§ 10.2. p.m.
§ The Secretary for Overseas Trade (Mr. H. R. Mackeson)I beg to move,
That the Import Duties (Exemptions) (No. 1) Order, 1953 (S.I., 1953, No. 141), dated 3rd February, 1953, a copy of which was laid before this House on 5th February, be approved.One or two hon. Members would like me to give a brief explanation of the reason for this Order, and it will be very brief. As from the 1st January, 1948, the 10 per cent. ad valorem duty on synthetic potassium nitrate, which was hitherto levied, was, in error, withdrawn. The object of this Order is to restore that duty. Synthetic potassium nitrate is used largely in the glass industry, while natural nitrate is, of course, used as a fertiliser.It may be helpful if I describe briefly the circumstances in which the original Order withdrawing the duty was made in order to make the situation of our overseas friends quite clear. Until 1947 potassium nitrate, both natural and synthetic, was liable to the 10 per cent. duty, and in 1947 the Government of the day, as part of an exchange of tariff concessions with Chile, undertook to provide for duty-free entry of potassium nitrate other than synthetic. Chile was only interested in natural potassium nitrate, which is imported by us from that country in large quantities for use as a fertiliser.
Unfortunately, the Order giving effect to this agreement inadvertently exempted all potassium nitrate from import duty, including the synthetic. The mistake has recently been brought to the notice of the Government by a United Kingdom producer of synthetic, and this Order re-imposes the 10 per cent. duty on synthetic potassium nitrate while leaving natural nitrate free from duty in compliance with the international commitments entered into by our predecessors. Very small quantities of synthetic nitrate are imported as compared with production at home.
The only point I want to make and one in which this House will be interested is, that there will be no difficulty in 2042 administering this Order. In point of fact, Her Majesty's Customs can differentiate between the natural and synthetic product. All that this Order does is to correct a technical error in the drafting of the Order made three years ago.
§ 10.5 p.m.
§ Mr. A. G. Bottomley (Rochester and Chatham)The Secretary for Overseas Trade has given us an explanation which clears up one or two points which I have raised with him earlier, and I am obliged to him for doing so. I am always a little alarmed about the imposition of a duty which may put up the cost to the consumers, although it may help manufacturers. However, we understand that this Order results from an oversight which took place in the drafting of the original Order on the subject, and we accept that as a matter of fact.