays or holidays, as well as during night hours, must take out a Special Permit from the Customs: this Permit must be applied for during office hours.

§ 28. The transport of goods over land and sea boundary of the free area. during night hours is only allowed in case a Special Permit has been obtained from the Customs. This does not apply to mail matter and passengers luggage.

§ 29.-Night hours are:

From 1st March to 31st October: from 8 P.M. to 5 A.M.

From 1st November to 28/29 February: from 6 P.M. to 6 A.M.

X.-FINES.

§ 30.-Confiscation and fines will be imposed according to the principles. which are laid down by the Treaties and which are in force at the Maritime Custom Houses. In cases of appeal against confiscation and fine imposed by the Commissioner of Customs, the procedure will be conducted in accordance with the spirit of the "Rules for Joint Investigation in Cases of Confiscation and Fine by the Custom House Authorities. Peking, 31st May 1868."

XI.—ABROGATION OF FORMER REGULATIONS.

§ 31.-This Ordinance, issued to carry out the terms of the Agreement made on 17th April 1899 and of the Amendment to same made under its 20th Paragraph on the 1st December 1905, and accepted by the Chinese Customs authorities, will come into force on 1st January 1906, and will take the place of the following Regulations, which are hereby rescinded :—

(a.) The Provisional Customs Regulations for the German Territory of Kiaochow, of 23rd May 1899.

(b.) The Special Regulations for the Importation and Control of Opium, etc., of 23rd May 1899.

(c.) The Special Regulations re the Execution of the Customs Control, of 23rd May 1899.

(d.) The Provisional Additional Regulation to the Provisional Customs Regulations concerning Goods loaded by the Shantung Railway, of 20th April 1901.

(e.) The Customs Notification No. 24 regarding the Goods loaded by the Railway, of 31st March 1902.

WHEREAS necessity has arisen for more clearly stating the procedure to be followed in the treatment of manufactures by the Kiaochow Customs, the undersigned agree to accept the rules and explanations embodied in the document hereto attached, to be substituted for Section IV, "Manufactures in the German Territory," § 14 in the Tsingtau Ordinance of the 2nd December 1905 regulating

¶ The acceptance of this ordinance by the Inspectorate General of Maritime Customs was notified by it to the Commissioners of customs by Circular No. 1306 (2nd Series), December 23, 1905.