'Memorandum by Sir M Durand on the situation in Persia' [‎43v] (20/42)

20
Customs administra
tion previous to
present time.
Administration of
Customs.
Customs rates.
Effect of the Treaty
of Turkmanchai.
Effect of a fixed
valuation of customs.
No. 4 .—The Customs. ^
In the early part of the present century the Customs were in the hands of the various
Governors of the frontier provinces, who purchased annually the right of collection for
certain sums ; gradually, as the Customs increased in importance, higher offers of purchase
were made until, and more especially in Azerbaijan, the revenue so derived assumed, an
importance to render it advisable for the Central Government to take some responsibility
in the matter. A special officer was sent to control the administration in Azerbaijan, and
from this step sprang the idea of creating the post of a “ Vazird-Gumruk” (Minister of
Customs), an appointment instituted a little before the first journey of the Shah to Europe.
Still, however, important frontiers remained in the hands of private contractors until the
Amin-es-Sultan (father of the present Sadr Azm) pointed out to the Shah the feasibility of
realizing with proper control much larger returns.
His Majesty thereupon placed the entire administration of the Customs in the hands of
the late Amin-es-Sultan, with the result of a rapid increase in the revenue—an increase
amounting before his death to a sum of some 300,000 tomans 10,000 Persian dinars, or a gold coin of that value. per annum. The late Amin
further amalgamated the octroi and “rah dari” duties to the Customs. At his death these
passed on as an hereditary office to his son, the present Sadr Azm, since which time the
total revenue has remained at the same figure it reached three or four years before the death
of the late Amin-es-Sultan, viz., about 900,000 tomans 10,000 Persian dinars, or a gold coin of that value. per annum.
Note .—A slight rise took place in 1895.
The Sadr Azm in turn sells the right of collection of customs, including “rah dari” and
octroi duties, along the several frontiers to the various provincial Governors or private
individuals, the transaction being in the nature of a private contract, and, generally speaking,
passing from hand to hand, and renewed annually. Whatever profits accrue over and above
the specified sum paid annually into the Treasury (900,000 to 1,000,000 tomans 10,000 Persian dinars, or a gold coin of that value. ) becomes
the perquisite of the Sadr Azm, the same principle holding, one may say, throughout Persian
administration and exactly parallel to the case of the Ministers of Posts and Telegraphs
(vide Part I, Papers Nos. 9 and 10), who take as perquisite all revenue derived from
their Administration, less a certain fixed sum paid into the Treasury.
Note .—Reliable native sources give the profits of the Sadr Azm at 200,000 tomans 10,000 Persian dinars, or a gold coin of that value.
per annum, i.e., 40,000^.
As previously mentioned, the Customs form one of the chief sources of the revenue of
Persia.
Under this head are included taxes on imports and exports, “rah dari” (read tax), and
octroi.
Two rates of customs duties are levied, the one on foreigners, the other on natives.
The customs duties levied on foreigners have their basis in the terms of the Treaty of
Turkmanchai (between Persia and Russia, of the 10th (22nd) February, 1828), the
conditions of which briefly stated are as follows:—
“Article III. Merchandize imported to or exported from Persia is subject to a
5 per cent, duty at the lime of entry or departure; and afterwards is not liable to any other
customs rights.”
The customs duties levied on natives consist of the payment on imports and exports of
a nominal 3 per cent, only (but this sum varies from year to year), and, in addition, the
duties of “rah dari” and octroi, the amounts for which constantly vary, depending in reality
on the power of the contractor to extract money from the merchant; so that by the time
merchandize is brought into the country, or vice versd, tne native merchant has had to pay
from 10 to 15 per cent.
By the Treaty of Turkmanchai Persia deprived herself of all flexibility in her foreign
commercial relations, for though her conditions of commerce with Russia are reciprocal,
they are not so with other nations; France, for instance, whilst claiming the right of the
most-favoured-nation clause, can import into Persia at 5 per cent, ad valorem, whereas
Persia might have to pay 30 per cent, to import into France, the rate changing whenever
France is led to alter her commercial relations with other Powers. Feeling the intolerable
ness of this burden, Persia some years ago endeavoured to effect a modification in the terms
of the Commercial Articles in the Treaty, but the negotiations failed, and Persia nov finds
her hands so tied as to be entirely dependent on the will of Russia for any improvement in
the terms of her Customs relations with other countries.
Again, by fixing the value of the customs at 900,000 or 1,000,000 tomans 10,000 Persian dinars, or a gold coin of that value. , and through
a long period rigidly adhering to this original valuation, Persia lias further diminished her
flexibility. By her system of Government sales she has further blinded herself to the
actual state of her foreign commercial relations, and has, moreover, cut herself adrift from
all touch with sources of reliable information concerning the real value of her customs.
It is at present to the interest of the Administration, the contractors, the Treasury
officials, in fact to the interest of almost all connected directly or indirectly with the
Customs, to furnish an inexact picture of receipts and expenditure; trustworthy Reports,
therefore, are unobtainable. From Consular Reports, however, there seems little doubt of
the great increase still developing in the imports and exports during the last fifteen
years.