Bid To Stop Trafficking In Import Licences

Press, Volume CX, Issue 32323, 15 June 1970, Page 10

Bid To Stop Trafficking In Import Licences

A determined attempt to eradicate trafficking in import licences would be made in the new licensing period, th e Minister of Customs (Mr Adams-Schneider) said in Christchurch on Saturday.

However, there would be no “witch hunt” . associated with investigations into this practice, he told the combined annual conference of the Sports Dealers’ Federation and the Sports Goods Industries Association.

The established importer who performed (hose functions normally associated with the buying and selling of goods had nothing to fear The investigation would be into the type of licence holder who had a minimum of facilities and offered his licence for use by others at a premium which was “no more than an outrageous commission."

These persons did not order or pay for the goods, and did not involve themselves in paying the landing charges or in handling the goods after importation, and in many cases did not even have an agency for the goods concerned.

“The only service he provides is the presentation of a piece of paper which has been issued to him,” said Mr Adams-Schneider. No additional licences above the basic provision (would be issued to this type I of applicant and because (such licence-holders fre-

jquently did not apply for . above basic requirements, j the Customs Department would review all licence- ' holders in a range of selected ! items. This review would be . continued into future licensing periods in respect of other goods. Liberal Policy One of the Government's greatest achievements, and the one most conducive to good business, was the promotion and maintenance of a sound economy, said the Minister. This, rather than any import licensing measures,, would have the greatest effect on business. The economic progress had been matched by the Government’s steps in gradually removing import licensing, and liberalising these controls generally. Ten years ago when the j Government took office only i 14 items were exempt from control but in the 1970-71 licensing period exemptions | already effected or announced j would leave only one-third of private imports still requiring a licence, Mr Adams? Schneider said. Progress towards removing 11 licensing /as substantial but i the importance of exemptions i proceeding in an orderly I manner must be stressed. The ' crossroads in the administra- < tion of import licensing had been reached. 1 “On one hand we have a i situation where about two- 1 thirds of all private imports 1 will be exempt from control I in the new licensing period 1 Against this we have a somewhat contradictory position I where the entitlements avail- ’ able for some licensed goods i

have been maintained rigidly to reflect a trading pattern which existed more than a decade ago." Now nearly all goods still under control had an element of local manufacture, and priorities had to be carefully assessed and a sound basis reached for drawing up future exemption lists, he said. A joint committee had been set up to review all goods still subject to import licensing. It would recommend broad principles for the release of more goods from control, and fix priorities for the exemption of particular goods. New Importers Flexible policies being introduced in the new licensing period included some provision for new importers and for the consideration of each application on its merits. This .more liberal approach would be extended to the intending new importer and the established licence-holder alike. “I would like to make it quite clear that it is not the Government’s intention to set complete newcomers up in business as importers. Where provision is made for new importers the applicant must already be established in business and must already be dealing in the particular kind of goods or related goods “In considering the level of licence to be issued to a new importer regard will be had to the level of basic licences held by existing importers in the items concerned,” said Mr Adams-Schneider. “Funds are limited: no-one) is going to receive a licence who is not capable of providing service.” I