1960 IMPORT LICENSING SCHEDULE

Press, Volume XCVIII, Issue 29021, 9 October 1959, Page 3

1960 IMPORT LICENSING SCHEDULE

Minister Announces New Systems

Relaxation of import controls and an effort to introduce flexibility to the licensing system were announced by the Minister of Customs (Mr Boord) in a statement yesterday when he released the 1960 import licensing schedule. Relaxation was called for, but the situation did not justify “hasty dismantling of the control, the Minister said.

A “replacement licence” scheme similar to that operating in Australia for some time was announced by the Minister. It also makes provision for new importers to obtain licences.

A system of “industry groups” and a list of goods exempted from licensing were also announced by the Minister.

Provision has been made again for “token licenses to apply to imports from all countries.

’ Of the provision made for imj ports in 1960, some 37 per cent. ■ by value is in basic allocations, ;30 per cent, in “R” items, 18 ' per cent, in items for which in- • dividual applications will be con- ' sidered, 14 per cent, in exempt < licences, and the remaining one • per cent, in minor categories. ' After commenting on the re- • laxation of restrictions in April ;and June of this year, the Minister said in a statement: “I can importers that should our balance of payments position peri mit, the provisions of the 1960 schedule will likewise be reviewed early next year.” To facilitate such a review it was again required that all applications for basic licences should be lodged not later than January 31.

, Both Government and private • imports had been considerably reduced in 1959, the export prices had generally improved, and as a result New Zealand should finish the year with overseas funds in a much healthier state than they were last year. ' “Unfortunately we are passing • through a period in which the • primary-producing countries of . the world are suffering from a • serious imbalance between their •position and that of the indus- ; trial countries,” he continued. . “New Zealand is by no means • alone in this. While the situation . persists primary-producing coun- ■ tries, particularly those depend;ing on exports of a narrow range . of commodities, will certainly ex- • perience continual pressure on ■ their balance of payments, .coupled with the risk of sudden and violent fluctuations in export prices. This situation is aggravated by the persistent and wide- • spread resort to agricultural pro- ; tectionism by industrial countries. < “Under these circumstances • countries in our position have no ’real option but to protect their < balance of payments with an effective system of import control. This is recognised by . G.A.T.T.”

Period Examined

• There had been dissatisfaction ' with the licensing period and particularly with the fact that it was a calendar year ending in the difficult Christmas-New Year holiday period. No change is made this year, but the Minister said new procedures would give a better basis on which to consider possibilities and also to improve flexibility. In the meantime, it had been decided to extend the availability of 1959 licences to January 31, 1960, so that both 1959 and 1960 licences would be valid for goods ♦imported in January. ’« ' A® we see i*’ ex ibility means , flexibility of choice by impor- ' ters, opportunity for new. importers to enter business and the < flexibility that permits growing • businesses to expand but does , not artificially bolster up cie- • clining businesses by the opera'tion of the import licensing sys- , tem,” the Minister said. I “R” Licences < „ Mr Boord described the “R” or ’ replacement licence” scheme as « the most novel feature of the • scheme, although a very similar •procedure had been operating in , Australia for some time. One • hundred and nine items in the • schedule were designated “R.” « The scheme permitted an im- ■ Porter to obtain all his genuine import requirements of an item • (up to a ceiling of 150 per cent, •of the value of his 1959 licences) , while avoiding the issue of • licences which might not be used, I out which by their very exist- , ence as a potential charge on • overseas funds tied up exchange •which could otherwise be allotted .elsewhere, ' Mr Boord set out the operation , oi the scheme as: an importer • of goods designated “R” will be •entitled to an initial licence representing 50 per cent, of the • value of this normal 1959 licence that Hem. He will get furlicences (up to the ceiling of . hcence) in replacement of per cent, of the value of the . he value of actual imports made ; Under his 1960 licences. These .xurther licences can either be . ssued in replacement of each •stupment as it arrives or for .several shipments together, • according to the importer’s dejsire and the nature of his , business. New Importers Discussing the provision for new importers, Mr Boord said rms who wished to enter business as importers of “R” items °uia apply for a new importer’s emen l. ar >d, on compliance ith certain procedures, would Th ® lven a licence entitlement, at would not be an authority ■ . unport, but merely an advice ■ the amount to which licences ould be issued, subject to cerKjam conditions. The actual i :Jn enCes would be issued only and to tile e xtent that I • J, nce was produced of firm I aers placed overseas, with con™ation f rom the applicant’s I admg bank that a firm financial i mmitment had been entered “to for the goods. ■ I _?® cause °I (be nature of the new cheme and its objectives certain ' ah? safeguards seemed desirsaid Mr Boord. The scheme

could be seriously prejudiced if excessive accumulation of stocks was to take place. It was intended, therefore to make periodic investigation of stocks and sales and to withhold further licences in cases where excessive stocking in relation to sales is on such a scale as to defeat the purpose of the scheme.

Another special condition on the “R” licences was that they would be available only for imports by the licence-holder in his own name and at his own financial risk.

The purpose of “industry groups” was to give maximum flexibility of choice to an importer, the Minister said. An importer having licence entitlement to any of the items listed in a group could, if he elected, choose to apply for those entitlements to be issued as a licence for the group rather than for individual items.

There were 401 items in the schedule subject to “basic” allocations, mostly by reference to the value of 1959 licences, the Minister said. Many items on the individual consideration basis for 1959 had become “basic,” which was in pursuance of a policy of letting the importer know where he stood as early as possible. The most common basic allocation was 100 per cent, of the value of 1959 licences, which included the additional licences issued in April and June. In many cases where there was a basic allocation in 1959 it had been increased; and in a few it had been reduced. Cases where it had bee.i reduced were all items in which New Zealand production has increased to such an extent that some of the funds previously provided could be made available for other imports, the Minister said. Token Licences

Tfagtoken licence provision which had to be dropped in the critical circumstances which applied at the beginning of 1958, reappears in a new form,” continued the Minister.

‘‘Over a wide range of items for which no other allocation is provided, token licences will be available for imports from any source to the extent of 10 per cent, of the value of imports of the same goods from any source in 1956. For a few items which were severely restricted in 1956, the token licences will be on the basis of 10 per cent, df the value of 1956.”

The Minister added that the previous token scheme had applied only to imports from the United Kingdom. The new scheme applied to all countries. The token licence procedure was intended to permit overseas suppliers and their New Zealand customers to maintain trading contact, to introduce variety into our shops and to keep overseas standards before New Zealand manufacturers and consumers. Debit Cards To record licence usage, the Minister said the department would introduce a new system of debit cards.” An importer would complete a simple card for each importation against a licence and present it with the customs entry and the import licence. The system was an essential feature of the move towards greater flexibility, he said. The Australian authorities had experimented with other methods, but found the debit card system the best.

FREER DOLLAR IMPORTS

Move Pleases U.S. Embassy

(New Zealand Press Association) WELLINGTON, October 8.

The New Zealand Government’s action in almost completely liberalising dollar imports in the 1960 import licensing schedule met with the satisfaction of officials of the United States Embassy in Wellington today, says a press release by the United States Information Service.

The report says that for the first time in the post-war period almost all discriminatory restrictions on imports from dollar sources have been removed, opening the New Zealand market to dollar goods on an equal basis for all products except motorvehicles and timber. United States firms would now be able to compete on more equal terms with other suppliers. The Embassy’s Commercial Secretary (Mr W. Kling) said that the growth of trade between New Zealand and the United States was gratifying, and the new action would add to the already close relationships between New Zealand and the United States He said that New Zealand's exports to the United States had about doubled in the last two years, and had resulted in a substantial surplus in New Zealand’s balance cf payments with the United States.

The current liberalisation of trade with the dollar area would probably result in an expansion of imports from the United States. Mr Kling emphasised however, that the United States did not seek bilateral equality in its trade balance with New Zealand United States policy was based on multilateral rather than bilateral trade relationships within a framework of nondiscriminatory treatment

‘ For those importers who may now wish to develop trade connexions in the United States as a result of the dollar import liberalisation and the greater flexibility of the import shedule, the embassy’s commercial and economic section will be glad to be of every possible assistance,” Mr Kling said. “A number of services are offered by the embassy to assist importers and exporters in making trade connexions.”