The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-08-21
SEES AID TOAUTO
INDUSTRY in new
DUTY REDUCTION
Says Foreign Countries
Discriminate by High
Tariff.

Tariff.
The lower automobile duty in the
proposed new tariff bill VIII AID
American foreign trade. even
though the act itself may need re-
vision in the way of excessive duties
on raw materials. ia the opinion Of
J walter Drake. chairman of the
foreign trade committee Of the Ma
,,onal Automobile Chamber Of Com
,nsrca Exnorts of motor vehicles
and parts in 1890 headed the list OF
manufactured articles with a Valua-
lion OF s2ss.2le,s75 and were ex-
eeeded only by raw cotton wheat
and coal.
lions in the exchanges, II is diff
cult to decide on a dutiable basis
which will be most equitable to all
nations. Under the American val
uatIon system, an attempt was MADE
in that direction. Its disadvantage
unfortunately, lies in the ease with
which duties may be increased ar
bitrarily. U. 8. manufacturers, by
enhancing the price OF their goods.
could establish q higher American
valuation basis and consequently
bring about the collection OF
larger amount, in duty" says, Mr..
Drake.
Unfair to America.
The underlying object In propos-
ing the American valuation was
probably to approximate the c. l..
J.. value which is used mostly
abroad as dutiable basis, but lends
itself automatically to indirect dis
ordinations.
sin Jugo-Slavia. passenger cars are
dutiable at IS per cent OF the c. L.
f. value at the customs house in
country of destination. This means
with regards to American cars, that
the tax IS also assessed on the
cumulative charges for boxing, rail
freight in the U. s.. overseas freight
lighterage and interest on the
money outlay. An American
medium-priced car. because of these
charges amounting to about $500,
would be assessed about $500 more
in duty than a car originating in
Italy or Central Europe where these
| SPECTRAL CHdTBCS oC pioSAASoAAy
nonexistent. Incidents OF this kind
where the product of a friendly ma
ton is assessed inequitabiy because
of the dutiable basis. would be i'm
possible under a Hstem of Ameri-
can valuations. 1t Is regrettable
that this advantage should be offset
by the weak feature referred ~
above.
! Ask Fer Lower Tariff.
The American manufacturers as
a group. applied for a uniform duty
of 80 per cent on imported automo-
biles as against the prevailing rate
Of IS per cent. This united request
is practically accorded by the House
Ways and Means Committee in
recommending the duty of 25 per
cent on American valuation. which
would be the equivalent OF about 50
per cent. II the dutiable basis in the
Underwood act were employed"
"A most commendable feature is
the provision making the reduced
rate applicable to motor products
from such countries only as similar
! ly favor American exporters. Thus.
the British and French cars will be
dutiable at IS per cent in the event
I OhIS lhal american motor NeniCles
are subject to an identical duty
when exported to either Of those two
countries. II. however, the rate Is
| maintained as now at SO Ia or As
per cent. respectively. then British
or French cars could be assessed as
high as so per cent when imported
into the United States.
Prevents Discrimination.
The European manufacturers ex-
pressed some time ago their desire
for a uniform automobile duty in the
principal manufacturing countries.
With the above United States tariff
provision, the attainment of that
object is possible.
Immediately after the armistice
arrangements were made between
certain countries which worked to
the disadvantage of the American
exporter of automotive products.
Czecho Slovakia, for illustration,
permitsh tie importation, without
special permit, of italian motor We
hicles. On the other hand, imports
OF these commodities from the Unit
ed States are effectively INSTRUCTED
because of the necessity of comply
ing with such a governmental for
mality. The continuation of such
practices, however. may be expected
to cease as President Harding, under
the Fordney tariff. will be author
lied to assess additional duties on
products of any kind from countries
discriminating against American
trade.
| Affords Benefits.
The advantages accruing to both
countries are fully realized in the
commercial treaty existing between
Cuba and the United States. The
benefit to commerce Is the direct re-
suit of the mutual tariff concessions
on commodities moving between the
| two countries. The number Of reci-
procity treaties, with their accom-
panying benefits, may be expected to
increase, as President Harding can
start negotiations at once with other
countries by Offering tariff conces-