New Zealand Gazette – 1997 – No. 88

Page 2101

✨ Motor Vehicle Tariff Review



12 AUGUST

CUSTOMS EDITION

2101

MOTOR VEHICLE TARIFF REVIEW

TERMS OF REFERENCE

Preamble

In response to requests from the motor vehicle assembly industry, the Government has decided that the review of post-2000 motor vehicle tariffs will be separated from the general tariff review, which is scheduled for completion in 1998, and commence immediately. The motor vehicle review is to be completed by the end of October and decisions announced before the end of the year. It is acknowledged that special circumstances exist for this industry, especially in terms of the longer lead times which relate to investment and production decisions. This decision to advance the timing of the review was announced in the 1997 Budget Statement which stated that:

Tariffs on motor vehicles impose high costs. Consumers are paying in excess of $300 million per year in motor vehicle tariffs - that works out at around $180,000 per job in the assembly industry. Motor vehicle assemblers have asked the Government for an early review of tariffs on motor vehicles. It is for this reason that we have agreed to review vehicles tariffs by the end of this year to achieve a swift removal of them from the year 2000.

Terms of Reference

The review will take place in the context of the economic and tariff policy statements contained in the Coalition Agreement and the 1997 Budget Statement as noted above. In the review the Government will be seeking to set a timetable for a swift move to zero tariffs post-2000, within a maximum period of two years. The review will, therefore, focus on the timing and process by which motor vehicle tariffs will be removed.

Against this background the review will consider:

(i) the New Zealand motor vehicle market situation and developments in the global and regional markets;

(ii) the situation of the New Zealand motor vehicle assembly industry in that context;

(iii) the industry’s future plans;

(iv) the situation of the industry supplying components to the assembly industry and the replacement market;

(v) the costs and benefits of maintaining motor vehicle tariffs in relation to the New Zealand economy and to consumers;

(vi) the impact of recommendations relating to tariffs for vehicles for the dual tariff structure applying to many automotive components (i.e. the “for assembly” and “replacement” rates);

(vii) any other issues, such as used vehicle imports, that are raised by submissions to the review relevant to the future motor vehicle production and market scene in New Zealand.

The review will produce information on and recommendations relating to:

  • tariffs for passenger and light commercial vehicles (of tariff headings 87.03 and 87.04) after 1 July 2000;

  • tariffs relating to automotive components where dual rates apply (i.e. “replacement” rates and other automotive component rates will be covered by the 1998 general tariff review which will look at all tariffs except those for motor vehicles, post 1 July 2000.



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🏭 Motor Vehicle Tariff Review Terms of Reference

🏭 Trade, Customs & Industry
Tariff review, Motor vehicles, Terms of reference, Economic policy, Tariff removal, Automotive industry, Market analysis