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From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
By Mr. Olley regarding the import duty on chassis for the American market.

Identifier  ExFiles\Box 19\4\  Scan259
Date  30th August 1930
  
MEMO BY MR. OLLEY - AUGUST 30th, 1930.

To H.C.B.

IMPORTED ROLLS ROYCE CHASSIS.

Sir Henry Royce has expressed the opinion that it should be most advantageous for both companies that all chassis should be completed at Derby.

One has to agree to this as an obvious first principle.

However, although Sir Henry Royce's opinion may be right when comparing the full chassis importation scheme with the engineering, tooling and production at Springfield of Rolls-Royce chassis complete, we believe that a compromise between these two schemes will need to be adopted if the sale of Rolls-Royce cars in America is to continue in a volume that will justify even the smallest establishment.

This is not only because of the high net price to us of both large and small chassis delivered at Derby, but also because we have to pay duty on a still higher price.

The duty on complete chassis is based upon Rolls-Royce, Ltd. retail sales price, less their discount to dealers of 15%.

Thus, the actual duties payable are as follows:-

Sales Price of £ 1900 less 15% Actual 33 1/3% Duty.
P-ll. £ 1615 £ 538.

In other words, this is the equivalent of paying duty at the rate of 33 1/3% but actually at 40% on our purchase price paid for Phantom II. chassis.

contd.
  
  


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