Evening star., 1912-11-24
LIGHT ON CANAL ACT
Treasury Answers Various
Protests of Manufacturers.
GIVES ITS INTERPRETATION
Provisions in Reference to Machinery
Are to Be Strictly Construed
Hereafter.

IN answer 10 numerous protests nleu
by American manufacturers of machinery.
|shipbuilders and concerns engaged in sim
liar lines Of .manufacture, over certain
provisions OF the Panama canal act rel
ative to the free admission of such man
ufactures, the Treasury Department has
issued statement containing a complete
analysis of it's modified order Interpreting
those provisions of the bill to which ex-
ceptions have been taken. The Treasury
Departments statement makes clear the
Interpretation which will in the future be
placed upon 1t.
In so far as 1t relates to machinery. the
act will hereafter be strictly interpreted
but in other respects the statute is 10
be broadly construed. As originally con-
strued by the Department, engines,
pumps. etc, have been admitted, as
whole, free of duty. Hereafter only
parts Of such machinery, as well as ma
terials for the manufacture of such
pa rts, will be entitled to free entry. the
complete machinery being considered du-
table.
Substance of Decision.
The substance of the Treasury Depart
ment's decision on the disputed points is
as follows:
A vessel will be defined as any water
craft entitled TO be documented under
the laws of the United States, and similar
craft for which there Is no such re-
uuirements, such as battleships, revenue
cutters and governmental vessels. This
will include every vessel OF over hVe tons
whether used by the government, for
commerce or for pleasure.
Machinery will not be entitled to Tree
rol,, do1 in "a ChtnPry''
will be auxiliary machinery such as
pumps, steam winches, hoisting engines.
electric motors and generators. con-
densers. etc.
be defined as including all portable ar
ticles not permanently incorporated in
the hull or machinery. and will INCLUDE
rigging, tackle, boats, life-saving appara-
tus wireless apparatHs
small arms, etc. but will not include
consumable supplies such as coal, food.
medicines. etc.
The term 'outft and equipment" will
also be held to include not only the
original outftting and equipping, but
also renewals and replacements.
Question of Materials.
Materials will be defined as including
merchandise suitable for use in the con-
struction or repair of vessel OF its ma
chinery to be incorporated therein after
having undergone a process of manufac-
ture subsequent to Importation. or in its
condition as imported. provided. 1t has
been purchased in the open market and
was not constructed or fabricated on a
special order or after a special design.
This will include raw materials. such as
pigiron and lumber, rough forgings and
castings, but not finished ones nuts,
screws, bolts, steel plates. ships-knees.
flooring. ETC.. and other things which
though completed articles are useful as
parts in the construction of something
else.
The word "articles" is defined as in
cluding only such articles as are suitable
for use in their condition as imported in
the outfit and equipment Of a vessel. but
such articles may be fitted. polished.
painted or otherwise improved In condi-
tion, or fixed in place subsequently.
Shpbuilding materials may be enter
sired within three years from date of inn
portation free of duty upon compliance
with the regulations.
The regulations provide that materials
may be used or manufactured in Gus
toms district other than that in which
entry is made, and provisions are also
made for the disposition Of unused por-
tions of importations.
Must BE Appraised.
Merchandise entered under this act is
required to be appraised and classified
but the liquidation OF the entry will be
suspended pending the production of evil
dence of compliance with the regula-
tions.
Various forms of application. bonds
and affidayits to show the disposition
made of the merchandise are provided.
The regulations further provide that,
subject to compliance with the regula-
tions. liquidated entries OF merchandise
imported on or after August "a. 1912. may
be re.iquidated free OF duty where the
liquidation has not become final, and
that free entry will be granted to mer-
chandise entered in bond on or after that
date for which no permit of delivery has