CUSTOMS ALTERATIONS

Taranaki Daily News, 4 August 1930, Page 2

CUSTOMS ALTERATIONS

REASONS FOR PROCEDURE. HOW THE LAW OPERATES. The fact that the new customs duties are now in full operation, although the possibility of modifications is freely discussed, may be confusing to some people who do not understand the procedure adopted in revising the customs tariff. Import duties have an exceedingly powerful influence on trade, and it is essential as a matter of practical politics that any changes made in them shall take place, so to speak, at one blow. If this were not done, and several days’ or weeks’ notice of the alterations were given, various evasions would be possible. For example, if the duties on a certain class of goods were increased, importers with large stocks in bond would immediately clear them at the old rates of duty and would thus effect a saving and gain an advantage over rivals not so happily situated.

If the notice were long enough it might even be possible to order and land goods from not-too-distant ports before the increase came into effect. Conversely, if it were proposed to lower a duty, importers would .accumulate stocks in bond, clearing.as little as possible, perhaps causing a shortage bn the local market and a temporary, drop dn customs revenue from that class of goods. To prevent manipulation of this kind all tariff changes are introduced into the House of Representatives in the form of resolutions, which the House is expected to, and invariably does, pass immediately. The new duties become efl'ect.ve the moment the resolutions embodying them are passed. It is then the duty of the Government to introduce a bill embodying the contents of the resolutions unaltered. This is discussed by the House at leisure, and, if deemed advisable, is amended. The amendments are made immediately effective by further resolutions, so that at no stage in the proceedings is the commercial world given an opportunity to anticipate any changes. 11 the bill in its final form provides for lower rates of duty than those specified in the resolutions, importers who have paid the higher rates are entitled to a refund.

. In the case of the reciprocal tariff agreement with the Conunonwealth of Australia, which requires six months’ notice to be ghen of any change in the tariff rates embodied in it, there is likewise no loop-hole! So far ds Sew Zealand is concerned the law provides that changes in. the. rates agreed upbn are to be made by Order-in-Councll, and are to become immediately effective, subject to later ratification by Parliament. The six months’ notice leaves it a matter of speculation what the alterations are to be—at least so far as the public is concerned.