VII. TRADE METHODS AND SUGGESTIONS. With regard to New Zealand commercial practices, and the proper course of action to be pursued by American exporters, the following excellent suggestions may be quoted from a circular prepared by United States Consul General Alfred A. Winslow, who is stationed at Auckland: CREDITS AND TERMS OF PAYMENT. As a rule the business men of New Zealand are honest, conservative, and reliable. Should an exporter wish special information it can be obtained of the New York agents representing the New Zealand banks mentioned in a subsequent paragraph, or of R. G. Dun & Co., who have a branch office in Auckland. Merchants in general have been accustomed to buy either for cash against documents at port of delivery or on time ranging from 30 to 90 days after receipt of goods, and do not take kindly to the pay-cash-against-documents-atport-of-shipment plan of so many American firms. If American manufacturers and exporters expect to get and hold a portion of this growing business they must put themselves in position to grant better credit terms. This means much to the business interests in New Zealand, and, other things being equal, they are certain to go where satisfactory credit is extended. A manufacturer who demands cash in full at the port of shipment should not expect much business in New Zealand. TERMS OF PRICE QUOTATIONS. In quoting prices manufacturers and exporters should give prices c. i. f. New Zealand port, whenever possible, and never less than f. o. b. steamer at port of shipment, for the purchaser is not in a position to find out costs to port of shipment and loading charges as can the shipper, and then American exporters should do all they can to assist the foreign purchaser. These are important matters, since a large proportion of the imports is distributed from the docks to save warehouse charges, and the importer must know as nearly as possible the cost price at New Zealand port. BANKING FACILITIES. The banking facilities between the United States and New Zealand are far short of those between England and the Dominion, but they are improving and should be quite sufficient to handle the increasing trade. Following is a list of the more important banks in Auckland doing a foreign-exchange business: National Bank of New Zealand (American agents, Canadian Bank of Commerce and Bank of British North America, New York City); Union Bank of Australia (American agents, Canadian Bank of Commerce, International Banking Corporation, and Brown Bros. & Co., New York City); Commercial Bank (American agents, Irving National Bank and National City Bank of New York, New York City); Bank of New Zealand (American agents, Canadian Bank of Commerce, J. P. Morgan & Co., and Bank of British North America, New York City); Bank of New South Wales (American agents, Standard Bank of South Africa, Ltd., New York City); and Bank of Australasia (American agents, International Banking Corporation, New York City). TARIFF PROVISIONS. The United Kingdom and possessions enjoy preferential duty on "193 items out of a total of 483, consisting principally of luxuries and articles manufactured, or that might be manufactured, in New Zealand. The extent of the preference ranges from 4 per cent on a few small items to 10 per cent on such important items as provisions, drugs and chemicals, manufactures of leather, china and glass ware, fancy goods, musical instruments, firearms, hardware, and many manufactures of iron or steel and the more important lines of machinery ; to 12 per cent on preserved fruits and milk, furniture, plate glass, stationery, tinware; to 20 per cent on cardboard, print paper, iron boiler plates, iron pipes, iron plates, iron or steel cable; and even to 25 per cent in a very few cases; while the nonpreferential lines are fresh fruits, tobacco and cigars, spirits, clothing and textiles, leather, oils, fertilizers, etc. Tariff rates on specific articles can be had from the Bureau of Foreign and Domestic Commerce, Department of Commerce, Washington, D. C., or from the Auckland consulate general. Until some months after the close of the European war the preferential duty in favor of the United Kingdom will have little effect on shipments from that country, for the reason that manufacturers are unable to fill orders in many lines; so this is an opportune time for American interests to get a foothold that may be profitable and lasting. COMMERCIAL TRAVELERS. Only first-class commercial travelers with Anglo-Saxon names, familiar with foreign manners and customs, should be sent to this field-such as succeed at home, for conditions are much the same in New Zealand, except that it is British territory and sympathies are strongly with the mother country at this time. Commercial travelers are required to deposit with the customs officers at the port of entry the amount necessary to cover the duty due on their samples, and the further sum of £10 ($48.66) on account of revenue tax on income. Corporate bodies are required to pay 5 per cent and private parties 2 per cent on their net profits, which must not be less than 5 per cent of the invoice cost of the goods sold in the country. On leaving the country they receive the amount deposited for duty upon proof of the reexportation of the samples, less the amount deducted for income tax as per schedule of sales made in the Dominion. "DON'TS" TO BE CAREFULLY NOTED. Don't fail to pay full postage, which means 5 cents for each letter weighing 1 ounce, and 3 cents for each additional ounce. Don't expect to secure much New Zealand trade without a strong effort. Don't send your customer something different from what was ordered, simply because you happen to think it is as good or better. Don't fail to mark your cases very clearly on top, one side, and one end with characters at least 2 inches high. Don't fail to pack everything well. Don't look for immediate results; be willing to work and wait. NOTE.-In connection with the foregoing report, Commercial Agent Homs submitted a list of New Zealand importers of agricultural implements and machinery. Interested persons may obtain this list from the Bureau of Foreign and Domestic Commerce or its district or cooperative offices by referring to file No. 1378. RECENT PUBLICATIONS ON AGRICULTURAL IMPLEMENTS AND MACHINERY. The Bureau of Foreign and Domestic Commerce has recently issued the following monographs on foreign markets for agricultural implements and machinery, which may be obtained for the stated prices from the district offices of the Bureau or from the Superintendent of Documents, Government Printing Office, Washington, D. C.: Markets for Agricultural Implements and Machinery in Argentina, by Frank H. von Motz. Special agents series No. 125; 1916; 86 pages; price, 10 cents. Markets for Agricultural Implements and Machinery in Brazil, by Frank H. von Motz. Special agents series No. 140; 1917; 59 pages; price, 10 cents. Markets for Agricultural Implements and Machinery in Chile and Peru, by Frank H. von Motz. Special agents series No. 142; 1917; 48 pages; price, 5 cents. Markets for Agricultural Implements and Machinery in South Africa, by Juan Homs. Special agents series No. 146; 1917; 231 pages; price, 20 cents. East African Markets for Hardware and Agricultural Implements, by Consul Henry P. Starrett. Special consular reports No. 78; 1917; 27 pages; price, 5 cents. О |