Explanatory note
This Supplementary Order Paper sets out proposed amendments to the Trade (Anti-dumping and Countervailing Duties) Amendment Bill (the Bill), which amends the Act that was previously called the Dumping and Countervailing Duties Act 1988 (the principal Act). The proposed amendments include the following:
amendments to extend the suspension of anti-dumping duties on residential building material:
minor amendments previously proposed in the departmental report at the select committee stage (and an amendment to the commencement clause):
technical and drafting amendments and corrections.
Extending suspension of anti-dumping duties on residential building material
The amendments to clause 16 extend the period during which anti-dumping duties (but not countervailing duties) are suspended from being imposed on residential building material (the suspension period). The original suspension period, which started in June 2014, is due to end on the close of 31 May 2017. The amendments extend the suspension period until the close of 30 June 2019 (an extension of just over 2 years). This will align the end of the suspension period with the date of the scheduled review of the tariffs concession scheme for residential building material.
The principal Act does not currently allow for consideration of whether an anti-dumping duty or a countervailing duty is in the public interest or for consideration of significant events that affect an industry or the public, such as earthquakes or other natural disasters. The Bill will, if enacted, introduce a public interest test into the Act so that the wider public interest would be considered as part of the process of deciding whether to impose anti-dumping or countervailing duties. However, the provisions of the Bill that introduce the public interest test are not expected to come into force before the suspension period is due to end.
Anti-dumping duties were originally suspended on imported residential building material to increase competition, lift sector productivity, and reduce the cost of residential construction. Currently, anti-dumping duties are imposed on standard plasterboard from Thailand, but are suspended until the end of the suspension period. The amendments extend the suspension period for a further 2 years to support increased residential construction in New Zealand by continuing to remove that barrier to competition and productivity in the construction sector.
The suspension is not intended to affect the ability of—
a New Zealand producer or an interested party to apply to the Secretary to initiate an investigation under section 10 of the principal Act; or
a Government of a third country to advise the Secretary of dumping or subsidisation under section 18 of the principal Act; or
the Secretary to initiate and carry out an investigation, a reassessment, or a review; or
the Minister to make a determination, reassess the rate of an anti-dumping duty, or terminate an anti-dumping duty following a review.
However, the measures listed above (with the exception of a termination of an anti-dumping duty by the Minister) would not be implemented until the end of the extended suspension period.
The suspension is a short-term measure to help lower the cost of residential construction during the extended suspension period.
Other amendments
The amendments to clause 2 change the commencement date to the date immediately after the expiry of the 6-month period that starts on the date on which the Bill receives the Royal assent. However, the provisions that extend the suspension of anti-dumping duties on residential building material will commence the day after the date on which the Bill receives the Royal assent.
The amendment to new section 1A in clause 6 clarifies the purpose of the principal Act by inserting terminology that better aligns with the WTO Agreement.
The amendment to new section 10F(3)(e) in clause 13 provides that the effect of a duty on the financial performance of the domestic industry must be considered as part of the public interest test. This section currently refers to the narrower concept of the financial viability of the domestic industry.
The amendments to clause 22 have the effect that the third country provisions in section 18 of the principal Act apply only to dumping and do not apply to subsidisation.
The amendments to clause 3 of Schedule 1 simplify the transitional provisions by providing that a stand-alone public interest test under that clause can be started only in respect of a duty imposed on or after commencement.
Departmental disclosure statement
The Ministry of Business, Innovation, and Employment is required to prepare a disclosure statement to assist with the scrutiny of this Supplementary Order Paper. It provides access to information about any material policy changes to the Bill and identifies any new significant or unusual legislative features of the Bill as amended.
Regulatory impact statement
The Ministry of Business, Innovation, and Employment produced a regulatory impact statement to help inform the new policy decisions taken by the Government relating to the contents of this SOP.
A copy of this regulatory impact statement can be found at—