House of Representatives

Explanatory Memorandum

Circulated by authority of the Minister for Home Affairs, the Honourable Jason Clare MP

OUTLINE

1. The purpose of these Bills is to amend the Customs Act 1901 and the Customs Tariff (Anti-Dumping) Act 1975 to implement three reforms to the anti-dumping system.

2. The first reform removes, in certain cases, the Minister's mandatory consideration of the lesser duty rule. This will allow the Minister, in certain circumstances, to apply a full margin of duty to remedy the injurious effects of dumping or subsidisation. The legislation sets out the three circumstances where the Minister is not required to (but may) consider the desirability of fixing a lesser amount of duty.

3. The second reform makes a number of amendments to the retrospective duties provisions of the anti-dumping system. These will align the provisions of the legislation more closely to the relevant World Trade Organization (WTO) agreements, and at the same time make it clear that the Minister is the decision maker for certain findings. Other changes restructure the legislation so that it is clearer, and introduce consultation provisions to facilitate transparency and due process.

4. The third reform introduces a new type of circumvention activity to address sales at a loss and other practices that undermine the effect of anti-dumping and countervailing duties already imposed. This new type of anti-circumvention inquiry will be conducted within a shorter timeframe than other anti-circumvention inquiries. This reform also introduces a termination provision that applies to all types of anti-circumvention inquiries.

5. The amendments in these Bills implement these three reforms.