Prince Kung to S. Wells Williams , United States Chargé d’affaires ad interim, May 22, 1868

Prince Kung to Mr. Williams

Prince Kung, chief secretary of state for foreign affairs, herewith makes a communication:

On the 25th ultimo, Mr. Hart, the inspector general of customs, sent me the following report:

“On receiving the orders from the Foreign Office fixing the duty on tea-dust at 1t. 2m. 5c. per pecul on all that whose cost did not exceed 15 taels per pecul, while such as cost over 15 taels per pecul was still to pay the regular tariff duty of 2t. 5m., I immediately gave directions to carry the same into effect, as the chief object of the change was to benefit the native merchants in their trade between the various ports. But when the duty on the cheaper sorts of tea-dust was placed at 1t. 2m. 5c. per pecul, I heard that foreign merchants erroneously concluded that all kinds of tea leaf which cost less than 15 taels per pecul were likewise included in this new regulation. As this would, in my opinion, be a detriment to the revenue, I have to request that orders may be issued directing that the tariff on tea-dust shall be fixed at 1t. 2m. 5c. for all that whose cost does not exceed 10 taels per pecul, while all whose cost exceeds that amount, whether sent from port to port or exported to foreign countries, shall pay the former duty of 2t. 5m. per pecul,” &c.

An examination of this subject shows that tea leaf and tea-dust are quite different in many respects, and the object of making the new regulation was to reduce the duty in some proportion to the article, as was shown in the dispatch sent you on the 29th of last December. But if it is, as the inspector general of customs says in his report, that foreign merchants have mistakenly inferred from this that tea leaf itself (when under that cost per pecul) pays only 1t. 2m. 5c., they have truly confused the matter. The rule must accordingly be changed in order to mark the difference more plainly, and the limit placed on tea-dust exported must accordingly be restricted so that the revenue shall not be diminished.

Hereafter the duty on tea-dust exported from any port shall be levied in accordance with this recommendation of the inspector general of customs. For all that whose cost does not exceed 10 taels per hundred catties, the duty shall henceforth be 1t. 2m. 5c. for that quantity, whether it is to be sent abroad or carried to another open port; while for that whose cost exceeds 10 taels per pecul, the duty shall be as before, at the rate of 2t. 5m. per pecul. By this arrangement the duty on the article will be clearly distinguished, and no doubt, too, to the advantage of all interested. Orders to act in conformity to this arrangement have been sent to the inspector general of customs, and this communication is now likewise sent, that your excellency may give the necessary instructions to all the American merchants to act accordingly.