Raw Material Licences To Stimulate Exports

Press, Volume CI, Issue 29901, 15 August 1962, Page 12

Raw Material Licences To Stimulate Exports

(N.Z. Press Assoeiatfori) WELLINGTON, August 14. Special import licences for raw materials or components would be granted to manufacturers who were exporting or who intended to test an overseas market, the Minister of Industries and Commerce (Mr Marshall) said'tonight. “These will be incentive replacement licences and incentive bonus licences which have been considered and approved by the Trade Promotion Council,” he said.

“A inanufacairer already holding raw material or component import licences or entitlement may obtain immediately a special licence to the value of the imported content of the goods produced or being produced against confirmed overseas orders.” said Mr Marshall'.

"Where confirmed overseas orders are not held, a special licence may still be obtained, provided the application is accompanied by a declaration that it is the manufacturer’s intention to use the special licence to produce goods which will be used in an attempt to open an export market.

“On proof of export of the first consignment, a further special licence of the same value will be issued.

“The procedure can be repeated as many times as the manufacturer is able to effect sales abroad. "A manufacturer who does not hold raw material Licences, or possess entitlement to such. n\ay also be considered for the issue of special Licences. Where such licences are granted, on proof of export these manufacturers will then be treated in the same way as the others. “In addition to special licences given to replace the imported content of exported manufactured goods, manufacturers may, on proof of export, obtain an additional

licence —a bonus licence—for raw materials or components of the same kind and of the same value as those used in the manufacture of the goods actually exported. “Alternatively, the manufacturer may obtain on application a bonus licence to import raw materials or components of a different kind from those used in the manufacture of the goods exported, provided the raw materials or components are shown as having a basic allocation in the 1982-63 import licensing schedule.

“If the manufacturer does not wish to use his bonus licence for raw materials or components of the same kind as those already imported and incorporated in the goods exported, or for which allocation is made in the 196263 schedule, an application will be considered by the Department of Industries and Commerce, having regard to the implications for domestic industry of importation of these goods.

“Once a bonus Licence has been granted, the materials or components may be used to manufactwre goods for sale either overseas or in New Zealand as the manufacturer himself determines.” Mr Marshall said application should be made to the collector of Customs at the nearest port where they would be dealt with on the

recommendation of the district officer of tie Department of Industries and Commerce.

"The purpose of this arrangement," said Mr Marshall. “is to ensure that manufacturers who enter the export market can get without delay, replacement or bonus licences for materials of the same kind as were used in the goods exported. If goods of a different kind are wanted or if there is no basic allocation in the 1962-63 schedule. the applications may not be granted as of right but will be given special consideration." Mr Marshall said he hoped the scheme would result' in manufacturers building up a continuous export business and in that event consideration would be given to increasing the basic entitlement to raw materials or components.