FEW RELAXED.

Auckland Star, Volume LXXI, Issue 227, 24 September 1940, Page 8

FEW RELAXED.

IMPORT QUOTAS. FIFTH PERIOD BASIS. The basis on which licenses covering imports during the fifth period are to be issued is the subject of an announcement by the Hon W. XV.sh, Minister of Customs. With the exception of one or two items noted hi the sehtdule, licenses ar* to cover the full year 1941, instead of a half-yearly period, as has hitherto been the case. Careful consideration has been given to this question, stated Mr. Xash, and while there are certain factor*'which raise doubts as to whether the six-monthly period should be main-

tained, it is thought that the advantages to be gained by adopting the yearly procedure justify that course. "I am convinced," he said, "from the representations which have been made in that regard that this step will be welcomed by importers, who will now have a longer time in which to exercise their licenses. "It is necessary, however, to warn importers that the allocations granted to them are intended to provide for requirements for the full year. They are determined within the "limits of the funds available and cannot be increased. Importers would be well advised, therefore, to arrange their imports, or their distribution, so that they will cover the full period, otherwise they might find themselves during the latter part of the year without any goods to trade with." Third and Fourth Periods. A further important aspect of the procedure, and one which is doubtless generally understood, is the policy being adopted regarding the expiry of third

and fourth period licenses. "Whtm releasing the fourth period schedule ia April last, said Mr. Xash, it ww made clear that licenses for the third aad fourth periods would be valid until December 31 next only, and importer* were advised to arrange for importation by that date. It is recognised, he said, that them may be difficulty in bringing the goods in within that period, but* it is very important that there should be ne carry-over from one period into another If this procedure were not followed, it would be difficult to determine the amount which could be allocated for licenses in the subsequent period, and would probably result in that amount being reduced to a lower level thai ultimately found necessary. Warning to Importers. It has therefore been decided, he not to extend third and fourth period licenses beyond December 31 next. Any goods ordered under such licenses which arrive after that date will be admitted only as a charge again.-t the importer'* allocation for the fifth [jeriod. Importer* are accordingly warned that in placing orders against fifth period allocations they should make allowance for any goods ordered under third and fourtk period licenses which might arrive after December 31, 1940. As a nieaiis of exercising control and avoiding any difficulties arising on the part of importers from a misunderstanding of the position, the following procedure will be followed in issuing fifth period licenses: Where at the time of issue of fifth period licenses an importer lias balances outstanding on third or fourth period licenses his allocation for the fifth period v ill be reduced by the extent of such balances until such time as the licenses for the previous periods have bv-en .surrendered. This means that immediately the licenses for the previous periods are surrendered, either before December 31, should the licenses have then been exhausted, or after December 31" licenses for the full allocation for the fiffk period will be available. Sterling Funds Position. The impression appears to be fairly widely held, s<?id Mr. Xash, that since considerable sterliiu; balances are at present held by the Reserve Bank aad the trading bank*, a greater sum is available for imports and restriction* can accordingly be relaxed. Such, however, is not the case. In fact, the conditions obtaining to-day all point to the necessity for maintaining a close control of imports and avoiding expenditure of overseas funds for non-essential imports which can be dispensed with at the present time. "As I have recently intimated* continued the Minister, "the relatively high , level of sterling balances held just now is attributable to the following principal factors:—(a) Payment in advance for our main export products shipped to the United Kingdom; (b) delay in the arrival of goods owing to "difficulty experienced by suppliers overseas ii promptly executing orders. To the extent that such is the case the drain on funds has been reduced in the meantime; (c) the present is .generally the time when following our export season balances are at a high level and in the normal course a reduction eould be expected between iioir and the end of the year, but this position might be affected through difficulties referred to above, experienced under existing conditions, in obtaining goods from overseas. i- "Apart above factors, the operation of We import selection scheme has had some effect in reducing imports and in improving the trade balance. Fortunately, as a result of arrangement! made with the United Kingdom Government for the purchase of our products, it is possible to make a fairly satisfactory estimate of income which may be expected to accrue from exports next year." On the other side, added Mr. Xaah, there were commitments to be provided for in respect of overseas .debt, including interest and repayment of loans. Some expenditure would also be necessary' in respect of the Dominion's forces abroad. As was generally known, prices overseas of nioKt commodities had greatlv increased since the outbreak of "war. Freight and insurance charges had als* risen. In some cases the cost of essential goods had been doubled and tie effect of this on our overseas funds, particularly when increased quantities of the goods were, in some cases. lequired, could well be understood. Provision had then to be made for materials essential to the maintenance and development of primary industry. The efforts which were being made to increase production necessitated additional imports of goods required for that purpose. Secondary Industries' Position. Secondary Ir-dustries had also to be provided for. These had been expended in order to produce goods imports of which had been restricted and also uniforms and other goods required to equip the armed forces. This had necessitated the importation of increased quantities of materials and since, as already rneationed, costs of such materials bad generally increased, a very considerable portion of the funds available had to be allocated to provide for such requirement*. While, therefore, the position of overseas funds had shown some improvement the Government had found it impracticable to make any wide relaxation of the restrictions insofar as imported manufactured goods were concerned, but every endeavour would be made to provide as far as possible for the full requirement* of industry in the nature of plait and materials. Infringements of Regulations. When releasing the eehedule for the fourth period, said Mr. Xasb. he drew attention to the practice which bad been adopted by mime importers for arranging for the importation of good* in anticipation of obtaining a license, and he issued a warning that apart from rendering themselves liable to .the penalties provided under the law. importers who were guilty of such practice also took the risk of the goods beins: seized. Despite this warning, added tip Minister, offences of that nature agaicst the regulations were still being brought ]to his notice, and he wished it to be .understood that more drastic action J would be taken in future regarding such cases. Suggestions had been made that licenses should be granted to cover a group oi items rather than an individual tariff item. It had been represented that under that procedure an importer ' would he in a position to exercise his license to Letter advantage, that is. by importing those goods for which there was the greatest demand and naturally tho<-e which would give him the best return. This question had been very carefully considered, said Mr. Nash, and while the desirability was recognised, it was not considered practicable at the present time, when a close control over imports was still necessary, to give effect to the suggestion.