IMPORT SELECTION

Evening Star, Issue 23689, 24 September 1940, Page 4

IMPORT SELECTION

The Fifth Period Schedules TO COVER FULL YEAR Summary of Changes The fifth period import selection schedules were released by the Hon. W. Nash to-day, together with a statement by the Minister concerning the basis on which they have been compiled. “ With the exception of one or two items noted in the schedule,” said the Minister, “licenses are 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 Nash, “and while there are certain factors which raise doubts as to whether the six-monthly period should bo maintained it is thought that the advantages to be gained by adopting the yearly procedure justify that course. I am convinced, 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.”

NO INCREASE POSSIBLE \ DETERMINED BY FUNDS AVAILABLE “ 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 the distribution thereof 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. “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. When releasing the fourth period schedule in April Isst, it was made clear that licenses for the third and fourth periods would be valid until December 31 next only, and importers were advised to arrange for importation by that date. “ It is recognised that there may be difficulty in bringing the goods in within that period, but it is very important that there should he no carryover 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

I would probably result in that amount being reduced to a lower level than ultimately found necessary. EXPIRY OF THIRD AND FOURTH PERIOD LICENSES. “It has therefore been decided,” he said, “ 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 against the importer’s allocation for the fifth period. Importers are accordingly warned that in placing orders against fifth period allocations they should make allowance for any goods ordered under third and fourth period licenses which might arrive after December 31, 1940. “As a means 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 has balances outstanding on third or fourth period licenses his allocation for the fifth period will bo reduced by the extent of such' balances until such time as the licenses for the previous periods have been 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 fifth period will be available. RELAXATION IMPOSSIBLE. “ The impression appears to be fairly

Provision had then to be made for materials essentia] 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 had also to bo provided for. These had been expanded 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 mentioned, costs of such materials had generally increased, a very considerable portion of the funds available had to be allocated to provide for such requirements. 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 in so far as imported manufactured goods are concerned, but every endeavour would be made to provide as far as ipossible for the full requirements of industry in the nature of plant and materials.

RELAXATIONS SUMMARISED. The foliowing are the principal items in respect of -which some relaxation of the restrictions is made:—

INCREASED RESTRICTIONS. On the ther hand, it had been found necessary to increase the restrictions on a number of items mainly because the goods could be supplied by industry in the Dominion. Principal among such items are the following;—

Some provision is being made for imports of chassis for motor trucks, but it is not proposed to grant licenses for the importation of motor cars.

BASIS OF 1938. “ Imports in 1938 will again form the basis for the granting of allocations to individual applicants, although in the case of industrial materials (which represent the bulk of the expenditure) the allocations are generally related to actual requirements Without strict regard to previous imports.” “ When releasing the schedule for the fourth period,” said Mr Nash, “ I drew attention to the practice which had been adopted by some importers of arranging for the importation of goods in anticipation of obtaining a license, and I 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 being seized. Despite this warning, offences of that nature against the regulations are still being brought to my notice, and I wish it to be understood that more drastic action will be taken in future regarding such cases. i* Suggestions have been made that

licenses should be granted to cover a group of items rather than an individual tariff item. It has been represented that under that procedure an importer would be in a position to exercise his license to better advantage—that is, by importing those goods for which there was' the greatest demand, and naturally those which would give him the best return. This question has been very carefully considered, and, while the desirability of allowing as much flexibility as possible in the use of licenses is reeognised, it is not considered practicable at the present time, when a close control over imports is still necessary, to give effect to the suggestion. “ The procedure adopted during the fourth period in respect of the granting of ‘ blanket ’ licenses to the local representatives of overseas suppliers of certain commodities is being continued during the fifth period.” Mr Nash concluded by saying that it is the desire of the Government that the maximum of our requirements should be obtained from the United Kingdom, and 'every endeavour would bo made to achieve that purpose. Importers generally would, he felt sure,

be in full accord with that policy and would co-operate to that end. Copies of the official list of restriction, which is being printed, should ho available from Collectors of Customs within a few days. The full schedules will be published in the 1 Star ’ to-morrow night.

widely held,” said Mr Nash, ‘‘that since considerable sterling balances are at present held by the Reserve Bank and the trading banks a greater sum is available tor imports, and restrictions 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 nonessential imports which can bo dispensed with at the present “ 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 tho United Kingdom. (b) Delay in the arrival of goods owing to difficulty experienced by suppliers overseas in 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 could be expected between now and tho end of the year, but this position might be affected through difficulties referred to above, experienced under existing conditions, in obtaining goods from overseas “ Apart from the above factors, the operation of the import selection scheme has had some effect in reducing imports and in improving the trade balance. Fortunately, as a result of arrangements 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,” said Mr Nash. ESSENTIALS FIRST. “On the other side,” he added, “ there were commitments' to bo provided for, in respect of overseas debts including interest and repayment of loans. Some expenditure would also be necessary in respect of our forces abroad As is generally known, prices overseas of most commodities have greatly increased since the outbreak of war. Freight and insurance charges had also risen. In some cases the cost of essential goods had been doubled, and the effect of this on our overseas funds, particularly when increased quantities of the goods were, in some cases, required, could well be understood. The first charge on funds available for imports must be for goods to maintain the health of the community, including medical supplies and essential foodstuffs. Arrangements have been made to provide stocks of essential medical goods to ensure that adequate supplies will be available to meet all requirements.”

Percentage Reductions. Fourth Period. _ Fifth Period. United Other ForUnited. Other ForItem No. Goods. Kingdom. British eign. Kingdom. British. eign. 197 Gumboots Nil 25 100 Nil Nil 100 Ex 205 (6) (a) Pneumatic rubber tires for motor 50 100 100* 100 vehicles 25 25 *75 per cent, may be imported from United Kingdom. 214 Chinaware for table use 50 100t lOOt 25 100* 100* tuO per cent, may be imported from U.K. / *75 per cent, may be : imported from U.K. lx 215 Sanitary earthenware Ink, printing, black ... ... 50 100 100 25 100 100 ■ 27S Nil 100 100 Nil Nil 100 Ex 335 (2) Engines for motor vehicles, including parts • ... _ Incandescent filament electric lamp bulbs over 180 watts and_ certain other types not made in New 25 Ex 339 33§ 33 J 33 J 25 25 Zealand 50 100 100 Nil 100 100 Ex 356 (1) (b) Enamelled holloware 50 100 100 Nil 100 , 100 Ex 379 Finished parts of bicycles 25 100 100 Nil 100 100 Ex 389 (c) Parts of motor, vehicles 33 J 33J 33J 25 25 25

Percentage Reductions. Fourth Period. Fifth Period. United Other ForUnited. Other ForItem No. Goods. Kingdom. British. eign. Kingdom. British. eign. 55 (4-5) Woodcu matches ... 75 75 100 100 100 100 Ex 134 (3) Cotton wool Nil Nil Nil 100 100 100 Ex 136 (7) Children’s socks Nil 100 100 50 100 100 Women’s stockings, full length, of cotton 50 100 100 100 100 ' 100 Ex 152 Labels and hangers woven for clothing Nil Nil 100 100 100 100 Ex 171 Wadding 50 100 100 100 100 100 Ex 193 Hand-knitting yarns Nil Nil 100 25 100 100 205 (5) Bicycle tyres and tubes 50 100 100 100 100 100 Ex 310 (1) . Bolts and nuts ... Nil 50 100 Nil 100 100 Ex 339 Electric lamp bulbs, not exceeding 180 watts (excluding certain types not made in New Zealand) 50 100 100 100 100 100 Ex 379 Motor cycles and sidecars 25 100 100 75 100 100 397 (6) Kalsomine, etc Nil Nil 100 100 100 100 Ex 414 (2) Clothes pegs Nil 50 100 100 100 100