CANADIAN BUTTER DUTIES

Taranaki Daily News, 19 November 1930, Page 7

CANADIAN BUTTER DUTIES

POSITION OF NEW ZEALAND

BOUNTY LITTLE ADVANTAGE METHODS OF COMPUTATION By Telegraph—Press Assn.—Copyright. Ottawa, Nov. 17. While . the Department of National Revenue has no immediate information in regard to the appraisal for duty purposes of the Australian and New Zealand butter consignments arriving by the Aorangi last week, it is stated that the Canadian tariff requires the imposition of “dumping” duties where the export value or the commodities shipped to Canada is lower than the domestic value in the country of origin.

As the operation of the Paterson scheme, under which Australia enjoys a bounty, tends to bring Australian butter . within the scope of the “dumping” class, the "dumping” duty automatically applies. The duty is equivalent to The difference between the export and domestic prices in the. country of origin, provided the difference does not exceed 15 per cent, of the domestic price. New Zealand butter is now imported under the British preferential rate of eight cents a pound. ■ The department has no information that the export price of New Zealand is lower than the domestic price in New Zealand, and consequently no occasion has arisen for the imposition of “dumping” duty against New, Zealand. The departmental officials are inclined to believe that prima facie New Zealand exporters would have a certain advantage at present over Australian exporters in spite of the fact that the duty under the Australian trade treaty provisions, apart from the “dumping” duty, is only one cent a pound as against eight cents on New Zealand. 1

PREFERENCE FOR AUSTRALIA.

NEW ZEALAND HEAVILY TAXED.

Vancouver, Nov. 17. Australian butter has an advantage of at least four cents per lb. over New Zealand, the Collector of Customs, Mr. George Allen, said to-day. New Zealand butter is admitted under the British preference of eight cents a pound and Australian comes under the Australian treaty. It is taxed one cent per lb. plus “dumping” duty based on the domestic price in Australia and not to exceed 15 per cent. At present the “dumping” duty is three cents and Australian butter, therefore, pays four cents against New Zealand’s eight.