Duty hearing ends today

Press, 15 December 1982, Page 6

Duty hearing ends today

NZPA staff correspondent Sydney A crucial court hearing on the imposition of cash securities as an interim measure in a countervailing duty action against New Zealand timber exports to Australia worth an estimated sAust2s million a year, is expected to finish in the Federal Court today. It is believed likely that

Mr Justice Lockhart, hearing the case on an application by the Tasman Timber Company and about 30 New Zealand timber exporters and Australian importers, will reserve judgment on completion of .the submissions. The New Zealand companies have been attempting to block the cash securities — in the form of a 19.09 per cent duty — being imposed

because it would have the effect of driving their square-dressed softwood timber out of the Australian market.

Because the basis of the case is the subsidy New Zealand producers get through the export incentive scheme, the case has implications for a whole range of New Zealand exports to Australia and the closer economic relations trade agreement signed yesterday. Counsel for the New Zealand companies, Mr Dan Horton. Q.C.. and Mr Murray Gleeson, Q.C.. had argued in

their presentation that the Australian action had contravened international treaty obligations, namely the New Zealand Australia Free Trade Agreement and the General Agreement on Tariffs and Trade.

But opening his case late yesterday afternoon. Mr Keith Mason, Q.C., counsel for the Minister and Department of Industry and Commerce, said he would argue that neither of those agreements was admissible before the Court as they were not part of Australian municipal law. The basis of the Australian action was the Customs Act and the Customs Tariff (AntiDumping) Act. Under the Customs Act the Australian move in seeking cash securities as an interim measure while a countervailing duty action was investigated was legitimate for the

protection of the customs revenue, he said. An additional basis for the imposition of the duty was the Anti-Dumping Act which

allowed for cash securities to be taken to prevent material injury to local producers during any inquiry, said Mr Mason. A countervailing duty balances out the effect of any subsidy being gained by exporters. Mr Mason said the effect of imposing cash securities for the period of the inquiry was to force up the price of the imported product.