by the Act 23 and 24 Vict., cap. 129, sec. 4, in the case of British Plain Spirits), on the largest quantities of Spirits, which may have been exported by the person or firm giving the bond, in any month in the previous year, or in such penalty as may be approved by the Board; but should the penalty of the bond be subsequently found to be insufficient to cover the transactions of the exporter, additional security is to be required.

2nd. That the bond, when completed, and until the privilege be revoked by the Board, be held to apply to the exportation of any Spirits or Wines belonging to the person or firm giving the bond. 3rd.-That a bond note* signed by the exporter, or if a firm, by one of the partners of the firm, or clerk, or agent duly authorised by him or them, stating the particulars of the Spirits intended to be removed for exportation, and the mode of conveyance, be delivered to the proper officer of Customs, that the signature to such bond note, if signed by the person entering into bond, or the firm, if a firm, be compared with the signature of such person or firm which is to be required at the time of entering into bond, to be written in a book to be kept for that purpose, and the signature, if that of a clerk or agent authorised by the exporter or firm, be compare 1 with the signature of such clerk or agent, and with the authority from the exporter on whose behalf he acts, which are to be written in the book before-mentioned, and to be acted upon until revoked by the person giving the authority; and if the signature be found correct, the bond note be certified, and, having been recorded, forwarded as authority for the delivery of the goods.

4th. That a record be kept of the general bonds entered into by different exporters, and of all bond notes issued at the request of each, and the attention of the Board be called to any extraordinary or unusual quantity of British Spirits removed for immediate exportation under any general bond, in order that further security be required, or such other steps taken as may be necessary.

5th. That annual enquiries be made as to the sufficiency of the sureties to the bonds, as directed by G. O., 42, 1855. 6th. That in the event of a short shipment, transfer to another vessel, or change of destination, a fresh or ordinary export bond be required at the port to which the Spirits have been removed for immediate shipment.-G. O., 114, 1864, 97, 1871, and 61, 1876.

The Board direct that upon the exportation of Spirits, Foreign or British, under the security of a general export bond, no stamp duty be required on the notice to export mentioned in the 14th section of the Act 34 & 35 Victoria, cap. 103.-G. O., 10, 1876.

*At Outports the Locker's orders are made to answer in lieu of bond

OPERATIONS IN BOND.

RACKING FOREIGN SPIRITS AND WINE.

Racking is the drawing off the contents of casks for subdivision into one or more packages, and is allowed in any part of an approved warehouse. The operation may be repeated as often as the merchant thinks requisite, providing it is done legally— that is, drawing off the quantities into legal sized packages, and in accordance with the regulations issued by the Board.

The merchant makes a request on the back of the racking slip stating how he wishes the contents of the cask divided, and the slip, on being passed by the warehousing clerk, is the officer's authority to allow the operation.

The cask is re-gauged as if for duty, and if Spirits, the strength tried, and proof quantity ascertained, any difference being shewn as "loss prior" to racking. The quantities are then drawn off under the supervision of an O.D.O. who checks the measurement of each cask as it is filled, the examining officer on the completion of the operation balancing the red slip with the quantity found in the cask previous to racking, any loss exceeding one per cent. being charged with duty.

Foreign Spirits and Wine must be racked into casks of 20* gallons and upwards, when intended for home consumption, the surplus quantity remaining in the original cask, if less than 20 gallons, being at once cleared for duty.-G. O., 6, 1877.

Should the surplus exceed 20 gallons (ullage), the merchant may, if he desires to do so, allow the cask to remain in the warehouse as a package in the new account. When the Spirits are measured, the content as well as the ullage is to be charged to the five-tenths, if the cask is over 40 gallons; but when 40 gallons and under, the content and ullage to be charged to the twotenths-i.e., two, four, six, and eight tenths as the case may be (G. O., 84, 1860, and G. O., 23, 1862)-Wine when measured being charged to the half gallon. The casks may be left on any vacuity-i.e., any quantity may be measured in, provided it is 20 gallons and upwards; e.g., a cask containing 40 gallons could be racked into one of 50 gallons, and one of 40 gallon's content, but 20 gallons would have to be filled into each cask, and the racked casks would then stand-1st cask, content 50 gallons, ullage 20 gallons; 2nd cask, content 40 gallons and ullage 20 gallons. In filling the casks, the fraction of half a gallon in casks above 40 gallons, and two-tenths in casks of and under 40 gallons, necessary to fill to the bung is not charged: 50 and a quart would be charged 50 gallons.

*Foreign Spirits are allowed to be racked into casks of 10 gallons each, for exportation to South America, upon the parties entering into bond, previously to the racking, to export the Spirits within three months, under the regulations to which bonded goods are allowed to be exported.-G. O., No. 93, 1858.

Casks containing racked Foreign Spirits or Wines are to be numbered consecutively, and marked with the letter R, and the date of the operation-the rotation number and name of proprietor being cut in, branded, or painted on front heads of the casks. The examining officer should see that the new packages have all old marks, names, numbers, &c., effaced before the racking commences; that no trade brands or marks be allowed on racked casks other than those, if any, which appeared on the original casks; and that such original marks, if any, be properly cut into racked casks.-G. O., 21, 1877.

He should also certify in each instance, on the racking slip, that these regulations have been complied with.-G. O., 21, 1877.

Wines may be racked bright from the lees, and the lees destroyed, unless the merchant wishes to clear them, when he may be allowed to do so on payment of same rate of duty as for the Wine. It is the usual practice, especially with port Wine, for the merchants to fine in bond and allow the cask to remain for a considerable time before the Wine is drawn off. By these means the lees settles at the bottom of the cask, and the wine is bright when drawn off. When the racking operation takes place, the casks are not rolled out; the officer instead of dipping as usual to find the wet inches, merely inserts so much of the rod as enables him to take the dry inches so that the lees may not be disturbed. By subtracting the dry inches from the bung, the true wet inches will be given; the ullage is then found, and the slip balanced in the usual way. The merchant, instead of pumping off the Wine, draws it off from a tap inserted in the head of the cask, placed so that the sediment is not allowed to run off.

Casks of Wine may be filled to the extent of 5 per cent. from Wine of the same sort, though a different importation, without losing the original particulars, provided the ullage or vacuity has arisen from natural causes, evaporation, leakage, or drawing off from the lees; but the indulgence is not to be extended to cases in which ullages have been artificially created by previously drawing off a portion of the Wine, or leaving casks on ullage when drawn off from a vat, or in racking or blending operations.-B. O., June, 1867.

In all cases where casks are left empty, a note to that effect should be made on the slip.

Merchants are not allowed duty free samples from casks containing racked foreign Spirits or Wines if the original casks have been fully sampled, and the racked casks on removal to another port should be noted on the despatch as "twice sampled."

It is the practice when the original sampled to write off the first cask in the "not sampled," and the other packages as

cask has not been racking operation as twice sampled."

Racked as under, 16th July, 1877.

The marks on the original cask have been properly cut into the racked casks, and no other brands or marks appear there

The loss in operation is less than one per cent., and is, therefore, allowed-one per cent. on 116 proof gallons being 1 proof gallons.

A note of the racking is made in the Locker's stock book, after which the slip is sent to the warehousing department, where the particulars of the new packages are entered in the general register.

The quantity remaining in the original package being only 2 gallons, duty must be paid, and cask taken out on completion of the operation.-G. O., 6, 1877.

TO FIND THE CONTENT OF A CASK FROM THE ULLAGE.

Take the first cask in the racking operation, No. ; the quantity measured in is 42 gallons, what is the content?

ON THE HEAD ROD.

Set the bung 25'6 on line C, to 100 ou segment line and op posite the wet inches 18 on line C, will be found 77 on segment line. Now set 77 on line C, to 100 on segment line, and opposite the ullage 42.5 on line B, will be found the content 55 on line A.

British Spirits cannot be racked into casks of less content than nine gallons for home consumption, but may be drawn off into demijohns containing not less than two gallons for exportation.--G. O., 35, 1873, and 22, 1872.

Should

When racked for home consumption the vacuity in any cask must not exceed one gallon. The Spirits are in all cases measured into the different packages until they are full, and the contents charged to the quarter of a gallon, if under 80 gallons, but if 80 gallons and upwards, to the integral gallon. the merchant desire it, he can draw off any quantity in even quarts, not exceeding one gallon, if for home consumption, and two gallons if for exportation. Casks of nine gallons content must be left full.-G. O., 35, 1873.

In filling the casks, any fraction of a quart necessary to fill to the bung is not to be charged, thus-27 and a pint would be called 27 gallons.

Previous to racking, the casks are re-gauged same as for duty (by the vacuity), and charged to the tenth of a gallon. Loss in operation exceeding one per cent. to be charged with duty, and the quantity remaining in original casks, even should it exceed nine gallons, being at once cleared by payment of the duty, and any loss over one per cent. to be entered on the same warrant.-G. O., 69, 1864, and 6, 1877.

The new casks are marked in the same manner as racked casks of Foreign Spirits; but when the Spirits are from the same distillery, the name of the distiller, instead of the proprietor, is marked after the letter R.-G. O., 63, 1874.

Re-Racking.-British Spirits cannot be re-racked except on the following conditions, viz. :-The Spirits to be returned into the same casks, which shall not in the meantime be removed from the warehouse-(this regulation practically abolishes reracking)—and on the heads of every cask containing such Spirits there shall be painted legibly by the trader, the word racked."-G. O., 48, 1877, and 95, 1877.

Re-.