AMERICAN GOODS

New Zealand Herald, Volume LXXVII, Issue 23601, 9 March 1940, Page 13

AMERICAN GOODS

SHIPMENTS TO DOMINION EFFECTS OF NEUTRALITY LAW CASH 'AND CARRY CLAUSES Official intimation after the passing of the present United States neutrality law that it was hoped trade with New Zealand would be carried out with as little inconvenience as possible, has not meant, according to business interests yesterday, that the Dominion has entirely escaped the "cash and carry" provisions of the legislation. But it was conceded that trade, so far as American action is concerned, is being carried out with a minimum of inconvenience. When goods are brought from the United States in British or other belligerent vessels, it was explained as essential that the title of the goods should have passed from the American vendor to the person for whom they are intended in New Zealand. The ordinary bill of lading in such instances does not apply. Instead, goods are subject to what is termed a "straight" bill of lading, defined as one in which it is stated that goods are consigned or destined to a definite person. The practice before shipment is for the purchaser to establish a letter of credit in America covering payment, which means that the exporting firm is then able to take an oath under tho legislation that it resigned all interest in the goods. On shipment, therefore, the goods are no longer Americanowned. When goods are shipped by American or neutral vessels, they are subject to whatever arrangement regarding payment that has been arrived at between the vendor and purchaser. If paid for on arrival, for example, they are regarded as American goods during the journey.