Safeguarding of I n d u s t r i e s
Bill.
Memorandum by t h e P r e s i d e n t of t h o B a a r d of grade,
"present herewith t o my e e U e a f u e s in the Oabinet t h e
promised B i l l d e a l i n g w i t h Key I n d u s t r i e s a n d Bumping, whieh i s now
i n t h r e e main p a r t s , t h e f i r a t r e l a t i n g to key I n d u s t r i e s , tho
s eoond t o Damping and the t h i r d to.. Collapsed Exchange a.
Tho f i r s t part of t h e moasuro, which deals w i t h t h e s a f o ­
guarding o f Key I n d u s t r i e s , i s of the utmost urgency as I am
convinoed that there i s no chanoo of t h e weak Key I n d u s t r i e s
being developed and oonduated with e n t e r p r i s e , or eren i n some
oases maintained a t t h e i r p r e s e n t l o r e l u n t i l they-know d e f i n i t e ­
. l y what support thoy are to r e c e i v e , ..' k s e p a r a t e measure f o r
the, safeguarding of the dye-making i n d u s t r y i n t h i s oountry from
the e f f e c t s o f u n r e s t r i c t e d importation of f o r e i g n ( e s p e c i a l l y
German) dyes; which was introduced on account o f the s p e c i a l l y
c r i t i c a l p o s i t i o n of tne dye-maiking Industry and to redeem the
pledge, of
His Majeety e Government that such imports would be
1
oentrollecL by a system o f p r o h i b i t i o n and l i c e n c e for a p e r i o d
:
of 10 years a f t e r "the war, h a s now.;booonto law.
But there are
other i n d u s t r i e s which, i i o i i g h t h ^ y have perhaps a t t r a c t e d l e s s * ­
public, attention^, are. i n a s i m i l a r p o s i t i o n of u n c e r t a i n t y and
e n t i t l e d , to., s i m i l a r support.
I t i s , f o r i n s t a n c e , only
with
d i f f i c u l t y t h a t makers of o p t l e a l g l a s s , which i s o f the h i g h e s t
importance ,to the. country i n time of war, can be persuaded t o
keep t k e i r works going,
The seoond part o f the measure d e a l s w i t h damping.
Although
dumping, i n t h e s t r i c t sense i s not r i f e a t p r e s e n t and n o a r l y
- a l l t h e complaints whieh hare been r e c e i v e d r e c e n t l y with regard
t o t h e e f f e c t on;employment i n t h i s oountry of u n r e s t r l o t e d
i m p o r t s o f goods ^ a t a b n o r m a l l y l o w p r i c e s r e l a t e t o the
o o r a p e t i t i o n o f g s o d s o f w h i c h t h e s a l e p r i o o h e r e i s low owing
t o t h o s t a t e , of t h e exchanges of t h e c o u n t r i e s of o r i g i n ,
the
f a l l i n p r i c e of c e r t a i n commodit/iea w h i c h i s now i n
progress
may a t any t i m e gauge f o r e i g n h o l d e r s of s t o o k s t o d i s p o a o
them on a l a r g o s a a l e i n t h i s c o u n t r y a t a dumping p r i c e ,
t h e f e a r of t h i s i a s p r e a d i n g .
of
and
An a n t i - d u m p i n g m e a s u r e w o u l d
therefore help to r e s t o r e confidence.
Wo a r e , of
course
c o m m i t t e d by t h e C o a l i t i o n m a n i f e s t o t o t h e s a f e g u a r d i n g of
Koy I n d u s t r i e s
and t o t h o p r o h i b i t i o n o f dumping,
The q u e s t i o n of d e a l i n g w i t h e o l l a p s e d e x c h a n g e i s
t h o most d i f f i c u l t
p r e s e n t e d by t h e B i l l ,
w h i c h a r e W i n g a s k e d on u h i s s u b j e c t
probably
She numerous
Questions
i n t h e House of Commons
a r e an i n d e x of t h e w i d e s p r e a d u n e a s i n e s s and
disorganisation
p r o d u c e d by t h e i m p o r t a t i o n o f ohaap goods from c o l l a p s e d
countries,
exchange
a n d from a v o l u m i n o u s c o r r e s p o n d e n c e w h i c h I h a v e
r e c e i v e d from numerous i n d u s t r i e s a f f e c t e d by c o m p e t i t i o n of
t h i s c h a r a c t e r I have come t o t h e c l e a r c o n v i c t i o n t h a t a sform
of p r o t e s t w o u l d a r i s e were I t o i n t r o d u o e a m e a s u r e
w i t h dumping i n t h e s t r i c t s e n s e i f i t
dealing
did not deal also w i t h
t h o p r o b l e m p r e s e n t e d by t h e i m p o r t a t i o n o f t h e s e c h e a p g o o d s .
KE1Y
INDUSTRIES.
I t i s proposed to p r o t e c t a l i m i t e d l i s t
of Key I n d u s t r i e s
f o r a p e r i o d o f 5 y e a r s b y s u b j e c t i n g t h o i r p r o d u o t s t o an
ad v a l o r e m d u t y o f 33 l / 3 p e r o e n t ,
on i m p o r t a t i o n i n t o
this
c o u n t r y , s u c h d u t i e s b e i n g i n a d d i t i o n t o any i m p o s e d u n d e r
t h i other p a r t s of t h e p r e s e n t B i l l ,
. The p a r t u c u l a r
groups
of a r t i c l e s w h o s e i m p o r t a t i o n i s t h u s t o be s u b j e c t e d t o
are s e t out i n t h e Schedule t o the
duty
Bill.
The a l t e r n a t i v e t o t h e i m p o s i t i o n o f d u t i e s i s p r o h i b i t i o n
of i m p o r t a t i o n exoept undor l i c e n c e , a course whioh has been
a d o p t e d i n r e s p e c t of S y n t h e t i c D y e s t u f f s ,
The
discussions
i n t h e House o f Commons a n d i n t h e S t a n d i n g Committee w h i o h
I
considered the Dyostuffs
(Import Regulation)
Bill
havo,
I
however,
made i t
c l e a r t h a t there i s a wide­
s p r e a d d i s l i k e o f t h e l i c e n s i n g s y s t e m on a c c o u n t
of
t h e d e l a y s and' i n e q u i t i e s a s b e t w e e n
individual
c o n s u m e r s t o w h i c h i t may g i v e r i s e , and i t
be a d m i t t e d
must
t h a t i n t h e c a s e of most of t h e Kay
i n d u s t r i e s d e a l t w i t h i n t h e p r e s e n t measure
would be e x c e e d i n g l y d i f f i c u l t
it
i f not Impossible
to
work a l i o e n s i n g s y s t e m , - p r o d u c e r s and c o n s u m e r s
or b o t h b e i n g so numerous and so l a r g e l y
unorganised.
I n a d d i t i o n t h e r e would be p r o l o n g e d d i s c u s s i o n
ever
a t t e m p t s t o l a y down t h e c o n s t i t u t i o n of a L i c e n s i n g
Committee f o r e v e r y c o m m o d i t y ' i n c l u d e d
Whilst,
i n t h e c a s e of D y e s t u f f s ,
i n the
t h e p r o d u c e r s and
i i r e o t c o n s u m e r s a r e so o r g a n i s e d t h a t I t
t o c o n s t i t u t e a L i c e n s i n g Committee w i t h
little
difficulty,
Schedule.
is
possible
comparatively
t h i s does not apply to a l l
the
other t r a d e s concerned i n the commodities i n c l u d e d
the Sehedule.
in
Erom t h e a d m i n i s t r a t i v e p o i n t of v i e w ,
p r o t e c t i o n by means of d u t i e s i s much t h e
simplest
c o u r s e , and f r o m - t h e p o i n t of view of t h e t r a d e s
o e r n e d I t h a s t h e a d v a n t a g e of s i m p l i c i t y and
oon­
certainty.
LUMPING.
In t h i s B i l l , a s in previous proposals for
with t h i s question,
the Anti-dumping p r o v i s i o n s
oniy to scheduled goods.
enquiry,
relate
When, a s a r e s u l t of a n
i t i s demonstrated
of g o o d s i s t a k i n g p l a c e
dealing
t h a t dumping of a n y
class
to a damaging e x t e n t t h e Board
of T r a d e a r e r e q u i r e d t o s c h e d u l e t h e s e g o o d s .
But
whereas i n the B i l l introduced
in
1919-provision­
was made f o r " thxj "paymeiit ^ s c h e d u l e d - g o o d s of
a n a n t i - d u m p i n g d u t y e q u i v a l e n t t o a n y e x c e s s of
f o r e i g n v a l u e over the p r i c e r e a l i s e d
in t h i s
t h e p r e s e n t B i l l i m p o s e s no d u t y b u t makes
dumping of S c h e d u l e d goods a p u n i s h a b l e
country,
the
offence.
C o n s e q u e n t l y , . t h e s t r o n g o b j e c t i o n t a k e n to
the
old B i l l on t h e ground of i t s i m p o s i n g a v a r i a b l e
c h a r g e to be a s s e s s e d by t h o Board of T r a d e d o e s
not a p p l y to the p r e s e n t B i l l , which moreover,
i n many r e s p e o t s s i m p l o r
to
administer.
I would c a l l a t t e n t i o n to. t h e f a c t
as the p r o v i s i o n s
is
t h a t rrtiere­
in the B i l l with regard
to l e y
I n d u s t r i e s and c o l l a p s e d e x c h a n g e s a r e i n t e n d e d
t o be
of a t e m p o r a r y c h a r a c t e r and t o r o m a i n i n f o r c e
for
f i v e and t h r e e y e a r s r e s p e c t i v e l y ,
the p r o v i s i o n s w i t h
r e g a r d t o dumping a r e of t h e n a t u r e of
permanent
legislation,
COLLAPSED EXCEA.II6BS.
I n t h i s B i l l , t h e C o l l a p s e d Exchange p r o v i s i o n s
a r e t o a p p l y o n l y to the ex-enemy c o u n t r i e s t a k e n e n
b l o c , and o n l y t o c e r t a i n d e s c r i p t i o n s
p o r t e d from those c o u n t r i e s .
of goods i m ­
I n tho f i r s t p l a c e ,
i s p r o p o s e d t h a t t h e y s h o u l d a p p l y a t once t o
goods i n t h e S c h e d u l e
of t h e B i l l .
for
The n e c e s s i t y f o r a d e q u a t e
these p a r t i c u l a r
established.
to t h e Key I n d u s t r i e s
industries
it
all
portion
protection
is regarded
They a r e v e r y l a r g e l y - G e r m a n
as
special!­
t i e s and c o m p e t i t i o n r e s u l t i n g from t h e d e p r e c i a t i o n of
t h e German e x c h a n g e s h a s t h e r e f o r e
t o be met a t once
In
t h e i r e a s e by s p e c i a l m e a s u r e s .
As r e g a r d s o t h e r goods
it
i s p r o p o s e d t o d e a l w i t h e a c h o a s e a s i t a r i s e s by a
special enquiry.
When a s a r e s u l t of a n e n q u i r y by a
Committee a p p o i n t e d u n d e r t h e p r o v i s i o n s
d e m o n s t r a t e d (1)
of t h e B i l l I t
Is
t h a t g o o d s of a n y c l a s s made i n one of
t h e s e c o u n t r i e s a r e b e i n g i m p o r t e d i n t o t h e U n i t e d Kingdom
a t p r i c e s w h i c h owing t o t h e s t a t e o f t h e e x c h a n g e a r e
lorer
t h a n t h o s e a t vrhioh s i m i l a r g o o d s oan be p r o d u c e d h e r e ,
and ( 2 ) t h a t a s a r e s u l t of t h i s i m p o r t a t i o n
employment
i n any I n d u s t r y I n t h e U n i t e d - K i n g d o m i s b e i n g
affected,
goods.
seriously
t h e Board of T r a d e a r e r e q u i r e d t o s o h e d u l e
Goods s o s c h e d u l e d become s u b j e c t t o a
e x c h a n g e d u t y on i m p o r t a t i o n ,
and t h i s d u t y ,
it
the
collapsed
is
suggested,
w h i l s t d e p e n d i n g t o some e x t e n t on t h e d e g r e e t o w h i c h
t h e c u r r e n c y of enemy S t a t e s I s d e p r e c i a t e d ,
s h o u l d n o t I n any
e v e n t e x c e e d t w o - t h i r d s of t h e v a l u e of t h e g o o d s .
It is
p r o p o s e d t h a t t h i s d u t y s h o u l d be l e v i e d w h e n e v e r t h e Mark
( a s i t h a s f a l l e n a t p r e s e n t ) below I d i n v a l u e .
1
falls
Only
r
a d u t y of s u c h m a g n i t u d e a s t h i s c o u l d b e d e p e n d e d upon
t o c h e c k t h e f l o o d of German g o o d s p r o d u c e d and m a r k e t e d
under the p r e s e n t c o l l a p s e d exchange c o n d i t i o n .
The de^
p r o a i a t i o n of t h e German e x c h a n g e I s t a k e n a s t h e
index
of t h e d u t y t o b e l e v i e d on t h e g o o d s , b e c a u s e i t
is
a l m o s t w h o l l y I n r e s p e c t of German i m p o r t s t h a t a n
offoot
on employment I n t h i s c o u n t r y I s t o b e f e a r e d ,
The
duty
o n l y need b o made a p p l i c a b l e t o i m p o r t s from o t h e r
late
enemy c o u n t r l - e s , l n o r d e r t o a v o i d t h e p o s s i b i l i t y t h a t German
m a n u f a c t u r e r s w i l l s e t up ^ r s e c u r e c o n t r o l o v e r works i n s u c h
c o u n t r i e s w i t h a view t o e s c a p i n g any d u t y a p p l i c a b l e o n l y t o
Gorman g o o d s .
The d e p r e c i a t i o n
i n t h e Auatriaft
exchange^
f o r e x a m p l e , I s no m e a s u r e of t h e r e a l r i s k s t h a t h a v e t o b e
met.
The B i l l
of l a s t y e a r gavo t h e Board of Trade power
t o impose a c o u n t e r v a i l i n g d u t y v a r y i n g from time t o
acoording to circumstances ascertained
and was s e v e r e l y c r i t i c i s e d
D e p a r t m e n t t h e power
to impose
d u t i e s on f o r e i g n goods f i x e d w i t h o u t r e f e r e n c e
Parliament,
there
Separtment,
on t h e ground t h a t I t p l a c e d
i n t h e h a n d s of a n a d m i n i s t r a t i v e
Import
by t h e
time
to
From t h e p o i n t of view of g i v i n g s e c u r i t y t o
i s much t o be s a i d f o r a f i x e d d u t y i r r e s p e c t i v e of
s t a t e of e x c h a n g e .
inadvisable
On t h e o t h e r hand i t would be
trade
the
manifestly
t o impose a d u t y s o h i g h a s fe6 2 / 3 p e r c e n t were
t h e v a l u e of t h e Mark t o improve s o much t h a t a n y a d v a n t a g e
Germany r e s u l t i n g from C o l l a p s e
order
t o g e t over t h e d i f f i c u l t y
of exchange d i s a p p e a r e d .
of a c o n t i n u a l l y
of
all
that,
i n the e v e n t ( w h i c h i s p e r h a p s h a r d l y
t h e Mark i n c r e a s i n g s u b s t a n t i a l l y
in v a l u e ,
s t e p s according to a determined
tEhe s t e p s s h o u l d
likely)
decrease
importers
may be i n a p o s i t i o n t o f o r e c a s t w i t h s u f f i c i e n t
1
accuracy
be.
These D u t y p r o v i s i o n s a r e d e s i g n e d t o o p e r a t e f o r
p e r i o d of t h r e e
The o b j e c t
is
schedule.
be few i n number i n o r d e r t h a t
what' t h e d u t y w i l l i n f a c t
it
t h e d u t y on
s c h e d u l e d goods from ex-enemy c o u n t r i e s s h a l l
by,definite
In
fluctuating
d u t y , w h i l s t a t t h e same t i m e m e e t i n g t h i s c r i t i c i s m ,
proposed
a
years.
of t h e m e a s u r e ,
in regard
t h a n t h o s e p r o d u c e d by Key I n d u s t r i e s ,
t o goods o t h e r
being to p r e v e n t u n ­
employment i n and damage t o B r i t i s h I n d u s t r i e s a s a r e s u l t
the a d v e n t i t i o u s
it
to
c o m p e t i t i o n d e p e n d e n t upon c o l l a p s e d
is obviously undesirable
which a r e not s h o w n . -
of
exchanges
t o a p p l y t h e d u t y t o goods
—
"
"
"
-­
t o menace B r i t i s h i n d u s t r i e s and t h i s c a n o n l y be
by i n q u i r y .
I t i s I m p o s s i b l e to f o r e c a s t
i n d u s t r i e s a r e l i k e l y t o be t h r e a t e n e d ^
i n a d v a n c e which
though evidence
a l r e a d y b e e n r e o e i v e d from a number of t r a d e s
gloves,
toys, musical instruments,
ascertained
(e.g.
leather etc.)
has
hosiery,
suggesting
t h e e x i s t e n c e of a p r i m e f a c i e c a s e which would j u s t i f y
sub­
m i s s i o n to a Committee.
It
s h o u l d be s t a t e d t h a t c o m p l a i n t s of
the e f f e c t s
c o l l a p s e d e x c h a n g e h a v e b e e n made i n r e g a r d n o t o n l y to
ex-enemy c o u n t r i e s b u t a l s o t o c e r t a i n A l l i e d
i n some of w h i c h ( n o t a b l y ,
of
the
countries,
I t a l y , F r a n c e , Belgium
and.Portugal)
t h e e x c h a n g e i s a l s o m u c h - d e p r e c i a t e d , - t h o u g h n o t n e a r l y so
s e r i o u s l y a s i n t h e c a s e of t h e ex-enemy c o u n t r i e s o r
of t h e s m a l l e r A l l i e s , v i z . P o l a n d , Boumania,
I t s h o u l d be n o t e d ,
however,
certain
Jugo S l a v i a
that the danger against
oto.
which
p r o t e c t i o n i s s o u g h t i s g r e a t e r i n t h e c a s e of Germany t h a n
of o u r A l l i e s b e c a u s e of. t h e c o n t i n u o u s l y d e p r e s s i n g
influence
w h i c h r e p a r a t i o n p a y m e n t s w i l l e x e r t on t h e German e x c h a n g e s .
Moreover t h e d i f f i c u l t i e s
of l e g i s l a t i n g a g a i n s t
c o u n t r i e s a r e s o f o r m i d a b l e a s t o be v i r t u a l l y
the
Allied
insuperable.
However g e n e r a l l y a c l a u s e m i g h t be worded s o a s t o
n o t t o a n y one c o u n t r y i n p a r t i c u l a r ,
exchange has d e p r e c i a t e d ,
apply
b u t t o a l l c o u n t r i e s whose
i t would s t i l l
c o n f l i c t with
the
e x t r e m e l y s p e c i f i c p r o v i s i o n s of - c e r t a i n of o u r Commercial
treaties.
Thus A r t i c l e
I I of t h e A n g l o - I t a l i a n
T r e a t y of 1 8 8 3 p r o v i d e s t h a t
Commercial
"No o t h e r or h i g h e r d u t i e s
be imposed on t h e i m p o r t a t i o n i n t h e D o m i n i o n s and
of Her B r i t a n n i c M a j e s t y of any a r t i c l e
facture
shall
Possessions
t h e p r o d u c e o r manu­
of t h e d o m i n i o n s or p o s s e s s i o n s of H i s M a j e s t y
King of I t a l y from w h a t e v e r p l a c e a r r i v i n g . , . . ,
the
t h a n on a r t i o l e s
produced or manufactured
i n any o t h e r c o u n t r y " .
Roumania,
and P o r t u g a l a l l h a v e s i m i l a r p r o v i s i o n s i n t h e i r
Serbia
Treatieo,
end B e l g i u m h a s a p r o v i s i o n w h i c h , t h o u g h couched i n more
g o n o r a l t e r m s , would u n d o u b t e d l y o n r - i t l o h e r t o
most-favoured­
n a t i o n t r e a t m e n t i n t h e m a t t o r of c u s t o m s d u t i e s .
thoreforo
Whilst
i t w o u l d , of c o u r s o , bo p o s s i b l e t o impose a d u t y
on goods from a l l c o u n t r i e s a l i k e , no d u t y c o u l d be imponod
on o . g .
I t a l i a n goods of any d e s c r i p t i o n u n l o s s an
identical
d u t y wore imposed on t h o samo goods of S w i s s or o t h e r
origino
neutral
We havo no Commercial T r e a t y w i t h F r a n c e w h i c h
e n t i t l e s tho l a t t e r t o claim most-favoured-nation
troatmont
i n r e g a r d t o Customs D u t i o s , b u t i n f a c t F r a n c o e x t e n d s m o s t ­
f a v o u r e d - n a t i o n t r e a t m e n t t o B r i t i s h goods b e c a u s e sho roceive3
very favourablo treatment in t h i s country.
Most of
T r e a t i e s named c a n o n l y be t o r m i n a t o d a t I S m o n t h s '
the
notice,
t h e a r r a n g e m e n t w i t h B e l g i u m a t 3 months n o t i c e and t h e
Portuguese Treaty not before
1925.
A l s o , a p a r t from t h o s e T r o a t y d i f f i c u l t i e s
i t would be
a q u e s t i o n a b l e p o l i c y f o r t h e U n i t e d Kingdom t o a d o p t any k i n d
of d i s c r i m i n a t i o n a g a i n s t . A l l i e d
and u n d o u b t e d l y would h i t b a c k .
countrios since
they.could
Wo s h o u l d r u n a s e r i o u s
of f i n d i n g o u r s e l v e s i n v o l v o d i n a war of T a r i f f s ,
and i t
risk
is
w o r t h p o i n t i n g o u t t h a t i f we o n t o r o d upon s u c h a c o u r s e i n t h o
c a s e of F r a n c e , whoro no t r o a t y o b s t a c l e s t a n d s i n t h e way, wo
s h o u l d be s t a k i n g t h e p r o f i t s
In the f i r s t
of a v o r y s u b s t a n t i a l
trade.
9 months of 1 9 1 5 ' o u r i m p o r t s from Franco, amounted
i n v a l u e t o n e a r l y £35-J- m i l l i o n and o u r e x p o r t s t o F r a n c e
t h o same p e r i o d amounted t o o n l y .322 m i l l i o n ,
c o a l t o £16 m i l l i o n ) .
(or
Today t h e p o s i t i o n i s
in
omitting
reversod.
We i m p o r t e d from F r a n c e i n t h o c o r r e s p o n d i n g p e r i o d of
1920
£ 6 0 . 3 m i l l i o n and we e x p o r t e d t o h e r £108 m i l l i o n
o m i t t i n g o o a l , £75 m i l l i o n ) ,
measure I s
(or
Germany ( a g a i n s t whom t h e
principally direoted)
o a n n o t , u n d e r t h e T r e a t y of
V e r s a i l l e s , r o t a l i a t e f o r a p e r i o d of a t l e a s t 5 y e a r s
t h e d a t e of i t s
aoming i n t o
I t would, moreover,
bo e x t r o m e l y d i f f i c u l t
from
force.
on p o l i t i o a l a n d s e n t i m e n t a l
grounds
t o t a k e a n y a c t i o n w h i c h w o u l d have t h e
a p p e a r a n c e of p e n a l i s i n g t h o t r a d e of t h e most h a r d h i t of
Allies.
The B i l l of 1919 was so worded a s t o g i v e a
in t h i s regard.
our
discretion
W h i l s t d u r i n g t h e war wo c o n t e m p l a t e d
the
p o s s i b i l i t y of d i s c r i m i n a t i o n a g a i n s t n e u t r a l s a f t e r t h e war
f a v o u r of o u r A l l i e s ,
and o v e n g a v e them n o t i c e g e n e r a l l y
we m i g h t f i n d I t n e c e s s a r y t o do s o , o f f e r i n g
ity,
if
them t h e
t h e y w i s h e d , of d e n o u n c i n g t h e i r Commercial
w i t h t h e U n i t e d Kingdom, no one e v e r d r e a m t of an
in
that
opportun­
Treaties
arrangement
u n d e r w h i c h i m p o r t s from o u r A l l i e s would be s u b j e c t t o h i g h e r
d u t i e s t h a n c o r r e s p o n d i n g i m p o r t s from n e u t r a l
(Intd)
countries.
R.S.H.
29.12.20.
(9)
Safeguarding of Industries Bill.
ARRANGEMENT
OF
CLAUSES.
PAIIT I .
Safeguarding
of Key
Industries.
Clause.
1.
2.
Charge of customs duties on goods in First
Schedule.
Repayment on account of duty paid under Part I.
PAET
Prevention
II.
of
Dumping.
3.
Power of Board of Trade to apply Part I I . to
certain goods.
4. Prohibition on sale of imported goods to which
Part I I . applies at less than their foreign value.
5. Meaning of " foreign value," " cost of production,"
&c.
6. Production of declarations and certificate.
7. Furnishing of particulars by importers.
8. Exception for certain goods.
PART I I I .
Safeguarding
9.
10.
11.
of Industries
against effects
of Foreign
Currencies.
of
depreciation
Charge of customs duties on certain goods produced
in enemy states.
Power of Board of Trade to apply Part I I I . to
certain goods.
Prevention of evasion.
PAET IY,
General.
12.
13.
14.
15.
16.
17.
Value of goods for purposes of Act.
Constitution of committees for purposes of Part I I .
and Part I I I .
Exception for transit goods.
Exercise of powers of Board of Trade under Act.
Interpretation.
Duration of Parts I. and I I I . , and short title.
SCHEDULES.
DRAFT
OF
A
B I L L
TO
Impose duties of customs on certain goods with A.D. 1921.
a view to the safeguarding of certain special
industries and the safeguarding of industries in
the United Kingdom against the effects of the
depreciation of foreign currencies, and to prohibit
the disposal in the United Kingdom, at prices
below their value in the country of origin, of
goods manufactured or produced in countries
outside the United Kingdom.
B
E it enacted by the King's most Excellent Majesty, by
and with the advice and consent of the Lords
Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same,
5 as follows:—
PART
Safeguarding
I.
of Key
Industries.
1.-(1) There shall be charged, levied, and paid on
the goods specified in the Eirst Schedule to this Act, on
10 the importation thereof into Great Britain or Ireland,
duties of customs equal to one-third of the value of the
goods.
(2) Where any other duties of customs, not being
duties chargeable under Part I I I . of this Act, are charge­
15 able in respect of any goods chargeable with duty under
this section, those other duties shall not be charged except
in so far as the amount thereof exceeds the amount of
the duty chargeable under this section.
1-1
A2
Charge of
customs11
^J^?
l^
Sm
rst
Schedule.
A . D . 1921.
Repayment
2.—(I) The Commissioners shall, on demand "by any
person by whom any duty is paid under this Part of this
Act, deliver to him a certificate, in such form as the
"* Commissioners may prescribe, specifying the name of
the importer, the date on which the certificate is issued, 5
the amount of the duty paid, and the quantity. and
description of the goods in respect of which the duty
was paid.
(2) If any person to whom such a certificate as
aforesaid is delivered exports from the United Kingdom, 10
at any time within six months from the date of the
certificate, any goods of the same description as those
specified in the certificate he shall, on producing the
certificate and complying with such conditions as the
Commissioners may impose with respect to the proof to 15
be given that the goods have been duly exported and
with respect to the manner in which claims for repay­
ment under this section are to be made and otherwise, be
entitled to receive from the Commissioners a sum bearing
the same proportion, subject as hereinafter provided, to 20
the amount specified in the certificate as having been
paid by way of duty as the quantity of the goods exported
bears to the quantity of the goods specified in the
certificate:
nninv^
on account
under
Part I.
pa
Provided that the amount repaid under this section 25
shall in no case exceed in the aggregate the amount
specified in the certificate.
(3) Before repayment is made under this section the
holder of the certificate shall deliver the certificate to
the Commissioners, and where the quantity of the goods 30
exported is not less than the quantity of goods specified
in the certificate the Commissioners shall retain and cancel
the certificate, and where the amount exported is less than
the quantity of the goods so specified the Commissioners
shall cause to be endorsed on the certificate a statement 35
of the quantity exported and the sum repaid, and shall
return the certificate to the holder thereof.
PART
Prevention
Power of
Board of
Trade to
apply
of
II.
Dumping.
3 . — ( 1 ) If the Board have reason to suspect that 40
goods of any class or description produced or manufactured in a country outside the United Kingdom are
being imported into or being sold or offered for sale in
­
the United Kingdom at prices below the foreign value p "[i["
thereof, and that the production or manufacture of similar certain
goods in the United Kingdom is, or is likely to be, adversely goods,
5 affected thereby, they shall refer the matter for inquiry
to a committee to be constituted under this Part of this
Act, and may after considering the report of the com­
mittee by order apply this Part of this Act to goods of
that class or description if imported from or if made or
10 produced in any country outside the United Kingdom or
such country or countries as may be specified in the
order:
1 9 2 1
art
15
20
25
30
35
t0
Provided that no such order shall be made with
respect to goods usually sold by public auction on the
first sale thereof in the United Kingdom.
(2) Where goods are manufactured or produced partly
in one country and partly in another, or undergo different
processes in different countries, the country from which
the goods were consigned to the United Kingdom shall,
unless it is determined in accordance with any general
or special directions given from time to time by the
Board in that behalf, that the principal or the most
valuable processes in relation to the goods took place in
some other country, be treated for the purposes of this
Part of this Act as the country of manufacture or
production of these goods.
(3) An order made under this section shall, unless
previously revoked by the Board, continue in force for
such period not exceeding three years as may be specified
in the order:
Provided that the Board shall not have power to
revoke any such order except on the recommendation of
a committee constituted under this Act for the purpose
of considering whether the order ought to be revoked.
4.—(1) Subject to the provisions of this section it
Prohibition
shall not be lawful for any person, on the first sale within ?
the United Kingdom of any goods to which this Part ^ d f t
of this Act applies, to sell the goods at a price which ^ h i c h
is less than the foreign value thereof:
P a r t IT.
40
Provided that a person shall not be deemed to have applies at
acted in contravention of the foregoing provision if he ^ y ^ j
proves that market conditions in the country of pro'
duction or manufacture had so changed that the price
at which the goods were sold was not less than the price
n s a l e
o f
(1
r e i g u
v a l u
e
A.D. 1921.
at which another person could, at the time at which the
goods were sold, have purchased similar goods in that
country and sold them in the United Kingdom without
committing an offence under this section, or that the
price a which the goods were sold was not less than the 5
current sterling equivalent, calculated as at the date on
which the foreign value of the goods is to be ascertained,
of the cost at that date of producing the goods in that
country.
(2) If any person acts in contravention of this section, i o
he shall be liable on summary conviction to a fine of an
amount not exceeding the foreign value of the goods
in respect of which the offence was committed, or on
conviction on indictment to a fine of an amount not
exceeding the foreign value of those goods increased by 15
one thousand pounds, and in either case the court dealing
with the case may order the goods to be forfeited.
M earring of
" foreign
value," " cost
of production," &c.
5-(1)
I n this Part of this A c t ­
The expression " foreign value " in relation to goods
of any class or description means -the current
sterling equivalent of the wholesale price at the
works which at the date on which the declaration
required to be made under the provisions of this
Part of this Act by the consignor of the goods
was certified by the British consular officer or
other duly authorised officer was being charged
for goods of that class or description sold in
similar quantities and under similar conditions
for consumption in the country of production or
manufacture, after deducting any excise or other
internal duty leviable in that country, or, if no
such goods are sold for consumption in that
country, the price which, having regard to the
prices charged for goods as near as may be similar
when so sold or when sold for exportation to other
countries, would be so charged, after deducting
any such duty as aforesaid, if the goods were sold
in that country:
20
25
30
35
The expression " cost of production " in relation to
any goods means the actual cost at the works of 40
producing the goods after making allowance for
establishment expenses and for a reasonable
return on the capital invested in the business.
(2) Where goods are imported not for sale but for the A.D. 1921.
use of the importer in connection with bis own trade or
business, the importer shall, for the purposes of this Part
of this Act, be deemed if and when he so uses the goods
5 to have sold them, and in such a case the sale price shall
for the purposes aforesaid be taken to be an amount
representing the price at which the importer actually
purchased the goods together with freight and insurance.
(3) Where the first sale in the United Kingdom of
1 0 any goods to which this Part of this Act applies is a
retail sale to a consumer the price realised on the sale
shall, for the purposes of this Part of this Act, be taken
to be reduced by an amount corresponding to the difference
between the A v h o l e s a l e price and the retail price of similar
1 5 goods ruling in the trade at the time of the transaction.
6 . — ( 1 ) Subject to the provisions of this Part of this Production
Act goods to which this Part of this Act applies shall not . d a r a ­
0
be delivered from customs charge unless and until there
-,
20
25
30
35
40
, .
,,
.
.
b
is produced to the Commissioners—
(a) a declaration in the prescribed form made by the
consignor of the goods stating the foreign value
of the goods and the country of manufacture or
production of the goods and certified by a British
consular officer, or other person duly authorised
by the Board, to give certificates for the purposes
, of this Part of this Act, to be to the best of his
knowledge and belief a true declaration; and
(b) a declaration in the prescribed form by the importer
as to whether the goods are being imported for
the purposes of his own trade or business or on
behalf of another person in the United Kingdom;
and
(c) in the case of goods imported on behalf of another
person in the United Kingdom a declaration in
the prescribed form as to the name and address
of that person :
Provided that the Commissioners may order any such
goods to be delivered out of customs charge without the
production of a declaration by the consignor of the goods
if security by bond is given to their satisfaction for the
subsequent production of the declaration.
(2) I n any proceedings under this Part of this Act
or under the enactments relating to Customs, the declara­
tion by the consignor, duly certified by a British consular
f
d e
tl01
'f
aD
certificate.
A.D, 1921. officer or other person as aforesaid, shall be conclusive
evidence of the amount of the foreign value of the goods
to which the declaration relates, and a declaration and
certificate purporting to be such declaration or valid certi­
ficate as aforesaid shall, if produced by or on behalf of 5
the Board or the Commissioners, be taken to be such a
declaration or certificate unless the contrary is proved.
(3) A certificate under this subsection shall be in such
form and be subject to such conditions as to period of
validity and otherwise as the Board may direct.
10
Furnishing
7 . - ( 1 ) The Board shall have power as respects any
00
s
h?£l'jorters
^
this -^ ^ ^ this
applies to require,
)j impoi ers. .j
think fit, such particulars with respect thereto
as may be required for the purposes of this Part of this
Act, including particulars of the price at which the goods 15
are sold by the importer, to be furnished by the importer
or the person on whose behalf the goods are imported.
(2) If any person who is required by the Board to
furnish particulars under this section fails to comply with
the requirement, or knowingly furnishes particulars which 20
are false in any material respect, he shall be liable on
summary conviction to a fine not exceeding fifty pounds
or to imprisonment for a term not exceeding one month
or to both such imprisonment and fine.
Exception
8 , Subject to such conditions as the Board or the 25
hT^ods
Commissioners, as the case may he, may prescribe for
o ier goo
i g that the provisions of this Part of this Act shall
not be evaded, this Part of this Act shall not apply to
any goods which—
(a) had left the place from which they were con­ 30
signed or the port from which they were shipped
to the United Kingdom not later than seven days
after the elate of the order applying this Part of
this Act to goods of the class or description in
question: or
35
(b) were despatched for shipment to the United
Kingdom within six months of the date of the
order applying this Part of this Act to goods of
the class or description in question in pursuance
of a contract entered into before the date of the 40
order by an importer for the purchase abroad
of the goods at a fixed price named in the
contract and the delivery thereof in the United
Kingdom,
8
? ^
0
g o
s e c u r
n
w
m
c
n
ar
0
PART I I I .
of Industries
Safeguarding
depreciation
of Foreign
A.D. 1921.
against
effects
Currencies.
of
9 . — ( 1 ) There shall be charged,
levied, and paid Charge of
to which this section applies, on the customs
importation thereof into Great Britain or Ireland, in jj"^"f ''
addition to any other duties of customs chargeable there- produced
on, duties of customs at the rates specified in the Second in enemy
Schedule to this Act.
cs.
5 on the goods
0
u (
00(lg
s t l l t
10
( 2 ) The goods to which this section applies are any
goods which are produced or manufactured in the territory
of any state with which His Majesty has been at war
at any time since the fourth day of August, nineteen
hundred and fourteen (in this Part of this Act referred
1 5 to as " a n enemy s t a t e " ) , and are included among the
goods specified in the Eirst Schedule to this Act, and
any goods in respect of which an order has been made
by the Board under this Part of this Act.
(3) The Board shall, at the commencement of every
20 month, publish in the London, Edinburgh, and Dublin
Gazettes a notice stating which of the rates of duties
specified in the Second Schedule to this Act will during
that month be chargeable under this Part of this Act.
(4) Eor the purposes of this Part of this Act, goods
2 5 shall be deemed to have been produced or manufactured
in the territory of an "enemy state if they are consigned
to Great Britain or Ireland from that state, or in the case
of goods so consigned from any other country, unless
more than fifty per cent, of their value, determined in
30 accordance with any general or special directions given
from time to time by the Board in that behalf, is proved
to be the result of processes which took place outside the
territory of any enemy state.
Subject to the provisions of this section Power of
3 5 the Board may, where they are satisfied that goods of J*
any class or description produced or manufactured in ?
the territory of any enemy state are being imported into p a i V i i L
Great Britain or Ireland at prices which by reason of to certain
the depreciation of the currency of that state are below goods.
4i0 the prices at which similar goods can be produced or
manufactured in Great Britain or Ireland, and that, by
reason of those goods being so imported, employment
in any industry in Great Britain or Ireland is being
10.—(1)
oavd o i
l r a
1
B
e 1 0
A.D. 1 9 2 1 . seriously affected, by order apply this Part of this Act
—
to goods of that class or description manufactured or
produced in the territory of all enemy states:
Provided that no order shall be made under this
section except on the recommendation of a committee 5
constituted for the purposes of this Act.
(2) An order made under this section shall be laid
before each House of Parliament [the Commons House
of Parliament] as soon as may be after it is made for
a period of twenty-one clays during which that House 10
has sat, and if either House [the House] before the
expiration of that period presents an address to His
Majesty against the order His Majesty in Council may
annul the order, and thereupon the order shall become
void, but without prejudice to the validity of anything 15
previously done thereunder.
(3) An order made under this section shall, unless
previously revoked by the Board, continue in force for
the period during which this Part of this Act remains
20
in force:
Provided that the Board shall not have power to
revoke any such order except on the recommendation
of a committee constituted under this Act for the pur­
pose of considering whether the order ought to be
25
revoked.
Prevention
of evasion.
X j , "Where the importer of any goods suspected of
] j g goods to which this Part of this Act applies alleges
that those goods were manufactured or produced in a
country other than an enemy state, he shall furnish to
the Commissioners proof in the prescribed form with 30
respect to the country of production or manufacture of
the goods, and if such proof is not furnished to the
satisfaction of the Commissioners the goods in question
shall be deemed to be goods to which this Part of this
35
Act applies.
3e
n
PAUT I V .
General.
Value of
goods for
of A c T
S
12.—(1) The value of any goods for the purpose of
t j Act shall be taken to be the price which an importer
would give for the goods if the goods were delivered to 40
him freight and insurance ' paid, in bond at the port
of importation, and duty shall be paid on that value as
fixed by the Commissioners.
n
s
/
(2) If in ascertaining the proper rate of duty charge- A.D. 1921.
able on any goods under this Act any dispute arises as
to the value of the goods, that question shall be referred
to an arbitrator appointed by the Treasury [Lord Chan­
5 cellor], and the decision of the arbitrator with respect to
the matter in dispute shall be final and conclusive.
13.—(1) A committee for the purposes of Part I I .
or Part I I I . of this Act shall consist of three persons
selected by the President of the Board from a permanent
1 0 panel consisting of not more than twenty-four persons
appointed by him.
(2) Any person whose interests may be materially
affected by any action which may be taken on the report
of a committee shall not be eligible for selection as a
1 5 member of the committee.
Constitution
JjX^g
of committee
ail
a
Part I I I .
(3) A committee to whom any matter is referred
under Part I I . or Part I I I . of this Act shall forthwith
inquire into the matter so referred and report thereon to
the President of the Board, and where the committee are
20 of opinion that an order should be made by the Board
under Part I I . of this Act the report of a committee may
contain recommendations as to the scope and duration of
the order.
14.
Subject to compliance with such conditions as
25 to security for the re-exportation of the goods as the
Commissioners may impose, this Act shall not apply to
goods imported for exportation after transit through the
United Kingdom or by way of transhipment.
Exception
for transit
g
o o d s
­
15.
Anything authorised under this Act to be done Exercise of
30 by the Board may be done by the President, or a powers of
Secretary or Assistant-Secretary, of the Board, or by any J J ^
person authorised in that behalf by the President of the ^
Board.
0
1
e u n
e i
A
35
40
16. In this A c t ­
The expression " the Board " means the Board of
Trade:
The expression " the Commissioners " means the
Commissioners of Customs and Excise :
The expression " prescribed " means prescribed by
regulations made by the Board. '
1
C
Interpretat i o n
-
6 8
A.D. 1921.
1 7 . - ( 1 ) P a r t I. of this Act shall continue in force
Duration of
.
^ ' '
ei
Parts I. and P 'iocl of three years, from the
f
III., and
short title.
0
r
a
0 f
five
e
d Y S
a
n
d
P
a r t
I
H
'
o f
^
t n i s
c
t
f
o
'
r
d
commencement thereof
and no longer.
( )
2
T
M
s
A
c
t
m
a
Industries Act, 1921.
y
b
e
c
i
t
e
d
a g
g
a
f
e
g
u
a
r
d
i
n
g
Q f
g
[11 GEO. 5.]
Safeguarding
of
Industries.
11
SCHEDULES.
FIRST
SCHEDULE.
GOODS CHARGEABLE WITH DUTY.
5 not.
I. Optical glass and optical elements, whether finished or
2, Scientific porcelain-ware and scientific glassware, in­
cluding lamp-blown ware.
3. Optical and scientific instruments.
4. Wireless valves and similar rectifiers, and vacuum tubes.
10
5. Gauges and measuring instruments of precision of the
types used in engineering machine shops and viewing rooms,
whether for use in such shops or rooms or not.
6. Magnetos and permanent magnets.
7. Arc-lamp carbons.
15
8. Products of metallic tungsten.
9. Hosiery latch needles.
10. Compounds (not including ores or minerals) of thorium
and of the rare earth metals.
I I . Gas mantles and gas-mantle rings.
20
12. All synthetic organiq compounds of any description
whatsoever (other than synthetic organic dyestuffs, colours, or
colouring matters, and all organic intermediate products used
in the manufacture of any such dyestufrs, colours, or colouring
matters).
25
SECOND
SCHEDULE.
RATES OP CUSTOMS DUTIES CHARGEABLE
UNDER PART I I I .
Where the sterling value of the
R A T E OF DUTY.
Mark­
30
Does not exceed one penny- Four-sixths of the value
the goods.
Exceeds one penny, but does
not exceed threepence
- Three-sixths of the value
the goods.
35
Exceeds threepence, but does
not exceed sixpence - Two-sixths of the value
the goods.
Exceeds sixpence, but does
not exceed eightpence
- One sixth of the value
40
the goods.
Exceeds eightpence
- Nil.
of
of
of
of
Safeguarding of
Industries.
DE
APT
OF
B
I
A
L
L
To impose duties of customs on cer­
tain goods with a view to the
safeguarding of certain special
industries and the safeguarding
of industries in the United K i n g ­
dom against the effects of the
depreciation of foreign currencies,
and to prohibit the disposal i n
the United Kingdom, at prices
below their value in the country
of origin, of goods manufactured
or produced in countries outside
the United Kingdom.
CGIV.
24:th December
1-1
(9.)
1920.