Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President, Transmitted to Congress December 2, 1895, Part I
Sir Julian Pauncefote to Mr. Olney.
Washington, November 21, 1895. (Received Nov. 22.)
Sir: With reference to your note of the 31st ultimo on the subject of the tax levied on United States vessels entering and clearing from Canadian ports, I have the honor to state that I have received from the Deputy Governor-General of Canada a copy of an approved minute of council dealing very fully with the question.
Pending the reply of my Government to your representation respecting the above tax, I think it may be convenient to put you in possession of the facts urged by the Canadian Government against its repeal, and I therefore inclose herewith, for the consideration of the Secretary of the Treasury, an extract from the minute of council above referred to.
I have, etc.,
Extract from a report of the committee of the honorable the privy council, approved by his excellency on the 6th of November, 1895.
The committee of the privy council have had under consideration a dispatch, hereto attached, from Her Majesty’s chargé d’affaires at Washington, dated 12th July, 1895, covering a copy of a communication from the Acting Secretary of State at Washington, of date 11th of July, having reference to the exaction by the Canadian customs of an entrance and clearance fee of $1 from all “American vessels” entering and clearing from Canadian ports, and expressing a hope that Her Majesty’s Government would see its way to promptly equalizing the charges on American vessels entering and clearing from Canadian ports with the entrance and clearance fees imposed on Canadian shipping in the Dominion, to the end that the President may not have to issue proclamation which this discrimination against United States shipping calls for.
The minister of trade and commerce, to whom this question was referred, desires to express regret at not having made earlier report, delay having unavoidably occurred in procuring necessary information.
The minister observes that a similar complaint was made by the United States authorities in November, 1887, which was then fully investigated and reported upon as per copy attached, marked A.
It was then shown that the fees exacted from American vessels entering Canadian ports were but small as compared with those exacted from Canadian vessels visiting American ports.
The minister further observes that since then, however, the United States law has been somewhat modified, section 22 of the act of June 10, 1890, having provided for the abolition of certain fees; but it appears from the list of fees so abolished and of those still collectible, as detailed in the Customs Regulations of 1892, published by the Treasury Department (chap. 30), that there are still collectible on the seacoast, [Page 711] Gulf, and Western rivers the following fees connected with the entrance and clearance of vessels from any foreign port:
| Granting permit to a vessel not belonging to a citizen of the United States to go from district, and for receiving manifests | $2.00 |
| Receiving manifests and granting permit to unload on arrival from one district to another | 2.00 |
| Entry of vessels of 100 tons or more from foreign port | 2.50 |
| Entry of vessel under 100 tons | 1.50 |
| Clearance of vessel of 100 tons or more for a foreign port | 2.50 |
| Clearance of a vessel under 100 tons | 1.50 |
| Port entry | 2.00 |
To which list may be added various fees for minor services of from 20 to 40 cents each. In addition to which there are exacted consular fees, for certifying of invoices of goods shipped, of $2.50 when the invoice amounts to $100 or over, and on invoices under $100, $1; and under special regulations a further consular fee at certain ports of $2.50 for “bill of health.”
Among the fees collectible at ports and places on the Northern, Northeastern, and Western frontier of the United States, on vessels navigating otherwise than by sea, are the following:
| Entry of vessels directly from foreign port | $0.50 |
| Clearance of a vessel sailing directly to a foreign port otherwise than by sea | .50 |
| Port entry | 2.00 |
And various other fees for minor services of from 20 to 50 cents each. That the exaction of entrance and clearance fees of 50 cents is still enforced is evident from the terms of a circular issued from the Treasury Department at Washington, bearing date 1st July, 1895, which reads as follows:
Fees for entrance and clearance not abolished.
Treasury Department, July 1, 1895.
Sir: This Department is in receipt of your letter dated the 26th ultimo, submitting a protest by Messrs. F. W. Myers & Co., against your action in assessing fees of 50 cents for entrances and clearances of vessels in your district.
Such fees have been heretofore collected under section 4382 of the Revised Statutes, which prescribes a fee of 50 cents for the entry of a vessel direct from a foreign port, and a similar fee for clearance of a vessel direct to a foreign port.
These fees were not abolished by the act of June 10, 1890, or by any other act of Congress. They are plainly prescribed by the statute cited, and should be collected as provided for by the Department’s instructions embodied in the circular of October 14, 1890.
Respectfully, yours,
S. Wike, Acting Secretary.
Collector of Customs, Plattsburg, N. Y.
In addition there is still exacted, not alone at ports on the seaboard, but at inland and lake ports, a tonnage tax of 3 cents per ton on Canadian vessels, such tax being collected on each entry when not exceeding five entries per annum, vide customs receipts given at the ports of Portland and Ellsworth, Me., Boston, New York, and at Ogdensburg and Oswego, as per copies marked B.
It thus appears that the fees exacted from Canadian vessels entering United States ports are in all cases fully equal to and in some cases far exceed those exacted from American vessels entering and clearing at Canadian ports along the frontier in question.
The minister submits that the fee is not in the nature of a tonnage tax or lighthouse dues or other equivalent tax, but is exacted from all vessels navigating inland waters when entering or clearing at any port above Montreal, for each report inward or clearance outward, such fees to be exacted from all vessels, irrespective of their nationality, with the exception of vessels holding coasting licenses.
Such fees are considered as an equivalent for all custom-house fees which otherwise might be charged in detail, and from the only customs charges which vessels from the United States or elsewhere are called to pay in Ontario ports.
The minister is pleased to note that in accordance with recent decisions the United States authorities have very materially reduced the fees exacted in connection with the customs business, thus in a great measure facilitating the intercourse so desirable along the frontier between the two countries, the Canadian authorities having long since dispensed with all such fees with the exception of those at present in question; and while regretting that any fees are still exacted by the United States authorities, he can not, while such exactions exist, recommend legislative action with [Page 712] a view to a change in the law which provides for the exaction of the one remaining fee from foreign vessels entering Canada at ports above Montreal, but would, were the United States authorities disposed to abolish those fees still exacted by its officers, heartily recommend such a change in the law as would permit of a removal of the fees exacted in Canada herein referred to.