Page 258 - Records of Bahrain (6)_Neat

2*16 Records of Bahrain

The custom House, Bahrain.
D.O. No.9. 21sU May, 1946.
Reference attached, to which I have given caroful considera­
tion, I am of the opinion that it would not be advantageous to the
Government to attempt institute a Free port System here at Bahrain.
Firstly I do not think the quantity of goods imported under
this system would ever reach sufficient volume, to warrant the fore­
going of Transit duty on this typo of cargo.
Secondly it would be necessary to erect a number of large new
warehouses for this purpose.
It is undoubtedly my wish, and I think yours too, to endeavour
devise suitable means of encouraging and inducing trade to Bahrain,
to the best possible advantage of all concerned, I of course am
primarily concerned in the upkeep of Customs revenues, but fully
realise the importance of making concessions to traders to encourage
them increase their business and to centre same here.
I have, ns you are already aware, been considering the
possibilities of introducing a "Bond" system, but in the absence
of stamp duties, etc., this system also does not appear to be
feasible.
As you are aware, there is a system in force at present where­
by cargo if marked R.E.and transhipped rc±i± within 20 days of arrival
in Bahrain to certain mainland ports of Eastern Saudi Arabia only,
pays only 2? duty and import Yard charges.
If transhipped direct from steamer or craft to these ports
the cargo if over 100 packages pays 1-jK duty only, and ?A duty on iy
if under 100 packages.
This system does not give merchants very much time to explore
the markets and confines their activities to the needs of Eastern
Saudi Arabia, which are not great, and in,this connection, sight
must not be lost of the possible opening up of the port of Has
Tanura as a commercial cargo port.
I would, therefore, recommend for your consideration that
the above system be abolished and the following substituted:-
"All cargo marked Bahrain in Transit, if landed,
• maybe re-shipped within 90 days to any destination
whatever, against payment of 1% duty and import Yard
charges only.
If transhipped direct from steamer or craft to any
destination, this cargo will pay 1% transhipment
duty only."
This 3hould give merchants sufficient time and scope to
find suitable markets for their wares.
Should the above bo agreed to, it could come into force,
after the erection of the new shed on the pier.
Yours sincerely,
Sd./- G.'V.Il. SMITH
C. Dalryraplo Bolgrave, Esq., C.B.E.,
Adviser to the Bahrain Govcrnmont,
Bahrain.