Evening star., 1921-07-31
LOWER AUT0DUTY
T0PROM0TE TRADE
Committee Head Speaks for
Industry's National Cham.
Der of Commerce.

Discussing the new tariR bill In
relation to Its probable effect upon
the motor industry, J. Walter Drake,
chairman of the foreign trade COM
nittee. of the National Automobile
Chamber OF Commerce, said that the
lower automobile duty will aid
American foreign trade, even though
the act itself may need revision In
the way of excessive duties on raw
materials.
with present unsettled conditions
in exchange" he said, ut 10 difficult
to decide on a,dutiable basis which
will be most equitable to all ma
tions Under the American valua-
in ir'a that directien. a ita disadvantage.
unfortunately. lies in the ease with
which duties may be increased ar
bitrarily. United states manufse.
turers, by enhancing the price of
their goods. could establish q higher
sequently bring about the collection
of larger amount In duty" Mr..
Drake added.
Basis in other Countries.
"The underlying object In pro-
probably to approximate the cost, in
surance and freight. which Is used
mostly abroad as a dutiahie basis.
but lends itself automatically to In
direct discrimination.
dutiable at 4S per cent OF the CHI.
value at the custom house in coun-
try of destination. This means. with
regard to American cars. that the
tax is also assessed on the cunula-
o.. {Oh
outlay"
"An American medium-priced car
because OF these charges, amounting
to about $500, would be assessed
about 1900 more In duty than, than a car car
Ge,s'naiyh 9ops. Shere tses. ssy Special Charges
fneidents MSade 90 of PFafeak tsis Hina ~hers the
product of 4 friendly nation Is as
sessed inequitably because Of the
dutiable basis would be Impossible
under a system OF American yalus'
tien. 1t is resrettable that this ad-
vantage shoul6 be offset by the weak
feature referred to above.
"The American manufacturers as 9
group applied for a uniform duty OF SO
per cent on importing automobiles az
per cent. This united request is practi-
cally accorded by the House ways and
means committee In recommending the
duty of Is per cent on American valua-
tien, which would be the equivalent OF
about 80 per cent II the dutiable basis
in the Underwood act were employed.
Reciprocal Rates.
"A most commendahle feature Ia the
provision making the reduced rate ap-
plicable to motor products from such
countries only az similarly favor Amert:
can exporters. Then the British ana
French cars will be dutiable at 20 per
cent in the event only that American
motor vehicles are subject to an identi-
cal duty when exported to either OIL
those two countries. If. however. the
rate is maintained as now at 81 1-S per
cent or Is per cent. respectively. then
sessed as high as 50 per cent when I'M
ported into the United States"
Immediately after the armistice ar
rangements were made between certain
countries which worked to the disad-
vantage of the American exporter OF
automobile products. Czechoslovakia,
for illustration, permits the importation
| without special permit Of Italian motor
vehicles. On the other hand, imports
of these commodities from the United
States are effectively obstructed because
of the necessity Of complying with such
governmental formality. The con-
tinuation Of such practices, however
may be expected to cease, as President
Harding, under the Ferdney tarif. will
be authorized to assess additional duties
on products of any kind from countries
discriminating against American trade.