Anda di halaman 1dari 32

SESSION 1 The Basics of Dumping

TLIX5055 Apply Anti-Dumping and Countervailing Measures


TLIX5055 (ADC) – Session 1

Copyright Notice

© 2016 Customs Brokers and Forwarders Council of Australia Inc (CBFCA)


All rights reserved. No part of this document may be reproduced, stored in a retrieval system,
or transmitted, in any form or by any means without the prior written permission of the CBFCA,
nor be otherwise circulated in any form without similar conditions being imposed on the
subsequent receiver.
The right of the CBFCA to be identified as the authors of this workbook has been asserted by
them in accordance with the Copyright Act.

For further information, contact:


The Executive Director
CBFCA
PO Box 303
HAMILTON QLD 4007

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 2
TLIX5055 (ADC) – Session 1

Contents

Copyright Notice .................................................................................................................... 2

Further Reading .......................................................................... Error! Bookmark not defined.

What is Dumping? ................................................................................................................. 4

What is Countervailing? ............................................................. Error! Bookmark not defined.

Article VI of GATT and the Anti-Dumping Agreement ......................................................... 5

The Anti-Dumping Commission............................................................................................ 6

Legislative Framework .......................................................................................................... 7

Like Goods ............................................................................................................................. 8

Material Injury .......................................................................................................................10


What is Material Injury?........................................................................................................................ 10
Indicators of Material Injury .................................................................................................................. 12
Related party transactions ................................................................................................................... 13

How Dumping Duty is calculated.........................................................................................14


Dumping Duty Payable = Normal Value – Export Value ..................................................................... 14

Normal Value (NV) ................................................................................................................14

Export Price (DXP) ................................................................................................................20

Dumping Margin ...................................................................................................................24

Arms Length Transactions...................................................................................................24

Non-injurious price (NIP) ......................................................................................................27

Unsurpressed Selling Price (USP) .......................................................................................28

Countervailing Duty ..............................................................................................................29


Definition of Subsidy ............................................................................................................................ 29

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 3
TLIX5055 (ADC) – Session 1

Further References
Dumping and Countervailing Duty Manual:
http://www.adcommission.gov.au/accessadsystem/Pages/Dumping-and-Subsidy-Manual.aspx

Dumping Commodities Register – Introduction to the ICS:


http://www.adcommission.gov.au/measures/Pages/default.aspx

Forms and Guidelines:


http://www.adcommission.gov.au/accessadsystem/Pages/Forms-and-Guidelines.aspx

Anti-Dumping Review Panel


http://www.adreviewpanel.gov.au/Pages/default.aspx

What is Dumping?
Dumping is said to occur when an overseas supplier exports a good (in our case) to Australia
at a price below its “normal value” in the country of export. There are many reasons why a
company or country may try and “dump” goods into another country. These reasons can
include:
• Oversupply in their own country;
• Subsidies may be provided by Governments to export products;
• Poor quality product that may not be acceptable to one country may be acceptable to
another.

What is Countervailing?
Countervailing duties are similar to dumping but the sale prices are low because the goods
benefit from government subsidies in the country of export. A subsidy is deemed to be a
countervailable subsidy when the following three distinct elements are present:
• there must either be a financial contribution by a government, or income or price
support; whether directly or indirectly, in respect of the goods;
• this must confer a benefit; and
the subsidy must be specific to an enterprise or industry or group of enterprises or industries.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 4
TLIX5055 (ADC) – Session 1

Article VI of GATT and the Anti-Dumping Agreement


As a member of the World Trade Organisation (WTO), Australia is bound by the World Trade
Organisation Uruguay Round Anti-Dumping Agreement and Agreement on Subsidies and
Countervailing Measures (the WTO Agreement). Article 2.1 of the WTO Agreement provides
that a product is considered dumped, i.e. introduced into the commerce of another country at
less than its normal value, if the export price of the product exported from one country to
another is less than the comparable price, in the ordinary course of trade, for the like product
when destined for consumption in the exporting country. (The export price is the price paid
before any costs in respect of the goods after exportation are included. Normal value is usually
defined as the price at which a good would be sold in its home market.)The GATT 1994 sets
forth a number of basic principles applicable in trade between Members of the WTO, including
the “most favoured nation” principle. It also requires that imported products be treated no less
favourably than domestic goods under domestic laws and regulations, and establishes rules
regarding quantitative restrictions, fees and formalities related to importation, and customs
valuation. Members of the WTO also agreed to the establishment of schedules of bound tariff
rates.

Article VI of GATT 1994, allows for the imposition of additional anti-dumping duties on imports
in cases where dumping causes or threatens injury to a domestic industry, or materially
retards the establishment of a domestic industry. The World Trade Organization (WTO)
Agreement on Implementation of Article VI of GATT 1994, commonly known as the Anti-
Dumping Agreement, formalises this.

Anti-dumping rules provide various methods for calculating the ‘normal value’ of goods
depending on whether the exporting country is a market economy or a ‘non-market economy’
(NME). But dumping outcomes tend to be less favourable for an exporting country when it is
treated as a NME. MES can be an important concept in bilateral trade relations and a change
from NME to MES status can affect trade flows and trade agreements.

Australia’s dumping and subsidy legislation reflects the Anti-Dumping Agreement and the
Agreement on Subsidies and Countervailing Measures (the Subsidy Agreement) to which
Australia is also a signatory.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 5
TLIX5055 (ADC) – Session 1

Further Reading

You may like to investigate the international obligations under which Australia, as a member of
GATT/ WTO operates on the WTO website on dumping:

http://www.wto.org/english/tratop_e/adp_e/adp_info_e.htm

The Anti-Dumping Commission


Australia’s system is based on WTO agreements that, amongst other things, aim to control the
use of anti-dumping measures so that it is not used as an alternative form of protection.
Though not obliged to enact such legislation, WTO members must comply with the agreed
requirements should they wish to take action against dumped imports.
In Australia the system is administered by the Anti-Dumping Commission, which has offices in
Melbourne and Canberra and is headed by a Commissioner reporting to the Minister for
Industry. Upon application to it by the Australian industry together with evidence of the
dumping or subsidy and the injury the Commission commences an investigation and reports to
the Minister whether anti-dumping or countervailing duties should be imposed on goods from
the countries named in the application. The application must be made in an approved form
available on the Commission’s website at www.adcommission.gov.au.

Before any action may be taken against dumped goods, the Australian industry concerned
must demonstrate not only that dumping is occurring, but that the Australian industry has
suffered material injury as a result. This is done through an application to the Anti-Dumping
Commission (“AD Commission”) for an investigation into the facts of the case. If Customs
determines that dumping has occurred, it must then establish whether the Australian industry’s
performance has deteriorated, whether any injury suffered would be considered material and
whether the dumping has caused the material injury to the industry. Any injury that has
resulted from other, clearly identifiable sources must not be attributed to the dumping.
Regardless of whether it is found that dumping has caused material injury, it must also be
determined whether future dumping threatens to cause material injury to the Australian
industry. This includes an assessment of whether any changes in circumstances would make

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 6
TLIX5055 (ADC) – Session 1

that threat of material injury both foreseeable and imminent unless anti-dumping measures
were imposed.

The investigation process goes through several stages (mostly time-limited) and includes
appeal arrangements (though some decisions are not appealable). Key requirements that
must be satisfied before measures can be imposed include:
• The goods produced by the local industry seeking relief from dumped or subsidised
imported goods must be ‘like’ those imported goods.
• The application must have majority industry support.
• In dumping cases (but not subsidy cases), the export price of the goods must be below
the ‘normal value’. In the first instance, this value is based on ‘arms length’ sales in the
exporter’s own country. However, where there are no or an insufficient volume of such
sales, a hierarchy of alternatives comes into play.
• Dumping or subsidisation has caused or threatens material injury to the Australian
industry producing like goods. Though ‘material injury’ is not defined in the legislation, it
has been taken to mean ‘not immaterial, insubstantial or insignificant and greater than
that likely to occur in the normal ebb and flow of businesses.

Public copies of submissions, reference material, reports and decisions are required to be
made available on the Commission’s website at
http://www.adcommission.gov.au/Pages/default.aspx#

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 7
TLIX5055 (ADC) – Session 1

Legislative Framework
The main legislation under which the Commission administers Australia’s antidumping system
includes:
• Customs Act 1901 (the Act), particularly Part XVB;
• Customs (International Obligations) Regulation 2015, particularly Part VIII;
• Customs Tariff (Anti-Dumping) Act 1975;
• Customs Tariff (Anti-Dumping) Regulation 2013; and

This module includes excerpts from the legislation; however it is recommended that Part XVB
of the Customs Act is reviewed. In most instances further information is also available in the
Dumping Manual.

Please note that Section 269T of the Customs Act 1901 contains definitions used within the
legislation and used within this module. Further terminology used in these matters is discussed
below cross referenced to the relevant section of the Customs Act 1901.

The most up to date information regarding Anti-Dumping and Countervailing duties including
any investigations and notices can be found on the Anti-Dumping Commission (ADC) and
Anti-Dumping Review Panel (ADRP).

Like Goods
Like goods are defined in s. 269T as goods that are identical in all respects to the goods under
consideration or that although not alike in all respects to the goods under consideration have
characteristics closely resembling those goods under consideration.

Where two goods are not alike in all respects, the Commission assess whether they have
characteristics closely resembling each other against the following considerations:
• Tariff classification;
• Physical likeness;
• Commercial likeness;
• Functional likeness;
• Production likeness;

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 8
TLIX5055 (ADC) – Session 1

• Marketing;
• Any other considerations identified.

The determination of like goods is used within the anti-dumping framework to define:
• The Australian industry producing like goods– s. 269TB(1) refers. Establishing the
Australian industry is critical to the examination and existence of injury;
• the goods sold on the exporter’s domestic market – s. 269TAC(1) states “the normal
value of any goods exported to Australia is the price paid or payable for like goods sold
in the ordinary course of trade for home consumption in the country of export…or, if
like goods are not so sold by the exporter, by other sellers of like goods”, and
• the goods subject of the dumping duty notice – s. 269TG

If the “like goods “as identified are too broad then any dumping duty imposed will also catch
those goods. For example, aluminium extrusions are currently subject to both anti-dumping
and countervailing measures. The “like goods’ are defined as goods classified as follows and
produced via an extrusion process, of alloys having metallic elements falling within the alloy
designations published by The Aluminium Association commencing with 1, 2, 3, 5, 6 or 7 (or
proprietary or other certifying body equivalents), with the finish being as extruded (mill),
mechanical, anodized or painted or otherwise coated, whether or not worked, having a wall
thickness or diameter greater than 0.5 mm., with a maximum weight per metre of 27 kilograms
and a profile or cross-section which fits within a circle having a diameter of 421 mm.

The goods include aluminium extrusion products that have been further processed or
fabricated to a limited extent, after aluminium has been extruded through a die. For example,
aluminium extrusion products that have been painted, anodised, or otherwise coated, or
worked (e.g. precision cut, machined, punched or drilled) fall within the scope of the goods.

The goods do not extend to intermediate or finished products that are processed or fabricated
to such an extent that they no longer possess the nature and physical characteristics of an
aluminium extrusion, but have become a different product.
• 7604.10.00 (statistical code 06)
• 7604.21.00 (statistical codes 07 and 08)
• 7604.29.00 (statistical codes 09 and 10)

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 9
TLIX5055 (ADC) – Session 1

• 7608.10.00 (statistical code 09)


• 7608.20.00 (statistical code 10)
• 7610.10.00 (statistical code 12)
• 7610.90.00 (statistical code 13)

As an example consider an Australian industry that produces extrusions for use in the further
manufacture of doors and windows. Now consider different imported extrusions used only in in
balcony or stairwell manufacture and that because of their size/shape/something else are
unsuitable for other use. Those extrusions under the definition of “like goods” are also subject
to anti-dumping action.

Material Injury

What is Material Injury?


The existence of dumping or countervailing subsidies alone is insufficient for the government
to institute measures to counteract it. There must always be material injury or threatened injury
to an Australian industry or developing Australian industry for anti-dumping or countervailing
action to occur. If this is shown to occur then remedial action — mainly the imposition of anti-
dumping duties — can be taken against the imported goods concerned.

Please refer to s.269TAE of the Customs Act.


Dumping Notice 2012/24 also summarises what will be regarded as material injury:
• material injury is injury which is not immaterial, insubstantial or insignificant;
• the injury must be greater than that likely to occur in the normal ebb and flow of
business;
• identifying material injury will depend on the circumstances of each case;
• injury caused by other factors must not be attributed to dumping or subsidisation,
however
• dumping or subsidisation need not be the sole cause of injury to the industry; and

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 10
TLIX5055 (ADC) – Session 1

• it is important to consider regional dumping, the greater impact of injury during periods
of
• Economic downturn and reduced rates of growth as an element of injury.

It also recognises that there may be other circumstances where dumping or subsidisation may
still result in injury where it has caused the rate of an industry’s growth to slow, without causing
it to contract, or where an industry suffers a loss of market share in a growing market, without
a decline in profits.

When assessing material injury there must be a direct identifiable link between the imported
goods that are being dumped or subsidised and the material injury suffered or threatened to
be suffered by the Australian industry of like goods. If there is evidence of dumped goods and
material injury being suffered by the Australian industry but the material injury is found to be
caused by matters other than the dumping, the AD Commission will recommend no dumping
action be imposed on the imported goods.

When investigating a dumping or countervailing matter AD Commission assesses the


economic factors that are effecting the production or manufacturing of the local industry in
order to determine the reasoning and extent of the injury or threatened injury being suffered
and reviews the whole industry, not just the party making the complaint.

Material injury is not defined in Australia’s legislation or in the WTO Anti-Dumping Agreement
(ADA) or WTO Agreement on Subsidies and Countervailing Measures (SCM), however, in
April 2012 a Ministerial Direction on Material Injury included these key issues:
• The identification of material injury be based on facts and not on assertions
unsupported by facts;
• It must be shown that the industry is suffering injury and that the injury caused by
dumping or subsidisation is material in degree;
• The injury must also be greater than that likely to occur in the normal ebb and flow of
business;
• Subject to the law, material injury is that which is not immaterial, insubstantial or
insignificant. No threshold amount has general application and identifying material
injury will depend on the case circumstances;

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 11
TLIX5055 (ADC) – Session 1

• Dumping or subsidisation need not be the sole cause of injury. Injury caused by other
factors must not be attributed to dumping or subsidisation;
• An understanding that the law does not prevent judging the materiality of injury caused
by a given degree of dumping or subsidisation differently, depending on the current
economic circumstances of the industry. An industry which at one point in time is
healthy and not adversely affected by dumping or subsidisation could, at another point
in time, suffer a material injury from the same amount of dumping and subsidisation
because it had become weakened by other events;
• Anti-dumping or countervailing action is possible in cases where an industry has been
expanding its market share, and the dumped or subsidised imports have slowed the
rate of growth – a decline in growth may be as relevant as the movement from growth
to decline;
• As in all cases, a loss of market share alone cannot be decisive. Loss of market share
should be considered with a range of relevant indicators before material injury may be
established;
• In cases where dumped or subsidised imports hold a small market share, it may be
difficult to demonstrate material injury. No minimum standard should be used to
determine whether dumped or subsidised imports have a sufficient share of the market
to cause material injury;
• An industry’s vulnerability to dumped or subsidised imports may be confined to a
specific region. Injury may be occurring in that region – it is still possible to take
account of such regional injury and as appropriate may judge such injury to be material
to the industry as a whole.

A copy of that Direction is at


http://www.adcommission.gov.au/adsystem/referencematerial/Pages/Ministerial-Decision.aspx

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 12
TLIX5055 (ADC) – Session 1

Indicators of Material Injury


Factors that may be considered during an investigation and that may be indicative of material
injury include:
 Price suppression – the prices achieved by the Australian industry are suppressed by
the cheaper imported products. Please note that although imported goods may be
cheaper than Australian manufactured goods it does not necessarily mean the goods
have been dumped.
 Volume Injury – The volume of sales being achieved by the Australian Industry is low
due to the cheaper imports. When Customs investigate this matter they look at not only
the total sales of the complete market, as this figure may be stagnant, but at the
complete industry and the percentage of the market being serviced by the Australian
industry.
 Loss of capacity – The Australian industry has a reduction in use of its manufacturing
capacity. This will generally mean that the Australian Industry is manufacturing at
levels below what it would normally achieve or want to achieve. This may not be a
result of cheap dumped imports however if it the investigation determines that it is a
contributing factor to the reduced manufacturing then this may establish a causal link
between the two.
 Reduced Employment – This item is an off shoot of the previous one as a reduction in
the amount of manufacturing by the Australian industry will usually mean a reduction in
employment and wages for the Australian workers.
 Stock levels – If Australian industry stock levels are increasing this may relate to a
decrease in sales. Increasing stock levels is a measurement of constant capacity
against a reduction in sales and therefore increases the costs and subsequently effects
the profitability of the Australian industry.
 Return on Investment – the Australian industry is not as profitable as it should be or
was predicted to be as this will reduce the returns for the Australian industry in the
bookable figures.
 Forward orders – A decrease in forward orders will materialize to a loss of sales and
effect the forward planning of the Australian industry.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 13
TLIX5055 (ADC) – Session 1

 Cash Flow – Resulting from loss of sales or lack of profitability due to price
suppression. This affects the Australian industry ability to compete in the market and
also the long term future of the industry.
 Ability to raise capital – Should the Australian industry be suffering from the above
effects then its ability to raise capital for further/future investment will be restricted as
the industry will not have the profitability to sustain the capital costs.
• Loss of market share;

Related party transactions


Related party transactions are generally either intra-company transactions between non-legal
entities or transactions between related legal entities. AD policy is to examine the degree to
which related party transactions involving the producing Australian industry are suitable for the
material injury assessment and/or whether any relationship between the parties affects the
transaction value. In assessing volume and production related injury indicators, transactions
between related parties are considered to be reliable and suitable, however, transaction
values between related parties may be unreliable and inappropriate for assessing injury
indicators associated with price effects.

How Dumping Duty is calculated


Dumping occurs when the export price is less than the normal value. The difference between
the “export price” and “normal value” in the country of export is “the margin of dumping” and
under WTO rules a member country can impose anti-dumping duties or securities against the
dumped goods to the value of that dumping margin.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 14
TLIX5055 (ADC) – Session 1

Dumping Duty Payable = Normal Value – Export Value


If the Normal Value is below that of the Export Price then, prima facie, dumping has occurred.
However just because it product is dumped onto the Australian market it does not mean
dumping duties will be imposed. A causal link to material injury being suffered by the
Australian industry prior to dumping duties being imposed must also be present.

Normal Value (NV)


Section 269TAC (1) provides that the normal value of any goods exported to Australia is the
price paid or payable for like goods sold in the ordinary course of trade for home consumption
in the country of export in sales that are arms length transactions by the exporter, or if like
goods are not so sold by the exporter, by other sellers of like goods.

The intent in obtaining the normal value of goods is to be able to draw back the value to a
point that is considered as close to or the same as the point at which the export price is
determined. By taking this approach the AD Commission attempts to compare the two prices,
on like goods, at the same point in the transaction.

269TAC Normal value of goods

(1) Subject to this section, for the purposes of this Part, the normal value of any goods
exported to Australia is the price paid or payable for like goods sold in the ordinary course of
trade for home consumption in the country of export in sales that are arms length transactions
by the exporter or, if like goods are not so sold by the exporter, by other sellers of like goods.
(1A) For the purposes of subsection (1), the reference in that subsection to the price paid or
payable for like goods is a reference to that price after deducting any amount that is
determined by the Minister to be a reimbursement of the kind referred to in subsection
269TAA(1A) in respect of the sales.
(2) Subject to this section, where the Minister:
(a) is satisfied that:

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 15
TLIX5055 (ADC) – Session 1

(i) because of the absence, or low volume, of sales of like goods in the market
of the country of export that would be relevant for the purpose of determining a
price under subsection (1); or
(ii) because the situation in the market of the country of export is such that
sales in that market are not suitable for use in determining a price under
subsection (1);
the normal value of goods exported to Australia cannot be ascertained under
subsection (1); or
(b) is satisfied, in a case where like goods are not sold in the ordinary course of trade
for home consumption in the country of export in sales that are arms length
transactions by the exporter, that it is not practicable to obtain, within a reasonable
time, information in relation to sales by other sellers of like goods that would be
relevant for the purpose of determining a price under subsection (1);
the normal value of the goods for the purposes of this Part is:
(c) except where paragraph (d) applies, the sum of:
(i) such amount as the Minister determines to be the cost of production or
manufacture of the goods in the country of export; and
(ii) on the assumption that the goods, instead of being exported, had been sold
for home consumption in the ordinary course of trade in the country of export—
such amounts as the Minister determines would be the administrative, selling
and general costs associated with the sale and the profit on that sale; or
(d) if the Minister directs that this paragraph applies—the price determined by the
Minister to be the price paid or payable for like goods sold in the ordinary course of
trade in arms length transactions for exportation from the country of export to a third
country determined by the Minister to be an appropriate third country, other than any
amount determined by the Minister to be a reimbursement of the kind referred to in
subsection 269TAA(1A) in respect of any such transactions.
(3) The price determined under paragraph (2)(d) is a price that the Minister determines, having
regard to the quantity of like goods sold as described in paragraph (2)(d) at that price, is
representative of the price paid in such sales.
(4) Subject to subsections (6) and (8), where the Minister is satisfied that it is inappropriate to
ascertain the normal value of goods in accordance with the preceding subsections because
the Government of the country of export:

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 16
TLIX5055 (ADC) – Session 1

(a) has a monopoly, or substantial monopoly, of the trade of the country; and
(b) determines or substantially influences the domestic price of goods in that country;
the normal value of the goods for the purposes of this Part is to be a value ascertained
in accordance with whichever of the following paragraphs the Minister determines
having regard to what is appropriate and reasonable in the circumstances of the case:
(c) a value equal to the price of like goods produced or manufactured in a country
determined by the Minister and sold for home consumption in the ordinary course of
trade in that country, being sales that are arms length transactions;
(d) a value equal to the price determined by the Minister to be the price of like goods
produced or manufactured in a country determined by the Minister and sold in the
ordinary course of trade in arms length transactions for exportation from that country to
a third country determined by the Minister to be an appropriate third country;
(e) a value equal to the sum of the following amounts ascertained in respect of like
goods produced or manufactured in a country determined by the Minister and sold for
home consumption in the ordinary course of trade in that country:
(i) such amount as the Minister determines to be the cost of production or
manufacture of the like goods in that country;
(ii) such amounts as the Minister determines to be the administrative, selling
and general costs associated with the sale of like goods in that country and the
profit on that sale;
(f) a value equal to the price payable for like goods produced or manufactured in
Australia and sold for home consumption in the ordinary course of trade in Australia,
being sales that are arms length transactions.
(5) The price determined under paragraph (4)(d) is a price that the Minister determines,
because of the quantity of like goods sold as described in paragraph (4)(d) at that price, is
representative of the price paid in such sales.
(5A) Amounts determined:
(a) to be the cost of production or manufacture of goods under subparagraph (2)(c)(i)
or (4)(e)(i); and
(b) to be the administrative, selling and general costs in relation to goods under
subparagraph (2)(c)(ii) or (4)(e)(ii);
must be worked out in such manner, and taking account of such factors, as the regulations
provide for the respective purposes of paragraphs 269TAAD(4)(a) and (b).

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 17
TLIX5055 (ADC) – Session 1

(5B) The amount determined to be the profit on the sale of goods under subparagraph (2)(c)(ii)
or (4)(e)(ii), must be worked out in such manner, and taking account of such factors, as the
regulations provide for that purpose.
(5C) Without limiting the generality of the matters that may be taken into account by the
Minister in determining whether a third country is an appropriate third country for the purposes
of paragraph (2)(d) or (4)(d), the Minister may have regard to the following matters:
(a) whether the volume of trade from the country of export referred to in
paragraph (2)(d) or the country first-mentioned in paragraph (4)(d) is similar to the
volume of trade from the country of export to Australia; and
(b) whether the nature of the trade in goods concerned between the country of export
referred to in paragraph (2)(d) or the country first-mentioned in paragraph (4)(d) is
similar to the nature of trade between the country of export and Australia.
(5D) The normal value of goods (the exported goods) is the amount determined by the
Minister, having regard to all relevant information, if the exported goods are exported to
Australia and the Minister is satisfied that the country of export has an economy in transition
and that at least one of the following paragraphs applies:
(a) both of the following conditions exist:
(i) the exporter of the exported goods sells like goods in the country of export;
(ii) market conditions do not prevail in that country in respect of the domestic
selling price of those like goods;
(b) both of the following conditions exist:
(i) the exporter of the exported goods does not sell like goods in the country of
export but others do;
(ii) market conditions do not prevail in that country in respect of the domestic
selling price of those like goods;
(c) the exporter of the exported goods does not answer questions in a questionnaire
given to the exporter by the Commissioner under subsection 269TC(8) within the
period described in that subsection or subsection 269TC(9) for answering questions;
(d) the answers given within the period mentioned in subsection 269TC(8), or the
further period mentioned in subsection 269TC(9), by the exporter of the exported
goods to a questionnaire given to the exporter under subsection 269TC(8) do not
provide a reasonable basis for determining that paragraphs (a) and (b) of this
subsection do not apply.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 18
TLIX5055 (ADC) – Session 1

Note: Subsection 269TC(8) deals with the Commissioner giving an exporter of goods to
Australia a questionnaire about evidence of whether or not paragraphs (a) and (b) of this
subsection apply, with a specified period of at least 30 days for the exporter to answer the
questions. Under subsection 269TC(9) the Commissioner may allow the exporter a further
period for answering the questions.
(5E) To be satisfied that the conditions in paragraph (5D)(a) or (b) exist, the Minister must
have regard to the matters (if any) prescribed by the regulations.
(5F) Without limiting the generality of subsection (5D), for the purpose of working out, under
that subsection, the amount that is to be the normal value of goods exported to Australia, the
Minister may determine that amount in a manner that would be open to the Minister under
paragraph (4)(c), (d), (e) or (f) if subsection (4) were applicable.
(5J) For the purposes of fulfilling Australia’s international obligations under an international
agreement, regulations may be made to disapply subsection (5D) to a country.
(6) Where the Minister is satisfied that sufficient information has not been furnished or is not
available to enable the normal value of goods to be ascertained under the preceding
subsections (other than subsection (5D)), the normal value of those goods is such amount as
is determined by the Minister having regard to all relevant information.
(7) For the purposes of this section, the Minister may disregard any information that he or she
considers to be unreliable.
(7A) The application of subsection (5D) to goods that are exported to Australia from a
particular country does not preclude the application of other provisions of this section (other
than subsections (4) and (5)) to other goods that are exported to Australia from that country.
(8) Where the normal value of goods exported to Australia is the price paid or payable for like
goods and that price and the export price of the goods exported:
(a) relate to sales occurring at different times; or
(b) are not in respect of identical goods; or
(c) are modified in different ways by taxes or the terms or circumstances of the sales to
which they relate;
that price paid or payable for like goods is to be taken to be such a price adjusted in
accordance with directions by the Minister so that those differences would not affect its
comparison with that export price.
(9) Where the normal value of goods exported to Australia is to be ascertained in accordance
with paragraph (2)(c) or (4)(e), the Minister must make such adjustments, in determining the

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 19
TLIX5055 (ADC) – Session 1

costs to be determined under that paragraph, as are necessary to ensure that the normal
value so ascertained is properly comparable with the export price of those goods.
(10) Where:
(a) the actual country of export of goods exported to Australia is not the country of
origin of the goods; and
(b) the Minister is of the opinion that the normal value of the goods should be
ascertained for the purposes of this Part as if the country of origin were the country of
export;
he or she may direct that the normal value of the goods is to be so ascertained.
(11) For the purposes of subsection (10), the country of origin of goods is:
(a) in the case of unmanufactured raw products—the country of which they are
products; or
(b) in any other case—the country in which the last significant process in the
manufacture or production of the goods was performed.
(14) If:
(a) application is made for a dumping duty notice; and
(b) goods the subject of the application are exported to Australia; but
(c) the volume of sales of like goods for home consumption in the country of export by
the exporter or another seller of like goods is less than 5% of the volume of goods the
subject of the application that are exported to Australia by the exporter;
the volume of sales referred to in paragraph (c) is taken, for the purposes of paragraph (2)(a),
to be a low volume unless the Minister is satisfied that it is still large enough to permit a proper
comparison for the purposes of assessing a dumping margin under section 269TACB.

A detailed explanation of each of the methods that may be used in determining NV as per
s.269TAC are in the Manual.

Section 269TAAD provides that if like goods are sold in the country of export in arms length
transactions and in substantial quantities, and are sold at a price less than the cost of such
goods and are unrecoverable within a reasonable period, they are taken not to have been paid
in the ordinary course of trade.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 20
TLIX5055 (ADC) – Session 1

Section 269TAA outlines the circumstances in which the price paid or payable shall not be
treated as arms length. These are where:
• there is any consideration payable for or in respect of the goods other than price; or
• the price is influenced by a commercial or other relationship between the buyer, or an
associate of the buyer, and the seller, or an associate of the seller; or
• in the opinion of the Minister, the buyer, or an associate of the buyer, will, directly or
indirectly, be reimbursed, be compensated or otherwise receive a benefit for, or in
respect of, the whole or any part of the price.

Section 269TAC(2)(a) gives direction on whether sales of like goods sold for home
consumption in the country of export are relevant and suitable for the purpose of determining a
price under s. 269TAC(1). Specifically, normal value cannot be ascertained under s. 269TAC
(1) where:
• there are no sales, or an absence of relevant sales;
• there is a low volume of relevant sales;
• sales are unsuitable because of a situation in the market of the country of export.

Export Price (DXP)


Section 269TAB of the Customs Act identifies the criteria for determining the export price for
the goods exported to Australia.

Section 269TAB(1)(a) provides that where a sale is between the importer and exporter,
someone other than the importer has exported the goods and the sale is an arms length
transaction, the export price is the price paid (or payable) to the exporter by the importer less
any charges incurred after exportation.

Importer is defined in s. 269T (1) as the beneficial owner of the goods at the time of their
arrival within the limits of the port or airport in Australia at which they have landed. The
beneficial owner is considered to be the one who was entitled to all the benefits associated
with ownership even though they may not be the legal owner of the goods.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 21
TLIX5055 (ADC) – Session 1

Section 269TAB (1) (b) concerns the situation where the sale is between the importer and
exporter and someone has exported the goods other than the importer, but the sale is not an
arms length transaction. The legislation further provides that in this circumstance, if the goods
are subsequently resold in Australia by the importer (in an unaltered condition) to an
independent buyer, the export price is determined to be the selling price of those goods less
the prescribed deductions.

Section 269TAB (2) defines “prescribed deductions” to be:


• any Customs duty or sales tax paid or payable; and
• any costs arising after exportation. For example, any costs incurred by the importer
such as post export transportation, handling, storage and overheads; and
• the profit, if any, on the sale by the importer or a rate of profit on the sale by the
importer, as directed by the Minister.
To apply the provisions of s. 269TAB (1) (a) or (b), the sale must be between the importer and
exporter and the goods must have been exported by someone other than the importer. Where
either (or both) of these criteria are not met, s. 269TAB (1) (c) permits the export price to be
determined having regard to all the circumstances of the exportation.

Where there is insufficient information to enable an export price to be determined, s. 269TAB


(3) provides that the export price will be an amount determined by having regard to all relevant
information.
Generally, export price is assessed as the ‘free on board price” (FOB) received by the exporter
at the seaport in the country of export or, in the case of air transport, at the airport in the
country of export. Free on board is defined in Incoterms 2010 and should not be confused with
the valuation provisions of the Customs Act in which FCL packed at factory are considered to
be FOB. Having said that in some circumstances export price may be assessed at another
level. An ex-factory price received by the exporter may be used, for example, in the situation
where charges are all inclusive of FIFT and OFT and it is impractical to segregate them.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 22
TLIX5055 (ADC) – Session 1

269TAB Export Price

(1) For the purposes of this Part, the export price of any goods exported to Australia is:
(a) where:
(i) the goods have been exported to Australia otherwise than by the importer
and have been purchased by the importer from the exporter (whether before or
after exportation); and
(ii) the purchase of the goods by the importer was an arms length transaction;
the price paid or payable for the goods by the importer, other than any part of that price
that represents a charge in respect of the transport of the goods after exportation or in
respect of any other matter arising after exportation; or
(b) where:
(i) the goods have been exported to Australia otherwise than by the importer
and have been purchased by the importer from the exporter (whether before or
after exportation); and
(ii) the purchase of the goods by the importer was not an arms length
transaction; and
(iii) the goods are subsequently sold by the importer, in the condition in which
they were imported, to a person who is not an associate of the importer;
the price at which the goods were so sold by the importer to that person less the
prescribed deductions; or
(c) in any other case—the price that the Minister determines having regard to all the
circumstances of the exportation.
(1A) For the purposes of paragraph (1)(a), the reference in that paragraph to the price paid or
payable for goods is a reference to that price after deducting any amount that is determined by
the Minister to be a reimbursement of the kind referred to in subsection 269TAA(1A) in respect
of that transaction.
(2) A reference in paragraph (1)(b) to prescribed deductions in relation to a sale of goods that
have been exported to Australia shall be read as a reference to:
(a) any duties of Customs or sales tax paid or payable on the goods; and
(b) any costs, charges or expenses arising in relation to the goods after exportation;
and

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 23
TLIX5055 (ADC) – Session 1

(c) the profit, if any, on the sale by the importer or, where the Minister so directs, an
amount calculated in accordance with such rate as the Minister specifies in the
direction as the rate that, for the purposes of paragraph (1)(b), is to be regarded as the
rate of profit on the sale by the importer.
(3) Where the Minister is satisfied that sufficient information has not been furnished, or is not
available, to enable the export price of goods to be ascertained under the preceding
subsections, the export price of those goods shall be such amount as is determined by the
Minister having regard to all relevant information.
(4) For the purposes of this section, the Minister may disregard any information that he or she
considers to be unreliable.
(5) Paragraphs (1)(a) and (b) apply in relation to a purchase of goods by an importer from an
exporter whether or not the importer and exporter are associates of each other.

Dumping Margin
The difference between the “normal value” and the “export price” in the country of export is
called “the dumping margin” and under WTO rules a member country can impose anti-
dumping duties or securities against the dumped goods to the value of that dumping margin.

Arms Length Transactions


In determining export prices under s. 269TAB (1) (a) and normal values under s. 269TAC (1),
the Act requires that the relevant sales are arms length transactions. This means that the price
paid or payable has not been influenced by any relationship between the buyer and seller or
other third parties that may form part of the transaction.

Section 269TAA outlines the circumstances in which the price paid or payable shall not be
treated as arms length. These are where:
• there is any consideration payable for in respect of the goods other than price;

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 24
TLIX5055 (ADC) – Session 1

• the price is influenced by a commercial or other relationship between the buyer, or an


associate of the buyer, and the seller, or an associate of the seller;
• in the opinion of the Minister, the buyer, or an associate of the buyer, will, directly or
indirectly, be reimbursed, be compensated or otherwise receive a benefit for, or in
respect of, the whole or any part of the price.

269TAA Arms length transactions

(1) For the purposes of this Part, a purchase or sale of goods shall not be treated as an arms
length transaction if:
(a) there is any consideration payable for or in respect of the goods other than their
price; or
(b) the price appears to be influenced by a commercial or other relationship between
the buyer, or an associate of the buyer, and the seller, or an associate of the seller; or
(c) in the opinion of the Minister the buyer, or an associate of the buyer, will,
subsequent to the purchase or sale, directly or indirectly, be reimbursed, be
compensated or otherwise receive a benefit for, or in respect of, the whole or any part
of the price.
(1A) For the purposes of paragraph (1)(c), the Minister must not hold the opinion referred to in
that paragraph because of a reimbursement in respect of the purchase or sale if the Minister is
of the opinion that the purchase or sale will remain an arms length transaction in spite of the
payment of that reimbursement, having regard to any or all of the following matters:
(a) any agreement, or established trading practices, in relation to the seller and the
buyer, in respect of the reimbursement;
(b) the period for which such an agreement or practice has been in force;
(c) whether or not the amount of the reimbursement is quantifiable at the time of the
purchase or sale.

(2) Without limiting the generality of subsection (1), where:


(a) goods are exported to Australia otherwise than by the importer and are purchased
by the importer from the exporter (whether before or after exportation) for a particular
price; and

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 25
TLIX5055 (ADC) – Session 1

(b) the Minister is satisfied that the importer, whether directly or through an associate
or associates, sells those goods in Australia (whether in the condition in which they
were imported or otherwise) at a loss;
the Minister may, for the purposes of paragraph (1)(c), treat the sale of those goods at a loss
as indicating that the importer or an associate of the importer will, directly or indirectly, be
reimbursed, be compensated or otherwise receive a benefit for, or in respect of, the whole or a
part of the price.
(3) In determining, for the purposes of subsection (2), whether goods are sold by an importer
at a loss, the Minister shall have regard to:
(a) the amount of the price paid or to be paid for the goods by the importer; and
(b) such other amounts as the Minister determines to be costs necessarily incurred in
the importation and sale of the goods; and
(c) the likelihood that the amounts referred to in paragraphs (a) and (b) will be able to
be recovered within a reasonable time; and
(d) such other matters as the Minister considers relevant.
(4) For the purposes of this Part, 2 persons shall be deemed to be associates of each other if,
and only if:
(a) both being natural persons:
(i) they are members of the same family; or
(ii) one of them is an officer or director of a body corporate controlled, directly or
indirectly, by the other;
(b) both being bodies corporate:
(i) both of them are controlled, directly or indirectly, by a third person (whether
or not a body corporate); or
(ii) both of them together control, directly or indirectly, a third body corporate; or
(iii) the same person (whether or not a body corporate) is in a position to cast,
or control the casting of, 5% or more of the maximum number of votes that
might be cast at a general meeting of each of them; or
(c) one of them, being a body corporate, is, directly or indirectly, controlled by the other
(whether or not a body corporate); or
(d) one of them, being a natural person, is an employee, officer or director of the other
(whether or not a body corporate); or
(e) they are members of the same partnership.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 26
TLIX5055 (ADC) – Session 1

Note: In relation to the reference to member of a family in subparagraph (4)(a)(i), see also
section 4AAA.

Please note that the above section is not taken to be exhaustively setting out criteria for
determining whether a transaction is, or is not, arms length. It should be noted too that just as
in valuation, the mere fact parties are associated – and in a legal sense not at arms length – is
not taken to automatically mean that they cannot be engaged in arms length transactions.

Identifying whether a transaction is arms length may include consideration of matters such as
transfer pricing, including deflating prices to avoid duties and taxes, providing higher than
normal trade discounts, additional credit terms not available to competitors or any other type of
price adjustment which may create a price that is not a true indication of the value of the
goods.

Should the investigation determine the price at which the goods are imported is not an arms
length transaction alternate methods are available to determine the export price.

Non-injurious price (NIP)


In Section 269TACA and sections 8, 9, 10, 11 of the Customs Tariff (Anti-Dumping Duty) Act,
the non-injurious price of the goods is the price the AD Commission determines is the
minimum price the goods need to be valued at, for export, to prevent the occurrence or
recurrence of the material injury associated with the dumped goods. The material injury will be
that which Customs have identified through their investigations as having occurred due to the
dumping of products into the Australian market.

269TACA Non-injurious price

The non-injurious price of goods exported to Australia is the minimum price necessary:
(a) if the goods are the subject of, or of an application for, a dumping duty notice under
subsection 269TG(1) or (2)—to prevent the injury, or a recurrence of the injury, or to
remove the hindrance, referred to in paragraph 269TG(1)(b) or (2)(b); or

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 27
TLIX5055 (ADC) – Session 1

(b) if the goods are the subject of, or of an application for, a third country dumping duty
notice under subsection 269TH(1) or (2)—to prevent the injury, or a recurrence of the
injury, referred to in paragraph 269TH(1)(b) or (2)(b); or
(c) if the goods are the subject of, or of an application for, a countervailing duty notice
under subsection 269TJ(1) or (2)—to prevent the injury, or a recurrence of the injury, or
to remove the hindrance, referred to in paragraph 269TJ(1)(b) or (2)(b); or
(d) if the goods are the subject of, or of an application for, a third country countervailing
duty notice under subsection 269TK(1) or (2)—to prevent the injury, or a recurrence of
the injury, referred to in paragraph 269TK(1)(b) or (2)(b).

Unsuppressed Selling Price (USP)


The Commission will generally derive the NIP from an unsuppressed selling price (USP). The
USP is the selling price at which a good could be sold in a market unaffected by dumped
imports. The non-injurious price is the free-on-board equivalent of that unsuppressed selling
price. Simply put, the unsuppressed selling price is the price at which an Australian industry
could sell its goods in the Australian market when prices are not depressed by competition
from dumped imports from any source. This unsuppressed selling price is necessarily a
market price i.e. a delivered and final price. The non-injurious price is derived from this price
by deducting the costs of importation (such as overseas and inland freight, handling, storage
and delivery costs, duties payable and an amount for importer’s profit) to arrive at a non-
injurious free-on-board export price.

The USP does not allow for the effects of other causes of injury including fair import
competition or competition from other domestic producers.

The dumping duty payable is the difference between: the lower of the ascertained normal
value or the ascertained non-injurious price; and: the ascertained export price. This is to
ensure that, in accordance with Australia’s obligations under the WTO Agreement, the
dumping duty payable is less than the margin of dumping if such lesser duty would be
adequate to remove the injury to the domestic industry.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 28
TLIX5055 (ADC) – Session 1

Countervailing Duty
Countervailing duties are sometimes imposed with Anti-Dumping Duties. While AD duty is
imposed because of the price, CV is imposed to neutralise the negative effects of government
subsidies. They are imposed after an investigation finds that a foreign country subsidises its
exports, injuring or threatening to injure the domestic market in Australia. Section 8(5B) of the
Customs Tariff (Anti-Dumping Duty) Act requires that the total duty charged does not exceed
the amount necessary to prevent injury, i.e. non-injurious price, i.e. that dumping duty and
countervailing duty are not both imposed on the one subsidy so that it is double counted. In
general countervailing duty is imposed before it’s decided whether and how much dumping
duty should be imposed;

Definition of Subsidy
A subsidy is a payment issued by a foreign government or a foreign government agency for
the production of goods that are imported into Australia. If there is no Australian industry
competing with the imported goods then the Australian government will not impose retaliatory
action or object to the subsidy, however, if there is an Australian industry the Australian
Government may impose countervailing measures.

A subsidy exists where two distinct elements are present:


1. there must be a financial contribution by a government, or income or price support; and
2. this must confer a benefit.
A financial contribution is a broadly interpreted term that covers transactions through which
something of economic value is transferred by the government – this may include for example
money in the form of grants, loans, tax deferrals, tax exemptions, export credits or the
provision of goods or services. The government’s actions are the focus when examining
whether there has been a financial contribution.

In establishing whether a financial contribution by a government exists, an important question


is what is “government”? The term includes, as in the definition of “subsidy” in s. 269T below:
• any “public body” within the country of export or origin of the goods. This includes
government at all levels – national, state and regional; and

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 29
TLIX5055 (ADC) – Session 1

• any ‘private body’ entrusted or directed by the government to carry out governmental
function

subsidy, in respect of goods exported to Australia, means:


(a) a financial contribution:
(i) by a government of the country of export or country of origin of the goods; or
(ii) by a public body of that country or a public body of which that government is a
member; or
(iii) by a private body entrusted or directed by that government or public body to carry
out a governmental function;
that involves:
(iv) a direct transfer of funds from that government or body; or
(v) the acceptance of liabilities, whether actual or potential, by that government or
body; or
(vi) the forgoing, or non collection, of revenue (other than an allowable exemption or
remission) due to that government or body; or
(vii) the provision by that government or body of goods or services otherwise than in
the course of providing normal infrastructure; or
(viii) the purchase by that government or body of goods or services; or
(b) any form of income or price support as referred to in Article XVI of the General Agreement
on Tariffs and Trade 1994 that is received from such a government or body;
if that financial contribution or income or price support confers a benefit (whether directly or
indirectly) in relation to the goods exported to Australia.
Note 1: See also subsection (2AA).
Note 2: Section 269TACC deals with whether a financial contribution or income or price
support confers a benefit.

269TAAC Definition – countervailable subsidy

(1) For the purposes of this Part, a subsidy is a countervailable subsidy if it is specific.
(2) Without limiting the generality of the circumstances in which a subsidy is specific, a subsidy
is specific:
(a) if, subject to subsection (3), access to the subsidy is explicitly limited to particular
enterprises; or

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 30
TLIX5055 (ADC) – Session 1

(b) if, subject to subsection (3), access is limited to particular enterprises carrying on
business within a designated geographical region that is within the jurisdiction of the
subsidising authority; or
(c) if the subsidy is contingent, in fact or in law, and whether solely or as one of several
conditions, on export performance; or
(d) if the subsidy is contingent, whether solely or as one of several conditions, on the
use of domestically produced or manufactured goods in preference to imported goods.
(3) Subject to subsection (4), a subsidy is not specific if:
(a) eligibility for, and the amount of, the subsidy are established by objective criteria or
conditions set out in primary or subordinate legislation or other official documents that
are capable of verification; and
(b) eligibility for the subsidy is automatic; and
(c) those criteria or conditions are neutral, do not favour particular enterprises over
others, are economic in nature and are horizontal in application; and
(d) those criteria or conditions are strictly adhered to in the administration of the
subsidy.
(4) The Minister may, having regard to:
(a) the fact that the subsidy program benefits a limited number of particular enterprises;
or
(b) the fact that the subsidy program predominantly benefits particular enterprises; or
(c) the fact that particular enterprises have access to disproportionately large amounts
of the subsidy; or
(d) the manner in which a discretion to grant access to the subsidy has been exercised;
determine that the subsidy is specific.
(5) In making a determination under subsection (4), the Minister must take account of:
(a) the extent of diversification of economic activities within the jurisdiction of the
subsidising authority; and
(b) the length of time during which the subsidy program has been in operation.

There are however subsidies which are excluded from anti-countervailing action. These
subsidies include:
 assistance for research activities;
 assistance for disadvantaged geographic region;

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 31
TLIX5055 (ADC) – Session 1

 assistance to update facilities to meet new environmental requirements; or


 a measure that meets certain specific criteria of the WTO Agreement on Agriculture.

© CBFCA 2016
This material has been created for the sole use of enrolled students completing the Diploma of Customs Broking through the
Customs Brokers & Forwarders Council of Australia Inc. (CBFCA). The use of this material for any other purposes is prohibited
without the express written permission of the CBFCA Version 1.3 19/08/2016 32

Anda mungkin juga menyukai