The sun., 1919-07-21
CUSTOMS METHODS
IN SOUTH AMERICA
V. Gonzales Says Certain Prac-
tees Affecting Delivery of
Goods Need Reform.
ny ". GONZALES.

| ny W
! II IS an open secret that in some Latin
American countries prospective owners
can obtain delivery or release at Gus
toms ofices without presenting original
bills OF .ladlng-the only document that
| conveys right OF possession. 1t Is said
| that the mere mention of a mans name
as nptifyee on an order bill of lading
! or HE fact that the consular invoice
mentions his name as FOR whose account
the goods have been shipped" will per-
nit him to secure a copy Of consular
invoice and bill OF lading, issued by a
customs official, and that with these
copies he Is allowed to make entry and
take actual delivery on payment OF
| duties. II any.
While this may not be a regular prac-
tice in all the twenty countries and hon
est merchants would never resort to a
crooked way Of obtaining possession OF
goods, 1t has happened unfortunately
often enough TO Justify a demand for
protection in the future.
Custom off1Ses are mere trustees for
both the shipper and the consignee, who
ever he may be-a direct one as men
| toned In the bill of lading or the legiti-
mate holder OF an order" bill of lad
Ing. AllnOuBn All DlllS Ol ldulIlB bIAlo
the obligation of the carrier to deliver
goods shipped to a consignee tspecific or
to be known later at destination, he
does not make nor can he make such de-
livery. The goods are all delivered in
bulk under rough inventory on arrival to
the Government, who keeps them in trust
until legitimate right of possession be
shown and duties, IL any, paid Such
goods are held in trust only. although
the State holds a natural lien on them
for duties and charges.
The State should then, in fulfilling
its trust, deliver only to whoever shows
irrefutable right OF Professionalism
ever gives evidence not only according
to the laws OF the country but also ac-
cording to the laws OF the country
where the goods were shipped.
All countries recognize the holder OF
an order bill OF lading, or the consigneo
of n direct one, as the legitimate pos
SCISSOR of the goods represented. and
the State on actually seizing the goods
on arrival makes itself trustee OF the
possession only II never acquires nor
can it transfer the ownership or sucn
goods. 1t cannot make delivery to
other than the rightfui possessor or his
legal transferee.
Uses of Consular Invoice.
The consular invoice does not and
cannot transfer the right of owner
ship nor the right OF possession 1t Is
only a document issued for the con-
venience and protection OF the rights OF
the State as to taxes. charges, and
other regulations as to its import into
its country, which are all legitimate
rights of the States But the protec-
ton OF its rights can never go as far
as making delivery of such goods to
other than the legitimate possessor, be
he the owner or not. The State has no
right to interfere in the transfer OF
ownership, which is a right exercised
only by legitimate owners. 1t may con-
hscate goods for violation OF its laws,
It may destroy them for tie same rea-
| son, but it has no right to deliver TO
any one goods OF which he has no
right OF possession.
The only evidence OF right OF pos
| session OF goods transported from one
place TO the other is the holding OF the
bill of ladine duly Endorsed or duly
| directed.
Furthermore. the State. as trustee
should protect the rightful possessor and
prevent any one else from taking
! possession.
II sufficient protective provisions are
not HeHllOHeu III inc customs 1--WE
| and regulations, they should be de.
| creed so as to satisfy the confidence
Of all shippers. They should be SO pre-
else that every one should know that
goods will not be delivered except III
compliance with the instructions OF the
| rightful possessor-the holder OF an in
| dorsed order bill Of lading or the con-
signee in the direct one
In this regard it might be convenient
! TO pass legislation Cor executive reSu-
. iation as the case may be, according &c
the laws OF each country making II
| Enthusiastically clear that consular in.
voices do not in any way bestow upon
upon any person rights OF ownership or
| possession and that they are merely
| auxiliary documents intended to assist
| the Government in compiling statistics
and verifying details OF goods inn
ported for the purpose OF revenue only.
Advantages of Order Bill.
There are only four countries in the
whole world which do not recognize the
order" bin OF lading. These four are
In Latin MISUNDERSTANDING Venezuela,
Panama and the Dominican Republic.
The advantages OF the order bill OF
lading are too well known to need any
further comments. and II is hard to un-
ders' and why those -FOUR countries,
usually progressive. are still adhering
to the antiduated system OF demanding
only direct bills OF lading.
Credit is more easily and cheerfully
granted when goods are shipped and
drafts drawn against bills of lading than
" hen on open account. No drafts can
be drawn against direct bills OF lading
and therefore credit in those four coun-
tries has to be restricted to just as much
as can be sold on open account or
against unprotected clean drafts.
In some cases. and to obviate the DIFF
ficulty. goods are consigned to a bant
requesting that they be transferred in
bond upon acceptance of draft attached.
Very few banks will accept the consign-
ment because of responsibility incurred
on becoming importers. Besides, II is n
very roundabout way and drafts drawn
on a merchant with bill of lading to the
order OF a bank cannot be negotiated
except after acceptance OF such drafts.
There is no doubt that II the Govern
ments OF the four countries we're re.
quested to LIT the unnecessary and cum
bersome restriction, they would not hesi-
tate in doing so. Their countries would
be the first to enjoy the benefit as they