TARIFF ON CARS.

Auckland Star, Volume LXVII, Issue 103, 2 May 1936, Page 20

TARIFF ON CARS.

CANADIAN VEHICLES.

NEW DUTY OPERATIVE.

DETAILS OF THE REVISION

(By a Special Correspondent.) MONTREAL, April 2. It is announced that over 1000 Canadian automobiles, and probably as many as 2000, will bo leaving Canada this month for New Zealand. Ships of Canadian National Steamships, Ltd., are carrying nearly all of them. The big rush is to get the cars into New Zealand before May 1, when a tariff change comes into effect. Montreal shipping men are not exactly clear as to all the provisions in the new Customs amendment, but the general effect is that the rates will bo a little higher. It will thus cost more to import a Canadian automobile into New Zealand, and consequently the great rush is on to get the machines there before May 1. The Canadian Victor, which left Halifax on February 28, will arrive in Auckland in plenty of time, but other ships will be speeded bo as to land the Canadian cars on the wharves of New Zealand in time to beat the new duty rates.

The rates of duty and preference conditions applicable to Canadian motor vehicles under the New Zealand Trade Agreement, 1932, which has been extended until July 31, contain certain modifications that are operative from to-day.

In the case of unassembled or completely knocked down motor vehicles, where the expenditure in Canadian or Canadian and Empire labour and/or materials is not less than 75 per cent of the cost of the work, the new duty has been fixed at 10 per cent ad valorem. The previous rate was 5 per cent, but the preference did liot extend to Empire materials, and thus components imported from England could not be used. An entirely new clause provides that, where the expenditure is not less than 65 per cent, there is a rate of 121 per cent ad valorem.

For other kinds of motor vehicles, Yrhere the expenditure is not less than 75 per cent, the rate has been increased from 15 per cent to 25 per cent, and Empire materials may be included. A rate of 60 per cent has been fixed- where the expenditure is less than 75* per cent. The former regulations provide for a rate of 20 per cent, plus body duty, where the percentage was less than 75, but above 50. As before, there is a surtax of 9.4oths of the duty in all cases.

Motor traders in Auckland were reticent to discuss the matter this morning, and some were not aware of the new tariffs. No idea could be obtained of the amount of any possible increase in the retail price of Canadian cars, but the majority of dealers do not handle these cars and are therefore not affected. It was pointed out, however, that under the British preference clauses of the agreement British ears having an Empire works content of 50 per cent were subject to a rate only of 5 per cent ad valorem. No Estimates Available. No estimates are available of the number of Canadian cars, assembled or knocked down, brought into Auckland or New Zealand last month. The shipments have come not only by Canadian National ships, but also by other lines. The Canadian Highlander) which arrived with cars late in April, left overseas at an earlier date in order to reach Auckland before the operation of the new tariff. No shipments have come past few days, and the Customs Department have noted no marked increase. in] the April Auckland shipments cof Canadian cars. ~