'File 5/1 XIV Kuwait Oil Company' [‎172r] (351/570)

NOTE ON PAYlfOT OF CUSTOMS DITTY
CQKCESSION AGK';£BmEHT - SECTION 7 A.
We understand that at the same time as Abdullah
Mullah asked the C*L # R, to obtain the writers views on whether
Staff should pay Municipal Car Tax, he asked C#L # R*s views
regarding certain wording in Article 7 A of the Concession
Agreement.
The only imports about which any question can
be raised are:-
A* Provisions and other items imported for the Provision
Store for resale to Staff.
B. Articles purchased and imported by the Company on
behalf of Staff, or direct importation by the Staff
for their own use.
ff"
The position regarding item A is that in
January 1936, it was agreed with the local authorities that
foodstuffs for the Prowls ion Stores were importable free of
import duty. As alcoholic beverages were a prohibited import,
permission was sought of the Customs authorities to import
these for the Staff. H.H. the Shaikh was approached by the
Customs Director and permission was granted for the import
of these without payment of duty.
Later, in February 1936, the question arose
as to the import free of duty of other provision stores items
such as toilet requisites etc. and it was agreed with Abdullah
Mullah that these came under the category of ** Supplies*, line
4 article 7 A.
As regards section B f such items including
Motor Cars, Wirelesses, Gramaphonea, Household goods,Clogthing
etc. are declared to the Customs authorities and ^uty on them
is paid by the Staff under the provisions of lines 12-15,
Article 7 A.
The question raised by Abdullah ?!ullah with
the C.L.R. recently was whether in his opinion the words
* but not for resale to others* ( lines 8 and 9 of Artic3.e 7 A
referred to H others outside the Company^ employe* or to
" others including the Company’s Staff *. The C.L.R., we
understand, did not express any definite opinion in the
matter.
Judging by the feeler put forward by Abdullah
Mullah, we presume that the local authorities are considering
the possibility of raising the question of payment of import
duty on all articles impowted under sections A and B above
and bringing them into the category w personal goods, cloWthing
and general merchandise imported by the Company for tne
personal use of its employees or for resale to them, the
ordinary duty in force for the time being in ti e state of
Kuwait. *
The only correspondence that has passed
between us in the matter is to be found in our telegram >io.4
of 1936 and your reply in memo No.15 of 10-1-1936, subseqaen /
our memo No.50 of 21»1-1936 gave the details of the position
at that date which was further modified in February 1936 as
mentioned previously.