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Henning Harders December 2019 Newsletter

Table of Contents

Food Import Compliance Agreement (FICA)

As 2019 draws to a close, it has become evident that the wait times for imported food inspections have not improved. The Department of Agriculture is aware of the issues caused to importers due to these extended delays, however this time of year adds a layer of complexity due to it being the middle of the Brown Marmorated Stink Bug (BMSB) season. Add to this the issue of African Swine Fever in China, and the department is left with few resources to cope with food inspections.

There is a remedy available to food importers; the option to sign up for a Food Import Compliance Agreement (FICA). Businesses currently registered for a FICA benefit from having the food referral in AIMS switched off, in exchange for assuming the responsibility for the labelling compliance and food testing where applicable. This results in a faster delivery into the warehouse and therefore to customers, as well as a significant reduction in fees paid to the department.

This then allows the Important Food Program to focus their efforts on the smaller, less-compliance businesses, rather than the high-volume or highly compliance businesses.

If you require further information, please contact Harders Advisory.

Indonesia wins WTO appeal for dumping duties

Indonesia successfully appealed to the World Trade Organisation (WTO) for dumping duties imposed against importation of A4 copy paper into Australia. The WTO found that the duties imposed by the Anti-Dumping Commission (ADC) were inconsistent with its obligations as a WTO member.

Dumping is deemed to occur when the goods are sold to the Australian purchaser at a price lower than the same goods are available to purchase in the exporter’s domestic market. With this in mind, when calculating the dumping duties applicable, the normal comparison should be between the domestic sales prices in the country of origin and the export prices.

In this case, and many others, the ADC has instead constructed a “normal value” by using a benchmark fair market price. This results in an inflated normal value and makes it easier to assume goods are dumped.

The successful appeal could result in similar appeals being made to the WTO for similarly calculated dumping duties. Henning Harders is monitoring the situation and will publish updates as further information becomes available.

Please contact your Henning Harders Key Account Manager or Harders Advisory for more information.

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