7 JUNE

CUSTOMS EDITION

FOURTH SCHEDULE

Applications for Concessions Declined

• Category of Decision:
  • A – General Approval
  • CE – Capital Equipment
  • GT – Goods in Transit
  • IM – Inputs to Manufacturing – Inability to Supply
  • IP – Inadequate Production
  • MS – Manufacturers’ Samples
  • RUC – Revocation of Unused Concession
  • S – Shortfall
  • SS – Special Situation
  • V – Variation of Existing Concession
  • X – Administrative Amendment

NOTE

The concessions approved subject to prescribed purposes and conditions as listed in the Second Schedule to this notice and declined applications for concessions as listed in the Fourth Schedule to this notice will not be published in the Consolidated List of Decisions.

Any concession approved may be withdrawn or modified by notice in the Gazette.

Dated at Wellington this 2nd day of June 1994.

V.A. MANKS, Ministry of Commerce.

REVIEW OF THE TARIFF CONCESSION SHORTFALL POLICY

Recent applications for shortfall concessions for Foodstuffs have highlighted difficulties in their administration and the need to conduct a review in this area.

TERMS OF REFERENCE

The review will examine four central policy issues:

i the shortfall policy in relation to food products to establish whether there is a basis on which shortfall concessions might be available;

ii the appropriateness of considering concessions for processed products when the shortfall is in the raw produce area;

iii whether shortfall concessions for food products are possible without significantly distorting the normal market situation;

iv the relationship of any food shortfall policy to the 'Inputs to Manufacturing' concession.

In the context of the above, the review will consider:

• the general issue of 'availability of suitable alternatives', in foodstuffs;
• the question of from whom it is appropriate to consider a shortfall request;
• whether any shortfall policy is in effect creating a 'tariff of convenience' viz tariff protection when production is normal and access to duty free imports when production is interrupted. What is 'normal' in terms of production and the market (including export markets);
• whether it matters if any shortfall is generic or peculiar to a given processor;
• the effect of any concession shortfall policy in protecting a processor's price and market share against normal risk factors, such as the vagaries of weather as opposed to extraordinary events, such as factory fire;
• the associated issues of how to define a shortfall situation in terms of production of raw product; processed product; retail situation. What policies might be appropriate in a pending shortfall situation;
• who might receive concessions: should there be controls on use/time;
• the relevance of trade policy considerations (scope for shortfall concessions to act as an export incentive if a shortfall is exacerbated by exports);
• whether access to shortfall concessions could become a factor in negotiations between processors and growers. Is this desirable;
• whether any revised shortfall policy relating to food should be limited to certain types of food product or to certain situations.

TIME TABLE

The deadline for submissions is 1 July 1994.
Submissions should be sent to:
Elizabeth McDonald
Tariff Policy and Industry Issues Group
Ministry of Commerce
PO Box 1473
Wellington

A background paper on the shortfall concessions policy to assist interested parties in the preparation of submissions is available on request.