73. Mr. MacCALLUM SCOTTasked the Chancellor of the Exchequer, with reference to the payment of the levy upon goods bought in Germany under the German Reparation (Recovery) Act, when the goods are bought in marks, at what rate of exchange will the levy be paid, at the rate prevailing at the time the purchase was made or at the rate prevailing at the time the levy is paid?
Lieut.-Commander YOUNGIn the case of goods subject to reparation pay- 450 ment under the German Reparation (Recovery) Act, 1921, when the invoice price is accepted as the value, and is expressed in marks, the rate of exchange taken for the purposes of the payment is the rate in force on the date on which the importing ship is reported to the Customs.
Mr. SCOTTIs it not the case that this doubt as to which rate of exchange will prevail when this payment is made will make it impossible for these firms to make forward contracts in regard to the sale of goods, seeing they will not know the total price they will have to pay?
Lieut.-Commander YOUNGNo, Sir. I do not think that is so. As a matter of fact this is the ordinary practice in the case of the ad valorem duty payable.