The times., 1901-05-29
THE PHILIPPINE TARIFF.
n Proposal to Try Adj vnIorem rs
Wen as Specific Duties.

Some important changes are under con-
sideration at the War Department in the
provisional draft of the Philippine tariff
which was published in March The tar
iif as prepared at Manila was based en-
tirely upon the specific system of duties
which levies customs charges according
to weight or number of the imported ar
ticles rather than according to value.
This principle has the approval of Secre-
tary Root, but it is thought desirable to
apply an ad valorem limit in certain
cases where there is wide difference be-
tween the values of articles classified
under the same paragraph.
The specific duties Will be retained in
most of these cases, but it will be pro-
vided that the articles shall! pay not less
than a certain ad valorem rate The
ad valorem rate on the necessities of life
and articles essential to the development
of the islands will not run higher than
Is per cent, but upon articles less neces-
sary it will rise to 20 per cent, and in the
case of luxuries to higher proportions.
In such cases the specific duties will
first be assessed and it will be determined
whether the amount of the specific duty
Is as much as the ed valorem limit If
the amount of the specific duty falls be-
low the ad valorem limit, a sufficient
amount will be added to bring the net
duties up to the limit. If the specific duty
is higher than the ad valorem limit, it
will be collected in full without reference
TO such limit
1t is believed that this method of assess
ing the duties will obviate the objections
made by the Philippine Commission to
any ad valorem duties, upon the ground
that they would afford temptation to I'M
LIBERALIZATION and be difficult to fix in the
absence of competent experts in the Gus
tom house at Manila. The effect of any
practlcable degree of undervaluatiOn un-
der the system proposed would be tri-
fling uDon the net duties paid and not
worth the risk of seeking TO defraud the
revenue. Absolute accuracy in valuation
will be less important moreover than
under the American tariff, and the pro-
posed system will in the nature of the
case tend TO equalize differences arising
under the system of purely specific du-
ties, even If the equalization is not per-
feet.
The limit of Is per cent will apply to a
great variety of articles under the metal
schedule, which il was found impossible
to distribute under specific duties Tools
and implements, cutlery, needles, pens,
miscellaneous manufactures of iron and
steel and of zinc. copper, and nickel will
be required to pay duties of not less than
IS per cent. In all these cases the Spe-
cific duty will be collected, whether it
amounts to per cent or more, but where
it falls below Is per cent AZ yalorem an
estimate of the value of the articles win
be made and the amount of duty raised
to Is per cent ad valorsm. Plate glass
and mirrors will be required to pay not
less than 20 per cent while the limit in
the case of cut glass, watch glasses, ana
similar fine products will be fixed at not
less than 30 per cent. 1t is probable that
the rate on precious stones will be fixed
at u per cent, in order to obviate the
temptation to smuggling. The rate on
nickel will probably be higher than in
the nrnvisionaI tariff nrenared in Manila.