inches, and the ullage charged to five-tenths of a gallon on casks exceeding 40 gallons content, and on casks of 40 gallons and under to two-tenths of a gallon (i.e., two, four, six, and eight tenths), and when the landing or original account has been charged to five-tenths, that rate be continued, even should it be found, upon any subsequent examination, that the ullage has fallen by natural causes to 40 gallons or under.-G. O., 23, 1862.

The contents of all gauged casks to be charged to the integral gallon.-G. O., 84, 1860.

The losses in transit from Customs warehouses are dealt with under the regulations contained in G. O., 35, 1877; but from Excise warehouses the practice of allowing the consignee to pay duty on the excessive loss is still in force, and the loss may be charged according to the scale in G. O., 35, 1877, without the Board's directions being obtained, as required in the case of excessive losses on removals under Customs bonds.

CONSTRUCTIVELY WAREHOUSING.

When goods have been received coastwise, the merchants may clear them on payment of the duty without placing them in the bonded warehouse. When this privilege is availed of the the merchant foregoes any samples that he may be entitled to free of duty, the duty being charged on the despatch quantity. The examination of goods to be dispensed with when proper entries are passed and the duty paid before the expiration of the time allowed by the despatch for their production. In all such cases no record to be made in the warehousing registers, but in lieu thereof a rotation number be assigned to each account of this description, as at present, and entered in its proper order in the book known as the "Numerical List of Ships," and in lieu of the particulars required in the last five columnus of that book, an entry to be made in red ink in connection with the rotation number as follows:--"Duty paid under G. O., No. 123, 1875, Warrant No. --," such entry being initialed by the collector or a superior clerk, not being the clerk by whom the duty-paid entry is received; and that the papers connected with the transaction be put away in their proper order among those relating to other completed warehousing accounts.-G. O., No. 83,

1876.

The Board deem it desirable to call the special attention of the officers to the regulations contained in the General Order, No. 45, 1870, and to direct the proper officers to take care in every case when the goods have not been produced, or the duty paid on the quantity specified in the despatch, within the time named therein, that immediate notice be sent to the collector or the controller of accounts at the port from which the goods were removed, in order that the remover may at once be called upon under his bond to account for the goods.

The Board further direct that the officers do on no account examine goods at private premises, or at other than approved quays or warehouses.-G. O., 123, 1875.

If Spirits are constructively warehoused, three entries—and if Wine, two entries--are required beside the one on the despatch, and each must be headed "constructively warehousing,” the amount of duty being shewn on each entry, as well as on the despatch. One of the entries is written in words at length, and is returned to the merchant after being endorsed with the content, ullage, and strength, as his permit for the Spirits, and of the other two (both in figures) one is required for the Accountant and Controller General's Department (Audit of Receipt Branch), and is sent off at the end of the day with the other duty entries, the second entry being transmitted to the same department, on a different abstract, after endorsement.

The following is a copy of endorsement :

Bond No. 15. Constructively warehoused one cask White Wine containing 54 gallons under 39% @ Cadiz

No Red Book is issued, but a rotation number is given, so that the despatch may be entered in its proper rotation in the "Numerical List of Ships" book. The entry does not receive a warehousing number, but the duty-paid number from the warrant book or receipt book.

As the goods are not entered for warehouse, no entry is made in the Locker's stock book, and no red slip or Locker's order is necessary.

Should the goods, however, be deposited in the warehouse, and the merchant pass a constructive entry, the examining officer makes a re-examination as a check upon the despatch quantity.

RE-WAREHOUSING.

All warehoused goods must be cleared for home use or ex ported at the end of five years after warehousing, or within such further period as the Commissioners of the Treasury may direct, unless the proprietor shall desire to re-warehouse them, in which case they shall be examined by the proper officers, and the duties on any deficiency or difference between the quantity then discovered and the quantity originally warehoused are to be paid, together with the expenses of such examination, subject to such allowances as are by law permitted in respect thereof, and the quantity so found shall be re-warehoused in the name of the then owner or proprietor thereof in the same manner as on first importation; provided, that if the owner or proprietor shall, with the concurrence of the warehouse-keeper, desire to warehouse the same according to the account taken at the landing thereof, without re-examination, such re-examination may be dispensed with, the officers being satisfied that the same are still in the warehouse and that there is no reason to suspect that there is any undue deficiency; but the warehouse-keeper shall be liable to make good the duty on any deficiency not allowed by

law which may be discovered in the goods at the time of delivery thereof. But if not cleared, exported, or re-warehoused within the prescribed period, and the duties on any deficiencies paid, such goods may, after one month's notice to the warehousekeeper, with or without his consent, be sold, and the proceeds applied to the payment of the duties, warehouse rent and charges the surplus to be paid to the proprietor. If the goods are not so sold, they may, after similar notice, be destroyed, the warehouse-keeper being held responsible for the duties on any deficiency not allowed by law.-C. C. Act, sec. 92 and 93.

On the written application of the proprietor or his agent to re-warehouse his goods, a "slip" is issued by the proper officer at the warehousing department, specifying the particulars of the previous warehousing, and giving new rotation number. On the receipt of the document, the examining officer proceeds to re-examine the goods, in the same manner as if gauging on first importation, showing the quantity remaining in each package, and balancing the total with the original account, by adding or deducting any increase or deficiency that may be found, and which must also be shewn in the proper column on the "slip." When the goods have been examined, each package is to be durably marked with the new rotation, and the old one effaced, a note to that effect being made on the slip.

It is the practice to issue a Red Book with the re-warehousing slip, the particulars of re-examination being also entered therein, and the re-warehousing slip placed among the papers of the old account, which is then closed and handed over for final examination.

RE-GAUGING.

When a merchant wishes to clear for home consumption any of the casks previously warehoused, he fills in a re-gauge slip, with the particulars of warehousing, giving the rotation number and the quantity in each cask; and this slip, after being checked in the warehousing department, and initialed by the clerk, is the examining offieer's authority to proceed with the re-examination. His first duty is to examine the cask to see that it agrees with particulars given on re-gauge slip, and if Foreign Spirits or Wine, re-gauges by the wet inches; but if British Spirits, he must always regauge by the vacuity. In the case of Spirits, the strength is next tried, and the slip balanced, noting thereon any loss or increase that may have taken place.

Casks of Wine and Spirits, whether for home use or removal coastwise, are to be gauged all round, and the whole of the dimensions, instead of merely the bung and wet inches, inserted on the re-gauge slips (Removal Slips to Customs Warehouses excepted, B. M., 29th May, 1869); and in the case of spirits the temperature indication and strength per cent. are also to be shewn.-G. O., 11, 1854.

Casks containing British Spirits need not be re-gauged all

round on delivery, the Excise marked content being accepted, having been checked on warehousing.-G. O., 111, 1869.

Should the loss exceed the regulated allowance of 4 per cent. per annum, the attention of the collector or surveyor inust be drawn to the cask, who will re-gauge and try the strength as a check upon the officer, and if satisfied allowing the loss, and noting on the slip that he is satisfied. Although the loss may exceed 4 per cent., yet the excess is not to be charged with duty, as the collector is authorised to allow all losses that may be fairly attributed to natural causes, the loss on new and strong Spirits, and also on racked, blended or vatted Spirits, nearly in every case exceeding the 4 per cent. per annum.

In order, however, that a check may be kept against undue allowances on account of natural waste, all losses on Spirits exceeding 4 per cent. per annum are entered in a book for that purpose, for the inspection of the Commissioners and the Surveyors-General. No note need be kept of losses on Wines over 4 per cent.-G. O., 127, 1854, and 44, 1872.

All losses that cannot be accounted for as natural, such as losses through leakage or other accidents, must be reported to the Board, and the collector in making the report (to which he must annex the re-gauge slip), is to state whether under all the circumstances he considers the merchant should be called upon to pay the duty; the exact nature of the loss should be stated, as general statements, such as "leakage from defective head or bottom stave are not deemed sufficient. Losses from natural causes depend to a great extent on the atmosphere of the warehouses, or the vaults where the casks are deposited. If dry and warm, the deficiency will appear principally on the liquid; if damp, it will be chiefly on the strength, in some cases the liquid acquiring an increased bulk. Racking, &c., also tends to make the losses greater; if dry casks are used, the liquid will be short, and on casks that have been previously washed it tells on the strength. The losses are greater in proportion in small casks than in large ones.

In calculating the loss at 4 per cent. it will be sufficient to take every three months or any part thereof at 1 per cent. ; six months 2 per cent., and so on.

When Wines are cleared from the warehouses for home consumption, by payment of duty on the landing-gauge, the order of the Locker shall be issued for delivery subject to the inspector or surveyor being satisfied with the correctness of the charge for duty; and that before delivery the casks of Wine shall be subject to such a partial re-examination and re-gauging, if necessary, as the inspector or surveyor may deem requisite to check the correctness of the landing-gauge and description of the Wine, and that such re-examination be recorded on the Locker's order, and certified as sufficient by the inspector or surveyor.G. O., No. 111, 1871.

E

The following is the scale of allowance on British Spirits adopted in the Excise department :—

50 gallons and under 80.

14 per cent.

80 gallons and upwards.

1 per cent.

Under 50 gallons.

2 per cent.

4

3

6

1 year Exceeding 1 year

and for every additional year or part of a year.

These allowances look large in comparison with the 4 per cent. in the Customs department; but, as before explained, the collector has power to allow even a loss of 12 per cent. per annum, as shewn above, if he is satisfied that from the newness of the Spirits or other sufficient reasons the loss is a natural one. (See G. O., 127, 1854.)

EXAMPLES OF CASKS RE-GAUGED FOR DUTY.

Content

Proof.

32 22.3 25.1 20.6 53 47.5 58 39.8 26.9 60.2 27.8 18 23.2 21.1 36 34.8 38.4 28.6 44.7

Loss.