TRADE BARRIERS-ENGLAND, SCOTLAND, WALES, NORTHERN IRELAND, AND CHANNEL ISLANDS 1. Partial embargo placed June 21, 1930, effective every year from July 7 to November 15, allows the higher grades only to enter between these dates: 2. Import duty of 10 percent ad valorem placed March 1, 1932; 3. Import duty of 4s. 6d. per hundredweight, placed November 16, 1932, in accordance with the Ottawa agreements. This is from 90 to 95 cents per barrel and around 28 to 30 cents per box, depending on exchange and weight; 4. Exchange disruptions. England went off the gold standard September 21, 1931, and, ever since, exchange disruptions have been serious. The value of the British pound from that time ranged down from $4.86 to $3.15 on November 30, 1932. The difficulties, and at times the impossibility of doing business with a shilling dropping from a value of 24.3 cents to 17.2 cents from August to October in 1932 and down to 15.7 cents on November 30, and back to 16.7 cents on January 7, 1933, should be obvious to all. It is now pegged. 5. Sanitary and pest inspections. Yes. Trade agreement effective January 1, 1939, reduced the duty to three-sixths per hundredweight for certain months of the year. EFFECTS OF TRADE BARRIERS 1. Great Britain.-Exports in 1932 should have equaled or exceeded 1931. With the British pound at $3.48 and a 10-percent duty, United States exports declined 20 percent from the opening of the season in August to October 8. The new duties under the Ottawa agreements then became imminent and for 3 weeks exports were pushed to arrive ahead of those duties which went into effect on November 16, 1932. During November, under the pressure of the war debt question, the British pound broke to $3.15% on November 30, and rose to about $3.35. The net result was that exports dropped from 80 percent of 1931 to a low point of 23 percent of 1931 for the week ending December 31. For the 8 weeks prior to January 1, 1933, United States apple exports to Great Britain declined 61 percent from 1931. Canada enters Great Britain without any duty. Hence, based on duty alone, a British purchaser paid about 95 cents per barrel and 28 to 30 cents per box less for United States apples than Canadian in order to compete. Taking exchange into account, the difference was much greater. 8 Exports of apples from United States to Great Britain to show the immediate effect of imposition of a high duty with a low rate of exchange EXPLANATORY NOTES The percentage column in the center of the table gives the percentage, stated in barrels, for the 1932 season as compared with the same period in 1931. From August to October 8, 1932, exports to Britain were running at 80 percent of 1931. The upturn for the 2 weeks ending October 15 to 22, and to a lesser degree for the week ending October 29, represents shipments to arrive before the imposition of the duties under the Ottawa agreements. From November 5 on the decline is marked. During this period the imposition of duties under the Ottawa agreements were pending in Parliament. The new duties of 4s. 6d. per hundredweight became effective at midnight November 16, 1932. The rate of exchange from August to October 22 ranged from $3.40 to $3.48%1⁄2; from October 22 to November 30 it broke to as low as $3.154. On December 13 it had risen to $3.241⁄2 and on December 31 to $3.312. The last 8 weeks exports show a decrease from comparable weeks for 1931 of 1,832 cars of barrel apples and 320 cars of boxes-total, 2,152 cars. In these 8 weeks the shipments averaged 39 percent of 1931. Based on supplies in the United States and the size of the erop in Great Britain exports in 1932 might have been expected to exceed 1931. TABLE III.-Exports of apples and pears from United States to France, for years 1924-44 (export season from July 1 to June 30) 1 [U. S. Department of Agriculture data] 1 TABLE IV.-Exports of apples and pears from United States to Belgium, for years 1924-44 (export season from July 1 to June 30) 1 HISTORY AND DEVELOPMENT OF BELGIAN APPLE TARIFFS These duties apply to packages of 20 kilos (44 pounds) and over, which cover the packages in commercial use in the United States. March 1934, franc at 4.708 cents: Duty on wrapped apples reduced, barrels increased, under New Zealand-Belgian agreement May 1, 1935, to date: Trade agreement in effect; no change in duty; duty based on net weight 1 Baskets, with fruit unwrapped, contain about 1⁄2 of a barrel and duty per package varies accordingly. Where actual present duty on a barrel is 59 cents, the basket is about 19 cents. The standard apple barrel holds a little over 3 dry United States bushels. No difference in duty now exists between wrapped and unwrapped apples. 2 Net weight barrel 140 pounds, basket 44 pounds, franc at 3.39 cents. Net weight 44 pounds, franc at 3.39 cents. TRADE BARRIERS-BELGIUM 1. Duties.-Belgian duties are figures on gross weight, package included, except when the duty exceeds 10 francs per 100 kilos. The changes in duties from 1928 to date are presented below. (1) Effective November 1928. (a) Barrels.-Five francs per 100 kilos if fruit not wrapped and no paper in package; plus 2 percent ad valorem, transmission or sales tax; containers larger than 20 kilos (44 pounds); duty on basis of 160 pounds, not including 2 percent tax (franc at par of 2.78 cents), equaled 10 cents per barrel. (b) Boxes. One hundred francs per 100 kilos; fruit wrapped or package divided into compartments; plus 1.5 coefficient of increase; plus the 2-percent tax; weight of United States boxes 491⁄2 pounds. Duty, not including 2-percent tax (franc at par), equaled 93.8 cents per box. (2) Effective October 1931. (a) Barrels.-No change. (b) Boxes.-Raised to 150 francs per 100 kilos, plus the 2-percent tax. No coefficient of increase. Duty equaled 93.8 cents per box. (3) Effective March 27, 1932. (a) Barrels.-Raised to 5.75 per 100 kilos; plus the 2-percent tax. Duty at 160 pounds, not including tax, equals 11.6 censt per barrel. If wrapped or paper used, takes box rate, and equals $3.49 per barrel. (b) Boxes.-Raised to 172.5 francs per 100 kilos; plus the 2-percent tax. Duty at 49%1⁄2 pounds, not including tax, equals $1.08. (4) Effective March 1, 1943. This change was the result of a commercial treaty between Belgium and New Zealand, the United States being on a "most-favored-nation" basis with Belgium. (a) Barrels.-Raised to 28.75 francs per 100 kilos from September 1 to March 31, inclusive, and 25 francs per 100 kilos from April 1 to August 31, inclusive; duty on one barrel weighing 160 pounds (based on the domestic gold price of the dollar at 59.06 percent of its old par value, as fixed January 31, 1934, by proclamation of the President, par for the belga is 23.5419 cents, 5 francs equal one belga. One franc equals 4.708 cents) from September 1 to March 31, inclusive, equals 981⁄2 cents from April 1 to August 31 equals 85.6 cents. (b) Boxes.-Reduced to 28.75 francs per 100 kilos from September 1 to March 31, inclusive, and 25 francs per 100 kilos from April 1 to August 31, inclusive. Duty on one box weighing 491⁄2 pounds (basis of exchange same as for barrels) from September 1 to March 31, inclusive, equals 30% cents and from April 1 to August 31 equals 261⁄2 cents. (c) Baskets.-Raised from 5.75 francs per 100 kilos to 28.75 francs per 100 kilos from September 1 to March 31, inclusive, and 25 francs per 100 kilos from April 1 to August 31, inclusive. Duty on one basket weighing 50 pounds (basis of exchange same as for barrels) from September 1 to March 31, inclusive, equals 30 cents and from April 1 to August 31 equals 26 cents. (5) Effective May 1, 1935, under trade agreement. All duties are based on net weight. Exchange based on 5 stabilized francs= 1 belga. One franc=3.39 cents. 1. Barrels, baskets, boxes, in packages over 20 kilos (aggregate weight of container and contents). Wrapped or not wrapped. (a) From April 1 to August 31, 25 francs per 100 kilos = per barrel (140 pounds net) = 54 cents. = per basket (44 pounds net)= 16.95 cents. = per box (44 pounds net) = 16.95 cents. (b) From September 1 to March 31, 28.75 francs per 100 kilos: = per barrel (140 pounds net)=59 cents. = per basket (44 pounds net) = 18.65 cents. = per box (44 pounds net) = 18.65 cents. 2. Provision is made for the use of smaller packages with high duties. Apples, fresh: Imported in cases, barrels, boxes, baskets, or other containers, weighing (net weight): (a) Fifteen kilos (33 pounds) or less, 173 francs per 100 kilos. (b) Over 15 kilos and up to 20 kilos (44 pounds): (1) April 1 to August 31, 25 francs per 100 kilos. (2) September 1 to March 31, 173 francs per 100 kilos. Packages in general use in the export of apples from the United States weigh over 20 kilos (44 pounds) gross weight and hence do not take the 173-franc duty. The barrels, boxes, and baskets mentioned are the commercial units. 3. Apples imported in bulk.-10.40 francs per 100 kilos. In terms of United States dollars and as applied to the weight of the apples in a packed barrel, box, or basket, this duty would figure out approximately as follows: Fill of a barrel, 140 pounds... $0.224 · 07 . 07 The foregoing duties are available only to European apples moving into Belgium unpacked or in bulk. It is impossible for the United States to export apples unpacked or in bulk. United States apples necessarily have to be packed in order to transport them overseas. Unpacked European apples are imported into Belgium by motortruck under the low duty above shown, and a slight reduction in the present duty on packed apples in barrels, boxes, and baskets would result in an increased outlet for United States apples. 2. Customs surtaxes.-None. 3. Luxury and transmission taxes on apples were removed June 9, 1933 (U. S. Department of Commerce Reports, July 29, 1933). These and similar taxes should not be restored. 4. Import permits.-Were required on all fruits and vegetables in the spring of 1934 (U. S. Department of Commerce Reports, April 28, 1934). Later these were withdrawn but they are now again in effect. They are a serious form of quota restriction and the requirement of import permits should be removed. 5. Sanitary restrictions.-None. 6. Consular documents and fees.-Shipments from the United States direct to Belgium by sea require no consular documents. RECOMMENDATION In our former presentation we requested a reduction of the present duty for packed apples. A reduction of 50 percent in the present duties would still leave these duties higher than the duty on unpacked or bulk European apples and would enable the United States to compete on nearly an equal basis so far as duty is concerned. Transportation costs would still remain as a very effective trade barrier. TRADE BARRIERS-PEARS 1. Duties. The development of the duties on pears in Belgium is shown below. Very high duties have been maintained on box pears especially when wrapped, which is done to insure greater safety in transit and assure better delivery. 1. Effective November 1928. Barrels (unwrapped), 18 francs per 100 kilos gross equals 41 cents per barrel (180 pounds). Box (wrapped), 100 francs per 100 kilos gross with 1.5 coefficient equals 94.8 cents per box (50 pounds). 2. Effective October 1931. Barrels (unwrapped), no change, 41 cents per barrel (180 pounds). Box (wrapped), 150 francs per 100 kilos (no coefficient), 94.8 cents per box (50 pounds). 3. Effective March 27, 1932. Barrels (unwrapped), 20.7 francs per 100 kilos gross equals 47 cents per barrel (180 pounds). Basket (unwrapped), 20.7 francs per 100 kilos gross equals 14.36 cents per basket (55 pounds). Box (wrapped), 172.5 francs per 100 kilos gross equals $1.09 per box (50 pounds). 4. Effective March 1934. Barrels (unwrapped): April 1-August 31, 20.7 francs per 100 kilos gross, 78.75 cents per barrel (180 pounds); September 1-March 31, 20.7 francs per 100 kilos gross, 78.75 per barrel (180 pounds). Basket (unwrapped): April 1-August 31, 10.7 francs per 100 kilos gross, 24.36 cents per basket (55 pounds); September 1-March 31, 20.7 francs per 100 kilos gross, 24.36 cents per basket (55 pounds). Box (wrapped): April 1-August 31, 172.5 francs per 100 kilos gross, $1.845 per box (50 pounds); September 1-March 31, 172.5 francs per 100 kilos gross, $1.845 per box (50 pounds). 5. Effective May 1, 1935-trade agreement. Using present exchange 1 franc equals 0.20 belga equals $0.0339; 1 belga equals 5 stabilized francs equals $0.1695. Net weight because duty is in excess of 10 francs per 100 kilos. (a) Barrels, baskets, boxes, etc., for industrial use, not wrapped.-Pears shipped in containers weighing over 20 kilos (44 pounds) to be used in making jams, jellies, pastes, preserves, sirups, juices, etc. The importer to satisfy the customs authorities that the fruit is imported for such purposes. 20.7 francs per 100 kilos 51.03 cents per barrel (160 pounds). 15.95 cents per basket (50 pounds). =-14.03 cents per box (44 pounds). (b) Barrels, baskets, boxes, etc.-In containers weighing over 20 kilos (44 pounds) and unwrapped, 50 francs per 100 kilos for the barrel equals $1.233 per barrel (160 pounds); for the basket equals $0.385 per basket (50 pounds); for the box equals $0.339 per box (44 pounds). (c) Cases, boxes, baskets or other containers, weighing 20 kilos or less (aggregate weight of container and contents) and including pears packed in larger containers when the containers are divided into compartments or when the fruit is wrapped in paper or other protecting material. 1 Effective January 31, 1934, gold price of the dollar reduced to 59.06 percent of former. |