Custom-House LAWS

Custom-House LAWS. The expedient of exacting duties on goods imported, or exported, has been adopted by every commercial nation in Europe. The attention of the British legislature has not been confined to the object of raising a revenue alone, but they have attempted by duties, exemptions, drawbacks, bounties, and other regulations, to direct the national trade into those channels that contribute most to the public benefit. And, in order to obtain every requisite information, all goods, exported or imported, whether liable to duty or not, are required to be entered at the respective custom-houses; and, from these entries, accounts are regularly made up of the whole British trade, distinguishing the articles, their quantity and value, and the countries which supply or receive them.

The objects of the British legislature may be reduced to the following heads.

First, To encourage the employment of British shipping and seamen, for the purpose of supplying our navy when public exigencies require.

Secondly, To increase the quantity of money in the nation, by prohibiting the exportation of British coin, by encouraging exportation, and discouraging importation, and by promoting agriculture, fisheries, and manufactures. For these purposes, it is penal to entice certain manufacturers abroad, or export the tools used in their manufactures: the exportation of raw materials is, in most instances, prohibited; and their importation permitted free from duty, and sometimes rewarded with a bounty. The exportation of some goods, manufactured to a certain length only (for example white cloth), is loaded with a duty, but permitted duty free when the manufacture is carried to its full extent. The importation of rival manufactures is loaded with heavy duties, or absolutely prohibited. These restrictions are most severe towards nations with which the balance of trade is supposed against us, or which are considered as our most formidable rivals in power or commerce. Upon this principle the commerce with France, till lately, laboured under the heaviest restrictions.

Thirdly, To secure us plenty of necessaries for subsistence and manufacture, by discouraging the exportation of some articles that consume by length of time, and regulating the corn trade according to the exigencies of the seasons.

Fourthly, To secure the trade of the colonies to the mother country, and preserve a mutual intercourse, by encouraging the produce of their staple commodities, and restraining their progress in these manufactures which they receive from us in exchange.

The foundation of our commercial regulations is the famous act of navigation, which was first enacted during the time of the Commonwealth, and adopted by the first parliament after the Restoration. The substance of this act, and subsequent amendments, is as follows:

1. Goods from Asia, Africa, and America, may not

be imported, except in British ships duly navigated, or ships belonging to the British plantations; and they can only be imported from the place of their production or manufacture, or the port where they are usually first shipped for transportation. Goods of the Spanish or Portuguese plantations, imported from Spain and Portugal in British ships, bullion, and some other inconsiderable articles, are excepted.

The restriction on European goods is not universal, but extends to several of the bulkiest articles. Russian goods, masts, timber, boards, salt, pitch, rosin, tar, hemp, flax, raisins, figs, prunes, olives, oil, corn, sugar, potashes, wine, and vinegar, may not be imported, except in ships belonging to Great Britain or Ireland, legally manned; nor Turkey goods and currants, except in ships British built; or in ships belonging to the country where these goods are produced or manufactured, or first shipped for exportation, and, if imported in foreign ships, they pay alien's duty.

In order to entitle a ship to the privileges of a British ship, it must be built in Britain, and belong entirely to British subjects; and the master, and three-fourths of the mariners, must be British subjects, except in case of death, or unavoidable accidents. In time of war, the proportion of British mariners required is generally confined to one-fourth; and the same proportion only is required in the Greenland fishery.

No goods may be imported into, or exported from, the plantations in Asia, Africa, or America, except in ships built in Britain, Ireland, or the plantations, or prize ships, manned by British subjects, duly registered, and legally navigated.

The following goods, enumerated in the act of navigation and subsequent acts, may not be exported from the plantations, except to some other plantation, or to Britain: Tobacco, cotton wool, indigo, ginger, fustic, and other dying wood, molasses, hemp, copper ore, beaver skins and other furs, pitch, tar, turpentine, masts, yards, and boltsprits, coffee, pimento, coconuts, whale fins, raw silk, pot and pearl ashes. Rice and sugar were formerly comprehended in this list, but their exportation is now permitted under certain restrictions.

Iron may not be imported to Europe, except to Ireland; and none of the non-enumerated may be imported to any country north of Cape Finisterre, except the bay of Biscay and Ireland.

2. For the more effectual prevention of smuggling, no goods may be imported in vessels belonging to British subjects; and no wine, in any vessel whatever, unless the master have a manifest on board, containing the name, measure, and built of the ship, the place to which it belongs, and a distinct enumeration of the goods on board, and places where they were laden. If the ship be cleared from any place under his majesty's dominions, the manifest must be attested by the chief officer of the customs, or chief magistrate, who is required to transmit a copy thereof to the place of destination. Shipmasters must deliver copies of this manifest to the first custom-house officer who goes on board within four leagues of the shore, and also to the first who goes on board within the limits of any port, and must deliver the original manifest to the custom-house at their arrival, and make report of their cargo upon

upon oath. If the report disagree with the manifest, or either disagree with the cargo on board, the ship-master is liable in the penalty of 200l. The proprietors of the goods must enter them, and pay the duties within 20 days; otherwise they may be carried to the customhouse, and sold by auction, if not relieved within six months; and the overplus of the value, after paying duty and charges, paid to the proprietors.

3. The importation of cattle, beef, mutton, and pork, except from Ireland, woollen cloths, malt, and various articles of hardware, cutlery, and earthen ware, is prohibited: Also the following goods from Germany and the Netherlands; olive oil, pitch, tar, potashes, rosin, salt, tobacco, wines, except Rhenish wine, and Hungary wines from Hamburg.

4. The importation of various other goods is restricted by particular regulations, respecting the time and place of importation, the packages, the burden of the ship, the requisition of a license, and other circumstances.

To guard more effectually against clandestine trade, the importation of some articles is only permitted in ships of a certain burden, whose operations are not easily concealed. Spirits must be imported in ships of 100 tons or upwards, except rum, and spirits of British plantations, which are only restricted to 70 tons; wine, 60 tons; tea, tobacco, and snuff, 50 tons; salt, 40 tons. Wine, spirits, and tobacco are also restricted in respect of the packages in which they may be imported.

5. Diamonds and precious stones, flax, flax feed, linen rags, beaver wool, wool for clothiers, linen yarn unbleached, and most drugs used in dyeing, may be imported duty free.

6. All goods imported are liable to duties, except such as are expressly exempted. The revenue of customs is of great antiquity in Britain, but was new-modelled at the restoration of Charles II. A subsidy of tonnage on wines, and of poundage, or 1s. per pound value of other goods, was granted during the king's life, and, after several prolongations, rendered perpetual. A book of rates was composed for ascertaining these values; and articles not rated paid duty according to the value, as affirmed upon oath by the importer. If the goods be valued too low by the importer, the customhouse officer may seize them, upon paying to the proprietor the value he swore to, and 10 per cent. for profit; such goods to be sold, and the overplus paid into the customs. Various additional duties have been imposed; some on all goods, some on particular kinds; some according to the rates, some unconnected with the rates; some with an allowance of certain abatements, some without any allowance; the greater part to be paid down in ready money, and a few for which security may be granted; often with variations, according to the ship's place and circumstances of importation. The number of branches amounted to upwards of 50; and sometimes more than 10 were chargeable on the same articles. By this means, the revenue of the customs has become a subject of much intricacy. The inconveniences which this gave rise to are now removed by the consolidation act; which appoints one fixed duty for each ar-

ticle free from fractions, instead of the various branches to which they were formerly subject.

7. Goods of most kinds may be exported duty free when regularly entered; and those that have paid duty on importation are generally entitled to drawback of part, sometimes of the whole, when re-exported within three years, upon certificate that the duties were paid on importation, and oath of their identity. In some cases, a bounty is given on manufactured goods, when the materials from which they are manufactured have paid duty on importation; and manufactures subject to excise, have generally the whole or part of the excise duties returned.

8. The following goods are prohibited to be exported; white ashes, horns, unwrought hides of black cattle, tallow, corn, brass, copper, engines for knitting stockings, tools for cotton, linen, woollen, silk, iron and steel manufactures, wool, woollfells, woollen yarn, fullers earth, fulling clay, and tobacco-pipe clay.

9. The object of the laws respecting the corn trade is to encourage agriculture, by not only permitting the free exportation, but rewarding it with a bounty when the prices are low, and checking the importation by a heavy duty; and to prevent scarcity, by prohibiting the exportation when the prices are high, and permitting importation at an easy duty. Various temporary laws have been enacted for these purposes, and sometimes other expedients employed in times of scarcity, such as prohibiting the distillery from corn, and manufacture of starch.

10. Bounties are allowed on the exportation of refined sugar, sail-cloth, linen under limited prices, silk stuffs of British manufacture, cordage, spirits when barley is under 24s. beef, pork, and the following kinds of fish, salmon, herrings, pilchards, cod, ling, flake, and sprats.

Various other bounties are allowed for the encouragement of our fisheries. Ships from 150 to 300 tons employed in the Greenland whale fishery, and conforming to the regulations prescribed, are allowed 30s. per ton. Vessels employed in the herring fishery receive 20s. per ton, besides a bounty on the herrings caught and cured, amounting in some cases to 4s. per barrel. Other bounties are granted to a limited number of the most successful vessels employed in the herring and Newfoundland fisheries, and in the southern whale fishery.

It is unnecessary and impracticable, in this place, to enter into a full detail of our customhouse laws. Indeed, all that can be admitted into a work of this kind, must convey but very imperfect information; and even that little becomes useless in a short time from alterations in the law. We have therefore only marked the general outlines in the present article; which, however, will be sufficient to enable the reader to judge of the principles upon which the British legislature has acted. How far the means employed have contributed to the ends proposed, and how far the ends themselves are always wise; or whether a trade encumbered by fewer restrictions would not prove more extensive and beneficial; has often been a subject of discussion.

Mercantile Laws. The laws relating to commercial and

Mercantile and maritime affairs approach nearer to uniformity through the different countries of Europe, than those on other subjects. Some of the fundamental regulations have been taken from the Roman law; others have been suggested by experience, during the progress of commerce; and the whole have been gradually reduced to a system, and adopted into the laws of trading nations, but with some local varieties and exceptions.

The British legislature has enacted many statutes respecting commerce; yet the greater part of our mercantile law is to be collected from the decisions of our courts of justice, founded on the custom of merchants. A proof of such custom, where no direct statute interferes, determines the controversy, and becomes a precedent for regulating like cases afterwards. The existence of a custom not formerly recognized, is, in England, determined by a jury of merchants.

The most common mercantile contracts are those between buyer and seller; between factor and employer; between partners; between the owners, masters, mariners, and freighters of ships; between insurers and the owners of the subject insured; and between the parties concerned in transacting bills of exchange. See FACTORAGE, SALE, PARTNERSHIP, INSURANCE, BILL, &c. and the next article.

Maritime Laws. The most ancient system of maritime laws is that of Rhodes, which was in force during the time of the Grecian empire, and afterwards incorporated into the Roman law. Although, in some parts, not applicable to the present state of trade, and, in others, now hardly intelligible, it contains the groundwork of the most equitable and beneficial rules observed in modern commerce. A like system was set forth by Richard I. of England, called the Statutes of Oleron; and another, by the town of Wisby, in the island of Gothland. From these systems, improved and enlarged in the course of time, our general maritime law is derived. The jurisdiction of matters purely maritime belongs, in England, to the court of admiralty, which proceeds on the civil law; but their proceedings are subject to the control, and their decisions to the review, of the superior courts.

We shall here consider the obligations which subsist between the masters or owners of ships, the freighters, and the furnishers of provisions or repairs.

1. Masters and Freighters. A charter party is a contract between the master and freighters, in which the ship and voyage is described, and the time and conditions of performing it are ascertained.

The freight is most frequently determined for the whole voyage, without respect to time. Sometimes it depends on the time.

In the former case, it is either fixed at a certain sum for the whole cargo; or so much per ton, barrel bulk, or other weight or measure; or so much per cent. on the value of the cargo. This last is common on goods sent to America; and the invoices are produced to ascertain the value.

The burden of the ship is generally mentioned in the contract, in this manner, one hundred tons, or thereby; and the number mentioned ought not to differ above 5 tons, at most, from the exact measure. If a certain sum be agreed on for the freight of the ship, it must all be paid, although the ship, when measured, should

prove less, unless the burden be warranted. If the ship be freighted for transporting cattle, or slaves, at so much a head, and some of them die on the passage, freight is only due for such as are delivered alive; but, if for lading them, it is due for all that were put on board.

When a whole ship is freighted, if the master suffers any other goods besides those of the freighter to be put on board, he is liable for damages.

It is common to mention the number of days that the ship shall continue at each port to load or unload. The expression used is, work weather days; to signify, that Sundays, holidays, and days when the weather stops the work, are not reckoned. If the ship be detained longer, a daily allowance is often agreed on, in name of demurrage.

If the voyage be completed in terms of the agreement, without any misfortune, the master has a right to demand payment of the freight before he delivers the goods. But if the safe delivery be prevented by any fault or accident, the parties are liable, according to the following rules.

If the merchant do not load the ship within the time agreed on, the master may engage with another, and recover damages.

If the merchant load the ship, and recal it after it has set sail, he must pay the whole freight; but if he unload it before it sets sail, he is liable for damages only.

If a merchant loads goods which it is not lawful to export, and the ship be prevented from proceeding on that account, he must pay the freight notwithstanding.

If the shipmaster be not ready to proceed on the voyage at the time agreed on, the merchant may load the whole, or part of the cargo, on board another ship, and recover damages; but chance, or notorious accident, by the marine law, releases the master from damages.

If an embargo be laid on the ship before it sails, the charter-party is dissolved, and the merchant pays the expence of loading and unloading; but if the embargo be only for a short limited time, the voyage shall be performed when it expires, and neither party is liable for damages.

If the shipmaster fails to any other port than that agreed on, without necessity, he is liable for damages; if through necessity, he must fail to the port agreed on, at his own expence.

If a ship be taken by the enemy, and retaken or ransomed, the charter-party continues in force.

If the master transfer the goods from his own ship to another, without necessity, and they perish, he is liable for the value; but if his own ship be in imminent danger, the goods may be put on board another ship at the risk of the owner.

If a ship be freighted out and home, and a sum agreed on for the whole voyage, nothing is due till it return; and the whole is lost if the ship be lost on the return.

If a certain sum be specified for the homeward voyage, it is due, although the factor abroad should have no goods to send home.

In the case of a ship freighted to Madeira, Carolina, and home, a particular freight fixed for the homeward

ward voyage, and an option reserved for the factor at Carolina to decline it, unless the ship arrived before 1st of March: the shipmaster, foreseeing he could not arrive there within that time, and might be disappointed of a freight, did not go there at all. He was found liable in damages, as the obligation was absolute on his part, and conditional only on the other.

If the goods be damaged without fault of the ship or master, the owner is not obliged to receive them and pay freight, but he must either receive the whole, or abandon the whole; he cannot choose those that are in best order, and reject the others. If the goods be damaged through the insufficiency of the ship, the master is liable for the same; but, if it be owing to stress of weather, he is not accountable. It is customary for shipmasters, when they suspect damage, to take a protest against wind and weather, at their arrival. But as this is the declaration of a party, it does not bear credit, unless supported by collateral circumstances.

If part of the goods be thrown overboard, or taken by the enemy, the part delivered pays freight.

The shipmaster is accountable for all the goods received on board, by himself or mariners, unless they perish by the act of God, or of the king's enemies.

Shipmasters are not liable for leakage on liquors; nor accountable for the contents of packages, unless packed and delivered in their presence.

Upon a principle of equity, that the labourer is worthy of his hire, differences arising with regard to freight, when the case is doubtful, ought rather to be determined in favour of the shipmaster.

2. Ship and Owners with Creditors. When debts are contracted for provisions or repairs to a ship, or arise from a failure in any of the above-mentioned obligations, the ship and tackle, and the owners, are liable for the debt, as well as the master.

By the mercantile law, the owners are liable in all cases, without limitation; but by statute, they are not liable for embezzlement beyond their value of ship, tackle, and freight.

A shipmaster may pledge his ship for necessary repairs during a voyage; and this hypothecation is implied by the maritime law when such debts are contracted. This regulation is necessary, and is therefore adopted by all commercial nations; for, otherwise, the master might not find credit for necessary repairs, and the ship might be lost. If repairs be made at different places, the last are preferable.

The relief against the ship is competent to the court of admiralty in England, only when repairs are furnished during the course of a voyage; for the necessity of the case extends no further. If a ship be repaired at home (e. g. upon the river Thames), the creditor is only entitled to relief at common law.

The creditor may sue either the master or owners; but if he undertook the work on the special promise of the one, the other is not liable.

If the master buys provisions on credit, the owners are liable for the debt, though they have given him money to pay them.

If a ship be mortgaged, and afterwards lost at sea, the owners must pay the debt; for the mortgage is

only an additional security, though there be no express words to that purpose in the covenant.

If a ship be taken by the enemy, and ransomed, the owners are liable to pay the ransom, though the ransomer die in the hands of the captors.

3. Owners of ship and cargo with each other. There is a mutual obligation which subsists between all the owners of a ship and cargo. In time of danger, it is often necessary to incur a certain loss of part for the greater security of the rest; to cut a cable; to lighten the ship, by throwing part of the goods overboard; to run it ashore; or the like: and as it is unreasonable that the owners of the thing exposed for the common safety should bear the whole loss, it is defrayed by an equal contribution among the proprietors of the ship, cargo, and freight. This is the famous Lex Rhodia de jactu, and is now called a general average.

The custom of valuing goods which contribute to a general average, is not uniform in all places. They are generally valued at the price they yield at the port of destination, charges deducted; and goods thrown overboard are valued at the price they would have yielded there. Sailors wages, clothes and money belonging to passengers, and goods belonging to the king, pay no general average; but proprietors of gold and silver, in case of goods being thrown overboard, contribute to the full extent of their interest.

The following particulars are charged as general average: Damage sustained in an engagement with the enemy; attendance on the wounded, and rewards given for service in time of danger, or gratuities to the wounds or children of the slain; ransom; goods given to the enemy in the nature of a ransom; charges of bringing the ship to a place of safety when in danger from the enemy, or waiting for convoy; charges of quarantine; goods thrown overboard; masts or rigging cut; holes cut in the ship to clear it of water; pilotage, when a leak is sprung; damage, when voluntarily run aground, and expence of bringing it afloat; goods lost by being put in a lighter; the long boat lost in lightening the ship in time of danger; hire of cables and anchors; charges of laying in ballast, victualling, and guarding the ship when detained; charges at law, in reclaiming the ship and cargo; interest and commission on all these disbursements.

Though goods put on board a lighter, and lost, are charged as a general average; yet if the lighter be saved, and the ship with the rest of the goods be lost, the goods in the lighter belong to their respective proprietors, without being liable to any contribution.

If part of the goods be plundered by a pirate, the proprietor or shipmaster is not entitled to any contribution.

The essential circumstances that constitute a general average are these; the loss must be the effect of a voluntary action; and the object of that action the common safety of the whole. Quarantine, which is allowed, seems not to fall within this description.

4. Quarantine. See QUARANTINE.

5. Wrecks. See WRECK.

6. Impress. See IMPRESSING.

7. Insurance. See INSURANCE.