MINIMUM QUANTI TIES PERMITTED DELIVERY ESTABLISHED.

10. The collector shall permit no delivery of crude or uninanufactured opium in quantities or packages containing less than 100 pounds; nor of morphine or its salts, either singly or assorted, in quantities or packages containing less than 50 ounces; nor of codeine, heroin, dionin, diacetyl morphine, their salts, or any other derivative of opium or its salts not otherwise provided for, either singly or assorted, in quantities or packages containing less than 25 ounces, and then only upon the report of the appraiser as to their quality, purity, and fitness for medicinal purposes and upon compliance with the existing laws and regulations governing the importation of drugs and medicines: Provided, however, That special preparations, rarely imported and usually imported in very small quantities and not known to be used by drug habitues, like papaverine and thebaine, may be imported in smaller quantities by well-known and reputable firms or institutions upon compliance with these regulations.

DUTIES ON OPIUM, ETC., DEPOSITED IN BONDED WAREHOUSE.

11. Opium containing less than 9 per cent of morphia and preparations or derivatives of opium deposited in bonded warehouses shall not be removed therefrom without payment of duties and such duties shall not be refunded.

IMPORTERS' RECORD OF SALES.

12. Importers shall keep a record of all sales of imported opium and derivatives or preparations of opium or of articles manufactured by them therefrom, showing the names of purchasers, their place of business, date of sale, and the name and quantity of the article sold, which record shall be open to the inspection of the proper customs officers.

PROHIBITION OF TRANSFER OR TRANSSHIPMENT OF SMOKING OPIUM.

13. Collectors are cautioned to observe strictly the prohibition, contained in section 5 of the act, of the admission of smoking opium for transportation to any country or the transfer or transshipment of such opium from one vessel to another vessel within any waters of the United States for any purpose.

PENALTY FOR FAILURE TO MANIFEST OPIUM, ETC.

14. Attention is invited to the provision in section 8 of the act that the vessel shall be liable for the penalty and forfeiture prescribed in section 2809, Revised Statutes, when any opium or cocaine or any preparations or derivatives thereof which may be found on a vessel are not shown on the manifest. Subject to this provision, the procedure prescribed in T. D. 32083 of December 14, 1911, will continue in force.

EXPORTS.

15. Pending the promulgation of regulations governing the exportation of opium, cocaine, and derivatives and preparations thereof, collectors of customs will not permit the exportation of any of the articles mentioned in paragraph 6 of the act without express authority in each case.

MAIL IMPORTATIONS.

16. The provisions of article 830, Customs Regulations of 1908, relative to articles prohibited importation in the mails are hereby extended, so far as applicable, to articles which are the subject of the act appended hereto.

VIOLATIONS TO BE REPORTED.

17. Collectors shall report to the department and to the United States attorney any violations of the act which shall come to their knowledge.-Dept. Order (T. D. 34221).

COURT AND TREASURY DECISIONS.

Under authority of section 3018, Revised Statutes, and article 680 of the Customs Regulations of 1884, allowing the repacking for exportation of opium and other drugs in warehouse, soft opium was allowed to be separated from hard opium and repacked in warehouses

for exportation, the hard opium to be withdrawn for consumption. (Treasury Order, T. D. 6572 and 6753.)

No allowances to be made in determining the weight of crude opium for refuse matter to be ascertained and separated by boiling the opium. (Treasury Order, T. D. 7648.)

Crude opium containing less than 9 per cent of morphia not to be released upon payment of a fine equal to the duty under a law forbidding its importation. Exportation the only remedy. (Treasury Order, T. D. 7694.)

Moist opium gum containing from 5.72 per cent to 6.38 per cent of morphia, according to the method of analysis, held to be crude opium containing less than 9 per cent of morphia and not entitled to entry for consumption in the United States. (Treasury Order, T. D. 8098.)

The use of stamps upon imported opium discontinued because furnishing opportunity to smugglers and others to defraud the revenue. (Treasury Order, T. D. 9263.)

Opium ashes found to contain 6.02 per cent of morphia held to be dutiable under the act of 1883 as a preparation of opium and not as crude opium. (Treasury Order, T. D. 9413.)

Squibbs' methods of analysis approved for determining the percentage of morphia in crude opium. (Treasury Order, T. D. 9754.) Powdered opium.-Subjected to a carefully regulated artificial heat which evaporated the moisture without destroying the alkaloid in the opium, then grinding it to powder, sifting it, and adding sufficient morphia to bring it up to the standard of the United States Pharmacopoeia. There was no specific provision prior to the act of 1909. In litigation under the act of 1897 such opium was held to have been advanced from the condition of crude or unmanufactured opium and dutiable under paragraph 20 as a drug advanced in value or condition by refining and grinding. (Merck v. U. S., 151 Fed., 14 (T. D. 27768), reversing 143 Fed., 694 (T. D. 27024); U. S. v. McKesson, 172 Fed., 168 (T. D. 29860).)

Muriate or hydrochlorate of cocaine.-There was considerable litigation upon the dutiable classification of this merchandise. In G. A. 886 (T. D. 11973) and G. A. 1563 (T. D. 13058) the Board of General Appraisers held the provision under paragraph 74, act of 1890, for medicinal preparations in which alcohol was used to be more specific than the provision in paragraph 76 for alkaloids and chemical compounds and salts. This classification was overruled by the Circuit Court of Appeals for the Fourth Circuit in United States v. Battle (50 Fed., 402 (T. D. 13730), 54 Fed., 141). Upon a new record (T. D. 14362) the board adhered to its former decision and was again reversed, this time by the Circuit Court for the Southern District of New York. (In re Merck, 66 Fed., 714 (T. D. 14979).)

The question also arose in the eighth circuit. The circuit court of appeals in in re Mallinckrodt Chemical Works, 66 Fed., 746 (T. D. 15114) held the provision for alkaloids and chemical salts in paragraph 76, act of 1890, was more specific than the provision for medicinal preparations in paragraph 74. Another case was thereupon prosecuted in the second circuit. The circuit court in Lehn and Fink v. United States, 66 Fed., 748 (T. D. 15639) held paragraph 76 to be the correct classification, but the circuit court of appeals certified the question to the Supreme Court, which in a case reported as Fink v.

United States, 170 U. S., 584, held the provision for medicinal preparations more specific than the provision for chemical compounds and salts.

This decision was applied by the board to compounds of cocaine (G. A. 4211; T. D. 19629), and to muriate of cocaine, thus reaffirming its original decision in G. A. 886 (T. D. 11973) supra, and its reasoning in G. A. 2640 (T. D. 15114).

Liquor opii sed held to be dutiable as a liquid preparation of opium under paragraph 47, act of 1890. (G. A. 881 (T. D. 11968).)

Crude cocaine, an alkaloid derived from the leaves of the coca plant, in the extraction and purification whereof alcohol is used, held dutiable as a chemical compound under the act of 1890 and not as a medicinal preparation in which alcohol is used. Occasional use upon the surface of the skin for surgical and dental purposes, was declared not to constitute it a medicinal preparation. (Hirzel v. U. S., 58 Fed., 772, affirming 53 Fed., 1006 and G. A. 1531 (T. D. 12980); followed in G. A. 2405 (T. D. 14647).)

Cocaine phenate held dutiable under the act of 1890 as a chemical compound or salt and not as a medicinal preparation. (G. A. 2624 (T. D. 15071).)

Aqueous extract of opium held to be smoking opium, the importation of which is prohibited. (Dept. Order, T. D. 34598.)

Opium dried, and sliced, and dried, sliced and crushed, held dutiable under the act of 1897 as a drug (gum) advanced in value or condition and not as opium crude or unmanufactured. (G. A. 7001 (T. D. 30487).) Overruled by next case.

Opium in bricks, cakes, or lumps held not to be dried but dutiable under the act of 1897 as crude or unmanufactured and not adulterated, containing 9 per cent or over of morphia. (Merck v. U. S., 5 Ct. Cust. Appls., 347 (T. D. 34549), reversing G. A. 7501 (T. D. 33788).)

Codein hydrochlorate, codein sulphate in powder, codein pure crystals, and codein pure precipitate, produced from morphine, held to be dutiable as alkaloids of opium and not "salts of opium," which term was interpreted to mean such salts as are produced by the chemical action of an acid radical on organic bases rather than component parts of opium. (Merck v. U. S., 6 Ct. Cust. Appls., 41 (T. D. 35315), affirming G. A. 7517 (T. D. 33998).)

Opium containing more than 15 per cent of moisture was held dutiable under the act of 1897, at $1.50 per pound; containing 15 per cent or less, at $2 per pound. (Dept. Order, T. D. 31388, but see Merck v. U. S., 5 Ct. Cust. Appls., 347, above.)

Smoking opium seized for violation of the act of February 9, 1909 (amended, supra), may be summarily forfeited and destroyed by collectors of customs without judicial proceedings. (Dept. Order, T. D. 33069, following the opinion of the Attorney General, 29 Opin. Atty. Gen., 603.)

The act of February 9, 1909 (amended, supra), prohibiting the importation of opium for other than medicinal purposes did not repeal that portion of the act of October 1, 1890 (26 Stat. 620, 621), which related to the manufacture or preparation in the United States of opium for smoking. Neither said act of 1909 nor any other act abrogated or dispensed with the necessity of observing the requirements of section 37 of said act of 1890 as to notices, inventories, bonds, books, returns, etc. (29 Opin. Atty. Gen., 108.)

The act of February 9, 1909 (amended, supra), prohibited the importation of opium into the United States except for medicinal purposes under regulations, and provided that if any person should knowingly import or bring into the United States any opium contrary to law, or should receive, conceal, buy, sell, or in any manner facilitate the transportation and concealment or sale of such opium or derivative thereof after importation should be guilty of an offense; held, that the offense described was committed whenever smoking opium was fraudulently and knowingly brought by the offender within the territorial limits of the United States, the offense being complete, though the opium may not have been landed from the ship or carried across the customs line. The steward of a vessel bound for Philadelphia found to have smoking opium in his possession as the vessel was proceeding up Delaware Bay violated the act. (U. S. v. Caminata, 194 Fed., 903 (T. D. 32736).)

The offense was committed when smoking opium was fraudulently and knowingly brought within the territorial limits of the United States, although the opium may not have been landed from the ship, possession within the territory of the United States being sufficient evidence of guilt to justify conviction. (U. S. v. Caminata, T. D. 32397.)

A Chinese claiming to be a British subject can not lawfully import opium into the United States under Article II, treaty with China, proclaimed on October 5, 1881, unless positive proof is presented that he is such a subject. (Dept. Order, T. D. 18779.)

An indictment for smuggling "smoking opium" and "prepared opium" was held to sufficiently describe dutiable merchandise under schedule A, act of 1890 (or 1883), imposing a duty on "opium prepared for smoking and all other preparations of opium not specially enumerated or provided for in this act." (U. S. v. Gardner, 42 Fed., 832.)

Opium shipped on board a vessel at Honolulu for Panama, intended for transshipment at San Francisco and entered on the manifest and bills of lading and reported to the collector as being in transit for Panama, the owner having applied to the collector for a permit to make the transshipment and offered to give the security prescribed by the statute without obtaining a permit, was held not to be dutiable and illegally seized for nonpayment of duties. (McLean v. Hager, 31 Fed., 602.)

Opium could not, under the laws existing at the time of the passage of the act of February 9, 1909 (amended, supra), be brought into a port of the United States from a foreign country and exported from the same port on another vessel without being subject to duty. After said act of 1909, prohibiting absolutely the importation of opium in any form, smoking opium was not subject to duty and could not under any circumstances be entered and bonded for warehousing; and the law which made the bringing of opium into a port an importation for such purposes was, as to smoking opium, repealed. (27 Opin. Atty. Gen., 440.)

Smoking opium seized under the act of 1914 (supra) as a preparation or derivative of opium, directed to be sent to the Public Health Service and not destroyed pending the result of investigation. (Dept. Order, T. D. 37094.)

OPIUM DERIVATIVES.

(Par. 47, Act of 1913.)

SUMMARY.

DESCRIPTION.

Derivatives and preparations of opium may be considered in two categories:

(1) Opium alkaloids and their derivatives. Morphine, codeine, and heroin or diacetylmorphine are of chief importance.

(2) Medicinal preparations of opium. These are of importance in domestic pharmaceutical manufacture; the high ad valorem rate imposed by recent tariffs has virtually eliminated them from import. Opium derivatives are used legitimately in medicine to relieve pain and induce sleep. Their continued use induces a habituation which produces moral and physical degeneration, and is considered virtually incurable by medical authorities. An ounce of morphine contains about 3,500 medicinal doses; an ounce of heroin, about 8,800.

DOMESTIC PRODUCTION.

Morphine is extensively manufactured in America from imported opium. The average annual opium import (prewar, about 480,000 pounds) is equivalent to about 690,000 ounces, or 2,500,000,000 medicinal doses of morphine. Considerable amounts of opium, however, are used for other purposes, and statistics of morphine manufacture have not been obtainable.

Heroin, formerly a German product, is now manufactured in this country. It was introduced as a "nonhabit-forming" substitute for morphine, but is even more dangerous in this connection than morphine, and its use is coming into disfavor in the medical profession. American codeine manufacture is largely an outgrowth of war conditions. Persian opium, which is now chiefly imported, contains a much larger proportion of codeine than the Turkish article, which formerly almost monopolized the American market. Codeine is produced as a by-product of morphine manufacture.

The levy of $3 per pound on 9 per cent opium is equivalent to a tax of $2.07 per ounce on the contained alkaloid, leaving a margin in favor of the American manufacturer of 93 cents per ounce. This, the profit gained from codeine and other by-products, together with import restrictions beyond the purview of the tariff, has resulted in a virtual monopoly of the American morphine market for the American manufacturer. The manufacture of opium alkaloids requires considerable amounts of alcohol; other chemicals used vary with the process; alcohol and labor are probably the chief costs.

FOREIGN PRODUCTION.

Opium alkaloids are extensively manufactured in England and Germany. These countries, prior to the war, led in the manufacture