BUTTER FOR CANADA.

New Zealand Herald, Volume LXVII, Issue 20725, 19 November 1930, Page 11

BUTTER FOR CANADA.

NEW ZEALAND SHIPMENTS. OPERATION OF DUTIES. VANCOUVER. Nov. 17. Australian butter has an advantage of at least four cents per II). over New Zealand butter, according lo the collector of oust oms, Mr. George Allen. New Zealand butter is admitted under the British preference duty of eight, cents per lb., while Australia comes under the Australian trade treaty and is taxed one cent, per lb., plus a dumping duty. This'duty is equivalent to the difference between the export and domestic prices in the country of origin, provided tho difference does not exceed 15 per cent, of the domestic price.

At present the dumping duty is 3 cents per lb. Australian butter therefore pays four cents against New Zealand's eight, savs Mr. Allen.

A message from Ottawa says the Department of National "Revenue has no immediate information about the appraisal for duly purposes of the Australian and Now Zealand butter consignments which arrived by the Aorangi last week, but it is stated that tho Canadian tariff requires tho imposition of dumping duties where the export value of commodities shipped to Canada is lower than the domestic value in the country of origin. Since the operations of tho Patterson scheme, under which Australia enjoys a bounty, tend to bring Australian butter within the scope of the dumping clause, that dumping duty automatically applies now. The department has no information that tho export prico of-New Zealand butter is lower than the domestic price in New Zealand, consequently no occasion has arisen for tho imposition of the dumping duty against New Zealand. Departmental officials are inclined to believe that, prima facie, New Zealand exporters would have a certain advantage at present over Australian, in spito of tho fact that the duty under tho Australian trade treaty provisions, apart from the dumping duty, is only one cent per lb., as against eight cents on New Zealand butter.