Page 413 - Bahrain Gov Annual Reports (I)_Neat

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63 people in general, especially the poor, are consum­
ing more dates and fish and much less*imported meat
than formerly.
T!;G decrease in the Import Yard collections is
consistent with the decrease in the quantity of cargo
imported.
It will be remembered that in the year 1?50 a sys­
tem of "refunds” was initiated, under which the local
importer was permitted to exercise an option in regard
to his import, as to whether or not h° might re-export
it to the mainland ports of Arabia, on similar lines
with the R.E. system, which is regulated by High Autho­
rity. Having duly proved the re-exrort of the import,
the importer was granted a refund of the difference
between the amount of duty nre-paid and two per cent ad-
valorem. I am .vied to report that the working of this
ToptionalT system (as it became known), was very much
appreciated by the merchants and it was extensively used
especially by'the Hindu community who otherwise were
greatly hampered in their mainland trade. Unfortunately
for the Customs, however, the work of checking the
returns and making the refunds developed so considerably
as to become a very definite end equally unremunera-
tive section of the office work; and to keen the refunds
uptodate has proved a difficult task especially when
one remembers that the Customs staff is now reduced to
a minimum. In view of this position, I have changed
the working of the system so that the importer may exer-
cise his option as before, but pay only t two per cent

ab initio; end it is honel that this adju stment will
very considerably reduce the amount of office work
involved in making refunds. Consequently there appears
above a new heeding named "Re-Export" Duty which records
the results of this recent adjustment. It might not be
out of place here to mention that all tnese refunds
7/ere made by cheque, so that (l) records of the tran­
sactions mi'-ht be more efficiently kept than by cash
payments, and (2) to encourage the local merchants to
use the services of the Eastern ’-ank, Ltd. * •

.The usefulness of this optional system to the
mercantile corariity is demonstrated by the fact that
the old R.S. system has now completely fallen into dis­
use; and there is no dc?ibt at all in my mind that the
merchants trading with the mainland are quite satis­
fied with the existing system in Bahrain »«nd are content
to carry on with it, in preference-to residing upon the
mainland.
The geographical position of^the State of Bahrain
lends itself to the development of a transit trade, wnich
is effected by the oncarrying of steamers* cargoes to
the mainland oy native craft: ur.d in my opinion it is
npst desirable to encourage this trade os much r-.s pos­
sible. especially as this oncarrying creates so much
work ror local native craft and motor launches: its
advantage to the merchant is the facility for despatch­
ing smull quantities of goods tp the mainland as occa­
sion offers, rather than the shipment there direct
from India of large quantities, which could only be done
by firms having large capital and extensive storage
capacity on the mainland. For this reason I believe