HC Deb 12 April 1951 vol 486 cc1175-7
31. Mr. Nabarro

asked the President of the Board of Trade what control is exercised by his Department in regard to the volume of imports, the resale price and quality, other than ceiling price, for carpets, rugs and felts of Indian origin; how such ceiling prices are calculated; and what are the rate and basis of computation for purchase tax.

Mr. Bottomley

Indian carpets, rugs and felts are admitted into this country under Open General Import Licence. There is thus no restriction on the quantity of such imports, apart from the indirect effects of the relevant price control order, which includes a requirement that the price per square yard must in no case be greater than the maximum price for the most expensive type of price-control-group carpet made here. For the hand-knotted carpets and rugs (which account for most of these Indian imports), the highest maximum prices apply only to the better qualities, inasmuch as the maximum prices on resale depend on the number of knots and on whether the yarn is hand-spun or mill-spun. For example, to qualify for the top price of 83s. per square ward, there must be not fewer than 577 knots per 6-inch square. For the carpets and rugs (including felts) which are not hand-knotted, the importer's and the wholesaler's maximum price for a sale otherwise than by retail is the landed cost plus 12½ per cent. I am informed that the rate of purchase tax is 33⅓ per cent. of the wholesale valuation.

Mr. Nabarro

Does the hon. Gentleman realise that whereas British carpets are closely controlled in regard to both price and quality there is only a ceiling price for Indian carpets, which means, in many cases, that inferior Indian carpets are being sold at excessive prices? This redounds to the discredit of British manufacturers. Cannot the hon. Gentleman help our manufacturers in this matter?

Mr. Bottomley

I am sure that purchasers will ascertain the quality and choose accordingly.

32. Mr. Nabarro

asked the President of the Board of Trade the value and the square yardage of Indian carpets, including rugs and felts, imported into the United Kingdom during the year 1950; the percentage increase of such imports over the year 1949; the import duty charged upon Indian carpets entering the United Kingdom; and the import duty charged upon entry of British manufactured carpets, rugs and felts, respectively, into India and Pakistan.

Mr. Bottomley

As the answer contains a number of figures, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.

Mr. Nabarro

Does the hon. Gentleman realise—I am sure he does—that whereas Indian carpets enter the United Kingdom without import duty, British carpets entering India are subject to an ad valorem duty of 30 per cent? Further, is he aware that the Indians have now, in addition imposed export duties on wool, jute and jute yarn affecting British manufacturers very adversely? Will he look into the question of reciprocity of tariffs?

Following is the reply: Imports into the United Kingdom during 1950 of carpets, including rugs and felts but excluding coir and straw mats and matting, from India were 2,060,357 square yards of a value of £2,994,629. The imports in 1950 showed an increase of 66 per cent. by quantity over the imports in 1949. No import duty is charged, on entry to the United Kingdom on carpets consigned from and manufactured in India, except when such carpets contain silk or artificial silk: in the latter case the preferential rate of duty chargeable is given below:

Where the value of the silk components exceeds 20 per cent. of the aggregate of the value of all components:

36 1/9 or 35 per cent. ad valorem according to whether the component is silk or artificial silk.

Where the value of the silk components exceeds 5 per cent. but does not exceed 20 per cent. of the aggregate of the value of all components:

20⅚ per cent. ad valorem.

Where the value of the silk components does not exceed 5 per cent. of the aggregate of the value of all components:

10 per cent. ad valorem.

Import duties charged on carpets, etc., of British manufacture on entry into India and Pakistan are as follows:

INDIA

Woollen carpets, floor rugs and felts—31¼ per cent. ad valorem.

(The most-favoured-nation rate for this item is 43¾ per cent.: the United Kingdom enjoys a contractual preference of 10 per cent.)

Coir mats and matting—37½ per cent. ad valorem.

Other types of carpets, mats and matting excluding fur rugs—31¼ per cent. ad valorem.

(These rates include the increased surcharge (from 20 per cent. to 25 per cent.) proposed in the Indian Finance Bill, 1951.)

PAKISTAN

Woollen carpets, floor rugs, shawls and other manufactures of wool not elsewhere specified including felt—45 per cent. ad valorem.

(This rate of duty is the most-favoured-nation rate which it is assumed will apply to imports of carpets of British manufacture after the signing of the Anglo-Pakistan Trade Agreement of 2nd April, 1951, under which the preferential rate previously enjoyed by the United Kingdom was not continued.)

Coir mats—36 per cent. ad valorem.

Other carpets, etc.—30 per cent. ad valorem.