NO DUMPING DUTY ON N.Z. BUTTER.

Star (Christchurch), Issue 19230, 18 November 1930, Page 1

NO DUMPING DUTY ON N.Z. BUTTER.

CANADIAN TARIFF POSITION EXPLAINED.

(Received November IS, 5.30 a.m.) OTTAWA, November 17.

While the Department of National Revenue has no immediate information regarding the appraisal for duty purposes of Australian and New Zealand butter consignments which arrived by Ihe Aorangi last week, it is stated that the Canadian, tariff requires the imposition of dumping duties, where the export value of the commodities shipped to Canada is lower than the domestic value in the country of origin. Since the operations of the Patterson Scheme, under which Australia enjoys a bounty, tend to bring Australian butter within the scope of the dumping clause, that dumping duty automatically applies. The duty is equivalent to the difference between the export and domestic prices in the country of origin, provided that 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 for New Zealand is lower, than the domestic price in New Zealand, consequently no occasion has arisen for the imposition of a dumping duty against New Zealand. Departmental officials are inclined to believe that prima facie New Zealand exporters would have a certain advantage at present over Australian in spite of the fact that 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.