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Industries assistance commission recommendation on woven polyolefin fabrics



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INDUSTRIES ASSISTANCE COMMISSION RECOMMENDATION ON WOVEN POLYOLEFIN FABRICS

The Government has accepted a recommendation contained in a letter from the Industries Assistance Commission regarding the duties applying to woven polyolefin fabrics. This was announced today by the Ministers for Industry and Commerce, Senator Robert Cotton and Business and Consumer Affairs, Mr John Howard.

As a result of the Government's decision, woven polyolefin fabrics falling to item 51.04.5 of the Customs Tariff will be dutiable at the present rate of 50$, or if higher, 10 cents per square metre, from 1 January 1977ยป and not phased down to a duty rate of 22.5$ as previously announced.

The Ministers said the existing level of duty would continue until the Government has considered the Commission's forthcoming recommendations on the long-term level of assistance for woven polyolefin fabrics in its report on the reference on Sacks, Bags

and Certain Polyolefin Fabrics. The Commission's draft report on this matter was released recently and the final report is expected to be submitted to the Government in the near future.

Further copies of the Commission's letter are available from the Information & Public Relations Sections of the Departments of Industry and Commerce or Business and Consumer Affairs, Canberra.

CANBERRA A.C.T.

15 December 1976

Industries Assistance Commission

Ail correspondence to Kings Avenue, Canberra, A.C.T.

be addressed to: The Secretary, ' '

Industries Assistance Commission, P.O. Box 80, . Canberra. A.C.T. 2600. Telephone: 73 0415 In reply please quote: . 20 July 1976

Dear Minister,

In its inquiry into Sacks, Bags and Certain Polyolefin Fabrics the Commission has under reference woven polyolefin fabrics of Tariff Item 51.04.5.

These goods were the subject of the Commission's report of 17 January 1974 on Woven Man-Made Fibre Fabrics and were recommended for a rate of duty of 22.5 per cent. The Government accepted this as the long term rate, but decided to reduce the existing rate to 22.5 per cent over two years. The present rate is 30 per cent or, if higher, 10 cents per square metre. The

single rate of 22.5 per cent is to become operative on 1 January 1977.

At the recent public hearings into Sacks, Bags and Certain Polyolefin Fabrics, the Commission received the following requests from local industry relating to woven polyolefin fabrics:

a. that the production in Australia of woven polyolefin fabrics of Tariff Item 51.04.5 be assisted by the application of global tariff quotas to restrain total imports in any one year to a maximum of 5 per cent of

total market requirements

b. that the nominal rates of duty under the tariff quota restraint arrangements proposed above be 30 per cent or, if higher, 10 cents per square metre

c. that the additional duties under the tariff quota restraint arrangements be set at $2 per square metre of fabric in respect of imports cleared under normal entry outside the quota

d. that the Commission make an interim recommendation, no later than 30 September 1976, to the Government that the current rates of duty applicable to woven polyolefin fabrics of item 51.04.5 remain unchanged until such time

as the Government implements its decision stemming from the report made by the Commission under the reference now under consideration.

The Commission's final report on Sacks, Bags and Certain Polyolefin Fabrics is expected to be forwarded to the Government in April/May 1977 and will contain long term recommendations on woven polyolefin fabrics. In these circumstances the Commission considers it appropriate that the request

embodied in paragraph 'd' above be acceded to.

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.The Commission therefore recommends that an early announcement be made by the Commonwealth Government that the previously announced reduction of the rate of duty on woven polyolefin fabrics to 22.5 per cent on 1 January 1977 is not to proceed, pending completion of the Commission's inquiry into

Sacks, Bags and Certain Polyolefin Fabrics.

Yours sincerely

The Honourable John Howard, M.P., Minister for Business and Consumer Affairs Parliament House, CANBERRA. A.C.T. 2600