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CUSTOMS TARIFF

PRINCIPAL CLAUSES OF NEW ACT EXPLAINED STATEMENT BY MR. H. D. VICKERY • The principal features of the Customs Amendment Act were explained to a. meeting of the Wellington Chamber of Commerce last night by tho secretary, Mr. H. D. Vickery. Mr. Vickery said that the amending Act marked a, radical alteration in many of the methods of imposing Customs duties. It was interes-ing to note the development of Hie preferential tariff in favour of the produce or manufactures of I British Dominions. The Preferential and Reciprocal Trade Act passed in 1903 gave power to impose a surtax on certain goods not lhe manufacture of any, part of the British Dominions. There was a substantial development in tho tariff of 1907, and in that year the number of articles subject to -he surtax was largely increased. Comparing the revenue from excise and' Customs duties in 1900 and 1920, it was found that in 1900 the percentage of total revenue was 38.39, and the peroenta.g'e of io’.al taxation 75.67; in 1920 the figures were 19.08 and 31.91 respectively. Tho percentage of imports upon which the preferential surtax was paid in 1904 was 3.67, and in 1919 it was increased to 15.63, fhe increase during the war years being considerable. Extensive powers were given in ths 1921 Aef to enter into reciprocal arrangements with other British Dominions and with foreign countries, and it was interesting to note that the Act in itself indicated in some measure ths growing independence of |he Dominions to enter into such treaties. It was veryquestionable whether forty or fifty years ago the Imperial Parliament might not have vetoed such powers; in fact, he thought many years ago there was somo such veto when New Zealand proposed, to take power to enter into commercial reciprocal arrangements with some of tho Australian States. In 1903, for example, power was given in tho Preferen-ial and. Reciprocal Trade Act to negotiate with countries other than the British Dominions for- the purpose of entering into reciprocal trade relations, bui this. power was specifically stated to be "subject to or by virtue of a treaty with His Majesty.” There was no such reservation in this Act. Australia and New Zealand. In its form the new tariff followed the Canadian tariff in that there were throe tariffs—the British preferential, the intermediate, and the general. The application of the preferential tariff to the United Kingdom was absolute, and could not be altered, but it was competent to modify the standard tariffs in that, for example, the intermediate or general tariff could be applied to any of the British Dominions. In this regard it was interesting to note the position relating to Australia. Australia did not give as New Zealand did preference to the whole British Empire. >' It conceded preference to the United Kingdom only. In consequence. New Zealand gave Australia preference, but the latter did not reciprocate. By resolution of the Houss the imports from Australia were assessed for duty under the general tariff. Coming to the new Act, Mr. Vickery said that the first seven clauses dealt' with the application of the tariff. Clauss 7 was really new, and it enabled the imposition of duties corresponding with the duties imposed on New Zealand goods by other countries. It was a retaliation clause. There was somewhat similar provision (but different in form) in the Canadian Customs Act. the surtax being limited in Canada to specific amounts, and the imposition being by Order-in-Council. Clause 9 provided that \ the suspended duties should be brought into force by Order-in-Council. In clause 10. provision was made that no agreement or arrangement with other countries' should have effect unless and until it was ratified by Parliament. Legislation Against Dumping. During recent years there had been an extensive development in most countries regarding dumping duties. The matter was linked up in some degree with the question of depreciated currency. For example,. the serious depreciation of the German mark had negatived in some countries the increases in Customs tariff and the anti-dumping legislation. Legislation of this nature was in force in Canada, the United States of America, and in some manner or other in France, Japan, Switzerland, and Italy. Legislation regarding dumping was being considered in Australia. Under the New Zealand law dumping duty could bo levied on goods imported into New Zealand of a kind produced in New Zealand if the selling price to an importer, in New Zealand was less than the current domestic value. In this case the dumping duty was to be an amount determined bv tbe Minister, and not exceeding the’difference between the actual selling price of the goods and the cur rent domestic value of ouch goods. There were provisions in the section for regu- . lations to p/ovide for exemption from dumping di/y in those cases in which goods were not made or sold in substantial quantities in New Zealand or in other ’British Dominions. Section 13 provided for a special duty on goods imported from a country with a depreciated currency. This duty was only to apply in respect of goods that were subject to a higher rate of duty than goods of the same description being the produce or manufacture of some parts of the British Dominions, or in respect .to ■roods. Hie importation of which was likely to affect prejudicially an industry established in New Zealand. H« referred at length to tho legislation in 1 other countries regarding anti-dumping. Regarding Ordors-in-'Council, he said ’ that this system had been pinch exi tended during recent years, but the immediate question, so far as the Customs tariff was concerned, wa« whether tbe method was desirable or not. Was it not ’ better to deal with a possible evil promptly than wait until Parliament met and . the harm had he-n done? There was. no doubt, some d'sahility. in that nn elcnx-'nt of uncertainty was introduced into the tariff, ’nil this wns more or less , unavoidable. Naturallv the quest ion wa s raised of a tariff honrd. but could nieinhers b- got who were sufficiently disinterested? Refunds of Duty. Speaking of the refund of duty on raw materials for tho niaiiiitacturo of ships, Mr. Vickery said Hint the position under the old tariff was this: A ve’sel might be constructed in Australia, and the Australian maker, on the vessel definitely leaving Australian waters, would receive « drawback of duty on certain of tho materials used m construction. Tho same position would have arisen under the old tariff in New Zealand, but. if the vessel were used in New Zealand waters, there would bo no drawback, and to this extent and in this peculiar way, the New Zealand shipbuilder wns at a disadvantage. One of fhe effects of section 28 would be to remedy this disability. Duty on Government goods had been constantly urged by the commercial community. and was eminently desirable In those ca-es where a Government Department might enter into competition with private enterprises. Incidentally, one effect. on public finances would he that: to the extent of fhg duty on Government imnortat inns tho rev’-nue for the year would benfit. and the amount of the duty would be debited to capital expenditure. The definition of “ad valorem” was previously "fair market value.” and it had been altered to "current domestic value." Mr. Vickery was accorded a vote o: thanks for his explanation of the Act.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19211215.2.70

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 15, Issue 70, 15 December 1921, Page 8

Word count
Tapeke kupu
1,227

CUSTOMS TARIFF Dominion, Volume 15, Issue 70, 15 December 1921, Page 8

CUSTOMS TARIFF Dominion, Volume 15, Issue 70, 15 December 1921, Page 8

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