Imágenes de páginas
PDF
EPUB

said metals would be producible in their condition as imported. Especially is this true in view of the provision of paragraph I that the additional duties levied thereunder shall not be refunded "in case of exportation of the merchandise, or on any other account, nor shall they be subject to the benefit of drawback."

3. Clerical error, manifest, what not.-An understatement of the market value per ton of zinc ore, varying from the consular invoice and from the price stated in the contract for purchasing it, the arithmetical extension in the entry being correctly made upon the basis of the declared price per ton, declared number of tons, and declared percentage of zinc content, is not manifest clerical error within the meaning of paragraph Y of section 3, tariff act of 1913.

4. Construction-Paragraph 162, tariff act of 1913.-The fact that paragraph 162, tariff act of 1913, provides a special method of appraising zinc ores does not relieve them from being entered upon invoice as other importations, nor does it relieve their importer from the consequences of undervaluation.

[blocks in formation]

1913

614 Minerals, crude, or not advanced in value or condition by
refining or grinding, or by other process of manufacture,
not specially provided for in this act.

193 Zinc-bearing ore of all kinds, including calamine:

Containing less than 10 per cent of zinc, shall be admitted
free of duty.

Containing 10 per cent or more of zinc and less than 20
cent, one-fourth of 1 per cent per pound on the zinc
contained therein.

Do.

cent per pound.

Containing 20 per cent or more of zinc and less than 25 cent per pound.
per cent, one-half of 1 cent per pound on the zinc con-

tained therein.

Containing 25 per cent of zinc or more, 1 cent per pound 1 cent per pound.
on the zinc contained therein.

Provided, That on all importations of zinc-bearing ores the
duties shall be estimated at the port of entry, and a bond
given in double the amount of such estimated duties for the
transportation of the ores by common carriers bonded for the
transportation of appraised or unappraised merchandise to
properly equipped sampling or smelting establishments,
whether designated as bonded warehouses or otherwise. On
the arrival of the ores at such establishments they shall be
sampled according to commercial methods under the super-
vision of Government officers, who shall be stationed at such
establishments, and who shall submit the samples thus ob-
tained to a Government assayer, designated by the Secretary
of the Treasury, who shall make a proper assay of the sample,
and report the result to the proper customs officers, and the
import entries shall be liquidated thereon, except in case of
ores that shall be removed to a bonded warehouse to be re-
fined for exportation as provided by law, and the Secretary
of the Treasury is authorized to make all necessary regulations
to enforce the provisions of this paragraph.
162 Zinc-bearing ores of all kinds, including calamine, 10 per cent
ad valorem upon the zine contained therein: Provided,
That on all importations of zinc-bearing ores the duties
shall be estimated at the port of entry, and a bond given
in double the amount of such estimated duties for the trans-
portation of the ores by common carriers bonded for the
transportation of appraised or unappraised merchandise
to properly equipped sampling or smelting establishments,
whether designated as bonded warehouses or otherwise.
On the arrival of the ores at such establishments they shall
be sampled according to commercial methods under the
supervision of Government officers, who shall be stationed
at such establishments, and who shall submit the samples
thus obtained to a Government assayer, designated by the
Secretary of the Treasury, who shall make a proper assay
of the sample and report the result to the proper custotus
officers, and the import entries shall be liquidated thereon,
except in case of ores that shall be removed to a bonded
warehouse to be refined for exportation as provided by law,
and the Secretary of the Treasury is authorized to make all
necessary regulations to enforce the provisions of this para-
graph.

10

per cent ad valorem.

Iterulations governing the smelting, entry, and sampling of zinc are contained in articles 276 and 798-800 of the Customs Regulations of 1915 and T. D. 37546 of 1918.

COMPETITIVE CONDITIONS AND TARIFF CONSIDERATIONS.

Zine ore is widely distributed over the world and is commonly associated with lead. In many ways the commercial as well as the geological association of the two metals, especially from the mining viewpoint, makes them quite similar in their industrial aspect. Formerly zinc was commonly considered an objectionable constituent of complex ores. But now modern methods of ore treatment make possible its profitable extraction as a joint product. The commercial success of the Wilfley table and of electromagnetic and electrostatic separation processes-all of which originated in the United States and have reached their highest development in this country-has opened up vast resources of hitherto unavailable material. The flotation process which enables the treatment of low-grade ore is another factor in enlarging the reserves of zinc ore in the United States and other

countries.

The ability of American mines greatly to increase their output was demonstrated in 1915 to 1917. In spite of the enormous drain upon resources in that period of extraordinary production, the known reserves of zinc ore were actually increased. A few districts show some depletion, and all over the United States the cream of the highgrade ore has probably been skimmed; but new districts have been and are being opened up. Domestic resources are very extensive and the ore bodies are moderately cheap to mine. In the Mississippi Valley zinc regions (Joplin-Miami and Wisconsin) zinc ore is the chief product with only subordinate quantities of lead. But elsewherenotably in the Rocky Mountain region-zinc mining is generally linked with the production of other metals. Sometimes zinc concentrate is the main product, perhaps more frequently it is a by-product; but in nearly all the complex ore districts it is an important joint product.

Transportation is a large factor in the zinc business. There are few other ores that are transported such long distances, since reduction works are necessarily located in populous industrial centers adjacent to adequate supplies of fuel. This condition is general throughout the world. Australian and African concentrates are smelted chiefly in Europe. A large part of the American zinc ore is produced in States west of the Mississippi River and must be brought to the Mississippi Valley for smelting, while the metal is carried still farther eastward to the consuming centers in Pennsylvania and the neighborhood of New York City. The difference in the case of the United States is that this transportation is by rail, whereas in the case of the European works, which are nearly all situated at or near seaboard, transportation is almost exclusively by water.

The zinc ore situation in the United States is much like that of lead ore, which also must be transported long distances by rail. Most of the zinc-ore hauls, however, are longer and because of the lower value of the material to the miner freight rates are an even more important factor. While zinc metal is quoted at a slightly higher price than lead, a ton of zinc ore is seldom worth as much to the miner as a ton of lead ore. The reason is that smelting charges are greater, a larger amount of the metal content is lost in the smelting operation, and,

The developments in electrolytic zinc metallurgy in the last three or four years have resulted in the ore from several important districts, especially in the United States, being treated much nearer the mines.

whereas lead ores nearly always contain precious metal which adds to their value, zinc ores frequently do not contain recoverable values other than zinc.

It may be stated that most foreign mines are more favorably situated as regards transportation of their product to reduction works than are the mines of the United States. The chief exceptions are the. mines of Canada and Mexico. Zinc mining has not yet been actively prosecuted in either of these countries, but may be expected to become much more important in the next few years. By virtue of their geographical position these countries are almost of necessity forced to market their product in the United States. Until very recently they were the only countries that shipped ore to the United States, and, with the exception of South American countries, whose resources can not be accurately gauged as yet, Canada and Mexico are the only countries that are likely to compete at all actively in the American zinc-ore markets with the domestic product.

Few of the Canadian mines have any particular advantage as compared with those located in adjacent parts of the United States. cost of labor and supplies is very nearly the same on both sides of the border. The Canadian mines are not much richer and are a little farther away from the smelting centers.1

In Mexico, however, the situation is different. Here we find large deposits of high-grade zinc ore that have not been worked. As soon as there is adjustment of the unrest in those regions these deposits can furnish enormous quantities of desirable zinc ore at low cost. The freight from these mines to the American zinc smelteries is high, but in view of the low cost of producing the ore it can probably be delivered at Mississippi Valley points for less cost (per pound metal content) than much of the output from the mines even of that section of the United States.

The tariff problem is concerned chiefly with the Mexican ore. Mexico has the largest undeveloped resources of zinc ores that are likely to be imported into the United States. The development of Mexican mines was hampered by the duties of the act of 1909 and political disturbance has prevented any considerable importation under the lower duties of the act of 1913. Since 1912 the operation of most of the Mexican zinc mines has been very uncertain, as these regions have suffered from bandit warfare. Eventually, however, it is probable that more or less normal conditions will prevail and that the mines can again be operated. In the past this ore was shipped mostly to the Mississippi Valley, although a little was shipped to Germany and Belgium. The resumption of Mexican mining would again cause quantities of this ore to be thrown on the American market and it is quite possible that the result would be to close down many of the mines and smelteries of the Mississippi Valley and to transfer the smelting business to the Rio Grande. The latter location would be better adapted to the treatment of Mexican ore. Coal supplies might then be drawn from Colorado and New Mexico. Oil from California and Texas and possibly natural gas from the latter State would favor such a change.

1 Neglecting the possible resumption of electrolytic zine production on a larger scale in British Columbia. A bounty guaranty of 8 cents per pound is offered by the Canadian Government to remain in effect for two years after the end of the war.

Appraisement of zinc ores.-The duties on zinc in zinc-bearing ores can not be assessed on the foreign market value, since the ore in which the zinc is contained is the merchandise imported. Duties are accordingly taken upon American selling prices in accordance with paragraph L of Section III of the act of 1913, as shown by the following instructions of the Treasury Department (T. D. 36446, superseding T. D. 34280 and 35624):

(1) From the ascertained assay deduct 8 units for sulphide and 6 units for nonsulphide ores. The remainder will represent percentage of recoverable zinc in the ore, which multiplied by 2,000 will give the number of pounds of zinc recoverable from a ton of ore.

(2) Multiply the result as above ascertained by the average price of prime western spelter in East St. Louis for the week in which the ore was exported; that is, the week including the date of sailing of the ship or day the car leaves the foreign country. This will give the gross value of the zinc in the ore at the time of its exportation. (3) Deduct from the gross value of the zinc in the ore as above ascertained the following:

(a) The freight actually paid from the foreign mine to the domestic smelter receiving same in the United States.

(b) The insurance actually paid.

(c) The actual shipping charges.

(d) Foreign export duties and charges, if any.

(e) Treatment charge (as explained in par. 4).

(f) Penalties for iron, as stipulated in paragraph 5.

(g) Duty on lead contents, if any.

(h) Duty on zinc.

(4) Treatment charge.-(a) For sulphide ores the treatment charge will be ascertained as follows: From the value of the recoverable spelter in a ton of 2,000 pounds medium grade Joplin sulphide ore, 60 per cent base, deduct the average of the quoted prices for such ore and $1.50 per ton of 2,000 pounds as representing the average freight on Joplin ores from Joplin, Mo., to common Kansas smelting points.

(b) For nonsulphide ores the treatment charge will be ascertained as follows: From the value of the recoverable spelter in a ton of 2,000 pounds of 40 per cent calamine ore deduct the average of the quoted prices for such ore and $1.50 per ton of 2,000 pounds as representing the average freight paid from Joplin, Mo., to common Kansas smelting points.

(5) Penalties.-On iron ore deduct penalties as follows: $1 on each unit of iron in excess of 1 per cent up to and including 6 per cent: 50 cents per unit on each unit of iron in excess of 6 per cent up to and including 12 per cent; 25 cents for each unit of iron in excess of 19 per cent.

(6) The average market price of Joplin zinc ore and prime western spelter to be taken in accordance with quotations contained in the Engineering and Mining Journal for the calendar week including the date of the sailing of the ship or day the car leaves the foreign country.

(7) Recoverable spelter, wherever that term is used in this memorandum, means for sulphide ores the assay minus 8 units, and for nonsulphide ores the assay minus 6 units.

EXAMPLE: SULPHIDE ORE.

Assume: Assay 48 per cent zinc, 6 per cent lead, 14 per cent iron; freight mine to smelter, $13 per ton of 2,000 pounds; insurance, $1.50 per ton; loading and expenses, $1 per ton; prime western spelter, 15 cents per pound; medium grade Joplin ore, 60 per cent base, $100 per ton.

48 per cent-8 per cent X2,000 pounds=800 pounds at 15 cents...

$120.00

Deductions:

[blocks in formation]

2 per cent at $0.25.

.50

Treatment:

60 per cent-8 per cent=52 per cent×2,000=1,040 at

15 cents...

[blocks in formation]

$156.00

$100.00
1.50

101.50

$54.50

.90

$78.40 41.60

Lead, 2,000 pounds X6 per cent=120 pounds at cent...

$41.60-110 per cent=$37.82 dutiable value.

EXAMPLE: NONSULPHIDE ORE.

Assume: Assay 36 per cent zinc, 3 per cent lead, 2 per cent iron; freight, mine to smelter, $10 per ton of 2,000 pounds; export duty, $1; prime western spelter, 15 cents per pound; Joplin calamine, 40 per cent base, $50 per ton.

36 per cent-6 per cent=30 per cent×2,000 pounds-600 pounds at 15 cents. $90.00 Deductions:

Freight, mine to smelter.
Export duty

Iron penalty, 2 per cent-1 per cent=1 per cent at $1. Treatment:

40 per cent-6 per cent=34 per centX2,000 pounds=689 pounds at 15 cents...

Ore quotation....

Freight to smelter....

$10.00
1.00

$11.00
1.00

102.00

$50.00
1.50

51.50

50.50

62.50

$27.50-110 per cent=$25 dutiable value.

27.50

Owing to the fact that the several factors necessary to determine the market value or purchase price of zinc ores are usually not known at the time of shipment, and importers can not ascertain the value of the zinc in the ore, collectors are authorized to permit entry by appraisement of zinc-bearing ores.

ANDREW J. PETERS,
Assistant Secretary.

As the several factors necessary to determine the market value or purchase price of zinc ores are usually not known at the time of shipment, and importers can not ascertain the value of the zinc in the ore, entry by appraisement is allowed. (T. D. 36446 and T. D. 36534, of 1916.) Sulphide ores assaying 40 per cent or less of zinc, however, are appraised at not less than contract or purchase price. (T. D. 36652, of 1916.)

ZINC OR SPELTER.

SUMMARY.

Zine is one of the major metals. All of its chief uses, comprising galvanizing, brass making, rolled sheets, and the desilverization of lead bullion, may be considered essential. The United States is now the largest single producer and the largest consumer of the metal in the world, the domestic output in normal times being approximately one-third of the world's total. The domestic supply is derived almost exclusively from domestic sources and, except during the war period, the exports have been a minor factor in spite of the fact that the bonded smelting privilege is extended to zinc ores

« AnteriorContinuar »