§ 43 Colonel GOODMANasked the President of the Board of Trade (1) the amount of the tariff, sales tax and excise tax on wire rope imported into Canada from the United Kingdom; the refund allowed on such rope if used for logging purposes; and the increase imposed by the proposed amendment of tariff item 411A of the Canadian tariff;
(2) what method is employed by the Canadian customs authorities to establish valuation of wire ropes imported from the United Kingdom and used for logging purposes; and whether the method in this case differs from that employed in the valuation of other commodities;
(3) whether he is aware that the exceptions contained in tariff item 411A of the Canadian tariff referring to uses of wire rope for logging purposes require the importers of wire rope fom the United Kingdom to deposit substantial sums with the customs department until the purpose for which the wire rope is intended is established to the satisfaction of that department; and whether, since logging by inclined railways which used wire rope has been discontinued, he will make representations to the Canadian Government for the removal of the exceptions in the above tariff item thereby releasing United Kingdom importers from the necessity to place sums on deposit?
§ Mr. RUNCIMANAs the reply to these questions is long, I will circulate it in the OFFICIAL REPORT.
§ Following is the reply:
§ United Kingdom wire rope imported into Canada generally falls under the following item in the Canadian Customs tariff:
| Rate of Duty. | |
| 401. Wire, of iron or steel:— | |
| (b) Twisted, braided or stranded including wire rope or cable coated or not, n.o.p. | 15% (British Preferential Tariff.) |
§ There is no refund, as such, for wire rope for logging purposes but there is a lower rate of duty' under the following tariff item:
| Rate of Duty. | |
| 411a wire rope, but but including wire rope to be used for guy ropes or in braking logsgoing down grade, for use exclusively in the operation of logging, such operation to include the removal of the log from stump to skidway, log dump, or common or other carrier. | 10% (British Preferential Tariff). |
§ In addition an excise tax of 1½Per cent, is payable in both cases and wire rope falling under item 401b is also liable to a sales tax of 6 per cent. This latter tax applies also to Canadian wire rope in similar circumstances.
§ As regards the proposed amendment of item 411a, I will communicate with my hon. and gallant Friend as soon as I receive a reply to the inquiries which are being made in Canada.
§ The valuation for Customs Duty purposes of wire rope imported into Canada was fixed in January, 1932, by the Canadian Minister of National Revenue under the provisions of Section 43 of the Canadian Customs Act. Similar valuations are in force in respect of a few other classes of United Kingdom goods.
§ As regards the question of Customs deposits, the explanation probably is that they are required as an administrative measure in order to ensure that the benefit of the lower rate of duty accorded 2122 under item 411a to wire rope for logging purposes shall not be enjoyed by wire rope used for other purposes which would come under item 401b. If this is so, the discontinuance of the use of wire rope for logging by inclined railways would not affect the matter. I am, however, making further inquiries.