Publicity would hit import licensees, says Minister

Press, 7 April 1978, Page 3

Publicity would hit import licensees, says Minister

PA ~ Wellingtor If details of import licences were published, the licence-holders would be placed at a disadvantage and it would provide a “shopping list” for those wishing to offer a premiun for the use of a licence according to the Minister ol Trade and Industry (Mi Adams-Schneider) yesterday. The Minister was addressj ing the Bureau of Importers land Exporters in Auckland yesterday after the release of i this year’s import-licence ■schedule. (Details below). ( He said that publication of i individual import-licence al- | locations would in many (cases be tantamount to disclosing to competitors the i development and marketing i strategy of a company. “Such a requirement ! would also be inequitable in I that companies importing > exempt items would be free from this exposure,” he said. In some areas of business activity companies which had to disclose licensing information would be placed at a commercial disadvantage to competitors. “There is also the further danger that publication n.ight actually increase the problems it sought to reduce, since it would .provide a shopping list for anyone wishing to offer a premium for the use of a licence,” Mr Adams-Schneider said. “1 would question, too, the seriousness of the problem which publication of licensing information is intended to alleviate,” he said. “It has been suggested, for example, that the confidentiality of the present system is a serious impediment to the establishment of better trade relations ” However, it had long been his department’s practice to identify to foreign trade missions the major traders in particular commodities. “On balance, therefore, I do not support publication of individual allocations.” But the Minister did see merit in the middle course,! that of publishing total li- j cence issues under individual! item codes, as that would; better inform both the pub-! lie and the commercial com-1 nunity of the objects of Gov-( eminent policy in that area, and be useful from the point; af view of trade particularly in regard to N.A.F.T.A. “Accordingly, the, total! value of licences issued for*

i individual item codes will in future be published at three- • I monthly intervals in the (.‘Customs Bulletin’,” he said. >! Mr Adams-Schneider said /the Government wanted the i best use to be made of imyport licences. i “The holding of basics to . a 100 per cent allocation for ’ the last three years has had •ja serious effect on smallI value licences, in some cases ■ jmaking them virtually I uneconomic,” he said. “I have decided to introduce two measures to help importers to achieve minimum-order requirements and to improve the ratio of funds expended on goods rather than on freight and other associated costs.” First, the existing transfer policy would be amended to facilitate transfers and amalgamations of small-value licences, either by transfers into fewer item codes or by I amalgamating licences and ; making a single licence (available for more than one litem code, the Minister said. ; Transfers and amalgamaI tions under the new policy (would be permanent and applicants would not need to I be licence holders in the item codes to which transfer (was requested, he said. “They will, however, have ito be able to show that they late established traders in (the same or like goods. ( “In considering applications the department will (of course take into account I the cumulative effect of transfers, particularly in sensitive item codes.” Mr Adams-Schneider said the Government had also agreed to increase the minimum value of basic licence entitlements under an item code to $5OO. “This does not mean, of course, that where an importer holds several small licences under an item code we will increase them all to $500; simply that we are prepared to increase the aggregate amount to $5OO where appropriate.” Mr Adams-Schneider said! that this year his department would make a comprehensive review of the structure of the import licensing schedule. A considerable amount of! preliminary work had al-j ready been done, and he said! he was keen for members of! the Bureau of Importers and; Exporters and other national! organisations to play an ac-j tive part in the review. “There has been some!

i j criticism in recent months • of the import licensing sys- ; tem and in particular it has been alleged that some 1 licence holders are making /improper use of their li- • icences,” the Minister said. “Let me make it clear that /the Government is anxious “to ensure that licences are I in the right hands and that the spread of basic licences ; among the firms concerned is, as far as possible, an equitable one. “Accordingly, while I was i satisfied that so-called ‘trafficking’ in licences is far ■ from being a widespread practice, 1 asked the Depart- • ment of Trade and Industry Ijlast year to consult with the bureau and other national organisations concerned on ' the terms of an intensified review programme in 197879,” he saic. ( All those concerned had (given the scheme their full support and the item codes selected for review closely i reflected their assessment of the problem areas. The item codes to be stud(ied comprised certain cosmetic, toilet, and culinary j preparations, certain types jof paper and paper articles, (woven fabrics of wool, (woven textile fabrics con- ; taining synthetics, woven ! polyester fabrics, misicellaneous ceramic articles, l base metal cutlery, domestic I articles of base metal, miscellaneous articles of base metal, and certain electroi mechanical domestic appliances. ( All licence-holders for (goods in the selected item codes, with the exception of certain types of- paper and paper articles, had been issued with an allocation of 50 per cent of their 1977-78 qualifying licences. Licence holders would be issued with a questionaire and an application form and on the return of the completed forms consideration would be given to the extent to which additional provi- ( sion should be made, Mr: Adams-Schneider said. ( “Firms which have con- ( sistently under-used their | entitlement may find that) their provision is reduced, I but in all such cases entitlement may subsequently be; increased on evidence of j sales performance, or be! used in the next two years,”! he said. However licence holderswho did not return the ques-j tionnaire would not escape; investigation.