DUTY ON CARS.

Auckland Star, Volume LXVI, Issue 307, 28 December 1935, Page 10

DUTY ON CARS.

EXTENSIVE REVISION.

CANADIAN AGREEMENT.

ENCOURAGING N.Z. ASSEMBLY.

(From Our Own Correspondent.)

MONTREAL, December 3

With extensive revision of duties on Canadian motor vehicles, including parts, the Canadian-New Zealand pact expiring on November 24, has been renewed to July 31, 1930, the Hon. W. D. Euler, Minister of Trade and Commerce, announced last night at Ottawa. The new rates will only become effective next May, while further trade negotiations will be carried on between the two countries. The changes in the New Zealand tariff were made at the request of that country in order to encourage the import into New Zealand of unassembled cars that the assembling might be done there. The comparative duty rates follow: — Unassembled cars and trucks, new rates: 75 per cent or more Briti.sh content, 10 per cent; 05 to 75 per cent British content, 12$ per cent; under 05 British content, 50 per cent. Unassembled cars and trucks, present rates: 75 per cent Canadian content, 5 per cent; 50 to 75 per cent Canadian content, 20 per cent. In the case of passenger cars there was an additional '"body duty" of 11J per cent, which was reduced to 6J per cent on any value over £200. This body duty has been dropped altogether in the new rate. Assembled Cars and Trucks.

Assembled cars and trucks —new rates, 75 per cent or more British content, 25 per cent; under 75 per cent British content, 00 per cent.

Assembled trucks —old rates, 75 per cent or more Canadian content, 10 per cent; 50 to 75 per cent Canadian content, 20 per cent; under 50 per cent Canadian content, 00 per cent. Assembled passenger cars—old rates, 75 per cent or more Canadian content, 15 per cent; 50 to 75 per cent Canadian content, 20 per cent, plus a "body duty" of 12i per cent; under 50 per cent Canadian content, 00 per cent. In addition to the above duties there is the usual surtax of 22$ per cent on the amount of the duty which New Zealand imposes on all goods. One important change is that in the amendments to the agreement British -content is substituted for Canadian content. This enables Canadian manufacturers to use material from any part of the Empire to qualify for lower duties instead of being confined exclusively to Canadian materials. The rates on separate parts shipped into New Zealand will be the same as those for assembled car 3 and trucks. Changes in the duties on motor vehicles and parts are the only alterations made in the agreement with New Zealand. Originally effective May 24, 1032, the pact has been successively extended every six months. Canada's Counter Proposals. "The Canadian Government made certain counter proposals which were not accepted at this time," Mr. Euler stated. "As time was too short for extensive negotiations, it was thought advisable to renew the agreement, and more especially in view of the fact that the New Zealand Government invited the Canadian Government to enter into further negotiations before the amended duties in motor cars come into effect on May 1 next.

"Canadian exports to Now Zealand have been increasing steadily from 3,008,500 dollars in t'.ie year 1032 to 1033 to 7,344,785 dollars in the year 1934 to 193.'). In the last eight months alone exports to New Zealand reached a total of 4,32G,503 dollars —an increase of 800,000 dollars from the corresponding six months of the previous year. The chief item of export was automobiles and parts exceeding 1,000,000 dollars. Imports from New Zealand have also been increasing steadily. In the year 1932 to 1933, the amount was 909,704 dollars. This increased in the year 1934 to 1935 to 2,534,078 dollars."