HC Deb 22 November 1928 vol 222 cc1914-6
58. Commander BELLAIRS

asked the Chancellor of the Exchequer whether he is aware of the disparity between the works invoice price of a foreign imported car or of the chassis and parts ultimately reassembled in this country on which the Imports Duty is levied and the retail price of the same car; and on what price the duty is levied in the case of the Lancia 17 horse-power chassis retailed at £645, the 21.7 horse-power Chevrolet retailed at £185 to £250, the 18 horsepower Belgian Minerva retailed at £575, the Studebaker retailed at £365, the 18 horse-power Delage chassis retailed at £420, the Overland retailed at £180 to £210, the Buick retailed at £425 to £475, the Chrysler Model 75 retailed at £515 to £575, and the Citröen retailed at £215 to £225?

The CHANCELLOR of the EXCHEQUER (Mr. Churchill)

The statutory value on which duty is charged in the case of a motor car, or chassis or component parts of a motor car, is the price which an importer would give for the article, if it were delivered, freight and insurance paid, in bond at the port of importation. Many factors which are irrelevant to this statutory value may come into play in connection with the retail selling price of the article in this country, and it is especially difficult to draw any deduction as to the true import value from this price in the case of motor cars, which are imported largely in the form of unassembled units and of which components are in some cases manufactured in this country. In any case it would be improper to disclose the figures of duty paid in individual cases, but my hon. and gallant Friend may rest assured that the Customs have this matter under constant observation in order to secure that the duty is charged according to the full statutory value of the article imported, whether a car, chassis, or component part.

Mr. WEDGWOOD BENN

Can the right hon. Gentleman explain why the retail price has increased by the amount of the duty if it is the foreigner who pays the tax?

Mr. CHURCHILL

I rather apprehended that, upon the whole, the price of motor cars has gone down.

Mr. KIRKWOOD

If the right hon. Gentleman will look at the cars which Members bring here and leave in Palace Yard, will he not find that there are more of foreign origin than of British make?

Mr. SPEAKER

That does not arise out of the original question.

Mr. CHURCHILL

They all pay duty now.