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New policy item for the importation of chemicals, plastics and paper products



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IMMEDIATE RELEASE FRIDAY 14 FEBRUARY 1992 14/92

I B l L f i T T O M

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NEW POLICY ITEM FOR THE IMPORTATION OF CHEMICALS, PLASTICS AND PAPER PRODUCTS

A change to the Commercial Tariff Concession System determining the tariff applied to chemicals, plastics and paper products wil help to improve the competitiveness of Australian industry, the Minister

for Industry, Technology and Commerce, Senator John Button, said in Canberra today.

"The chemicals, plastics and paper industries are characterised by a wide range of goods serving very * similar functions," Senator Button said.

"However, when used in the production of a specific end product, they can display significantly different performance characteristics."

Specific raw materials are often required to satisfy a recognised international standard or to meet overseas competition.

"There are occasions where locally produced chemicals, plastics and paper cannot be substituted for imported goods and where duty free entry under the Commercial Tariff Concession System is unavailable," Senator Button said.

"In these instances the tariff offers no assistance to local producers and creates an unnecessary cost impost on users."

"A new end use Policy Item for these products has now been approved, and will be applicable from March 1 1992. It will reduce the paperwork by allowing duty free entry to imported chemicals,

plastics and paper products which can demonstrate a significant performance advantage over locally produced products in a particular application," he said.

Senator Button added that the Policy Item would allow the revoking of a By-law where local manufacturers could prove that a locally produced good could perform as well as the imported good, and where the

local good could be supplied in the normal course of business. He said this should encourage local · manufacturers to enhance their level of customer service.

Further information

Garry Kline DITAC (06) 276 1604

COMMONWEALTH PARLIAMENTARY LIBRARY MICAH

CANBERRA (NR302)

ATTACHMENT

ADDITIONAL INFORMATION

The new Policy Item will apply to raw materials and intermediate goods classified under subheading 1519.3 or heading 5903 or within Chapters 28, 29, 32, 34, 35, 37, 38, 39, 48 of Schedule 3 to the Customs Tariff which are ineligible for a Commercial Tariff Concession Order.

Applications for By-law will be considered where an application for a Commercial Tariff Concession Order (CTCO) has been unsuccessful and may be made only by an end user of the raw material or intermediate good, although once granted, the by­

law concession may be used by any importer to supply bona fide end users.

Where the goods have been considered for a CTCO within the previous twelve (12) months and rejected, it will not be necessary for applicants to re-apply for a CTCO.

Applicants for the Policy Item must establish that a substantial and demonstrable performance advantage will be derived from the use of the imported raw material or intermediate good which will improve the competitiveness of the applicant's product and/or that of a customer.

A substantial and demonstrable performance advantage will be assessed on the basis of fitness for purpose for a specific end-use, with a focus on customer requirements, and would normally yield a productivity and/or a marketing advantage to the applicants' products.

Applicants for the By-Law will be required to provide an independent assessment of the relative performance of the imported good and all similar local goods in the production of the applicant's end product by a competent authority (eg. CSIRO, University, Engineering Consultants, etc).