H.—2B,

Dumping Duties. Certain witnesses who appeared before the Commission alleged that they were at present being forced to meet the competition of either British or foreign goods " dumped " into this market. The evidence indicates that this term is frequently loosely used to characterize keen competition or sales at what appear to be specially low prices. Investigation does not usually substantiate the allegation that dumping is taking place and in some cases where dumping is actually proved it has been clear that the imposition of duty to meet such conditions would have no beneficial effect on the industry concerned and would tend merely to divert the trade to another overseas supplier who is not dumping. Sir Josiah Stamp in his " Principles of Taxation" says, in discussing this matter, " The prevention of dumping is distinct and local and is clearly a fair aim if dumping is properly defined and distinguished from clear competition on stable and sustained lines." The Commission considers that it is essential that the power to impose dumping duty should be retained to meet such cases as fully warrant its exercise. Intermediate Tariff. The Commission considers that no good purpose is served by the retention of the Intermediate Tariff which as a whole has never been applied to the goods of any country and which so far as the Commission can see is not likely to be so applied. We consider that a much more satisfactory course to adopt is that of negotiation with particular countries when each tariff item can be considered in the light of the special interests of this Dominion and of the country with which negotiations are taking place. We have accordingly prepared the draft Tariff without the insertion of any intermediate scale of duties. Special Tariff Agreements. At the present time New Zealand has special tariff arrangements with the Commonwealth of Australia and with the Union of South Africa. The proposals which we have made are not such as appear to involve the necessity for anything in the nature of a complete revision of these arrangements, but it will, we think, be necessary to take certain steps to ensure that the spirit of the Tariff Agreement with Australia may be maintained. In witness whereof we have hereunder set our hands and seals this fifteenth day of August, in the year one thousand nine hundred and twenty-seven. [l.s.] Ceo. Craig, Chairman. [l.s.] (!. \Y. Clinkard, 1 [l.s.] J. H. Forrester, y Members. [L.S.] T. H. M. Tanner,J

APPENDIX A.—GAZETTE NOTIFICATIONS OF SITTINGS AND PROCEDURE. CUSTOMS TARIFF COMMISSION, 1926-27. Customs Department, Wellington, 6th December, 1926. It is hereby notified for public information that the Tariff Commission proposes to visit various places in New Zealand for the purpose of taking evidence from persons desiring to make representations respecting the Customs Tariff. Any person desiring to make such representations in person should advise the Chairman of the Tariff Commission at the above address as to the article or articles in respect of which it is wished that the Customs Tariff should be maintained or altered. It is essential that the place or places at which such evidence can be tendered should be stated as soon as possible, as the itinerary of the Commission must be arranged at an early date. Where there is an association or other body representing any particular trade or commercial interest, and such association or body is able to tender evidence of a satisfactory and comprehensive character, it will be preferred that the evidence be given by that association or body.

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