EXPORT CREDITS

Dominion, Volume 33, Issue 3, 28 September 1939, Page 8

EXPORT CREDITS

Questions Answered By Minister

IMPORT LICENSING Additional information about the British exports credits available for use by New Zealand importers was given by the Minister of Customs, Mr. Nash, when replying in the House of Representatives yesterday to questions asked the previous day by Mr. Wilkinson (Independent, Egmont). He also said that the cabled announcement from London published in Tuesday’s newspapers was somewhat misleading. “The statement cabled from London was to the effect that the British Government’s guarantee applies to goods in respect of which deposits have alreadv been made in New Zealand,” said Mr. Nash. “This is not a correct interpretation of the agreement, which provides for Hie giving of a guarantee now to cover all shipments to December 31 next, and under normal conditions the guarantee will be renewed for periods of three months. Consequently, United Kingdom exporters do not have to wait for deposits to be made before obtaining the guarantee, but the guarantee lapses if irrevocable deposits are not made in New Zealand in due course.

“The British Government’s guarantee does not, of course, apply to goods of foreign origin,” continued Mr. Nash. “Importers of such goods must rely upon making individual arrangements under Reserve Bank remittance authorities with the exporters concerned. Any additional expenses involved in such transactions will be taken into account in fixing local prices.” Referring to the question of variation in exchange charges so far as import licences were concerned, Mr. Nash said that arrangements had been made, in arriving at the value to be endorsed on import licences, for the Customs Department to accept for conversion of foreign currencies the rate of exchange ruling at date of shipment of goods. This was the principle adopted in arriving at values for duty purposes. Information was sought by Mr. MeKeen (Government, Wellington South), on behalf of Mr. Barnard (Government, Napier), as to whether firms having sterling funds available could be granted licences for the immediate importation of permissible goods up to the full limit of such funds. Mr. Nash replied that before he gave a general answer it would be necessary for the Individual importer to apply and for the Government to determine whether the particular goods should be paid for out of those funds and brought into the country. Those funds were really New Zealand funds and would be helpful in enabling the importation of goods for which licences had already been granted.