C
A
B I N L Ti
THE SAFEGUARDING OF INDUSTRIES BILL.
Memorandum^ by the P r e s i d e n t ofJthe^ Board of Trade.
I am c i r c u l a t i n g t o t h e C a b i n e t t h e new d r a f t
of
S a f e g u a r d i n g of I n d u s t r i e s B i l l a s r e m o d e l l e d by t h e
tho
Cabinet
Co mrn i t t e e .
The method of s a f e g u a r d i n g t h e k e y
industries
1
r e m a i n s a s b e f o r e - v i s . - a d u t y nf 33 ofc.
c h a n g e s a r e , h o w e v e r , now m a d e .
removed from t h e s c h e d u l e
lhe
following
Gas m a n t l e s h a v e been
(on t h e ground t h a t
widespread
c o m p l a i n t m i g h t a r i s e from t h e h o u s e h o l d u s e r s of
gas)
and t h e c l a s s of c h e m i c a l s h a s been somewhat e x p a n d e d *
A c l a u s e h a s been i n s e r t e d r e q u i r i n g and e n a b l i n g t h e
of
Eoard
Trade t o o b t a i n i n f o r m a t i o n a b o u t t h e o u t p u t of Key
industries,
and s e t t i n g up a Development Committee t o
watch
progress.
On t h e b a s i s o f , t h e r e t u r n s s s b t a i n e d , and t h e
r e p o r t s made by t h e D e v e l o p m e n t C o m m i t t e e , r e p o r t s a r e t o be
p r e s e n t e e ; t o P a r l i a m e n t from t i m e t o t i m e .
Further,
d u t y i s n o t c h a r g e a b l e on goods o r i g i n a t i n g i n and
from t h e B r i t i s h
the
consigned
Empire.
The most i m p o r t a n t change i n t h e new d r a f t
is the
in­
c o r p o r a t i o n of t h e c o l l a p s e d e x c h a n g e s p a r t of t h e B i l l
t h e dumping p a r t .
A b n o r m a l c o m p e t i t i o n a r i s i n g from
c a u s e h a s t h e same e f f e c t
proof
r e q u i r e d of
upon t h e i n d u s t r i e s
with
either
involved,
the
i n j u r y a c t u a l o r imminent i s t h e same i n
b o t h c a s e s , and t h e remedy p r o p o s e d i s a l s o
the same.
t h e s e c i r c u m s t a n c e s t h e C a b i n e t Committee d e c i d e d
In
to
a m a l g a m a t e t h e p r o v i s i o n s t o meet b o t h c l a s s e s of
u n f a i r and a b n o r m a l
competition.
Y/hat i s now s u g g e s t e d i n t h i s c o m p o s i t e p a r t of t h e
i s as follows.
called for
If there
i s reason t o suppose t h a t
action
i n t h e c a s e of a n y p a r t i c u l a r a r t i c l e , t h e
i s t o be r e f e r r e d t o a C o m m i t t e e .
I f t h e Committee
Bill
is
matter
decides
(a) that those artiolos are "being sold in the oountry at prioes
less than their foreign value, or that their importation to boing
stimulated by the Oollapsed state of the exchange of the
country or countries of origin, and (b) that in consequence
employment in this country Is being or is likoly to bo serious­
ly affected; then, the Board of Trade may by Order sohodule that
article, and thereafter on importation from the country or
oountries concerned the article will be subject to a duty of
33 1/3$,
If, however, the duty is imposed not on the ground of
collapsed exchange but on the ground of dumping in tho more
limited sense, then on proof being furnished to the Customs
that any particular consignment was not dumped in this sense
the duty is to be remitted or repaid.
In the original draft
of the Bill, dumping in this sense was made a punishable offence
instead of being subject to duty, but the latter course com­
monded itself strongly to the Cabinet Committee;
and it has the
additional advantage of facilitating the interweaving of the
collapsed exchange provisions with the dumping provisions.
Dumping in the strict sense is now defined as selling in
this Country beneath cost of production in tho Country of
origin, but, as this is admittedly indeterminable for administrative
purposes, it is stated in the Bill that wholesale selling price
at the works shall be taken as cost of production.'
Orders made by the Board may be reversed by resolution of
either House, and revoked at any time by the Board without
reference to Parliament but not without reference to the Committee.
(Sgd)
H.S. H O M E *
25th February, 1921,
Safeguarding of I n d u s t r i e s Bill.
ARRANGEMENT OE CLAUSES.
PART I.
Safeguarding of Key
Industries.
Clause.
1.
2.
Charge of customs duties on goods in Schedule.
Returns and reports.
PART
II.
Prevention of Dumping.
3.
4.
5.
* 6.
7.
8.
9.
10.
Power of Board of Trade to apply Part I I . to
certain goods.
Charge of customs duties on goods to which
Part I I . applies.
Remission and repayment of duty in certain cases.
Power to require proof of origin of goods.
Exceptions.
Constitution of committees.
Meaning of " cost of production," &c.
Duration, &c, of orders.
PART
III.
General.
11.
12.
13.
14.
15.
16.
Value of goods for purposes of Act.
Determination of disputes.
Supplementary provisions as to new duties.
Exception for transit goods.
Interpretation.
Duration of Part I., and short title.
SCHEDULE.
1-1
A
DRAFT
Of
B
A
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 employment
in industries in the United Kingdom against the
effects of the depreciation of foreign currencies,
and the disposal of imported goods at prices
below the cost of production.
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 I .
Safeguarding of Key Industries.
1.-(1) Subject to the provisions of this Act there "charge
shall be charged, levied, and paid on the goods specified customs
10 in the Schedule to this Act, on the importation thereof
p ­
into the United Kingdom, duties of customs equal to one- I ^ " ^
third of the value of the goods.
(2) Where any other duties of customs, not being
duties chargeable under Part I I . of this Act, are charge­
15 able in respect of any goods chargeable with duty under
this section, duty under this section shall not be charged
except in so far as the amount thereof exceeds the amount
of those other duties.
(3) No duty shall be charged under this section on
20 goods which are shown to the satisfaction of the Com­
missioners to have been consigned from and grown,
produced or manufactured in the British Empire, and for
the purposes of this subsection goods shall be deemed to
d u t i e s
0
1-7
A2
u
AJD. 1921. have been manufactured in the British Empire which
would he treated as having been-so manufactured for the
purposes of section eight of the Einan.ee Act, 1919, (which
relates to Imperial preference), and that section shall
apply accordingly.
-J
(4) Where an imported article is a compound article
of which an article liable to duty under this section is an
ingredient or forms part, no duty shall be charged under
this section in respect of the compound article if the
compound is of such a nature that the article liable to 10
duty has lost its identity, and any dispute as to whether
an article has lost its identity shall be determined in like
manner as disputes as to whether goods are goods specified
in the schedule to this Act.
(5) Eor the purpose of preventing disputes arising as
to whether any goods are or are not any goods chargeable
with duty under this Part of this Act, the Board may from
time to time issue lists defining' the articles Avhich are to
be taken as falling under any of the general descriptions
set out in the said. Schedule, and where any list is so
issued defining the articles which are to be taken as
falling under any such general description, the said
Schedule shall have effect as if the articles comprised in the
list were therein substituted for that general description.
Every list issued under this section shall be published
forthwith in the London, Edinburgh, and Dublin Gazettes,
and in such other manner as the Board think proper.
If within three months after the publication of any
such list any person appearing to the Board to be
interested delivers to the Board a written notice complaining that any article has been improperly included
in, or excluded from, the list, the Board shall refer the
complaint to a referee to be appointed by the Treasury,
and the decision of the referee shall be final and con­
elusive, and the list shall he amended so far as is
necessary in order to give effect to the decision, without
prejudice, however, to the validity of anything previously
done thereunder.
Returns and
reports.
15
20
25
30
35
2.—(l) Por the purpose of obtaining information
^
p t to the production in the United Kingdom of 40
goods of the class chargeable with duty under this Part
of this Act, the Board may at any time and from time to
time require any person engaged in the manufacture in
w
r e S
e c
the United Kingdom of any such goods to furnish in A.D. 1921.
writing to the Board such particulars as the Board may
direct with respect to the description and quantity of any
such goods manufactured by him and the plant available
5 for the manufacture of any such goods.
(2) For the purpose of ascertaining the development
of industries in the United Kingdom engaged in the
manufacture of goods made subject to duty under this
Part of this Act, the Board shall appoint a committee
10 containing amongst its members representatives of the
Admiralty, the Army Council, and the Air Council, and
shall place at the disposal of the committee any infor­
mation obtained by the Board under the last foregoing
subsection.
,
15
(3) The committee shall, from time to time, mate
reports to the Board on the state and progress of the
various industries, and the Board shall, after considering
the reports of the committee and any other information in
their possession, annually present a report to Parliament
20 relating to the production in the United Kingdom of
goods of the class chargeable with duty under this Part of
th is Act.
PAET II.
Prevention of Dumping.
25
3.—(1) If it appears to the Board that goods of any
Power of
class or description (other than articles of food or drink) l
manufactured in a country outside the United Kingdom J" ,
are being sold or offered for sale in the United P a r t i l .
Kingdom—
certain
30
(a) at prices below the cost of the production
'
thereof as hereinafter defined; or
(b) at prices which, by reason of depreciation in
the value in relation to sterling of the currency
of the country in which the goods were manu­
35
factured are below the prices at which similar
goods can be profitably manufactured in the
United Kingdom;
and that by reason thereof employment in any industry in
the United Kingdom is being or is likely to be seriously
4 0 affected, the Board may refer the matter for inquiry to a
committee constituted for the purposes of this Part of
this Act.
5 oartl
o f
i
RA DE
TO
F
g o o d s
to
A.D. 1921:
(2) If the committee report that as respects goods of
any class or description manufactured in any country the
—
conditions aforesaid are fulfilled the Board may by order
apply this Part of this Ad to goods of that class or
description if manufactured in that country :
5
Provided that no such order shall be made which is
at variance with any treaty, convention or engagement
with any foreign state in force for the time being.
(3) An order made under this section shall he laid
before each House of Parliament as soon as may be after 10
it is made for a period of twenty-one days during which
that House has sat, and if either 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 1.5
prejudice to the validity of anything previously done
thereunder.
Charge of
customs
tlutl
J
s 0 n
g t o
which
PartlT.
applies.
4.—(l) Subject to the provisions of this Part of this
A^ct there shall be charged, levied and paid on goods of
any class or description in respect of which an order 20
has ^
d e under this Part of this Act if manufac­
tured in any of the countries specified in the order,
on the importation thereof into the United Kingdom, in
addition to any other duties of customs chargeable
thereon, duties of customs equal to one-third of the 25
value of the goods.
e e n
m a
(2) "Where goods are manufactured partly in
one country and partly in another, or undergo different
processes in different countries, and any one or more of
those countries are countries in relation to which an 30
order applying to the goods in question has been made
under this Part of this Act, the goods shall he liable
to duty under this Part of this Act unless it is proved
to the satisfaction of the Commissioners that fifty per
cent or more, or such other proportion as may be 35
directed by the Board, of the value of the goods is
attributable to processes which took place outside the
country or countries in relation to which such an order
has heen made.
(3) An order under this Part of this Act may extend 40
to goods brought back into the United Kingdom after
having been exported therefrom for the purpose 0 1 under­
going any process out of the United Kingdom and in such
case the goods shall be deemed for the purposes of this Part A.D. 1921.
of this Act to have been manufactured in the country
in which they have undergone such process, but the
importer shall, on proof to the satisfaction of the Oommis­
5 sioners of the value of the goods free on board at the time
of such exportation, and of the identity thereof, and that
no drawback has been allowed thereon on the exportation
thereof, be entitled to be repaid by the Commissioners such
proportion of the duty paid under this Part of this Act on
10 the goods so brought back after having undergone such
process as aforesaid as represents the duty on the value of
the goods before exportation.
5. Where an order has been made under this Part of
this Act applying this Part of this Act to goods of any
1 5 class or description on the ground that goods of that class
or description being sold or offered for sale in the United
Kingdom at prices below the cost of production thereof,
the following provisions shall have effect:—'
20
25
30
35
40
( 1 ) If any person by whom any duty would be pay­
able proves to the satisfaction of the Commis­
sioners that the goods in respect of which the
du'ty is payable, have already been sold in the
United Kingdom at a price which was not less
than the cost of production the payment of duty
shall be remitted.
(2) If any person by whom any duty has been paid
. proves to the satisfaction of the Commissioners
that the goods were on the first sale thereof
within the United Kingdom sold at a price which
was not less than the cost of production of the
goods, or where there has been a change in the
market conditions ofHhe country of manufacture,
not less than the amount which would on the
date of sale have been the cost of production in
that country of similar goods he shall be entitled
to repayment of the duty so paid.
(3) No such remission or repayment of duty shall be
made, unless and until there is produced to the
Commissioners a declaration in the prescribed
form made by the consignor of the goods stating
the cost of production, at the date of the declara­
tion, of the goods and the country of manufac­
ture of the goods, certified by a British consular
officer, or by some other person duly authorised
Remission
a n d
re
P y­
a
JJ^ertftiQ "
U
c a s e s
.
y
A.I). 1921,
Power to
F
f wn^of
foods?
Exceptions.
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.
Por the purpose of any claim to remission or
repayment of duty under this section, the 5
declaration by the consignor, duly certified by
a British consular officer or other person as
aforesaid, shall be conclusive evidence of the
amount of the cost of production of the goods to
which the declaration relates.
10
A certificate under this section shall be in
such form and be subject to such conditions as
to period of validity and otherwise as the Board
may direct.
(4) Where goods which have been charged with 1 5
duty are, without being sold, used in the United
Kingdom for aiiy purpose, they shall, for the
purposes of this section, be deemed on being so
used to have been sold, and in such a case the
sale price shall for the purposes aforesaid be 20
taken to be an amount representing the price
at which the goods were actually purchased from
the foreign manufacturer, together with freight
and insurance.
It shall be lawful for the Commissioners, in the 25
^ ' ^ ^ ^ h i ^ manufactured in a particular
country would be liable to duty under this Part of this
Act, to require the importer to furnish to the Commis­
sioners proof in the prescribed form with respect to the
country of manufacture of the goods, and if such proof is 3 0
not furnished to the satisfaction of the Commissioners the
goods shall be deemed to he goods liable to duty under
this Part of this Act:
Provided that the Commissioners shall require such
proof in the case only of goods consigned from such. 3 5
countries as the Board may direct.
C a s e
0
an
00(
s w
c n
7. Subject to such conditions as the Commissioners
may prescribe for securing that the provisions of this Part
of this Act shall not be evaded, this Part of this Act shall 4,0
not apply to any goods which had left the place from
which they were consigned to the United Kingdom not
later than se en days after the date of the order applying
this Part of this Act to goods of the class or description in
question.
*
45
Tr
8.—(1) A committee for the purposes of this Part of
this Act shall consist of three persons selected by the
President of the Board from a permanent panel consisting
of not more than twenty-four persons appointed by him
5 who shall be mainly persons of commercial or industrial
experience.
(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
10 member of the committee.
(3) A committee to whom any matter is referred
under this Part 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 of opinion
15 that an order should be made by the Board the report of
a committee may contain recommendations as to the
scope and duration of the order.
A.D. 1921.
rjoistituti ii
0
f
C0U1
mittees.
9.—(1) In this Part of this Act the expression " cost Meaning of
of production " in relation to goods of any class or descrip­ "
tion means the current sterling equivalent of—
- i?
(a) the wholesale price at the works charged for
goods of the class or description for con­
sumption in the country of manufacture; or
(b) 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 exporta­
tion to other countries, would be so charged if
the goods were sold in that country ;
after deducting in either case any excise or other internal
duty leviable in that country.
(2) This Part of this Act shall extend to articles
which have been produced by cultivation in a country
outside the United Kingdom in like manner as it applies
to articles manufactured in such a country, and in the
application of this Part of this Act to such articles, for
the reference to " works " there. shall be substituted a
reference to the place where the article was cultivated.
c o s t
20
25
30
35
.
t
10.—(1) An order made under this Part of this Act
40 shall, unless previously revoked by the Board, continue in
force for three years or such less period as may be specified
in the order:
1
B
o f
on
Duration,&a,
o f
orders,
A.D. 1921.
Provided that the Board shall not have power to
—
revoke any such order except after reference to and
consideration of any report thereon by a committee
constituted under this Part of this Act.
PAUT I I I .
5
General.
Value of
goods for
purposes
of Act.
11.—(1) The value of any imported goods for the
purpose of this Act shall be taken to be the price which
an importer would give for the goods if the goods were
delivered to him freight and insurance paid, in bond at io
the port of importation, and duty shall be paid on that
value as fixed by the Commissioners.
(2) If in ascertaining the proper rate of duty charge­
able on any goods under this Act any dispute arises as
to the value of the goods, that question shall be referred 15
to a referee appointed by the Treasury, and the decision
of the referee with respect to the matter in dispute shall
be final and conclusive.
Sections thirty and thirty-one of the Customs Con­
solidation Act, 1876, shall, as respects any such dispute as 20
to value, have effect as if an application for a reference to
a referee under this provision were substituted for the
action or suit mentioned in those sections.
Determina­
tiou of
disputes.
12. If any dispute arises as to whether any goods
imported into Great Britain or Ireland are goods specified 25
in the Schedule to this Act or in any list made by the
Board under Part I. of this Act, or are goods to which
Part I I . of this Act applies, the question shall be referred
to a referee to be appointed by the Treasury, and the
decision of the referee with respect to the matter in 30
dispute shall be final and conclusive, and sections thirty
and thirty-one of the Customs Consolidation Act, 1876,
shall apply as if the dispute were a dispute as to the
proper rate of duty payable, with the substitution of an
application for a reference to a referee under this section 35
for the action or suit mentioned in those sections.
Supplemeu­
tary proyi­
sions as to
new duties.
13.—(1) If it is proved to the satisfaction of the
Commissioners that duty of customs has been duly paid
in respect of any goods under this Act, and the goods
have not been used in the United Kingdom, a draw- 40­
back equal to the amount of duty paid shall be allowed
on those goods if exported as merchandise.
(2) Section six of the Customs and Inland Revenue A.D. 1921.
Act, 1879, shall not apply to goods liable to duties of
customs under this Act, and any such goods imported into
the United Kingdom after exportation therefrom shall
5 be exempt from duty, if it is shown to the satisfaction of
the Commissioners either that the goods had not been
imported previously to exportation, or that no drawback
of duty was allowed on exportation, or that any drawback
so allowed has been repaid to the Exchequer:
10
Provided that goods which have been imported and
exported by way of transit under bond shall not be
deemed to have been imported or exported under this
provision.
14. Subject to compliance with such conditions as
Exception
1 5 to security for the re-exportation of the goods as the for transit
Commissioners may impose, this Act shall not apply to
goods imported for exportation after transit through the
United Kingdom or by way of transhipment.
g 0 0
15.— (1) In this Ad—
20
'
Interpreter
The expression " the Board " means the Board of
Trade; and any thing authorised under this Act
to be done by the Board may be done by the
President, or a Secretary or Assistant-Secretary,
of the Board, or by any person authorised in
that behalf by the President of the Board:
The expression " the Commissioners " means the
Commissioners of Customs and Excise :
25
s
tlon
*
The expression " prescribed " means prescribed by
regulations made by the Board.
30
(2) This Act shall be construed together with the
Customs Consolidation Act, 1876, and any enactments
amending that Act, except that the Isle of Man shall not
be deemed to be part of the United Kingdom.
16.—(1) Part I. of this Act shall continue in force
35 for a period of five years, from the commencement thereof
and no longer.
(2) This Act may be cited as the Safeguarding of
Industries Act, 1921.
1
C
Duration (
"Part -U ai
s l l 0 r t
t i t l e
10
A.D. 1921.
Safeguarding of Industries.
[11 GEO. 5.]
SCHEDULE.
GOODS CIIARGEAELE WITH DUTY.
I. Optical glass and optical elements, whether finished or
not.
2. Beakers, flasks, burettes, measuring cylinders, therrno- 5
meters, tubing, and other scientific glassware and lamp-blown
ware.
3. Evaporating dishes, crucibles, combustion boats, and
other laboratory porcelain.
4. Microscopes,fieldand opera glasses, theodolites, sextants, 10
spectroscopes, and other optical instruments.
5. Galvanometers, pyrometers, electroscopes, barometers,
analytical and other precision balances, and other scientific
instruments.
6. Wireless valves and similar rectifiers, and vacuum tubes. 15
7. 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.
8. Ignition magnetos and permanent magnets.
9. Arc-lamp carbons.
20
10. Metallic tungsten, ferro-tungsten and manufactured
products of metallic tungsten.
II. Hosiery latch needles.
12. Compounds (not including ores or minerals) of thorium
and of cerium and of the other rare earth metals.
. 25
13. All synthetic organic chemicals (other than synthetic
organic dyestuffs, colours, and colouring matters imported for
use as such, and organic intermediate products imported for
their manufacture), analytical re-agents, all other fine chemicals
and chemicals manufactured by fermentation processes.
30
Safeguarding of
Industries.
D E, A E T
OF
B
I
A
X i
L i
T o i m p o s e d u t i e s of c u s t o m s o n c e r ­
tain goods w i t h a view t o t h e
s a f e g u a r d i n g of c e r t a i n
special
industries a n d t h e safeguarding
of e m p l o y m e n t i n i n d u s t r i e s i n t h e
U n i t e d K i n g d o m a g a i n s t t h e effects
of t h e d e p r e c i a t i o n of f o r e i g n c u r ­
r e n c i e s , a n d t h e d i s p o s a l of i m ­
ported goods a t prices below t h e
c o s t of p r o d u c t i o n .
XIX.
26th
1-7
February
(6.)
1921.