[Enclosure—Translation]
Decree No. 20,304 of the Portuguese
Government
The customs differential system established by Decree No. 7,822, of
November 21, 1927, (sic)6 affords protection to the national merchant marine,
through the natural incentive which the consignee of the shipment
has and which induces him to constrain the shipper, at the origin,
to give preference to Portuguese vessels.
However, there have resulted therefrom substantial decreases in the
public revenue, which the Government began to attenuate by Decrees
Nos. 17,062 (tobacco), of June 3, 1929, and No. 17,823, of December
31, 1929 (corrected in the Diário do Govêrno
No. 103, of May 6, 1930), as well as difficulties of external
commercial policy, possibly accentuated by the present world crisis,
which enhances the importance of the competition of national
vessels, although in fact there is as yet question of a slight
influence upon the volume of imports interesting to our Country.
However, the Government does not wish, in the interest of a just
balance in public administration, to maintain and permit to continue
a cause for protests over inequalities in respect of navigation,
which everywhere leads toward equal treatment, when such cause may,
through reaction, prejudice other very important national economic
interests.
And, in consideration of the foregoing, it abolishes in principle the
aforesaid customs bonus on cargo transported in national vessels.
[Page 968]
However, it must be
borne in mind that an abrupt change of system might affect in an
unanticipated manner a branch of activity in which thousands of
Portuguese find a means of living and thus justly give rise to a
reaction in internal politics, that which everyone, here and abroad,
is in duty bound to understand and avoid, especially during the
uncertain and difficult period through which the world is passing.
Therefore, the elimination of the bonus must be gradual, possibly
attending the creation of better means of work, which likewise
cannot be attained immediately, in view of the circumstances of
credit which temporarily render difficult the quick mobilization of
the capital indispensable to the renovation of our long distance
merchant fleet.
Under the authority which No. 2 of Article 2 of Decree No. 12,740 of
November 26, 1926, confers upon me, by virtue of the provisions of
Article 1 of Decree No. 15,331 of April 9, 1928, and in accordance
with the recommendations of all the Ministers of State:
I deem fit to decree, with the force of law, the following:
Article 1. Beginning with the fiscal year 1931–1932, there shall be
successively reduced, until abolished, the customs bonus established
by No. 1 of Article 1 of Decree No. 7822, of November 22, 1921, in
so far as it has not yet been revoked, the Government fixing each
year the taxes which shall be levied.
Provided, however, that, during the present fiscal year, the bonus to
which this article refers shall be fixed at 8 per cent on imports
and at 16 per cent on exports to foreign ports. These new
percentages shall be applied to merchandise shipped from October 15,
1931, inclusive.
Article 2. The increase in revenue accruing from the application of
the foregoing article shall be devoted to subsidies for the
reconstruction of the long distance merchant fleet.
Article 3. The provisions contained in this act shall apply
exclusively to the continent and to the adjacent islands.
Article 4. Conflicting legislation is hereby revoked.
In consequence, let all the authorities concerned in the knowledge
and execution of the present decree with the force of law comply
therewith and cause it to be complied with and observed in its
entirety.
Let all the Ministers of State cause this decree to be printed,
published and distributed.
Given at the Palace of the Government of the Republic, September 12,
1931.
