‘Private’ Clothing Trade With Hong Kong Booms

Press, Volume C, Issue 29635, 4 October 1961, Page 12

‘Private’ Clothing Trade With Hong Kong Booms

A substantial trade in clothing which has been developed in the last six months by business firms in Hong Kong with “private importers” in New Zealand is causing concern to local manufacturers, retailers, and dry-cleaners. At regular intervals thousands of parcels are arriving in New Zealand ports. They are postmarked Hong Kong, and labelled an “unsolicited gift from Uncle Henry” or “Uncle Charlie,” or “Uncle Ng.” The parcels contain clothing, particularly duffel coats and windbreakers, at extremely cheap prices. The recipients in New Zealand have either sent ■ British postal notes to clothing firms in Kowloon, in Hong Kong territory on the Chinese mainland, to pay for the “gifts,” or will send the price of the goods in British postal notes after receipt of them. Several clothing firms in Hong Kong sent catalogues of their goods, including size, colour, and price, to New Zealand, with rates of exchange. The catalogues are passed from hand to hand, and news of the goods to be obtained from “Uncle Henry" in Hong Kong has become widespread. In Christchurch, the sharp increase in the demand for British postal notes has embarrassed Post Office staff on several occasions. Persons have been queueing at post /offices in the city and suburbs. On occasion, notices have appeared in some post offices: “Sorry, no British postal notes today.” The Increase in the sale of British postal notes, particularly £1 ones, has been accompanied by a corresponding increase in the volume of. outward letters to Hong Kong and inward parcels from Hong Kong. “Very Extensive"

Yesterday, Post Office and Customs Department officials in Christchurch were guarded in their comments on the recently - developed trade. However, they agreed It was very extensive and not peculiar to Christchurch and Lyttelton.

. “The trade is going on all over New Zealand. I cannot say to what extent it has grown, but it is quite plainly increasing in volume as the news gets round. It must run into tens of thousands of pounds now,” was one comment.

The trade does not apparently contravene any of the importing or currency restrictions in New Zealand Clothing sent to a private person in this country from overseas, up to a limit of £lO in value (in the country of origin), has a statutory exemption from sales tax. Customs officers are taking no notice of the “unsolicited gift” labels on the parcels, and imposing the standard customs duties on each parcel. The “unsolicited gift” label is put on by the exporter in Hong Kong. All goods exported from there in bulls: trade have

to pass an export inspection to prevent shoddy goods being exported. As the clothing parcels being sent to New Zealand are to individuals, they are not inspected for export, and thus labelled as gifts. Licence Not Required

The parcels do not require any import licence, as they are for private persons. Neither the exporters in Hong Kong, nor the “private" importers can advertise that goods are for sale in Hong Kong and can be imported here, as such advertising would be “soliciting business" under the Importing Licensing Regulations The sending of catalogues from Kowloon by “Hung Fat,” “Strength and Company,” “Kwong Kee Emb. Company,” and other business houses does not apparently amount to “solicitation” within the meaning of the regulations. A Post Office spokesman said yesterday that there was no shortage of supplies of British £ 1 postal notes, or any denomination below that sum, and that there were no restrictions on the issue of them, except that one person should be sold only one £1 worth each day. The Reserve Bank dealt with the availability of overseas funds, and the Post Office had heard of no impending restrictions on the sale of British postal notes. In Christchurch, numerous persons have been calling at several different post offices in the one day to buy British postal notes to send to Hong Kong One Hong Kong firm is selling women’s and men’s duffel (or car) coats for 22s Sd, and boys’ and girls’ sizes for 17s 6d. The coats are of a rubberised, waterproof finish, quilt-lined with cotton. Buyers describe them as excellently made, well sewn, lined, and finished. Waterproof overcoats for adults are priced at 27s 6d. and windbreakers (or golf jackets) are priced at 12s 6d each for children and 16s 6d tor adults. Comments

Asked to comment on the trade with Hong Kong, the chairman of the clothing group pf the Canterbury Manufacturers’ Association (Mr C. H. Stockbridge) said: "This has been going on for some months. It must be an extensive trade now, although it is difficult to judge its volume. It seems most unfair when there is such a shortage of overseas exchange and manufacturers have to struggle to get import licences for their materials. It also seems most unfair to manufacturers and retailers when made-up garments are practically excluded from import licences.” Mr A. H. Lee, chairman of directors of a nationallyknown clothing manufacturing firm and a member of the Canterbury Manufacturers' Association council said: “These imports are unfair to local business firms be-

cause importing under trading conditions, is virtually prohibited for financial reasons." The president of the Canterbury Retailers’ Association (Mr L. Corner) commented: “It is most unfair to New Zealand manufacturers and retailers. The Government should peg it back. It is apparently now very extensive. The British postal notes are obviously being used for a purpose not envisaged by the authorities, and the Reserve Bank should cut down on the availability of them. The last Government tightened restriction because postal notes were being used for the British football pools. You cannot blame the public because of the prices, but hpw can New Zealand compete on our cost structures related to our standard of living?” The chairman of the clothing section of the Canterbury Retailers’ Association (Mr G. S. Clark) said: “It must be stopped. We cannot get the import licences because of the overseas exchange position. Because of the low labour and material costs, and because Hong Kong isi a duty-free port, manufacturers here could not compete and maintain wage rates that ensure New Zealand’s high standard of living.’’