✨ Tariff Policy Review
23 JUNE CUSTOMS EDITION 1899
(b) Commercial Availability as a Prerequisite for Tariff Assistance
4.4 Apart from “local content” or process definitions, it is important to consider the availability of goods in the local marketplace. Part II concession policy requires a manufacturer to either satisfy the Ministry of Commerce that the product in question is freely available on the open market (eg not restricted to contracted buyers), or, prove that it is both capable of producing and willing to produce. Australia has reviewed this important issue several times, and its definition for tariff concession purposes is that a producer:
- has made goods requiring the same labour skills, technology and design expertise as the substitute goods in the two years before the application was lodged; and,
- could produce the substitutable goods with existing facilities; and,
- is prepared to accept an order to supply the substitutable goods.
4.5 An associated issue is whether tariff assistance can reasonably be retained if a local producer only supplies a small proportion of market demand. New Zealand Ministers agreed in 1991 that “inadequate production” could be grounds for allowing a concession for competing imports. This category of concession allows for duty to be waived when tariff assistance is creating an inequitious situation. The Government intended that such concessions should be granted only in exceptional circumstances supported by compelling evidence (no applications have been approved as yet).
4.6 Interested parties are asked to suggest threshold parameters (eg percentage of marketshare; value of production at ex-factory cost level; number of direct full time employee - equivalents) which might be used to determine when local production is so insignificant that tariff assistance should be removed.
5 How to Contribute
5.1 Comments should be sent to:
Graham Webb/Lida Kousary
Ministry of Commerce
PO Box 1473
WELLINGTON
Telephone: (04) 472-0030
Facsimile: (04) 499-1791
By 5pm on Friday 10 July 1998.
G J Webb
Senior Advisor
Competition and Enterprise Branch
PUBLISHED BY AUTHORITY OF DEPARTMENT OF INTERNAL AFFAIRS:
GP LEGISLATION SERVICES, WELLINGTON, NEW ZEALAND—1998
ISSN 0111-5650
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VUW Te Waharoa —
NZ Gazette 1998, No 84
NZLII —
NZ Gazette 1998, No 84
✨ LLM interpretation of page content
🏭
Review of Tariff Definition of 'Manufacturer'
(continued from previous page)
🏭 Trade, Customs & IndustryTariff review, Manufacturer definition, Trade regulations, Tariff assistance, Local content, Ministry of Commerce
- Graham Webb
- Lida Kousary
- G J Webb, Senior Advisor, Competition and Enterprise Branch