IMPORT LICENCES

Wairarapa Times-Age, 24 September 1940, Page 6

IMPORT LICENCES

PROCEDURE FOR FIFTH PERIOD FULL YEAR INSTEAD OF SIX MONTHS. STATEMENT BY MINISTER OF CUSTOMS. The basis on which licences covering imports during the fifth period are to be issued is the subject of an announcement by the Hon W. Nash, Minister of Customs. With the exception of one or two items noted in the schedule licences 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 be maintained it is thought that the advantages to be gained by adopting the yearly procedure justify that course. “I am convinced,” he said, “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 generally understood is the policy being adopted regarding the expiry of third and fourth period licences. When releasing the fourth period schedule in April last,” said Mr Nash, “it was made clear that licences 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,” 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 another. If this procedure were not followed it would be difficult to determine the amount which could be allocated for licences in the subsequent period and would probably result in that amount being reduced to a lower level than ultimately found necessary. “It has, therefore, been decided,” he said, “not to extend third and fourth period licences beyond December 31 next. Any goods ordered under such licences 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 licences, 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 licences. “Where at the time of issue of fifth period licences an importer has balances outstanding on third or fourth period licences his allocation for the fifth period will be reduced by the extent of such balances until such time as the licences for the previous periods have been surrendered. This means that immediately the licences for the previous periods are surrendered either before December 31, should the licences have been exhausted, or after December 31, licences for' the full allocation for the fifth period will be available. “The impression appears to 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-essen-tial imports which can be dispensed with at the present time. 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 be 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.