LICENSING OF EXPORTS.

Press, Volume LXVII, Issue 20428, 24 December 1931, Page 9

LICENSING OF EXPORTS.

CONTROL OF EXCHANGE * CREDITS. I ( ] NEED FOR FUNDS IN ; LONDON. ! STATEMENT BY PRIME MINISTER. (.ritfcss ASSOCIATION TfcLBGJUH.) WELLINGTON, December 23. A special Gazette issued to-day contains important and far-reaching regulations under the heading of " Export License Order, J 931," which, however, is not designed to restrict exports but merely to facilitate a general contio] of the exchange credits resulting from the salo of our exports abroad. In regard to the matter the Prime Minister (the Rt. Hon. G. W. Forbes) has issued the following explanatory statement: Some of the commercial community, and particularly exporters, may feel a little apprehonsive when this Order first comes under their notice, but I can assure them that there is no occasion for alarm, arid on investigation exporters will find that their operations will not be unduly hampered nor will they be put to any great inconvenience or any additional expense. In fact, every effort is being made to achieve the object in the simplest way possible. No change in the method of handling exports is involved, and in most cases the additional work required is nothing more than the filling in of a simple form at tho Customhouse. Necessity for Scheme. The necessity for the scheme is a direct outcome of the financial difficulties in London which forced Great Britain to go off the gold standard. As a result of this sudden financial crisis, which developed so unexpectedly, and the scarcity of funds consequent upon' the huge amount of foreign balances withdrawn from tho London market, it is unfortunately now necessary to make an abrupt change in our financial plans and make arrangements to meet all overseas commitments as and when they fall due for payment fiom New Zealand funds. Furtjier, it remains to bo seen whether it will be possible next financial year to follow the usual practice and raise a long-term loan at any reasonable rate of interest. I may say that it is tho policy of the Government to taper off the Rowing abroad, but it must bo recognised that a sudden cessation under the present economic conditions would add siderably to our difficulties. liven so, in view of the general uncertainty of the whole position, it is not prudent to count 'upon being able to float a long-term loan in London next year ?ny reasonable rate of interest, and we must be prepared to carry on without outside assistance. Pooling of Resources. The exchange requirements of the Government will be large, and in order to ensure that sufficient London credits will be available for the purpose, tho Government, after a careful review or the whole position, reached the conclusion that it is necessary to introduce a scheme for conserving the exchange resources o! the Dominion ui ] tho national interests. Tho banks have agreed to pool their exchange resources, so as to be in a position to meet the Government's requirements, .and tho scheme embodied in the regulations just issued Was drawn up ior the purpose of bringing all exchange credits arising frortl the sale ttr exports into tho Pool. It was found that the best way of doing this with a minimum of inconvenience to the commercial community W6A by licensing exports. Exporters, however, will Continue to receive as heretofore the current rate of exchange oil remittances from abroad, and otherwise will be put to Very little trouble. Two Classes of Licenses. Provision is,made in the regulations for the issue of two classes of license: (a) A particular license. (b) A general license. Tho particular license will authorise the exportation of particular shipments ' of goods, and all that is required in this . case is that the exporter should fill in > a form (which can be obtained from the i Collector of Customs at any port) setting out particulars of the goods to be * exported, itt the same Way as for an ' ordinary export entry, and indicating the bank through which the documents are to be transmitted Or negotiated. The license will be completed without any delay by the Collectot of Customs on the bottom of tho application form, The. general license has been provided for the convenience of firms exporting continuously. Subject to the acceptance of the few straight-forward conditions laid down in the regulations, the license will freedom to export goods for a period to be fixed in the license. General j licenses will be issued by the Secretary t of Industries and Commerce, but forms 3 of application may be obtained _ from any Collector of Customs. Once a license has been issued all that is required fro)n exporting firms is an extra copy of the usual export entries, with the name of the bank through which the documents are to be transmitted Or negotiated enr dorsed thereon. In the case of both the particular and the general license the essential condition is that the proceeds from the sale or the exports shall pass through the hands of one of the banks doing busi- , ness in New Zealand. The amount, 3 available for financing imports will be affected by the State buying so much exchange, but fortu- * tunately in this respect the imports for t the current year have lagged cofisider- [ ably behind exports, so that tho coni traction required is not nearly so great i as it otherwise would have been. ' Operation from January Ist. It is necessary for the new arrangements to operate from January Ist next, and the Government desires to give as much notice as possible of the change. The Government is satisfied that the ' steps are absolutely necessary in the public welfare in order to meet its " minimum requirements for national 1 commitments, and this so cont fidently appeals for the support and co-operation of the commercial com- » munity and the people generally in order th&t the desired object be achieved without inconvenience or irrig tation. ® • The measure is an extraordinary one. but we are passing through, extra'

ordinary times when prompt action is necessary to cope with the rapidly changing circumstances. I am sure that tho people of the Dominion will agree that New Zealand must honour her bond, and this control of tho exchange resources is merely for the purpose of ensuring that the Government is in a position to meet all commitments on the duo date. An Economy Commission. Tho Government realises that as a result of this essential rearrangement of its external financial obligations there will bo large reflections in Budget revenues i« addition to exchange costs, consequently with a view to assisting in the planning of a' programme for nest financial year the Government has decided to set up a Special Economy, Commission immediately after the New Year. LICENSES.

CONDITIONS OF ISSUE. PROVISION FOR APPEAL. [THE PRESS Special Service.] WELLINGTON, December 23. Tho conditions under which export licenses are to be issued are set out iii a special Gazette notice as follows: Every person to whom a particular license is issued shall (1) Forthwith on obtaining any shipping documents or drafts relative to the goods comprised in the license, deliver the same to a branch or office in New Zealand named by him in his application of a hank doing business in New Zealand. (2) Upon tho salo of the goods comprised iii the license and immediately on receipt of any proceeds of such sale iu tho place where tho same are sold, whether such proceeds bo received by tho applicant or by any other person on his behalf, pay such proceeds or cause the same to be paid to tho hank referred to in Regulation 6 hereof to be remitted to New Zealand at tho current rata of exchange at the time of sucli payment to the remitting bank. . . , . (3) Deliver to tho remitting bank, together with such proceeds as aloresaid, an account sales showing particulars of tho sale of the goods sold and | setting out the net proceeds thereof. ■ The General License. Every person to whom a general license is issued shall. (1) Within six days after the collector has granted a certificate of clearance for anv ship carrying goods shipped bv such pel-son deliver to the Collector "of Customs at the port of shipment full particulars of all goods exported from New Zealand by the licensee in such ship under the authority of tho license, including the name of the branch or office in New Zealand of the bank doing business in New Zealand to which the shipping documents or drafts relative to such goods are to be delivered. (2) Forthwith upon or before the exportation of any such goods, and on obtaining any shipping documents or drafts relative to such goods, .deliver the same to a branch or office in New Zealand named by him in his application of a bank doing business in New Zealand. (3) Upon the sale of the goods comprised in the license, and immediately on receipt of any proceeds of such sale in tho place where the same are sold, whether such proceeds bo received .by the applicant or by any other person on his behalf, pay such proceeds or cause tho same to be paid to the bank referred to in Regulation 6 hereof to be remitted to New Zealand at the current rates of exchange at the time of such payment to the remitting bank. (4) TJpoii the salo of any goods exported from. New Zealand by the applicant prior to the issue- of the license and sold .in any place after the ißßue, and, Whether before or after the expiration of the license, -immediately on receipt of any proceeds of such sale iu tho place where tho same arc Sold, whether such proceeds be received by the applicant or by any other person On his behalf, pay such proceeds, or cause the same to be paid, to the bank referred to in Regulation 6 hereof, to be remitted to New Zealand m like manner as aforesaid. (5) Deliver to the remitting bank, tpcother With such proceeds as aforesaid, an account sales showing particulars or the sale of the goods, sold, and setting out the net proceeds thereof. A general license may 1 at any time be revoked by the Minister by notice in writing delivered to the Comptroller of Customs, who shall notify the Collector of Customs at each of the ports to Which the license refers. Notice ot revocation shall forthwith the licensee, but the revocation shall, nevertheless, take effect mespectnc of such notice, immediately on delne y of the instrument of revocation to tn. Comptroller of Customs, An Important Regulation. Regulation 6, to which repeated reference is made in the conditions concerning the issue of licenses, deals with the (emitting tank- « •nrisfid in the license are sold m Austra Ct tak f rtld ! ,be .rtt i of the sale are to bo paid | be tho principal branch ot f o Stated the bank, mentioned thai to Which the shipping documents re ; tive to the goods aro l too?°tif0 o ?° t if e C C : Rimilarlv the proceeds ot the saie o S,all be paid to tho » 1 or office in London of the bank men 1 tioned Every licence Under the oiau • will be deemed to have authorised th< i .bank to which the proceeds I remit them to New Zealand at the cur i rent rate of exchange. The curren i rate of exchange at any time foi lb . purposes of the order shall be the rat* I quoted by the banks of issue doiu; , business in New Zealand, and m th case of anv question as to what is tin rata quoted, the Minister for l'inaiw i may for the purpose of the-order, aftei consultation with the banks of issue ' declare the rate of notification in tin ' If any applicant is witl " the decision of a licensing officer in <le : clining to issue a license, or as to an; } matter relating to the security to b ' given by him, tho applicant may ap - peal to the Min tcr, whoso dccisioi r shall be final.

POSITION OF LOCAL BODIES. [THE TRESS Special Service.] WELLINGTON, December 23. Fr6m enquiries made concerning the Government's decision to licenso all exports and to pool exchange resources, it is understood that local bodies, as well as the State, will have first call upon the Dominion exchange pool created under tfoo regulations. _ The question has arisen as to the disposal of the remainder, and it is stated that the banks will use their own judgment at least in the meantime, and that, should the need arise, the next step would be to make regulations governing import orders.