Messrs. Morgan and Hedden, who called at the Embassy on May 25, had
frequent discussions with a member of the Embassy staff and with Mr.
Foley, the Embassy’s Agricultural Attaché, regarding the progress of
their conversations with the Board of Customs and Excise. On June 2
they informed the Embassy that they had succeeded in obtaining a
final agreement with the Board of Customs and Excise as to a modus operandi in exporting Canadian wheat
via United States ports.
I enclose copies of a letter dated June 2 from Mr. Hedden to the
Embassy,7 reporting
the conclusions of their negotiations, together with copies of its
enclosure, a memorandum containing the understanding arrived at
between Messrs. Morgan and Hedden and Mr. Flynn of the Board of
Customs and Excise.
Messrs. Morgan and Hedden sailed for the United States on the S. S.
Aquitania today.
[Enclosure]
Memorandum Regarding Entry of Canadian Wheat
Exported Via United States Ports
The following memorandum confirms the understanding arrived at in
final conversations with Mr. C. J. Flynn of the Board of Customs
and Excise on the above date.
Future shipments of Canadian Wheat to the United Kingdom can be
granted Imperial Preference only upon final determination of the
adequacy of documents submitted in connection with a specific
shipment, but the broad general outline of the evidence which
will be acceptable to H. M. Government is as under-noted.
The evidence with respect to origin of Canadian wheat has been
found to be sufficient in the Brittanic
and Laconia shipments and consists of
Certificate of Origin (official printed form 119) properly
executed. The other essential evidence consists of documents
showing through consignment from a point in Canada to a point in
the United
[Page 9]
Kingdom. In
general, routing is not important. Interruption in transit is
not an impediment.
The documents and circumstances essential to prove through
consignment are:—
(1) An order from a buyer or importer in the
United Kingdom for a supply of Canadian Wheat
This order may be on a purchase basis or may request shipment to
U. K. Port for sale while the Wheat is in transit by the
importer to another U. K. purchaser.
The printed form of confirmation ordinarily used by a British
buyer must be presented by him with other documents covering
shipment when tendered to the Customs for Preference treatment
and will specify all terms of his order not included in the
official Corn Trade Association form of contract.
The buyer’s order may call for consignment to any port in the
United Kingdom, but no document tendered in connection with a
shipment may carry any indication that the seller or shipper has
the option of shipping to some port outside of the United
Kingdom.
In the event of re-sale by the British importer to a miller or
other buyer in the United Kingdom, a second order upon the
exporter may be attached to show the changed destination in the
United Kingdom. Such order might specify a different steamship,
different time of forwarding, or different trans-United States
carrier, if the Wheat were still at the U. S. Lake port.
Such a supplemental order evidencing sale would be necessary in
the event that the Wheat were moved forward on consignment to
the British importer and the documents carrying title were still
in the hands of the exporter. In such circumstances, a
supplemental invoice to the second buyer might also be necessary
to accompany the document.
The buyer’s order may be directed to a business office located in
the United States (e.g. New York City) providing evidence is
furnished of the transmittal of the forwarding order to the
Canadian supplier. The mere transmittal of an order by way of a
New York house, provided it is satisfied by a bona-fide shipment
from Canada subsequent to the date of order and pursuant
thereto, will not constitute any impediment to the demonstration
of through consignment from Canada to the United Kingdom.
If H. M. Customs desires a copy of the forwarding memorandum,
telegram or other communication sent from the New York export
office to the Winnipeg or other Canadian supplier’s office, as
well as the original British order, such can be supplied.
(2) Invoice from the seller or supplier to the
British buyer.
This invoice will be dated on the day when shipment actually goes
forward from the Canadian Lake port and will always be
subsequent to
[Page 10]
the date
of the British buyer’s order. The invoice will show that the
seller has shipped to the buyer in the United Kingdom a quantity
of given grade of Canadian wheat. This invoice will show the
date when the Wheat was shipped from Canada; also the name of
the Lake steamer and the compartment thereof. It will also show
the terms of sale, which will be customarily c.i.f. London,
Liverpool, or some other U. K. port, although certain deviations
may appear, as indicated in the buyer’s order; the invoice in
all cases to show shipment conforms to the buyer’s order.
(3) Documents tracing transit across the United
States.
The buyer’s order and seller’s invoice, when presented to H. M.
Customs in connection with the claim for Empire Preference, will
be supported by such documents tracing transit across the United
States as may be deemed essential. Since a through Bill of
Lading from the Canadian Lake port to the United Kingdom port is
not procurable, certain documents in lieu thereof may be
submitted, in accordance with the alternative permitted under
Customs Regulation No. 12.
Among these are:—
- (a)
- Copy of the Lake Bill of Lading from original point of
origin in Canada.
- (b)
- The certificate of non-manipulation and transit under
Bond furnished by the United States Customs authorities
and visaed by the British Consul.
- (c)
- The certificate from the Grain Elevator in which the
shipment has been stored if transit is
interrupted.
- (d)
- Copy of the rail or canal Bill of Lading covering the
movement from United States Lake port to United States
seaboard port.
- (e)
- The ocean Bill of Lading covering movement from United
States seaboard port to United Kingdom destination
port.
In addition to the above documents evidencing through
consignment, it is, of course, understood that the certificate
of origin (Form 119), properly executed, or the official
Dominion of Canada certificate of grade, will accompany the
shipment when presented for entry in the United Kingdom.
