Imports for export explained

Press, 4 July 1979, Page 3

Imports for export explained

I 3 A Wellington Details of three new im-port-licensing policies announced in the Budget were given yesterday by the Minister of Trade and Industry (Mr Adams-Schneider). They are the export-pro-duction assistance scheme, the productio n-ratio-nalisation policy, and the excessive price-quality differentials policy. Mr Adams-Schneider said the aim of the exportproduction assistance scheme was to allow imports of raw materials and component, not made in New Zealand in cases where they were to be used for the production of export goods. Licences relating to the importing of components that were made in New Zealand but were not suitable for export would also be granted under the scheme.

The scheme would be available to those engaged in export production, manufac-

turers importing materials later used in another company’s export production, and companies which imported raw materials or components for supply to another company for use in export production. Those applying for licences under the scheme had to provide specific information about the exports concerned, whether they were based on a firm order, and about the raw materials and components in them. The scheme would not apply to exports to the Cook Islands, Niue, and the Tokelau Islands or to packaging- , “Applicants should anticipate that the department will closely scrutinise claims made in justification of the use of imported raw materials or componentry,” said Mr Adams-Schneider. “Checks will be made with appropriate organisations that may be expected to be able to comment on

the statements made by applicants,” Mr Adams-Schneider said the productio n-ratio-nalisation policy was aimed at transferring resources into export production.

The Budget had said that the scheme would provide for licences to be issued for finished goods where manufacturers sought to rationalise their business by ceasing production of the goods concerned to concentrate on exports.

The Minister of Finance (Mr Muldoon) said on Budget night that it would be necessary to establish in such instances that a net foreign-exchange advantage would accrue.

Mr Adams-Schneider gave a warning that if, after two years, manufacturers holding such a licence could show “none or very few of the promised benefits to New Zealand’s export economy,” the licence could be discontinued.