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New anti-dumping measures

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Hon John Moore MP Minister for Industry. Science & Tourism

Hon Warren Truss MP Minister for Customs & Consumer Affairs


24 February 1998 036 98

New Anti-Dumping Measures

The Federal Government has today announced a comprehensive reform o f Australia’s anti-dumping and countervailing duty mechanisms.

The Minister for Industry, Science and Tourism, John Moore, and the Minister for Customs and Consumer Affairs, Warren Truss, have released details of the decision which was approved by Federal Cabinet earlier today.

Under the new arrangements, interim duties can be imposed after 60 days, the time taken to reach a final finding will be reduced to 155 days and the Anti-Dumping Authority (ADA) will be abolished.

The Ministers said the reforms would give industry confidence that it has available an effective, fast and fair anti-dumping system. Australia’s new anti-dumping arrangements will be the fastest in the world.

The Government’s new system will provide a simpler and faster process for Australian industry seeking redress against dumping of imports by foreign companies. The new arrangements will enable the Government to act quickly against unfair trading practices.

The decision meets an important election commitment to introduce a 155-day anti-dumping inquiry period. Under the new arrangements the Minister will be able to issue a final finding after 155 days and, if dumping has been taking place, duties will be imposed at that time Interim duties can apply from 60 days.

The two current investigative processes - by the ADA and the Australian Customs Service - will be combined into a comprehensive investigation and consultative process to be undertaken by Customs.

There will be an independent appeal mechanism which will not institute a further investigation, but will be able to comprehensively review the investigation by Customs.

The new process draws on the Willett Report into anti-dumping. It is consistent with the Willett recommendations, but also includes improved procedural fairness and a commitment to the principles of natural justice.

Provisional measures can be introduced at day 60 if it is demonstrated that dumping has occurred and material injury incurred

Important to the new process is the contribution by industry to the investigation. Customs will provide a statement of essential facts at day 110, giving industry full opportunity to examine the facts of the case as seen by Customs Industry would respond by day 130 and the investigating officers would then consider the

response, providing a recommendation to the Minister by day 155.

This open and consultative process is expected to lead to less disputation of findings and the Minister’s decision.

The appeal mechanism provides for a statutory officer to conduct an appeal, drawing as needed on expertise from the Department of Industry, Science and Tourism. Notice of appeal must be given within 30 days, with submissions due by day 60 and a decision by the statutory officer to be delivered to Customs by day 90.

There will not be a further investigation. The appeal mechanism allows only for a review of the interpretation of current information. Because the Customs investigation is to be more thorough, it is expected that the appeal mechanism will only be necessary occasionally.

The Government has ako decided to respond to another industry concern by repealing the legislative requirement that companies wishing to have a dumping complaint investigated must have at least 25 per cent local content in their product.

Complainants will need to demonstrate only that they are a local industry producing like goods, undertake a substantial process of manufacture in Australia and that they are supported by the majority of the other local producers o f the goods.

The new process will benefit local industry, and will meet long-held industry concerns.

The Government's scheduled inquiry into anti-dumping under the Competition Principles Agreement will be delayed to allow implementation o f the new arrangements.

Contacts. Norma Rainey Andrew Hall

CMR967 Mr M oore’s office Mr Truss’s office

02/62777580 02/62777790


New Anti-Dumping Measures

- - - -20 Application received by Customs

; Screening Period - analysis of the application to establish a prima facie case

0 Initiation of investigation where the application meets the necessary legislative requirements

Investigation Period - further analysis of the applicant’s claims - industry verification visits - commence material injury analysis - verification visits to importers to assist in determination of export prices

37 Submissions in response to application due

Investigation Period - verification visits to exporters to determine normal values and assist in determination of export prices - determine dumping margins, material injury and causal link for the — purpose of determining whether provisional measures are warranted 60+ Provisional measures (securities) are available from this point forward

Investigation Period - further examination of export prices and normal values to ensure correct methodology and calculation - recalculation of dumping margins - further analysis of material injury and causal link to ensure correct

assessm ent made - preparation of the statement of essential facts

110 Statement of essential facts issued

Investigation Period - commence drafting of final finding report - prepare for final measures, if any

130 Submissions in response to statement of essential facts due

Investigation Period - review of facts and reasoning in light of issues raised in the submissions - prepare final finding report for publication - calculate final measures, if any

,55 FINAL FINDING TO MINISTER 0 In cases where there is an appeal

Notice of appeal lodged with appeal body

Submissions in response to notice of appeal due

L .

- consideration and analysis of appellant's claims

Final finding affirmed or remitted to Customs 90

- consider the appeal in light of issues raised in the submissions