611.003 Oils/84
The Acting Secretary of the Treasury (Taylor) to the Secretary of State
Sir: Reference is made to your letter of July 9, 1936,74 relative to a conversation between Mr. Tsuneo Hayama, Third Secretary of the Japanese Embassy, and a member of your Department with reference to the excise tax imposed on perilla oil and rapeseed oil in the Revenue Act of 1936.
You state that Mr. Hayama referred to the concern of his Government over the effect of these taxes upon exports of perilla and rapeseed oil from Japan to the United States and conveyed the hope of his Government that the United States will make some allowance in the administration of these taxes so as to mitigate their adverse effects upon Japanese exports to the United States, perhaps by means of regulations which will be promulgated for the enforcement of the Act or by other measures. You ask that this Department indicate the nature of the reply to be made to the Japanese Government.
Perilla oil is entitled to free entry under paragraph 1732 of the Tariff Act of 1930 (U. S. C. title 19, sec. 1201), and rapeseed oil is dutiable at the rate of 6 cents per gallon under paragraph 53 of the same Act. Section 701, Title V, of the Revenue Act of 1936 (Public, No. 740, 74th Congress) provides the rate of 4½ cents per pound on perilla oil and rapeseed oil in addition to any other taxes or duty imposed by law when imported into the United States, unless treaty provisions of the United States otherwise provide.
This Department knows of no authority for the remission or reduction of these rates with respect to oils imported from Japan and they must be administered as other taxes or duties on imported articles. I am accordingly unable to suggest any way in which importers of rapeseed oil or perilla oil from Japan may be relieved from the payment of the import tax of 4½ cents per pound after the effective date of such tax. There is enclosed herewith a copy of a Circular Letter issued to collectors of customs74 to advise them concerning the effective date of the new import taxes under consideration.
Very truly yours,