BISCUITS AND SWEETS

Dominion, Volume 21, Issue 11, 7 October 1927, Page 10

BISCUITS AND SWEETS

NEW DUTIES EXPLAINED

An explanation of the tariff action taken in connection with biscuits and confectionery is furnished in a memo--randuni issued by the Minister of Customs yesterday. “Under the tariff of 1921, stated the Minister, “biscuits, of whatever value, paid the same rate of duty—--2d per pound British preferential tariff and 3d. per pound general tariff. The result was that on cheap classes of biscuits a relatively heavy duty was imposed, while the duty on more expensive classes was a very low one. The average rate of duty in 1926 on biscuits imported from Great Britain was onlv 8| per cent. Imports consist mainly of luxury lines which can also be made locally. An ad valorem duty is considered to be much more equitable than the specific rate previously adopted. The suggested rate of 20 per cent. British prefetenti<il tariff gives a reasonable margin of protection to local manufacturers on the various classes of biscuits manufactured in the Dominion. “Representations were made by manufacturers showing that under the 1921 tariff the confectionery industry was not in a satisfactory position. Several manufacturing firms have been forced to cease operations in recent years. Importations of confectionery have increased during the past five years ’from approximately £150,000 per annum to over £300,000. Importers have asked for an amended system of duties in respect of certain classes o chocolate confectionery. For a dn ” l,ls ’ trative purposes it is desirable tha the same rates of duty be chargeable on all confectionery, and as it may be assumed that values have now reached a more or less stable basis, there arc reasons for changing the specific and ad valorem duties of the 1921 tariff to a general ad valorem ra*e The proposed new rates of per cent, and 45 per cent, will represent onlv a slight increase on certain classes of chocolate confectionery (previously dutiable at 20 per cent, and 35 per cent.), and on the cheapest trades of confectionery (previously dutiable at 2d. British preferential tariff). The new rates will, ho” ei, increase appreciably the duty on _ those classes of chocolate confectionery which have previously been dutiable at 3d. British preferential tariff and sd. general tariff, and will similarly affect the higher grades of confectionery other th*a chocolate confection-