THE DOLLAR RATE

Dominion, Volume 13, Issue 34, 4 November 1919, Page 2

THE DOLLAR RATE

FOR CUSTOMS PUEPOSES,

The following report on the conversion rate of the dollar for Customs purposes was read ati the meeting of the council of the Wellington Chambr of Commerce yesterday:— i. . , "Following the general . mcejjin« pi. members of'the chamber,' held on October 13 1919, the vice-president, Mr. A. .i. Jioberts, and the secretary. interviewed I lie Comptroller of Customs regarding the intimation that duty on American invoices uioujy as from November,!, 1919, bo assessed at the current rate of. conversion instead of at the arbitrary i-ate, iSo dollars. It.was pointed out to the Comptroller of Customs that insufficient notice had been given of the alteration, and that this would entail a severe loss on importers who. had sold duty paid. The request was made that the date ba extended to January 1, 1920. "The Comptroller pointed out that the alteration was made in terms of section 121 of the Customs Act, 1913; that ov.-yg to New Zealand importers being compelled to purchase a considerable proportion of tlijur requirements from countries other than Great Britain or British pn •■ sessions, it'bad'been decided early in tii" war period that invoices for American goods should be converted at an arbitrary rate, 4.85. The fact, however, was Mint,-owing to the higher conversion rate now ruling—a difference of at least 15 per cent., i.e., 4.85 to say 4.ls—the concession if continued meant that the 10 per cent, preference in favour of goods of British manufacture was being defeated to the extent of at least A. per cent., roughly 30 per cent, of ;5 per cent, of the value of goods. The Comptroller also expressed the opinion .that tho alteration proposed came, within feetibn 130 of the Act, namely, that this was in fact an alteration in flip iluty, and the increased duty was payable by tho purchaser, The Comptroller agreed to extend the date until January, 1920. Later the Minister of Customs stated in the House of Representatives that tho alteration would Iv made at February!, 1920. , ' "

"Another matte" was also discussed with the Comptroller, awl that was the fact that various invoices representing goods on the sn.ine steamer: would probably lv converted at different rates. For example, it might be that an invoice was converted at the date. the. goods left the factory in the United State, pos?ibiy three or four weeks before the steamer sailed, whereas other invoices might ho converted at later dates, and at Varying rales of conversion,

"It was agreed that the bjst plan would be for all invoices of goods received by the same steamer to he converted for duty assessment purnoses at tlv conversion rate ruling on. the day Mie vessel sailed. The Customs Department would require authentic advice ns to the conversion rates ruling from day to day." The report was received.