HL Deb 06 August 1925 vol 62 cc766-70

LORD TEMPLEMORE rose to ask His Majesty's Government whether there are any means available to enable officers of the British Army and others proceeding to India on duty to acquire information respecting the Government of India Customs Duties payable on household effects and personal belongings, and also respecting the rebates, if any, to which they are entitled; and whether, if such means are not available, they may, for the convenience of the persons named above, he provided as soon as possible.

The noble Lord said: My Lords, as the trooping season for India is now coming on I think that this is a Question which should be answered, and I hope the Government will give a sympathetic reply. The facts are simply these. About this time of the year and onwards to the spring there are many British married officers who are going out to serve with their regiments in India. I have no doubt that there are civilians as well, and if I refer more especially to officers in the course of my remarks, it is simply because most of my life has been spent in the association and company of the British officer, and it is of him that I chiefly think. These officers who are going out, very often with their wives and families, and sometimes newly married officers with their wives, take out certain household goods with them, very often their wedding presents—articles of furniture, silver, and all kinds of things—on which they have, on landing in India, to pay Customs Duties. There appears to be great doubt and uncertainty in the minds of officers as to what these Duties consist of and how they are to be paid.

I have made inquiries, and I have obtained a yellow paper which appears to give a few details as regards the payment of Customs Duties on these articles. I will quote shortly from this paper. Paragraph 2 says:— Bonâ fide baggage shall include wearing apparel and personal effects, provided that the articles are not for sale, and are imported for the personal use of the passenger or for the use of members of his family travelling with him; but it shall not include the following articles, on which duty must be paid in all cases:—

  1. " (a) Arms, ammunition and all other articles enumerated in Schedule II of the Tariff Imports Schedule.
  2. " (b) Alcoholic liquor exceeding two quarts, perfumed spirit exceeding one quart, and all other articles enumerated in Schedule III.
  3. " (c) Cigars and cigarettes exceeding 100 in number, whether in opened or unopened boxes, and other tobacco exceeding 1 lb. in weight.
  4. " (d) Pianos, pianolas, carriages, motor cars and motor cycles.
  5. "(e) Articles for household use, such as furniture, pictures, carpets, glass, crockery, cutlery and silver and plated ware, except such articles 768 (other than furniture or carpets) as shall appear to the Customs authorities to be imported in a moderate quantity, and to be required for the personal use of the passenger whilst travelling or immediately upon his arrival at his destination.
That is all very well and it gives, to some extent, an answer to the Question which I am asking. The paragraph which mainly concerns the people I have in mind is paragraph (e), which really relates to their household effects. It is about this that the chief doubt arises.

Another question on which they are doubtful is the question of rebate. I understand that a rebate of a certain amount is payable if the declaration is made at the time of importation and if the interval between the arrival and departure of the person in India does not exceed two years. I would suggest that the India Office should obtain and publish full information as to the rates of duty, the rates of rebate, the method of valuation and similar useful matter. This information, when collected, should be embodied in a paper and should be sent, by the India Office or War Office as the case may be, to every officer or civilian when he embarks for India, with his embarkation orders. This would be a perfectly simple thing to do. Whenever a person embarks for India lie gets numerous orders to enable him to board his ship and do other things, and information regarding the Customs Duties could perfectly well be included with the other papers.

I do not go into the question of the equity of these officers having to pay these Duties. I have my own opinion about that. The fact remains that the law is as it stands, and these Duties have to be paid, but I do think that the officers who have to pay them should know what they have to pay. The majority of them are not well off and even if they were I do not think that would alter the principle of the matter. If the noble Viscount who is going to reply will state that the India Office see their way to collect this information and let it be published in the way I have suggested, it would he a great relief to the persons about whom I am speaking. They should at any rate be informed as to what Duties they are liable before they embark. It might save them great expense and it would, I am convinced, at all events save them great uncertainty and annoyance.

VISCOUNT GAGE

My Lords, my noble and learned friend the Secretary of State, who has asked me to reply for him, is indebted to the noble Lord for affording him an opportunity of giving some publicity to this question, as it appears that there has been some misapprehension in the past, chiefly on the part of certain officers who were proceeding to India for the first time, and who had not been aware of the existence of these Duties until their baggage had been packed and stored on board their ships, and had accordingly suffered some inconvenience thereby. Nevertheless, I must inform the noble Lord that information, both as to the incidence and extent of these Duties, is obtainable at any time either from the offices of the High Commissioner for India or the various shipping agencies. Although these officers have not availed themselves of these facilities none the less they do exist.

I do not, suppose that the noble Lord wishes me to give him a complete extract from the Tariff Schedules covering the class of articles which he specifies in his Question, but, generally speaking, I may say that all household effects and personal belongings are subject to an ad valorem tax varying from 30 per cent. to 15 per cent., according to the nature of the article. But certain- exemptions are allowed, subject to rules made by the Chief Customs Authority under Sections 24 and 75 of the Sea Customs Act of 1878. Tinder these rules are certain articles which are required by the passenger at his destination and brought out by him as "indispensable necessaries"; for instance, silver and plate ware are exempted up to the value of Rs.600, household linen to the value of Rs.400. crockery and glassware up to Rs.200, cutlery up to lis.150, cooking utensils up to 118.100 and pictures up to Rs.60. There are several other articles into which I need not go now. In the case of a husband and wife travelling together these limits of free allowances are doubled. There is no exemption in respect of certain other articles, such as motor cars or pianos.

In respect of the rebates to which the noble Lord referred, I confess that the information is rather more difficult to obtain and I must refer him to Section 42 of the Sea Customs Act, 1878, the purport of which is that seven-eighths of the Duty paid on import is reclaimable at the time of re-export by sea, provided that not more than two years have elapsed between the two dates, and provided that the owner of the goods has at the time of import applied for a formal Duty receipt containing particulars required to make identification on export possible. The extension of the period within which the drawback may be granted up to three years is within the discretion of Customs collectors. It appears that no extension beyond three years is made in practice. The question of extending it so as to cover the case of officials taking up short-period appointments has been fully considered at various times and the decision has been definitely against such extension. I am afraid that covers most of the cases to which the noble Lord has referred, including the case of officers serving on a four years basis. The claim to receive this drawback must be made and established at the time of re-export and can then be paid either to the passenger himself or to his authorised agent.

On the point raised by the noble Lord as to the method of valuation, the assessment of the value of articles of baggage which are liable to rates of ad valorem, Duty is on the value represented by the cost at which goods of the like kind and quality could be delivered. The amount of the Duty payable is deducted from this value for the purposes of assessment The passenger's declaration is usually accepted if it appears to represent the value of the goods in the sense already described. In reply to the noble Lord's question whether a pamphlet or some publication could be issued on this matter, my noble friend is considering the publication of such a pamphlet, giving all the details in respect of these tariffs and drawbacks, which are, of course, not suitable for a reply here. In regard to the larger question of equity, whether British officers should pay these Duties or not, that is a matter which has been the subject of some controversy in the past and one to which I cannot refer in the absence of my noble friend. But I am sure that he would be willing to consider the suggestions of the noble Lord in this respect, provided due notice was given.