TARIFF
AND CUSTOMS LAWS OF THE PHILIPPINES
This page features the full text of
Republic Act No. 1937
Tariff
and Customs Code of the Philippines
AN
ACT TO REVISE AND CODIFY THE TARIFF AND CUSTOMS LAWS OF THE PHILIPPINES
...
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REPUBLIC
ACT NO. 1937
AN
ACT TO REVISE AND CODIFY THE TARIFF AND CUSTOMS LAWS OF THE PHILIPPINES
BOOK
II
CUSTOMS
LAW
TITLE
VIII
GENERAL
PROVISIONS
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PART
1
CUSTOMS
BROKERS
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Section
3401. Qualifications of Applicants
for Customs Broker's Certificate. — All applicants for customs broker's
certificate shall pass a written examination for the purpose.
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Applicants
for admission to the said examination shall have the following
qualifications:chanroblesvirtuallawlibrary
(a) At
least 25 years of age;
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(b) A
citizen of the Philippines;
(c) Of
good moral character; and
(d) Has
completed a four-year collegiate course with at least two years
experience
in customs and tariff matters; an applicant who has only completed two
years of college may be allowed to take the examination provided that
each
year lacking in customs shall be substituted by two years of actual
experience
in customs brokerage and/or customs and tariff matters: Provided,
That said experience shall be duly certified by the employer or
employers
of the applicant.
No
corporation, association or partnership shall engage in the customs
brokerage
business unless at least two of the officers of such corporation or
association,
or at least two of the members of such partnership have such
certificate.
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No
certificate as customs broker shall be granted to any person who has
been
convicted of a crime involving moral turpitude.
Sec.
3402. Examination by the Board
of Examiners for Customs Brokers. — Examinations for customs brokers
shall
be given by the board of examiners for customs brokers under the
supervision
of the Bureau of Civil Service. Applications for admission to such
examinations
shall be filed with the Bureau of Civil Service.
Examinations
for customs brokers shall be given once every two years or oftener as
the
need therefor arises which fact shall be certified by the Commissioner
of Customs and shall be confined to subjects with which such brokers
are
required to be conversant, including knowledge of customs and tariff
laws
and regulations, and of other laws and regulations the enforcement of
which
is the concern of the Bureau of Customs.
The
board shall submit within one hundred twenty days after the date of
examination
the ratings obtained by each candidate to the Commissioner of Civil
Service
who shall submit such ratings to the President of the Philippines for
release.
A
general average of seventy-five per cent shall be the passing grade for
this examination: Provided, That the examinee shall not have obtained a
grade of less than sixty per cent in any of the examination
subjects.
This
customs brokers' examination shall be considered as equivalent to the
first
grade regular examination given by the Bureau of Civil Service for
purposes
of appointment to positions in the classified service the duties of
which
involve knowledge of customs and tariff matters.
Sec.
3403. The Board of Examiners.
— The Board of Examiners for Customs Brokers shall be composed of the
Commissioner
of Customs, as ex-officio chairman and two members who shall be
appointed
by the President upon the recommendation of the Commissioner of Civil
Service.
The two members of the board shall be holders of customs broker's
certificate
and shall hold office for a term of two years: Provided, That
the
first members shall hold office for the following terms: one member for
one year, and the second member for two years. Vacancies in the board
shall
be filled for the unexpired term.
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Sec.
3404. Compensation of Members
of the Board. — The chairman and members of the board shall receive a
compensation
of ten pesos for each candidate examined.
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Sec.
3405. Fees. — (a) Each applicant
for
examination shall pay a fee of fifty pesos which shall be paid to the
Bureau
of Civil Service.
(b) Each
successful candidate shall be issued a certificate as a customs broker
upon payment of a fee of fifty pesos to the Bureau of Civil
Service.
Sec.
3406. Requisites. — Any person
desiring to establish a customs brokerage business at any port in the
Philippines
shall apply for a license from the Collector of the port
concerned.
No
such license shall be issued unless the applicant pays the required
license
fee of fifty pesos and files the required bonds for customs brokers.
Whenever
it shall appear that a bond given by a customs broker is inadequate,
the
Collector shall require additional or substitute bond to be filed. Such
additional or substitute bond shall be furnished by the broker within
ten
(10) days after demand, otherwise his permit shall be suspended or
revoked
as circumstances may warrant. The bonds posted by the customs broker
may
be personal bonds guaranteed by at least two (2) sureties satisfactory
to the Collector of the port or a surety bond posted by a duly licensed
surety company.
Sec.
3407. Issuance, Revocation and
Suspension of Certificate. — A candidate who has passed the customs
brokers'
examination shall be entitled to the issuance of a certificate as a
customs
broker: Provided, That persons who qualified as customs brokers
in accordance with customs regulations existing before the enactment of
this Code and members of the technical staffs of the respective
committees
of Congress that reported this Code who desire to have a certificate
issued
to them may apply for the issuance of such certificate upon payment of
the fees required under paragraph (b) of Section 3405 of this
Code.
A
customs broker's certificate shall show among other things, the full
name
of the registrant, shall have a serial number and shall be signed by
all
the members of the board and the Commissioner of Civil Service, and
shall
bear the official seal of the board.
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A
complaint for the suspension or revocation of the certificate of a
customs
broker shall be filed with the Board of Examiners for Customs Brokers
which
shall investigate the case and shall submit its findings and
recommendations
to the Commissioner of Civil Service who shall decide the case. The
Commissioner
of Civil Service shall immediately furnish the respondent customs
broker
with a copy of his decision.
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Sec.
3408. Roster of Customs Brokers.
— A roster showing the names and addresses of the customs brokers shall
be prepared by the Commissioner of Civil Service during the month of
July
of every year. Copies of this roster shall be mailed to each person so
registered and placed on file with the Office of the President of the
Philippines,
and copies thereof shall be furnished to the Office of the Secretary of
Finance, to the Commissioner and Collectors of Customs and to such
other
bureaus, government agencies and provincial and municipal authorities
as
may be deemed necessary, and to the public upon request.
Sec.
3409. Rules and Regulations by
the Commissioner of Civil Service. — The Commissioner of Civil Service,
upon recommendation of the Board of Examiners for Customs Brokers,
shall
promulgate such rules and regulations as may be necessary to carry out
the provisions of Part 1 of this title.
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PART
2
MISCELLANEOUS
PROVISIONS
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Sec.
3501. Duty of Collector to Report
Rulings to Commissioner. — When any new or unsettled question shall be
determined by a Collector he shall, if the matter is not otherwise
appealed
for review in the ordinary course, notify the Commissioner of his
decision
and submit an adequate statement of the facts involved.
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Sec.
3502. Application of Established
Ruling or Decision. — A ruling or decision of the Bureau of Customs
which
determines the construction or application of any provision of law
imposing
customs duties and which changes any existing established
classification,
interpretation or practice shall not take effect until after thirty
days
public notice shall be given in the form of published tariff decision.
When such ruling or decision favors the taxpayers it shall become
effective
immediately.
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Sec.
3503. Authority of Official to
Administer Oaths and Take Testimony. — The Commissioner, Collectors and
their assistants, deputies, surveyors, appraisers and any other person
thereunto especially deputized by the Collector, shall have authority
to
administer oaths and take testimony in connection with any matter
within
the jurisdiction of the Bureau of Customs, and in connection therewith
may require the production of relevant papers, documents, books and
records
in accordance with law.
Sec.
3504. General Bonds. — In cases
where bonds are required to be given under the provisions of the
customs
and tariff laws, the Collector, instead of requiring separate special
bonds
where the transactions of a particular party are numerous, may accept
general
bonds extending over such periods of time and covering such
transactions
of the party in question as shall be satisfactory to said
Collector.
Sec.
3505. Supervision over Attorneys-in-fact.
— Persons acting as agents or attorneys-in-fact of other persons in
matters
pertaining to customs and/or tariff or navigation may be required to
file
their respective powers of attorney with the Collector of the port. No
more than two such continuing powers may be accepted or recognized from
any one person acting as agent in the importation of articles unless he
be a licensed customs broker.
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Sec.
3506. Assignment of Customs Employees
to Overtime Work. — Customs employees may be assigned by a Collector to
do overtime work at rates fixed by the Commissioner, when the service
rendered
is to be paid for by importers, shippers or other persons served.
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Sec.
3507. Exclusive License for Landing
of Passengers and Baggage. — The Commissioner may select, in any port
of
entry, one person or firm to do, at reasonable rates, all the business
of landing passengers and baggage for hire from incoming vessels or
aircrafts
and to this end may enter into an exclusive contract for the period of
one year.
The
contract shall be awarded only after due advertisement for bids, which
shall cover the cost of landing passenger per person and luggage per
piece,
to the lowest responsible bidder.
Sec.
3508. Bond to Be Given. — The
person or firm to which the contract was awarded shall, before entering
the performance of such contract, execute a bond in favor of the
government
for the benefit of whomsoever may be concerned, conditioned upon (a)
the
acquisition of a sufficient equipment of launches and other means of
conveniently
landing passengers and baggage, (b) the landing of all the passengers
and
all the baggage as occasion may require during the entire year covered
by the contract, and (c) the prompt payment of all losses of baggage or
other property so handled, due to negligence in the performance of the
contract, the amount of such liability to be finally determined by the
Commissioner.
Sec.
3509. Supervision by Commissioner
over Execution ofContract. — The
Commissioner shall supervise the Execution of the contract and the
conduct
of business thereunder, and shall have the power, upon breach of the
contract
or violation of any regulation concerning the same, at once to annul
the
contract, awarding the privilege to another in the same manner as
before.
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Sec.
3510. Reduction of Testimony
to Writing. — When testimony is taken in any proceeding or matter under
the authority of the Bureau of Customs, either party may require that
the
same be reduced to writing, and when so taken it shall be filed in the
office of the Collector and preserved for use or reference until final
decision.
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Sec.
3511. Collector not Liable in
Respect of Ruling in Customs Cases. — No Collector or other official of
customs shall be in any way personally liable for or on account of any
official ruling or decision as to which the person claiming to be
aggrieved
has the right to obtain either an administrative or judicial review,
and
except for a misdelivery of articles a Collector shall not, in the
absence
of abuse of authority be liable to any person for a loss occasioned
either
by his own official act or the act of his subordinates.
Sec.
3512. Interest Prohibited to
be Held by Customs Employees. — No person employed under the authority
of the government in the collection of duties, taxes, fees and other
charges
in connection with imports and/or exports, shall own, either in whole
or
in part, any vessel or aircraft, or act as attorney agent or consignee
for the owner of any vessel or aircraft or of any cargo laden on board
the same; nor shall any such person consort or be concerned, directly
or
indirectly, in the importation of any article for sale into the
Philippines.
Sec.
3513. Reward for Information
or Discovery Concerning Fraud upon Customs Revenue. — When any private
person shall furnish definite information concerning any fraud upon the
customs revenue, by whomsoever attempted or perpetrated, which shall
result
in the recovery of revenue, the conviction of the guilty party, or the
imposition of any fine or penalty, of the forfeiture of any of the
property
enumerated in section twenty-five hundred and thirty hereof, such
person
shall be rewarded in accordance with the following schedule, but not
exceeding
in any case the sum of fifty thousand pesos:
a. Where
a fine, judicial or administrative, is collected, twenty-five per
centum
of such fine;
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b. In
cases where no fine is imposed, twenty-five per centum of the
additional
revenue recovered by the government and collected by reason of the
information
given;
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c. Where
the offender has chosen to compromise his violation of the law and his
offer of compromise is accepted by the Commissioner, twenty-five per
centum
of such compromise;
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d. In
cases of forfeiture and subsequent redemption of the articles seized,
upon
payment of all duties, taxes and other charges due thereon, twenty-five
per centum of the amount of such administrative fine as the
Commissioner
may actually impose and collect in lieu of forfeiture;
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e. In
case of public sale of property seized as a result of the information
as
furnished, twenty-five per centum of the proceeds of the sale after
deducting
only the charges specified in subsections (a) and (e) of section
twenty-six
hundred and five hereof.
Provided,
however, That the balance of seventy-five per centum in subsections
(a), (b), (c), (d) and (e) shall be distributed thus: fifteen per
centum,
to the Customs Welfare Fund, which is hereby created according to the
rules
and regulations promulgated by the Commissioner, to be used exclusively
for the benefit of customs officials and employees and their families:
ten per centum, shall be paid the customs official or employee who has
discovered and reported such anomalies with the assistance of an
informer;
and the remaining fifty per centum, to the Government.
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Sec.
3514. Words and Phrases Defined.
— As used in this Code:
"Foreign
port" means a port or place outside the jurisdiction of the
Philippines.
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"Port
of entry" is a domestic port open to both foreign and coastwise trade.
The term includes principal ports of entry and subports of entry. A
"principal
port of entry" is the chief port of entry of the collection district
wherein
it is situated and is the permanent station of the Collector of such
port.
Subports of entry are under the administrative jurisdiction of the
Collector
of the principal port of entry of the district. Whenever the term "Port
of entry" is used herein, it shall include "airport of entry".
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"Coastwise
ports" are such domestic ports as are open to the coastwise trade only.
These include all ports, harbors and places not ports of entry.
"Vessels"
includes every sort of boat, craft or other artificial contrivance
used,
or capable of being used, as a means of transportation on water.
"Aircraft"
includes any weight-carrying devise or structures for the navigation of
the air.
"Bill
of lading" includes airway bill of lading.
"Articles",
when used with reference to importation or exportation, includes goods,
wares and merchandise and in general anything that may be made the
subject
of importation or exportation.
"Transit
cargo" is article arriving at any port from another port or place noted
in the carrier's manifest and destined for transshipment to another
local
port or to a foreign port.
"Seized
property" means any property seized or held for the satisfaction of any
administrative fine or for the enforcement of any forfeiture under the
customs and tariff laws.
"Tariff
and customs law" includes not only the provisions of this Code and
regulations
pursuant thereto but all other laws and regulations which are subject
to
enforcement by the Bureau of Customs or otherwise within its
jurisdiction.
"Taxes"
includes all taxes, fees and charges imposed by the Bureau of Customs
and
the Bureau of Internal Revenue.
"Secretary"
or "department head" refers, unless otherwise specified, to the
Secretary
of Finance.
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"Commission"
refers to the Tariff Commission.
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"Person"
whether singular or plural refers to an individual, corporation,
partnership,
association, company or any other kind of organization.
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PART
3
PENAL
PROVISIONS
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Sec.
3601. Unlawful Importation. —
Any person who shall fraudulently import or bring into the Philippines,
or assist in so doing, any article, contrary to law, or shall receive,
conceal, buy, sell, or in any manner facilitate the transportation,
concealment,
or sale of such article after importation, knowing the same to have
been
imported contrary to law, shall be punished by a fine of not less than
six hundred pesos nor more than five thousand pesos and imprisonment
for
not less than six months nor more than two years and, if the offender
is
an alien, he shall be deported after serving the sentence.
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When,
upon trial for a violation of this section, the defendant is shown to
have
or to have had possession of the article in question, such possession
shall
be deemed sufficient evidence to authorize conviction, unless the
defendant
shall explain the possession to the satisfaction of the court.
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Sec.
3602. Various Fraudulent Practices
Against Customs Revenue. — Any person who makes or attempts to make any
entry of imported or exported article by means of any false or
fraudulent
invoice, declaration, affidavit, letter, paper, or by means of any
false
statement, written or verbal, or by means of any false or fraudulent
practice
whatsoever, or shall be guilty of any willful act or omission by means
of whereof the Government might be deprived of the lawful duties, taxes
and other charges, or any portion thereof, accruing from the article or
any portion thereof, embraced or referred to in such invoice,
declaration,
affidavit, letter, paper, or statement, or affected by such act or
omission,
shall, for each offense, be punished by a fine of not less than six
hundred
pesos nor more than five thousand pesos and by imprisonment for not
less
than six months nor more than two years and if the offender is an
alien,
he shall be deported after serving the sentence.
Sec.
3603. Failure to Report Fraud.
— Any master, pilot in command or other officer, owner or agent of any
vessel or aircraft trading with or within the Philippines and any
employee
of the Bureau of Customs, who, having cognizance of any fraud upon the
customs revenue, shall fail to report all information relative thereto
to the Collector, as by law required, shall be punished by a fine of
not
more than two thousand pesos or by imprisonment for not more than one
year,
or both.
Sec.
3604. Statutory Offense of Officials
and Employees. — Every official, agent or employee of the Bureau of
Customs
who is guilty of any delinquency hereinbelow specified or who falls
within
any of the classes hereinbelow indicated shall be punished by a fine of
not less than four hundred pesos nor more than ten thousand pesos or by
imprisonment for not less than six months nor more than five years, or
both.
a. Those
guilty of extortion of willful oppression under color of law.
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b. Those
who knowingly demand other or greater sums than are authorized by law
or
receive any fee, compensation or reward, except as by law prescribed,
for
the performance of any duty.
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c. Those
who willfully neglect to give receipts, as by law required, for any sum
collected in the performance of duty, or who willfully neglect to
perform
any of the duties enjoined by law.
d. Those
who conspire or collude with another or others to defraud the customs
revenue
or otherwise violate the law.
e. Those
who willfully make opportunity for any person to defraud the customs
revenue
or who do or fail to do any act with intent to enable any person to
defraud
said revenue.
f. Those
who negligently or designedly permit the violation of the law by any
other
person.
g. Those
who make or sign any false entry or entries in any book, or make or
sign
any false certificate or return in any case where the law requires the
making by them of such entry, certificate or return.
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h. Those
who, having knowledge or information of a violation of the tariff and
customs
law or any fraud committed on the revenue collectible by the Bureau of
Customs, fail to report such knowledge or information to their superior
official or to report as otherwise required by law.
i. Those
who, without the authority of law, demand or accept or attempt to
collect
directly or indirectly as payment or otherwise, any sum of money or
other
thing of value for the compromise, adjustment, or settlement of any
charge
or complaint for any violation or alleged violation of law.
Sec.
3605. Concealment or Destruction
of Evidence of Fraud. — Any person who willfully conceals or destroys,
any invoice, book or paper relating to any article liable to duty,
after
an inspection thereof has been demanded by the Collector of any
Collection
district, or at any time conceals or destroys any such invoice, book or
paper for the purpose of suppressing any evidence of fraud therein
contained,
shall be punished by a fine of not more than two thousand pesos, or by
imprisonment for not more than one year, or both.
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Sec.
3606. Breaking of Seal on Car
or Conveyance by Land, Sea or Air. — Any person who shall willfully
break
or destroy any seal placed by a customs official upon any car, or other
conveyance by land, sea or air, or any compartment thereof, shall be
punished
by a fine of not more than one thousand pesos.
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Sec.
3607. Alteration of Marks on
Any Package of Warehoused Articles. — Any person who alters, defaces or
obliterates any distinctive mark placed by a customs official on any
package
of warehoused articles shall be liable to fine of not more than one
thousand
pesos.
Sec.
3608. Fraudulent Opening or Entering
of Warehouse. — Any importer or owner of warehoused articles, or person
in his employ, who by contrivance, fraudulently opens the warehouse, or
gains access to the articles, except in the presence of the proper
official
of the customs acting in the execution of his duty, shall be liable to
a fine not exceeding one thousand pesos, or to imprisonment for a
period
not exceeding one year, or both.
Sec.
3609. Fraudulent Removal or Concealment
of Warehoused Articles. — Any person who shall fraudulently remove
warehoused
articles from any public or private warehouse or shall fraudulently
conceal
such articles in any such warehouse, or shall aid or abet any such
removal
or concealment, shall be punished by a fine of not more than two
thousand
pesos, or by imprisonment for not more than one year, or both.
Sec.
3610. Violation of Tariff and
Customs Laws and Regulations in General. — Any person who violates a
provision
of this Code or regulations pursuant thereto, for which delinquency no
specific penalty is provided, shall be punished by a fine of not more
than
four hundred pesos or by imprisonment for not more than six months, or
both.
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FINAL
PROVISIONS
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Sec.
3701. Repealing Clause. — All
Acts, Executive Orders, rules and regulations or parts thereof, in
conflict
with the provisions of this Code, are repealed.
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Sec.
3702. Transitory Provision. —
All suits, proceedings or prosecutions, whether civil or criminal, for
causes arising or acts done or committed prior to the effectivity of
this
Code, shall be commenced and/or prosecuted within the same time, in the
same manner and with the same effect as if this Code had not been
passed;
and all rights acquired, offenses committed, and penalties, forfeitures
or liabilities incurred, prior to the said effectivity, shall not be
affected
thereby.
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Sec.
3703. Separability Clause. —
If any part or parts of this Code should for any reason be held to be
invalid
or unconstitutional, the remaining parts thereof shall remain in full
force
and effect.
Sec.
3704. Effectivity Date. — This
Code shall take effect on July 1, 1957, except Part 4 of Title II of
Book
I, and Parts 1 and 2 of Title I of Book II, which shall take effect
upon
its approval.
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Sec.
3705. Functions Temporarily Performed
by the Bureau ofCustoms. — The Bureau
of Customs shall continue to perform the functions transferred to the
Bureau
of Water Transportation pending the organization of the latter.
Approved:
June 22, 1957
(Note:
Except Sections 703 and 3204 which were vetoed)
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