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CUSTOMS AMENDMENT REGULATIONS 1999 (NO. 2) 1999 NO. 131EXPLANATORY STATEMENT
STATUTORY RULES 1999 NO. 131
Issued by the Authority or the Minister for Justice and Customs
Customs Act 1901
Customs Amendment Regulations 1999 (No. 2)
Section 270 of the Customs Act 1901 ("the Customs Act") provides that the General-General may make regulations prescribing matters necessary or convenient for the giving effect to the Customs Act.
The purpose of the Regulations is to prescribe those countries to which subsections 269TAC(5D) and (5G) of the Customs Act do not apply.
When conducting a dumping investigation under Part XVB of the Customs Act, the "normal value" of the goods allegedly dumped has to he determined. The various method., of determining the normal value of goods are contained in section 269TAC of the Customs Act.
The Customs (Anti-dumping Amendments) Act 1999 ("the Amending Act") will amend the Customs Act to introduce two new approaches to determining the normal value of goods. These new approaches apply to goods allegedly dumped from countries that are in the process of transition to a market economy.
The first approach applies when it is established that the selling price of those goods is subject to government control (new subsection 269TAC(5D) refers). The second applies when it is established that a raw material input (which accounts for more than 10% of the cost of manufacturing or producing the goods) is supplied by a State owned enterprise (new subsection 269TAC(5G) refers).
New subsection 269TAC(5J) provides that regulations may be made setting out a list of countries to which the approaches in subsections 269TAC(5D) and (5G) do not apply. The regulations can only be made for the purposes of fulfilling Australia's international obligations under an international agreement.
The World Trade Organization ("WTO") Agreement on the implementation of Article 6 of the General Agreement on Tariffs and Trade ("the Agreement") authorises the imposition of antidumping measures only in circumstances where investigations have been conducted in accordance with the provisions of the Agreement.
The Agreement sets out methods of ascertaining the normal value of goods. but does not deal specifically with economics in transition. To meet Australia's obligations under the Agreement, where investigations are conducted in respect of goods allegedly dumped from current WTO countries, the new economics in transition provisions should not be applied to them.
Hence all member countries of the WTO are precluded from the application of the economies in transition provisions in subsections 269TAC(5D) and (5G) of the Customs Act.
The Regulations are explained in detail in the Attachment.
The Regulations will commence on the commencement of item 1 of Schedule 1 to the Amending Act Item 1 inserts new subsections 269TAC(5D), (5G) and (5J) into the Customs Act. Since the Regulations commence at the same time as item 1 the new approaches to determining the normal value of goods will not apply to those WTO countries.
Regulation 1 - Name of regulations
Regulation 1 provides that the proposed Regulations are named the "Customs Amendment Regulations 1999 (No. 2))".
Regulation 2 - Commencement
Regulation 2 provides that the Regulations commence on the commencement of item
1 of Schedule 1 to the Customs (Anti-dumping Amendments) Act 1999.
Regulation 3 - Amendment of Customs Regulations 1926
Regulation 3 provides that Schedule 1 amends the Customs Regulations 1926 ("the Customs Regulations").
Schedule 1 - Amendments
Item 1 of Schedule 1 - After regulation 181
Item t inserts new regulation 182 into the Customs Regulations. New regulation 182 provides that the methods of ascertaining the normal value of goods contained in subsections 269TAC(5D) and (5G) of the Customs Act does not apply to those countries listed in new Schedule 1B (ace item 2 of Schedule 1
Item 2 of Schedule 1 - After Schedule 1A
Item 2 inserts new Schedule 1B into the Customs Regulations. New Schedule 1B lists those countries to which subsections 269TAC(5D) and (5G) do not apply. The countries listed are members of the World Trade Organization.