TOILET GOODS

Greymouth Evening Star, 11 April 1933, Page 8

TOILET GOODS

NEW COSTS IN NEW ZEALAND.

The following article, by ‘-Interest--1 ed,” is reprinted from the Pharmaceutical Journal of New Zealand: Sometimes the question arises as to whether American toilet goods will eventually disappear from our pharmacies, or whether the manufacturers will be able to offer sufficiently better prices to maintain their hold in this market until such time as the exchange and duty allow them to again operate profitably here. It is therefore interesting to investigate the actual figures that would result from spending £lOO (N.Z. currency) to buy toilet goods from U.S.A, to-day. The result is amazing (though correct). Thus, our £IOO'(N.Z. currency) equals £BO sterling (London) and this £BO at the present conversion rate of 3.43 dollars to £1 sterling is equal to 274.40 dollars or the equivalent at par of only £57 3/4. So much for the effect of exchange and conversion rates. Our £lOO has bought goods of a par value of £57 3/4. Further surprises await, when we interview the customs on the arrival of our goods in New Zealand. The present rate is duty on American (and all foreign) toilet goods is 55 per cent, plus a surtax of 9/40 of the duty thus due, and this is levied not on American value but on the value of goods in sterling, plus 10 per cent. This means we are asked to pay a duty of 67 3-8 per cent, on £BB or a duty of £59 5/10. Still our Government want and needs more. The sales .tax 5 per cent. This tax is estimated (for importing retailers) by taking 5 per cent, of the total obtained by adding the value of the goods in New Zealand currency, plus duty, and plus 20 per cent, of the sum of the value and duty. In this instance, 5 per cent, of value in N.Z. currency £lOO, duty £59 5/10, —£159 5/10; plus 20 per cent. £3l 17/2; sales tax equals 5 per cent, of —£191 3/- therefore £9 11/2. Further and final charges, would be those of freight cases, insurance, etc., in America with cartage and clearing and costing in N.Z. These usually average about 12| per cent, (varying with the class of goods) of the invoice value of the goods, this would have to be paid in N.Z. currency and therefore approximate'to £l2 10/-. Now let

us summarise: Purchase price of goods, £100; duty (as above) £59 5/10; sales tax (as above) £9 11/2; transport charges, £l2 10/-; landed cost of goods £lBl 7/-. This tremendous landed cost of £lBl 7/-, is for goods of par value of £57 3/4 or 317 per cent on the primary cost at par. In other figures, an article cost (in’ U.S.A.) 1 dollar would land in N.Z. to-day at