thereof may be available on the dates and in the amounts stated below: It is further provided by the Joint Resolution that the bonds may be in coupon or registered form, in denominations of one thousand, five thousand and (or) ten thousand dollars, shall bear interest at a rate not exceeding five per centum per annum, payable semi-annually, and shall be redeemable in series on prescribed dates and in prescribed amounts; that the bonds may be sold by the Secretary of War or by the Treasurer of Puerto Rico, with the approval of the Governor, upon such terms as may be most favorable to the People of Puerto Rico, and that the Treasurer with the approval of the Governor, under the limitations prescribed therein, shall have absolute charge and authority in connection with all matters relating to said bonds; that the proceeds from the sale of the bonds shall be devoted to the payment of the principal of and interest on the bonds theretofore issued and sold for the construction of the irrigation system, and of the costs of operation and maintenance of the system until sufficient funds for these purposes are realized from the assessments levied by the Act. For the payment of both principal and interest the good faith of the People of Puerto Rico is irrevocably pledged. There was transmitted with your letter a statement signed by the Treasurer of Puerto Rico, setting forth his determinations in those matters left to his discretion, and this has been approved by the Governor, in accordance with the Joint Resolution. I find that all the statutory requirements regarding the issue and sale of the said bonds have been complied with and that the form of bond submitted is in compliance with the law and the determinations of the Treasurer, approved by the Governor. The form of bond properly recites that "under the provisions of Section 3 of the Act of Congress, approved March 2, 1917, as amended by the Act of March 4, 1927, this bond is exempt from taxation by the Government of the United States, or by the Government of Puerto Rico or of any political or municipal subdivision thereof, or by any State, Territory, or possession, or by any county, municipality, or other municipal subdivision of any State, Territory, or possession of the United States, or by the District of Columbia." It is therefore my opinion that the bonds, when issued in the amount and form proposed, will constitute valid and binding obligations of the People of Puerto Rico. Respectfully, To the SECRETARY OF WAR: WILLIAM D. MITCHELL. IMPORT TAX ON COAL-ATTORNEY GENERAL'S OPINION The Attorney General declines to express an opinion upon the question whether coal imported from countries having most favored nation treaties with the United States is subject to the tax imposed by section 601 (c) (5) of the Revenue Act of 1932 (47 Stat. 260), as that question must ultimately reach the courts for decision. The ruling of the Secretary of the Treasury of November 14, 1932, (T. D. 45991-6), that coal imported from countries having most favored nation treaties with the United States is not subject to the aforesaid tax, held invalid because in violation of section 502 (b) of the Tariff Act of 1930 (46 Stat. 731), requiring concurrence by the Attorney General in certain rulings of the Secretary of the Treasury. Treating the matter as now submitted in accordance with section 502 of the Tariff Act of 1930, supra, the Attorney General deems it proper to refrain from approving a reversal by the Treasury Department of its original ruling requiring payment of the tax on imported coal as prescribed by section 601 (c) (5) of the Revenue Act of 1932, supra, and to allow such tax to stand in order that the question may be judicially determined on protest and litigation by the importers. DEPARTMENT OF JUSTICE, SIR: I have the honor to acknowledge receipt of your letter of December ninth submitting for my consideration the question as to the proper interpretation of section 601 of the Revenue Act of 1932, approved June 6, 1932, and the correctness of the ruling of the Treasury Department with respect thereto. Section 601 is as follows: "SEC. 601. EXCISE TAXES OF CERTAIN ARTICLES. 66 (a) In addition to any other tax or duty imposed by law, there shall be imposed a tax as provided in subsection (c) on every article imported into the United States unless treaty provisions of the United States otherwise provide. "(b) The tax imposed under subsection (a) shall be levied, assessed, collected, and paid in the same manner as a duty imposed by the Tariff Act of 1930, and shall be treated for the purposes of all provisions of law relating to the customs revenue as a duty imposed by such Act, except that 66 (1) the value on which such tax shall be based shall be the sum of (A) the dutiable value (under section 503 of such Act) of the article, plus (B) the customs duties, if any, imposed thereon under any provision of law; (2) for the purposes of section 489 of such Act (relating to additional duties in certain cases of undervaluation) such tax shall not be considered an ad valorem rate of duty or a duty based upon or regulated in any manner by the value of the article, and for the purposes of section 336 of such Act (the so-called flexible tariff provision) such tax shall not be considered a duty; "(3) such tax shall not be imposed upon any article imported prior to the date on which this title takes effect; "(4) no drawback of such tax (except tax paid upon the importation of an article described in subsection (c) (4), (5), (6), or (7), shall be allowed under section 313 (a), (b), or (f) of the Tariff Act of 1930 or any provision of law allowing a drawback of customs duties on articles manufactured or produced with the use of duty-paid materials; 66 (5) such tax (except tax under subsection (c) (4) to (7), inclusive) shall be imposed in full notwithstanding any provision of law granting exemption from or reduction of duties to products of any possession of the United States; and for the purposes of taxes under subsection (c) (4) to (7), inclusive, the term "United States" includes Puerto Rico." (c) There is hereby imposed upon the following articles sold in the United States by the manufacturer or producer, or imported into the United States, a tax at the rates hereinafter set forth, to be paid by the manufacturer, producer, or importer. "(1) Lubricating oils, 4 cents a gallon; but the tax on the articles described in this paragraph shall not apply with respect to the importation of such articles. "(2) Brewer's wort, 15 cents a gallon. Liquid malt, malt syrup, and malt extract, fluid, solid, or condensed, made from malted cereal grains in whole or in part, unless sold to a baker of use in baking or to a manufacturer or producer of malted milk, medicinal products, foods, cereal beverages, or textiles, for use in the manufacture or production of such products, 3 cents a pound. For the purposes of this paragraph liquid malt containing less than 15 per centum of solids by weight shall be taxable as brewer's wort. "(3) Grape concentrate, evaporated grape juice, and grape syrup (other than finished or fountain syrup), if containing more than 35 per centum of sugars by weight, 20 cents a gallon. No tax shall be imposed under this paragraph. "(A) upon any article which contains preservative sufficient to prevent fermentation when diluted, or "(B) upon any article sold to a manufacturer or producer of food products or soft drinks for use in the manufacture or production of such products. "(4) Crude petroleum, 1/2 cent per gallon; fuel oil derived from petroleum, gas oil derived from petroleum, and all liquid derivatives of crude petroleum, except lubricating oil and gasoline or other motor fuel, 1⁄2 cent per gallon; gasoline or other motor fuel, 22 cents per gallon; lubricating oil, 4 cents per gallon; paraffin and other petroleum wax products, 1 cent per pound. The tax on the articles described in this paragraph shall apply only with respect to the importation of such articles. "(5) Coal of all sizes, grades, and classifications (except clum and duff), coke manufactured therefrom; and coal or coke briquettes, 10 cents per 100 pounds. The tax on the articles described in this paragraph shall apply only with respect to the importation of such articles, and shall not be imposed upon any such article if during the preceding calendar year the exports of the articles described in this paragraph from the United States to the country from which such article is imported have been greater in quantity then the imports into the United States from such country of the articles described in this paragraph. "(6) Lumber, rough, or planed or dressed on one or more sides, except flooring made of maple (except Japanese maple), birch, and beech, $3 per thousand feet, board measure; but the tax on the articles described in this paragraph shall apply only with respect to the importation of such articles. "(7) Copper-bearing ores and concentrates and articles provided for in paragraph 316, 380, 381, 387, 1620, 1634, 1657, 1658, or 1659 of the Tariff Act of 1930, 4 cents per pound on the copper contained therein: Provided, That no tax under this paragraph shall be imposed on copper in any of the foregoing which is lost in metallurgical processes: Provided further, That ores or concentrates usable as a flux or sulphur reagent in copper smelting and/or converting and having a copper content of not more than 15 per centum, when imported for fluxing purposes, shall be admitted free of said tax in an aggregate amount of not to exceed in any one year 15,000 tons of copper content. All articles dutiable under the Tariff Act of 1930, not provided for heretofore in this paragraph, in which copper (including copper in alloys) is the component material of chief value, 3 cents per pound. All articles dutiable under the Tariff Act of 1930, not provided for heretofore in this paragraph, containing 4 per centum or more of copper by weight, 3 per centum ad valorem or 34 of 1 per cent per pound, whichever is the lower. The tax on the articles described in this paragraph shall apply only with respect to the importation of such articles. The Secretary is authorized to prescribe all necessary regulations for the enforcement of the provisions of this paragraph." The question presented is whether coal imported from Great Britain, Germany, and other countries with which |