EXCHANGE RATE CONVERSION

Hokitika Guardian, 7 October 1931, Page 6

EXCHANGE RATE CONVERSION

A NEW BASIS

ESTIMATION OF CUSTOMS , DUTY.

WELLINGTON, October 5

Ail important alteration concerning tiie basis o'f exchange rate conversions was announced this morning by the Hon. W. Downie Stewart, Minister of •Customs. Under the Customs Act, the Minister has power to adopt, for Customs purposes iu 'New Zealand, either the mintage par rate or the banking rate of exchange for conversion of invoice values shown in currencies other than those in force in New Zealand.

For some time post, the mintage rate of exchange has in general been adhered to, but owing to the violent fluctuations that have been taking place recently, the Minister has decided to reintroduce the banking rate ol exchange, which was in operation some years ago. It is understood that in the. case ol imported wheat and Hour, a reduction in duties will follow, but there will beam increase in all oilier goods liable to duty and valorem. It is gathered that if the existing basis for wheat and Hour had been retained, the landed cost would be brought far above that required by the sliding scale of duties, and would have had the oHeet ol prohibiting importations.

In reply to a question tins morning, the Minister slated that notice would he gazetted this week cancelling the previous notifications dealing with rates of exchange and declaring that with respect to all goods invoiced in , any currency other than that in force in iNcw Zealand, the value of such goods in New Zealand for the purpose of duty will be ascertained according to the banking rate ol exchange in torco on the date of exportation of the goods from the country of export to New Zealand. It would also be declared that notwithstanding the notification, ,the value of such goods which were exported from the count)y ol export to iNew Zealand on or before ■■September 20 would be fixed as if tin* notification bad not been issued.