EXPLANATORY STATEMENT

 

Select Legislative Instrument 2009 No. 354

 

Issued by the Authority of the Minister for Home Affairs

Customs Act 1901

Customs Amendment Regulations 2009 (No. 8)

 

Section 270 of the Customs Act 1901 (the Act) provides, in part, that the Governor‑General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed, or as may be necessary or convenient to be prescribed, for giving effect to the Act.

The purpose of the amending Regulations is to add Vietnam to the list of countries that are not subject to the additional anti-dumping provisions that apply to countries that have an economy in transition. This amendment gives effect to Australia's decision to recognise Vietnam's full market economy status as part of the Agreement establishing the Association of Southeast Asian Nations (ASEAN)-Australia-New Zealand Free Trade Area, done at Thailand on 27 February 2009 (the Agreement). The Agreement will be implemented in Australia by the Customs (ASEAN-Australia-New Zealand Free Trade Agreement Implementation) Act 2009.

Under Part XVB of the Act, anti-dumping measures may be taken in respect of goods whose exportation to Australia involves a dumping of those goods that injures, or threatens to injure, Australian industry. Goods are taken to have been dumped if the export price of those goods is less than the normal value of those goods.

Section 269TAC of the Act sets out how the normal value of goods exported to Australia is to be calculated. Where the country of export has an economy in transition, that is, a formerly centrally-planned economy moving towards a market economy, subsection 269TAC(5D) sets out a different basis for determining the normal value of goods.

Subsection 269TAC(5J) provides that the regulations may disapply subsection 269TAC(5D) to a country for the purposes of fulfilling Australia's international obligation under an international agreement.

Regulation 182 of the Customs Regulations 1926 (the Principal Regulations) provides that subsection 269TAC(5D) does not apply to a country mentioned in Schedule 1B to the Principal Regulations.

The amending Regulations add Vietnam to Schedule 1B to the Principal Regulations to ensure that the 'economies in transition' provisions in subsection 269TAC(5D) of the Act do not apply to Vietnam.

Australian industry representative bodies were consulted in April 2008 regarding the proposed implementation of a market economy status for Vietnam. No further consultation was undertaken as the amending Regulations are consequential to the implementation of Australia's international obligations under the Agreement.

The amending Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.

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