Ministerial Exemption Instrument No. 4 of 2015 - Zinc Coated (Galvanised) Steel

Overview

The Customs Tariff (Anti-Dumping) Act 1975 was enacted to address the problem of dumping and subsidisation of imported goods, which can harm Australian industries by allowing foreign producers to sell products at unfairly low prices or with government subsidies. The Act enables the imposition of anti-dumping and countervailing duties to counteract these practices. In 2015, the Parliament of Australia, through the Minister for Industry, Innovation and Science, issued Ministerial Exemption Instrument No. 4 of 2015, exempting certain zinc coated (galvanised) steel products from China, Korea, and Taiwan from anti-dumping and countervailing duties. This exemption was granted following a review by the Anti-Dumping Commission, which found that like or directly competitive goods were not being offered for sale in Australia under like conditions. This legislative instrument was introduced to ensure fair trading practices and to protect Australian industries from the adverse effects of dumping and subsidisation.

Scope and Application

The Customs Tariff (Anti-Dumping) Act 1975 provides a framework for imposing duties on goods that are being imported into Australia and are alleged to be dumped or subsidised. This Act applies to any goods imported into Australia, where there is a determination that these goods are being offered at less than their fair value or are receiving subsidies that distort international trade. The application of the Act extends to both individuals and entities involved in the import, export, and sale of these goods within Australia, as well as to the industries affected by such practices. The Act’s jurisdictional reach is national, as it is a Commonwealth Act and applies across all states and territories of Australia. The Ministerial Exemption Instrument No. 4 of 2015, under the authority of the Customs Tariff (Anti-Dumping) Act 1975, exempts certain zinc coated (galvanised) steel products from the application of interim and final dumping and countervailing duties. This exemption applies to goods meeting specific criteria, such as yield strength, tensile strength, elongation, and total coating mass, and certain dimensional specifications. The exemption is contingent on the finding that these goods are not being offered for sale in Australia under like conditions, which would otherwise warrant the imposition of duties. The instrument is subject to review and potential revocation, ensuring that the exemption remains aligned with current trade conditions and practices.

Key Provisions

The Customs Tariff (Anti-Dumping) Act 1975, through Ministerial Exemption Instrument No. 4 of 2015, provides an exemption from both interim dumping duty and dumping duty, as well as interim countervailing duty and countervailing duty, for certain zinc coated (galvanised) steel products exported to Australia from China, Korea, and Taiwan. This exemption is grounded in the findings that these goods are not being sold in Australia under terms and conditions that are comparable to those of like or directly competitive goods, as per subsections 8(7) and 10(8) of the Act (sections 8 and 10). The exemption applies to steel products that meet specific criteria, including a yield strength between 250 MPa and 350 MPa, a tensile strength between 315 MPa and 430 MPa, an elongation of at least 30%, a total coating mass of no less than 300 g/m2, and certain dimensions with specified tolerances. These products include hot dipped galvanized flat rolled steel in widths and thicknesses of 40mm by 4.0mm, 50mm by 4.0mm, and 50mm by 8.0mm, with permissible variations of up to 5% in thickness and width (Attachment 1). The obligations imposed by this Act and the exemption instrument on the parties involved, particularly the exporters of the specified steel products, are to ensure that the goods meet the defined specifications and conditions set forth in the exemption instrument. Exporters must provide evidence or documentation demonstrating that their products comply with the detailed requirements, such as the strength, elongation, coating mass, and size specifications, to be eligible for the exemption. It is also the responsibility of these parties to adhere to any conditions or terms set by the exemption, including the tolerances for dimensions, to maintain their eligibility for the exemption from the specified duties. Failure to comply with the provisions of the Customs Tariff (Anti-Dumping) Act 1975 or the conditions of the exemption may lead to significant consequences. The Act does not explicitly detail the penalties for non-compliance, but breaches of anti-dumping and countervailing duty regulations can typically result in financial penalties, which may include the payment of the duties that were supposed to be exempted. Additionally, continued non-compliance or deliberate misrepresentation of product specifications could lead to further legal actions, including the imposition of additional fines or other sanctions as determined by the relevant authorities. The exact nature and extent of the penalties would depend on the specific circumstances of the breach and the discretion of the enforcing bodies.