IMPORT PROCEDURE

Manawatu Standard, Volume LX, Issue 254, 24 September 1940, Page 2

IMPORT PROCEDURE

NEW LICENSES

FIFTH PERIOD BASIS.

FOR FULL YEAR,

The basis on which licenses covering imports during 'the fifth period are to be issued is'the subject of an announcement by Hon. W. Nash, Minister of Customs. With the exception of one or two items noted in the schedule, licenses are to cover the full year 1941 instead of a half-yearly period as lias 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 be 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.

“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 generallv understood, is the policy being adopted regarding the expiry of third and fourth period licenses. When releasing the fourth period schedule in April last.” said Mr Nash, “it was made clear that licenses for the third and fourth neriods would be valid until December 31 next only, and importers were advised to arrange for importation by that date. NO CAERY-OVER. “It is recognised,” he said, “that there may be difficulty in bringing the goods in within that period, but it is very important that there should be no carry-over from one period into,

level than ultimately found necessary. “It has, therefore, been decided not to extend third and fourth period licenses beyond December 31 next. Any goods ordered under such licenses which arrive after that date will bo 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 be 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. NO RELAXATION. “The impression appears be fairly 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 for imports and restrictions can accordingly be relaxed. Such, however, is not the case. In fact, the conditions obtaining today all point to the necessity for maintaining a close control of imports and avoiding expenditure of overseas funds for non-essential imports which can be dispensed with at the present time. “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 mam export products shipped to the 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 bo expected between now and the 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. "■ COMMITMENTS AHEAD. On the other side, he added, there were commitments to be 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 was generally known, prices overseas of most commodities had 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, said Mr Nash, must be for goods to maintain the health of the community, including medical supplies and essential* foodstuffs. Arrangements had been made, lie added, to provide stocks of essential medical goods to ensure that adequate supplies would be available to meet all requirements. Provision had then to be .made for materials essential 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 be 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 insofar as imported manufactured goods were concerned, hut every endeavour would he made to provide as far as possible for the full requirements of industry in the nature of plant and materials. The following are the principal items in respect of which some relaxation of the restrictions is made:—

NO MOTOR-CAR IMPORTS. Some provision is being made for imports of chassis for motor-trucks, but it is not proposed to grant licenses for the importation of motorcars.

Imports in 1938 will again form the basis lor the granting of allocations to individual applicants, although in the case of industrial materials (which represent the bulk of the expenditure) the allocations iare 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.

INDIVIDUAL ITEMS

“Suggestions have been made that licenses should ho granted to cover a group of items rather that individual tariff items. 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,’’ said Mr Nash, “and, while the desirability of allowing as much flexibility as possible in the use of licenses is., recognised, 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 was the desire of the Government that the maximum of our requirements should he obtained from the United Kingdom, and every endeavour would be made to achieve that purpose. Importers generally would, he felt sure, be in full accorcl with that policy and would co-operate to that end.

Percentage Reductions. I tom Fourth Period Fifth Period—— No. Goods U.TC. Other Brit, Foreign U.K. Other Brit. Foreign Ex 205(6) (a) Pneumatic rubber tyres for 1N11 2b 100 Nil Nil 100 motor vehicles 25 50 100 25 100* 100 *75 per cent, may be imported from U.K. Ex,215—Sanitary earthenware 278 —Ink, printing, black Ex 555(2) —Engines for motor vehicles in 50 lOOt t50 per cent. 50 100 Nil 100 100+ may 100 100 25 100* 100* be imnorted from U.K. 25 ‘ 100 100 Nil Nil 100 eluding parts ■,,, ■Ex 559 —Incandescent filament electric lamp “"3 33i 33A 25 25 25 bulbs over 180 watts and eertan ' 50 100 100 Nil ■100 100 Ex 556(1) (b) —Enamelled hollow-ware Ex 579—Finished parts of bicycles .' 100 100 Nil 100 100 Ex 389(c) —Parts of motor vehicles 25 33j; 100 334 100 331 Nil 25 100 25 100 25 another. If this procedure were not followed it would be difficult to deterOn foitnc strict hccati by in eipal the other hand it had been mine t'he amount which could be allocated for licenses in the subsequent period and would probably result in that amount being reduced to a lower necessary to increase the reotis on a number o-f items mainly se the goods could be supplied dustry in the Dominion. Prinamong such items are the followin Item Percentage Reductions fourth Period— No. Goods Other 55(4-5 —Wooden matches U.K. Brit. Foreign U.K. Brit. 1 Ex 134(3) Cotton wool 75 75 100 100 100 100“ Ex 136(7) —Children’s socks Nil Nil Nil 100 100 100 Women’s stockings, full length of cotton Nil 100 100 50 100 100 Ex 152—Labels and hangers woven for 50 100 100 100 100 100 100 100 Nil Nil Ex 171 Wadding . 100 100 100 100 100 25 100 100 205(5)—Bicycle tyres and tubes 50 Nil 100 ' 50 100 100 100 Nil 100 100 100 100 Ex 339 —Electric lamp bulbs not exceeding 180 watts (excluding certain types not made in N.Z.) 50 100 100 100 100 100 Ex 379—Motor-cycles and side-cars 25 100 100 100 100 75 100 100 300 100 100 100 100 100 Ex 414(2)— Clothes pegs Nil 50