MONDAY, 2nd, JULY, 1917. (At Perth.)

Present: B. L. Clarkson, Esq, (in the Chair). H. H. Paynter, Esq. F. E. Venn, Esq.

MAJOR ROBERT MCKEEMAN OAKLEY, Collector of Customs in Western Australia, sworn and examined:

9880. By Mr CLARKSON: Can you give us an idea of the comparative amounts of duty paid annually on farmers' machinery for 12 months?—I have a return here, for the four years from 1912 to 1916, dealing with duty on agricultural machinery. (Return handed in.) This shows the imports of articles used in connection with the agricultural industry other than household articles. The return also gives the tariff rates, the old tariff, and the new tariff for the years 1915-16. 9881. What do you accept for Customs purposes as the basis of value?—The basis of value is the home consumption price in the country of export at the time of export; that is to say, the price that the goods would fetch for consumption in the country from which they are exported, but it must be at the time of export. Someone might send an order to India now for bags, and the people there might quote him a price of, say, 6d. per dozen. Owing, however, to the large number of orders this particular order might not be executed for six months. In the meantime the goods may have risen to 1s. per dozen. The person ordering, however, would only pay 6d. a dozen, but would have to pay duty on 1s. per dozen. The duty is paid on the home consumption price and not the price for export.

9882. By Mr PAYNTER: Then the duty is not paid on the manufacturer's price?—That is not the law in Australia. If the buyer would produce the manufacturer's invoice it would only show the price at which the goods had been bought.

9883. BY Mr Clarkson: What means do you take to ascertain the true value for home consumption?—The Commonwealth Government in Melbourne have made arrangements to get the price cabled at the dates certain vessels leave India. They then cable the values to me and the merchants pay the duty on those values.

9884. By Mr PAYNTER: The price might be high owing to the large demand, and in that case the basis does not seem to be a very fair one?—the reverse, of course, holds good. If a man orders at 1s. and the value drops to 6d. before the order is executed, he would only pay duty on 6d., although he has actually paid at the rate of 1s. for the goods.

9885. By Mr CLARKSON: If I bought goods at a cheap rate, and imported them here at the present time, I should be paying duty on the increase in freights?—That is not the case. The duty is paid on the home consumption value, say, in India, and the freight does not affect the question. If a man went to India and bought a specially large quantity of goods, and thereby obtained a substantial reduction in price, that would be recognised by the Department. Where the business is legitimate, and there is a large increase in the quantity of good purchased, there would be a corresponding decrease in the price, and this would be recognised.

9886. You would allow for that in assessing the duty?—A reasonable reduction would be allowed for.

9887. By Mr PAYNTER: In the case of machinery the duty is paid on the manufacturer's invoice and not on the home consumption market rates?—The value on which duty is paid is the same, relatively, in every instance. It is the home consumption price in the country of export at the time of export.

9888. The selling price or the manufacturer's price?—We require from America that not only must the manufacturers show on their invoice the price they have sold at, but must also show, in a second column, the home consumption price, which in America very often varies. The duty is paid on the home consumption price. Sometimes duty has to be paid on a lower price than has actually been paid, and sometimes on a higher price. In the long run there is not really a great deal in it. Harvesters, for instance, are taken by number, and the metal parts are taken by weight. Then, again, in the case of oil cake, that is 1s. a cental. The oil cake may increase 10 times in value but the rate is the same. Where there is a fixed rate, as the value increases the duty really becomes lower.

9889. By Mr CLARKSON: Does quality enter into your calculations with regard to jute goods in respect to duty?—Yes, it does. The Commonwealth Government some years ago issued a proclamation in connection with cornsacks, specifying the standard with which all cornsacks must comply before their importation is allowed. The standard is 41ins. by 23ins., and the weight for each bag is 2¼lbs. when baled. For the substance the standard is 8 porter, 9 shot. When an importation of cornsacks takes place the Customs officers require that a certain percentage of the bales shall be opened. Two or three bags are taken out of each bale indiscriminately, and these bags are weighed to see if they conform