Tatra critical of Aust. customs

Press, 27 April 1983, Page 33

Tatra critical of Aust. customs

PA Wellington Leather purse exports by Tatra Industries, Ltd, to Australia, were being charged 20 per cent duty in contravention of the closer economic relations (CER) agreement. The Australian Government had admitted it erred in including leather purses in a leather goods category, under their tariff simplification exercise last year, said Tatra Industries’ chief executive, Mr Robert Philpott. Purses were not previously subject to customs duty. The move resulted in the imposition of 20 per cent duty from January 1, 1983. Until then leather goods were charged 25 per cent, but under CER 5 per cent is cut, bringing it down to 20

per cent from January 1. Mr Philpott said the Australians should have consulted the New Zealand ■Government because leather purse duty had increased by more than the five per cent trigger level for CER consultation. The Department of Trade and Industry supported this contention, he said. “On the one hand, Australia does admit a mistake in oversimplifying the definition of leather goods, but on the other hand, the Australian Government seems reluctant to rectify it.” Trade and Industry had passed the case to the New Zealand High Commission in Canberra, which had presented it to the Australian Government, he said. The Director of Trade Policy (Australia), Mr Alan Davies, said the department

was still waiting on a response. Mr Philpott said delays in correcting the problem had been attributed to the change in Australian Government. Tatra discovered the imposition of duty when a bill for an amount owed arrived from Australian customs, he said. A “specious” case had been made to the Australian Government to change the duty on New Zealand leather purses being imported into Australia, Mr Philpott said. He believed the case was made by a man behind a one-time leather goods manufacturer who was now importing such goods from Asia, which attracted a "Third World” tariff of only 5 per cent.