The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1901-11-23
Traced NHHMYNNNHMH AND MMBGA Ma SERVICE PAU UMGHCM KRIS NNaF
PHILIPPINE TARIFF BARRIER
MAY COME DOWN.
A Transition Period That Puts Hawaii
In the Shade-Dispatch Received by
Collector Chamberlain.

Internal Revenue Collector Roy r.
Chamberlain received by the Hong
Kong Maru the following dspatcn from
Collector Lynch, of san Francisco;
WASHINGTON, %. CO. November
10, 190l-CollectOr Lynch, San Francisco
Cal: Accept no more export bonds on
goods for Philippine islands Require
payment of tax on goods destined TO
Philippines. treating them as domestic
territory. Cancel no export bonds all
ready approved on Philippine ship
ments until further directed.
y. w. JERKES, Commissioner"
1t is thought by some that this ruling
foreshadows a ruling that viii make
the Philippines American territory, as
to customs laws as well. This would
mean the free admission of Philippines
products into the United States ItI
would be chiefly of interest to Hawaii
In that it would result in growth of
shipping business between the Pacific
coast and the Philippines, and Honolulu
might be stopping place. The Manila
cigar, once so plentiful in Hawaii would
again come here free OF duty, though
with an internal revenue tax paid.
The situation in the Philippines is a
most peculiar one Just now. The islands
appear to be enjoying a transition pe-
rtod that puts Hawaii forever i'm the
shade.
The customs laws at Philippine ports
are applied against Americans just the
same as against foreigners" said Col
lector Chamberlain. Liquors for in
stance, are taxed the same as they en-
ter Manila. whether they come from
San Francisco or from Europe. They are
now to be taxed the internal revenue /
tax as well. Whether the government
will kept on this basis or not remains
to be seen. The Treasury department
is waiting for a decision from the Unit !
ed States Supreme court before maxi
ing any rulings as to custom laws"
The same mail that brought news of
the decision of the Internal Revenue
Commissioner that the Philippines were
to be treated as a domestic territory,
brought a decision of the Treasury De-
partment sticking, at least temporarily
to the position that they are domestic
territory. This is why American ship
pers of dutiable goods to the Philippines
viii have to pay domestic duty to the
Internal revenue officers, and also for
eiBn tariff to customs men under the
control of the War Department, which
installed the Philippine tariff system.
One tariff or the other will probably be
refunded, when the Supreme court de-
cides whether the Philippines are do
mestic or foreign territory. The Trea-
sury ruling is as follows, addressed to-
a brewing company that made in
quiry:
'The Department is in receipt of your
letter in which, adverting to a press
dispatch to the effect that within a
week or ten days the Treasury Depart
ment will rule that the Philippine ISL
ands are domestic territory, you re-
quest to be furnished with the exact
wording of the decision and state: AS
" III.
Philippines from America is subject
to duty of about $420 (Mexican) per
cask of ten dozen pints. We infer from
the dispatch quoted above that this
duty will be taken from beer, and that
instead beer will be taxed in this coun-
try at the rate of $1.60 per barrel of
thirty-one gallons
In reply 1 have to inform you that
the Department does not contemplate
making any such ruling as you refer to.
The question involved is now pending
before the Supreme Court, and cannot
be officially determined by any other
branch of the Government. At the pres
ent time all questions relating to the
collection of duties on importations into
the Philippines come within the juris-
diction of the Secretary of War; the
rates are fixed by him and his agents
collect the revenue. This Department
is advised that the products of ali
countries pay the same duties as those
assessed upon goods from the United
States. Under the customs laws the
Treasury Department has been obliged
to deny a drawback on all articles
shipped to the Philippines. So much of
your inquiry as relates to the remission
of internal revenue tax on your pro-
posed shipment has been referred to the
Commissioner of Internal Revenue, on
whom the responsibility attaching to
the remission of internal revenue taxes
primarily rests"