HC Deb 21 February 1916 vol 80 cc426-7
57. Major HUNT

asked the Chancellor of the Exchequer whether American manufacturers of motor cars can import the different parts of their motor cars ready-made and ready to be put together into this country, and in this way get out of paying by far the greater part of the Import Duty on motor cars; and, if so, whether the Government intend that the greater part of the Import Duty on motor cars should thus be evaded?

Mr. McKENNA

The ad valorem duty of 33⅓ per cent. applies as much to imported parts as to complete cars, and therefore even if the car is manufactured at home out of parts imported separately, it does not evade the Import Duty.

Major HUNT

Is it not the fact that if the parts are imported separately not so much has to be paid, and does not that affect them?

Mr. McKENNA

I suppose the cost of labour undertaken at home would not bear the 33⅓ per cent. Import Duty, but otherwise the Import Duty would be precisely the same.