Charles R. Lowell to Fred’k T. Frelinghuysen, October 20, 1884

No. 146. Mr. Lowell to Mr. Frelinghuysen.

Sir: Referring to my No. 771 of the 13th of May last, I have the honor of inclosing a copy of my letter to Lord Granville calling his attention to the imposition of a customs duty upon kerosene oil at Ceylon already in transit from the United States to that colony before the passage of the law authorizing the levying of such duty. I also inclose a copy of a: note which I have just received from Lord Granville, communicating the final decision of the governor and council of Ceylon in relation to this matter, by which it will be observed that no exemption can be made from the operation of the local customs ordinance in favor of kerosene oil in transit from America to the colony at the time of the passing of the ordinance.

I have, &c.,

The executive council is not prepared to grant the relief advocated by the United States minister in England, for the following reasons:

In accordance with customs laws, no cognizance can be taken of floating cargoes whenever it is found necessary to impose duties which may affect such cargoes, and the local ordinance, No. 17 of 1869 is very distinct upon this point, inasmuch as it declares that, in respect of an importation, the time for the first levying of duty shall be deemed to be the time at which the ship has actually come within the limits of the port where the goods are to be discharged. It should also be borne in mind that until the 31st March, 1878, there was an ad valorem duty of 5 per cent, levied upon kerosene oil, and that its reimposition became necessary from a falling off of the revenue. It was publicly known that this measure was recommended to the Government by the retrenchment committee in the early part of 1883, and an objection to the duty by the United States consul in Colombo was considered in executive council and subsequently in the legislative council, but the sense of both councils was against granting the concession applied for or deferring the operation of the law by which the duty has been reimposed.