the market-value of goods between the time of their purchase by
the importer and the date of their exportation to Canada shal!
not be subject to Special duty after 9th November 1914, provided
the goods have been exported in the usual course and the actual
date of purchase established to the satisfaction of the collector by
contracts or other sufficient documents produced for his inspection
and attested to.
Provided, however, in respect of goods subject to an ad valorem
duty, that the ordinary duty shall be collected (as heretofore) on
the fair market-value of the goods as at the time of their direct
exportation to Canada— under the provisions of sections 40 and 41
of the Customs Act (Revised Statutes of Canada, 1906, Chapter 48).
10. Rule to be observed (for Special Duty purposes only) in
comparing „Fair Market-value with „Export-price”. — In computing
 the difference for special Duty purposes between the „Fair
Market-value” in the country of export and the „Selling-price
to the importer in Canada” the fair market-value of goods is to
be estimated on the usual credit basis, except when the article
is universally sold in the country of export for cash only, in which
case the fair market-value is to be estimated on a cash basis;
Provided that a bonafide discount for cash not exceeding two
and one-half per cent when allowed and deducted by the exporter
on his invoice may be allowed in estimating the fair market-value
of goods for duty purposes.

EXAMPLES:

1. Hats sold for Home Consumption at $ 100.— on credit,
subject to 7°/, cash discount, would be liable to Special duty if
sold to purchaser in Canada on usual credit at $93.— but wouid
not be liable to Special duty if sold to a purchaser in Canada for
$ 93.— cash.
2. Machinery sold for Home Consumption at $ 100.— on credit,
subject to 2'/9/, Cash discount, would not be liable to Special
Duty if sold to a purchaser in Canada for $93,— cash, as the
„difference” does not exceed 5°/, after raising the Cash-price
($93.—) by 2!/,%/ to its Credit equivalent.
JOHN M. DOUGALD
Commissioner of Customs.