PREFERENCE

Dominion, Volume 18, Issue 130, 26 February 1925, Page 9

PREFERENCE

AUSTRALIA’S DECISION ONE-FOURTH BRITISH MAKE NEW CONDITIONS OF DUTY Although Australia and New Zealand acted simultaneously last year in increasing from 25 to 75 per cent, the proportion of British labour or workmanship necessary to qualify for the British preferential tariff, the Commonwealth- now announces new conditions, commencing from April 1, embodying the extension of preference to goods, in certain cases, with only one-fourth British labour or workmanship. New Zealand has postponed till October 1 the date from which the new conditions shall take effect. The Federal Minister of Customs (Mr. H. E. Pratten) has announced that preference will be granted in the Common/wealth as follows: — (a) To goods which are wholly produced or wholly manufactured in the United Kingdom. As to manufactured goods, he explained that these will only be considered wholly manufactured in the - United Kingdom if in the raw materials used, and also in finished goods, no manufacturing process has been performed outside tne United Kingdom which is being commercially performed in the United Kingdom. The Minister shall de; termine what are to be regarded as raw materials, and in such determination may ..include partially manufactured Australian materials. (b) To goods not wholly produced, or wholly manufactured in the United Kingdom in the terms of paragraph (a), provided they contain at least 75 per cent, of United Kingdom labour, and/or material in their factory or works cost. (cj Notwithstanding anythingAcontained in paragraph (a) or (b) —to goods of a class or kind not commercially manufactured in Australia, provided they con-tain.-at least 25 per cent, of .United Kingdom labour and/or material in their factory, or work cost. (d) It is essential in every case that the final process of manufacture shall take place in the United Kingdom, and that the goods be consigned direct to Australia. “It will be nnted with reference to paragraph (a)," said Mr. Pratten, "that the British manufacturer may use basic rawmaterials of any origin, but cannot use imported material which has undergone abroad a process of manufacture which is being commercially performed in the United Kingdom. If a process is being done in the United Kingdom, but doubt exists as to its being commercially done, he may make application to the Minister for Trade and Customs of the Commonwealth, through the High Commissioner, for exemption as regards that process. Any manufacturer desirous, of using partially moaufactured Australian material may make application similarly. If every process capable of being commercially performed in the United Kingdom has been there performed the goods will qualityunder paragraph (a) quite irrespective of the proportion of United Kingdom labour, and/or material entering into their factory or works cost; (b) applies to goods which havd failed to qualify under paragraph (a) for the reason that a process has been performed outside the United Kingdom which is being commercially performed therein. "As to, paragraph (c),” continued Mr. Pratten, ’“a list of the goods which for the purposes of the preference will be deemed to be not made in Australia will be issued by the Department. This list will be subject to revision from time to time. It should be particularly noted that goods in this list failing to reach 25 per cent. United Kingdom labour or material could qualify under paragraph • (a) if all commercially possible processes of manufacture were performed in the United Kingdom." The existing definitions of factory or works costs and the method of calculating the value of United Kingdom labour and material are not materially altered. "Under the new provisions (b> and (c)," eaid Mr. Pratten, “namely the 75 per cent, and 25 per cent, qualifications, if goods are partlv manufactured in the United Kingdom/ then sent abroad for some -process, and subsequently returned to the United Kingdom for completion, the value of all the processes pertormed. in the United Kingdom may be included in the qualifying proportion of British labour and/or material. Under the old conditions, the British processes done prior to the foreign treatment were ex'Cluded." With regard to the date of operation,. Mr. Pratten explained that the new conditions will operate as to goods invoiced from Great Britain on and after April I, 1925. To meet exporters and to permit of the printing of new forms, it lias been decided that manufacturers may use the existing form of certificate to cover all goods .shipped. from Great Britain for the period April 1 to June 30 inclusive. It will be -necessary’ to make manuscript alterations m the existing certificate! Exporters may proceed without details of list of. goods not manufactured in Australia until such lists are available. The increase from 25 per cent, to 75 per cent, drew a protest _ from the Canadian Government, which has been under consideration for some months by the Commonwealth and Dominion Governments. It is understood that the NewZealand Minister of Customs, who is now on his way to - America, will discuss the matter with the Canadian Government.