IMPORT LICENCE ABUSES

Press, Volume LXXXVIII, Issue 26729, 13 May 1952, Page 11

IMPORT LICENCE ABUSES

AUSTRALIAN PRACTICES DESCRIBED “Dealing in import licences has starte< because of the Government’s restrictions and, in the opinion of some traders, i could assume large proportions,” says the “Australian Financial Review.” “In some instances, it is causing concern to long-established trader* because business could be taken out of the normal channels. "There are some traders fortunate enough to have quotas for the current quarter for category B (60 per cent, eut) goods as a result of heavy buying in the base year. If those particular goods, textiles, for example, are moving slowly, the trader, naturally, will make use of the quota on other category B items which are, or may be, in short supply, and on which there is no price control. "There are cases, however, where traders who have established a quota on, say, textiles, are offering to Sell the use of that quota for a premium of as much as one-third of its value to the regular distributors of, say, crockery, artificial jewellery, toys, or cigarettes. Or they are approaching the retail trade direct and offering to import similar lines. "The landed cost value of high-duty goods such as cigarettes can be as much as two and a half times the face value of the Import licence. If a trader agreed to use a £5OOO. licence on cigarettes for a premium of one-third of the landed cost value, plus duty, he would clear something over £4OOO for his trouble."