FEDERAL CUSTOMS.

Dominion, Volume 1, Issue 205, 23 May 1908, Page 5

FEDERAL CUSTOMS.

HIGH COURT DECISION. STATES LIABLE TO PAY DUTY. WIRE-NETTING CASE. BY TELEGIUMI —PRESS ASSOCIATION —COPYRIGHT , v.. (Roc. May 22, 9.55 p.m.) Sydney, May 22. Tho High . Court—Sir Samuel Griffith (Chiof Justice), Sir Edmund Barton, and Justices O'Connor and Higgins—has given its decision in tho famous wire-netting caso, arising out of tho seizure, in .August last, by the authority of Mr. J. H. Carruthors (then Premier), of a consignment of wirenetting imported by the Stato Government, without paying Customs duty thereon. Tho main question involved was, whether tho States aro liable under tho Federal Customs Act to pay duty on goods they themselves import. Tho Court unanimously found that'the Customs Act applied to goods imported by tho Governments of the States, that the removal of tho wire-netting was illegal, and that thero was no defence to this action. Counsel for tho Commonwealth asked that only a minimum penalty bo imposed;. Judgment was entered for tho plaintiff (tho Commonwealth) for £5 and costs. STATE GOVERNMENT'S LIABILITY. In August the Commonwealth Government brought in its new tariff, which increased tho duty on wire-netting to 30 per cent.—though the House, in response to pastoral protests,' ultimately reduced it to 10 per cent. 'Following on the introduction of the new tariff, the New South, Wales Government, in defiance of the Federal Customs authorities, seized a quantity of wire-netting which it had imported, and which was lying on tho Sydney wharves. Commenting at tho time, the Sydney "Daily Telegraph" wrote:'—"Tho question has its origin in the persistent neglect of the. Federal Government to obtain a final settlement by judicial decision of the question whether imports by State Governments aro taxable. The Supreme Court of New South Wales decided that Customs duties could not bo. levied. Tho Federal Government hesitated to appeal, and decided to wait until tho High Court was established. The policy of the Federal Government is to go to the High Court whenever it is possible. It was stated at tho time that the appeal would not bo carried to the Privy Council for fear of an adverse decision. This grouud, however, did not exist after ths High Court was appointed. Tho Federal Government, however, would not make the appeal, and persisted in collecting the Customs duties, despito the continued protests from New South Wales and the other States: The dntios, too, were collected in defiance of tho decision of the Supremo Court of Now South Wales." It was to terminate this position that the Higli Court was at last appealed to, with the result that tho Commonwealth wins.