1968 THE NEW ZEALAND GAZETTE No. 62

Imposition of Provisional Countervailing Duties Under the Customs Act 1966

PURSUANT to New Zealand’s obligations under the GATT Code on Subsidies and Countervailing Duties, notice is hereby given of the imposition of countervailing duties on wheat imported from Australia.

• The Customs Department accepted a complaint on 19 February 1987 lodged by United Wheatgrowers (NZ) Ltd, alleging that subsidised wheat imported from Australia is causing, and threatens to cause, injury to domestic wheat growers.

• The product under enquiry is wheat as classified within Tariff item 10.01.000 of the New Zealand Customs Tariff with a Normal tariff rate of “Free”.

• The New Zealand Industry is defined as wheatgrowers of which there is estimated to be up to 4,500 throughout New Zealand. The industry is represented by United Wheatgrowers (NZ) Ltd., a registered company set up within New Zealand Federated Farmers (Inc).

• Prior to 31 January 1987 the wheat market was the responsibility of the New Zealand Wheat Board under the authority of the Wheat Board Act 1965. This Board was responsible for the purchase of all milling quality wheat and ensured that sufficient milling wheat was available to meet market demands. Approximately 80 percent of the domestic market requirements in the last 3 years has been produced locally, supplemented by imported wheat from Australia by 23 percent, 19 percent and 3 percent respectively. This season’s production is the first to experience free market forces. The complainant alleges that prices offered are unacceptably low due to the miller’s ability to source their requirements from the subsidised and dumped world markets.

• Preliminary investigation has shown that the production of wheat in Australia is currently supported by a number of subsidies offered by the Australian Government both directly and indirectly to the wheat industry. This positive finding has been made in the following areas of subsidies, bounties and concessions:

  • Guaranteed Minimum Price.
  • Wheat Industry Research Subsidy.
  • Grain Terminal at Port Kembla.
  • Tractor and Equipment Bounty.
  • Cultivation Equipment and Machinery Subsidy.
  • Grain Harvester Subsidies.
  • Fertilizer Subsidy.
  • Rural Adjustment Scheme.
  • Fuel Cost Rebate.
  • Inspection Services.
  • Agriculture, Plant and Quarantine.
  • Soil reticulation.

• Under section 186D (2) of the Customs Act 1966 material injury or threat thereof must be present before a positive finding of subsidisation can result in a duty being applied to the imports. Submissions by the complainant have argued injury in three areas:

  Price Suppression
  Loss of market
  Decline in Domestic Production and Retardation of Future Development.

At this preliminary stage the available evidence supports the injury arguments advanced by the domestic producers. The Minister of Customs gave a direction on 20 March 1987 under section 186F (1) of the Customs Act 1966 that Provisional Countervailing Duty be secured on all imports of Australian wheat, subject to the time constraints of the GATT Code on Subsidies and Countervailing Duties.

M. J. BELGRAVE, Comptroller of Customs.

Consent to the Distribution of New Medicines

PURSUANT to section 20 of the Medicines Act 1981, the Minister of Health hereby consents to the distribution in New Zealand of the new medicines set out in the Schedule hereto:

SCHEDULE

Dated this 14th day of April 1987.

R. MARSHALL, for Minister of Health.