IMPORT CONTROL

Evening Post, Volume CXXX, Issue 84, 5 October 1940, Page 7

IMPORT CONTROL

FIFTH SCHEDULE

IMPORTERS' DIFFICULTIES

CLOTHING TRADE

Apprehension that there may be misconceptions by the public in regard to imports under the fifth period (1941) schedule has been expressed by the advisory board of the Drapers', Clothiers', Mercers', and Footwear Retailers of New Zealand Federation. The board said that although no restrictions appeared to be placed on certain commodities, some of which were sheer necessaries of life, in no case could any quantity now imported be greater than that imported for the same period of 1938, on which the restrictions were based.

The year 1938, it is pointed out, happened to be a comparatively lean one for the importation of consumer goods. In the first part of 1937 there was a mild boom period, and importers selling to the trade, thinking it would be sustained, continued to buy at rather a lavish rate. The latter part of 1937 developed into a mild slump, with the; result, that in both raw materials and the finished consumer commodities surplus stocks were carried forward ] into 1938, resulting in a smaller quantity of goods being imported for that year, while surplus stocks of both commodity and raw material goods were carried forward into 1938, therefore 1938 showed a drop in the importation of numerous commodities handled by the federation, and was an unfavourable one on which to base import control. The board says that some difficulties, and even hardships, may be occasioned in connection with fourth period licences if the Minister Of Customs does not permit some latitude in respect of some commodities which, through no fault of either the importer or the exporter, could not be shipped from the United Kingdom in time to be cleared at New Zealand ports before December 31. LOST POSSIBILITIES. In one section of the trade which covers commodities in every-day household use, and is most important to housewives, the total output of every spinning factory in England was under the control of the Imperial defence authorities, and produced wholly for the war effort, the board's statement continued, but on October 1 many of these industries were released from their defence obligations for a period of time to enable them to concentrate on the production of these household necessaries fop export. One big importer, who, indeed, imports for all drapery houses in New Zealand, being perturbed by the Minister's announcement that fourth period licences would automatically be cancelled out at December 31, and having big forward orders placed with his principals in England, covering traders in all parts of New Zealand, cabled his English headquarters asking for definite advice regarding the orders and their date of shipment. An immediate cabled reply was received, stating that the utmost effort would be made to make back shipments before the middle of November. This was a most commendable effort on the part of the English factories, because the period from their release from the defence orders to the time of shipment covered only six weeks. Unfortunately, owing to transport difficulties, there was little prospect of this particular shipment arriving in New Zealand before the end of January, 1941. This was only one instance, but it would serve to prove that notwithstand* ing the efforts of both exporters and importers, both the importers and the general public would be greatly inconvenienced, and in some instances, pehaps, would be caused hardship. AMOUNTS REDUCED. Although permission had been granted under the fifth-period pronouncement to deduct any such fourth-period amounts from fifth-period licences, nevertheless, in more or less essential commodities, this would reduce the amount available for the fifth period (1941) very substantially. In the case under review it would almost entirely eliminate the whole of the licences, and would leave very little to cover the public requirements in the fifth period. If the Government adhered to its stated determination to cancel all fourth-period licences after December 31, it would easily be seen that trouble would arise and dissatisfaction be caused if such goods had to be returned to the Old Country. SURRENDER VALUES. In fairness to the Government, concluded the board's statement, it should be stated that where importers were holding licences for commodities of ■ which there was no prospect of de- : livery, they should in respect to such ] period surrender those licences so that ■ the Customs Department could have ', their surrender value ascertained exact- \ ly and the information passed on to , the Minister of Customs. Such sur- ; render value would mean a substantial amount for reallocation into subsequent periods. Importers should, in fairness to the trading community, and especially to the Minister of Customs and the Department, surrender licences which there was no prospect of using s during the period. '