DUMPING DUTY

New Zealand Herald, Volume LXXI, Issue 21764, 2 April 1934, Page 10

DUMPING DUTY

NEW ZEALAND BUTTER Imposition by canada ADJUSTING THE EXCHANGE RIGHT UNDER AGREEMENT f}y Telegraph—Press Association—Copyright (Received April 1, 5.5 p.m.) OTTAWA, March 31 An Ordcr-in-Countnl has been passed whereby an exchange dumping duty is jpplied to importations of New Zealand butter on and after January 26, 10:',.K The duty does not apply to butter already entered at the Customs on which duty has been paid. The order makes New Zealand butter subject- to the operation of the fame 'principle as that applied when the United Kingdom's currency was at a, discount. It places the New Zealand pound on a par basis for purposes of levying the duty find authorises the collection of the difference between par {-j.86 2-3 dollars) and the depreciated Talus - (at present 1.11). The right to do this is vested in the Government by Article 6 of the Canadian-New Zealand treaty of 1932, where it is specifically set forth that either Government reserves the right to impose any special duty, or tax, provided that it does not exceed the duty, imposed on similar goods from Britain. The action taken by the Canadian Government is somewhat similar to the course followed last year, when a shipment of New Zealand butter was impounded and a dumping duty equal to about 3h cents a lb. was imposed. The duty is additional to the usual five /-cuts a lb. This season very little butter has been, shipped by New Zealand to Canada owing to the uncertainty about official action there. Actually a market existed and the ordinary duty would presented difficulties. However, Canadian merchants have not been encouraged to import. It is understood that a certair. amount of buying on Canadian account was done on the British market.