At the present time there are customs bonded warehouses at many seaports where there are no excise warehouses. Imported tobacco, cigars and cigarettes are supplied as ships' stores from these customs warehouses, and no excise warehouses being available at these points, American goods are sold where CanaJdian goods cannot be sold. The Canadian manufacturers have complained of this discrimination, and the proposed bill is merely to provide that tobacco and cigars may be removed from excise warehouses to customs bonded warehouses, in order to place our Canadian manufacturers in the same position as the American manufacturer. There is a second clause in the bill providing that on all' cigars the rate of excise shall be $3 per thousand. At present the rate is $3 on all 14011-269
cigars except those put up in very small packages of ten or less, and for some unexplained reason the latter have paid the higher rate of $4, although the cost of packing must be considerably more. The object of the bill is to do away with the discrimination. There are no other clauses.
Motion agreed to and 'bill read the first time.
Subtopic: EXCISE ACT AMENDMENT