New Tariff Rates On Paper Items

Press, Volume CIV, Issue 30937, 18 December 1965, Page 21

New Tariff Rates On Paper Items

CVcw Zealand Press Association) WELLINGTON, Dec. 17. The Minister of Customs (Mr Shelton) announced today it had become necessary—for administrative reasons associated with the free trade agreement with Australia—to increase rates of duty under the “determination system” which forms part of the tariff.

The new rates come into force on December 31. “The exchange of letters which forms part of the agreement, permits New Zealand to increase its tariff rttes on certain goods in the schedule, including papers and paperboards.” he said.

Mr Shelton said this meant that in the biennial phasing out of duties, the Australian and New Zealand tariffs would be level at each stage of the transitional period. "This is so neither side shall be at a disadvantage in relation to imports of goods from the other member state.” he said. Kept Free The Minister said there was also a provision of the agreement which “binds" free of duty any goods which are free on the day before the agreement comes into force. "The effect of this latter provision—in relation to many kinds of paper and paperboard now being produced in New Zealand or for which future production is planned—will be to inhibit the application of protective tariffs unless duties are in force before the agreement comes into operation,” he said. "For that reason it is necessary that duties be applied now, even though in many cases it will be possible to suspend them almost immediately.” Mr Shelton said the intention was to retain protective duties permanently only in respect of papers and paperhoards actually in production. Interim Report He had received an in-

terim report from the Tariff and Development Board, on products covered by the board’s inquiry concerning fine papers and packaging boards. The report recommended duties be applied, and Mr Shelton said today that he had decided to accept the recommendations as being the basis of retaining duty after January 1. This was on the understanding that certain aspects particularly in relation to definitions and price limits of the board’s deliberations were still incomplete, and changes might be necessary when the board's final report was available.