Chapter 9

Chapter 9

Other issues

Review by the Administrative Appeals Tribunal

9.1        Item 47 of the bill inserts a paragraph under subsection 273GA(1) of the Act that allows that a decision of the CEO, the Minister or the Review Officer may be appealed to the Administrative Appeals Tribunal (the Tribunal) for review.

9.2        While Moulis Legal did not consider the logistics and mechanics of this provision in its submission, it saw merit in its consideration as it would result in Australia becoming more compliant with its WTO obligations. It considered that 'the TMRO...can not be seen to be independent of the authorities responsible for the determinations that the TMRO is called upon to review'.[1]

9.3        Some submitters argued that adding another 'layer' of review was 'unnecessary' and would result in inefficiencies:

...would the Administrative Tribunal review decisions currently reviewable by the Trade Measures Review Officer and, if so, what role would the Trade Measures Review Officer have? Further, reviews by the Trade Measures Review Officer are required to be undertaken in a very short space of time, namely, 60 days. Reviews of decisions by the Administrative Appeals Tribunal can take well over 12 months and involve considerable expense for all parties. The LCA and LIV are concerned that this proposed amendment does not lend itself to an efficient review of decisions in anti-dumping and countervailing duty investigations.[2]

9.4        For some, such as the Australian Industry Group (AIG), the issue was not that the appeals process was not working, but rather, it reflected resourcing constraints at TMRO and Customs, something it believed should be rectified by improving resources.[3]

9.5        CSR Limited also argued against the amendment, noting that:

The TRMO [sic] currently examines any filings in the conclusion drawn by Customs based on the evidence before them. There is no provision for TRMO [sic] to investigate the case. TMRO is in effect substituting for the AAT. Introducing a further appeals body adds uncertainty to the process and may result in less rigour. CSR does not support these amendments.[4]

9.6        In the opinion of JELD-WEN, rather than complicate what is already a lengthy process, the review process should be simplified as it currently leads to differing advice given to the Minister by the TMRO and Customs. It argues for the implementation of the Productivity Commission's recommendation to remove the restriction that TMRO refer a matter back to Customs for re-consideration if it disagrees with its conclusions, and instead, legislate that the TMRO's decision is binding. Otherwise, an alternative could be to follow more closely the appellate system established under income tax law.[5]

Committee view

9.7        One of the key issues raised by submitters was the prohibitive costs associated with Australia's anti-dumping and countervailing system. The committee believes that introducing a further layer of review would prolong the period of uncertainty and increase the costs to all users of the system, including domestic producers, importers and exporters. The Tribunal would also not necessarily have the same level of expertise and understanding of the issues which face the domestic industries and the global factors that give rise to dumping/countervailing investigations, which may lengthen the process of review even further.

9.8        The committee notes the view of some submitters that this issue could partially be solved by making the TMRO's decisions binding as it would reduce the subsequent workload of Customs, and enhance the function of the review process of Australia's anti-dumping and countervailing system. The committee considers, however, that this would be a fundamental change to the role of the TMRO, as it would likely require the TMRO to have an investigative function.

9.9        Instead, the committee considers that the issue is more likely to be a result of a rise in anti-dumping applications over the past few financial years that has not been offset by an increase in resourcing or an expansion in the statutory constraints on review timeframes (currently restricted to 60 days) allowed for the TMRO to complete his or her determination.

9.10      Consequently, the committee does not support this amendment.

Review of amendments

9.11      Under this amendment, the Minister must cause an independent review of the first two years after the amendments have taken place. The panel must consist of at least three persons with appropriate qualifications and/or substantial experience or knowledge in international trade and foreign affairs or economics, and cannot include a currently serving Customs officer.[6]

9.12      A requirement for an independent review of the amendments was met with lukewarm reaction by submitters. As CSR Limited noted in its submission:

The effort that goes into a Customs review is substantial and lengthy. The current review cycle is still incomplete. There would seem little point in a review in two years and we see no requirement for this to be legislated.[7]

Committee view

9.13      The committee notes it does not support the majority of amendments proposed by this bill. If the committee's recommendations regarding the provisions of the bill are supported by the Senate, the need for a legislative requirement that an independent review of the amended Part of the Act be conducted is less apparent.

9.14      In the event that a substantial number of the proposed amendments are passed by the Senate, while there are merits in ensuring that the changes to the system introduced by the bill are achieving their objective, a two year time period may not be adequate for the full implication of the changes to be assessed. A longer timeframe may be necessary.

Recommendation 11

9.15      The committee recommends that the Senate reject item 47 and clause 4.

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