BUTTER FOR CANADA.

New Zealand Herald, Volume LXVII, Issue 20721, 14 November 1930, Page 11

BUTTER FOR CANADA.

SHIPMENTS BY AORANGI. DUTY ON NEW ZEALAND. VANCOUVER, Nov. 12. Two thousand cases of Australian butter which arrived at Vancouver by the Aorangi have been assessed for dumping duty. The duty imposed is 6k cents per lb. New Zealand butter by the same vessel has been assessed at 8 cents per lli. There i.i apprehension that New Zealand butter may be shipped as Australian to secure the lower rate and the Government is planning precautionary regulations. L'nder the tariff introduced in Canada on September 16, the duty is 8 cents per lb., British preferential, 12 cents intermediate, and 14 cents foreign. The trade agreement with Australia is still in force; under it, the duty on •Australian butter is 1 cent, per lb. The extension of that agreement to New Zealand was abrogated as from October 12, and New Zealand butter is now subject to the 8 cents duty of the British preferential tariff. The Aorangi carried 4270 boxes of butter from New Zealand. Under the Canadian customs law, dumping or special duty may be imposed on imported articles of a class or kind made or produced in Canada when the sale price to the importer is less than the fair market value when sold for home consumption in the country whence exported. Generally when the difference does not exceed 5 per cent, of the fair market value no duty is imposed, otherwise special duty equal to the difference is charged. Previously this duty was limited to a maximum of 15 per cent., but associated with the provisional tariff revision in September was an amendment of the law increasing the maximum to 50 ( per cent, of the value of the goods. It was, however, stated that in the case of importations from Australia within the terms of the agreement, the special duty would not exceed 15 per cent. On the present occasion, a dumping duty of 5J cents appears to have been charged on the Australian butter, 6i cents in all. The suggestion that New Zealand butter might be shipped as Australian is scouted by Auckland merchants. It was stated that the Government regulations as to bhe marking of boxes are too stringent to allow New Zealand butter to be sent as Australian. Moreover, the cost of unloading New Zealand butter and reforwarding it from Australia would be too great.