ADMINISTERING TARIFF

Sun (Auckland), Volume IV, Issue 1034, 26 July 1930, Page 8

ADMINISTERING TARIFF

PROBLEM FOR MINISTER MANUFACTURER’S COMPLAINT The practice of the Customs raent of levying duty on the higw possible scale in order to against misrepresentation has com* for some severe criticism from .\ e% Zealand manufacturers who use h® ported articles in the building U p 0 * their own products. Definite complaints were made Tie Sun by Mr. G. Mills-Palmer, of Aueß. land, regarding the admission of -lock* required for the making of trunks la New Zealand. His statement is follows: "Oracial communications stress the fact that one mans raw material i« another s niushta product; tuat power conlerrea on uie Minister to sfl. mit sucn articles ana materials cannot be delegated to another person, mat it is essential for decisions to oe made in Wellington, so as to ensor*unnormity. Ail of tnese things ai* Known to and admitted by the manufacturers, who make no objection to tne general principle of the tariff w applied to raw materials. "Tne complaint of the manufacturer* is that wnen the duty on an article being ra\fr material, is in question, ttt invariable attitude ot Customs officers at tne various centres is, could it he usea for any other purpose. This takes its rise from a departmental regulation wmcn states tsat, wnere arucies are capaole of dasriiication under more man one larif item, bearing duierent rates of duty, the nignest rate shall apply. "It is contended that this atUtnfo is in direct opposition to the intention of the Government as applied and/or expressed in .Ministerial decisions, and that the correct attitude should be, is the article in fact one which has been specined by the Minister as a and M JS (that is, as raw material no: manufactured in New Zealand, to be used in the fabrication or repair of goods within New Zealand ), and is it actually to be used for the purpose intended by the Minister?* "It appears to be quite clear that if reasonable guarantee of bona ftdee is obtained by the Customs, this latter attitude will safeguard the department against misrepresentation and will rerelieve the manufacturer of fcaxassiaf demands for unwarranted duty, and the necessity for protracted and complicated correspondence in connection with refunds." DEPARTMENTS VIEW The Customs Department, however, points out that die problem is not quite so easy of solut on. The department it charged with the task of interpreting the tariff as it stands. The complaint is that some loc ks imported for trunks were charged at the higher rate of duty payable on ordinary locks, instead of the lower rate levied on article* which are used in the in an ufact art of New Zealand goods. The index to tb* tariff, however, provides that, if any importer considers that the rate of duty which is charged on any item of imports is contrary to the tariff, he fc at liberty to appeal to the Minister. Where discretion is granted to admit eoods free of duty, this power Is exercised on.y by the Minister, otherwise officials might be levying Taxation. Parliament has provided authorisation for the admission at a lower rats of duty where articles and materials are suited for and to be used solely in the fabrication and repair of New Zea-land-made goods. Admission of these goods is subject to the condition* which the Minister of Custom may impose, and the articles and material* themselves are restricted to a lha which he may specify. Collectors of Customs are merely carrying out the will of the Goveramen t. of the day, and are not charged with the final interpretation of doubtful points of the tariff- This Is the task of tho Minister in Charge of the Department, whose decision, of course, i* dictated by the poUcy of the Government. Complaints against collector* methods of applying the tariff are the* misplaced and should be made to the Minister.