Commonwealth Consolidated Acts Commonwealth Consolidated Acts
1 Subsection 269T(1) (definition of subsidy )
Repeal the definition, substitute:
"subsidy" , in respect of goods exported to Australia, means:
(a) a financial contribution:
(i) by a government of the country of export or country of origin of th e goods ; or
(ii) by a public body of that country or a public body of which that government is a member; or
(iii) by a private body entrusted or directed by that government or public body to carry out a governmental function;
that involves:
(iv) a direct transfer of funds from that government or body ; or
(v) the acceptance of liabilities, whether actual or potential, by that government or body; or
(vi) the forgoing, or non - collection, of revenue (other than an allowable exemption or remission) due to that government or body; or
(vii) the provision by that government or body of goods or services otherwise than in the course of providing normal infrastructure; or
(viii) the purchase by that government or body of goods or services ; or
(b) any form of income or price support as referred to in Article XVI of the General Agreement on Tariffs and Trade 1994 that is received from such a government or body;
if that financial contribution or income or price support confers a benefit (whether directly or indirectly) in relation to the goods exported to Australia.
Note 1: See also subsection ( 2AA).
Note 2 : Section 269TACC deals with whether a financial contribution or income or price support confers a benefit.
2 Subsections 269T(2AA), (2AB) and (2AC)
Repeal the subsections , substitute:
(2AA) Without limiting the definition of subsidy in subsection ( 1), a financial contribution or income or price support may confer a benefit in relation to goods exported to Australia if that contribution or support is made in relation to goods or services used in relation to the production, manufacture or export of the goods exported to Australia .
3 Subsection 269TAAC(3)
Repeal the subsection, substitute:
(3) Subject to subsection ( 4), a subsidy is not specific if:
(a) eligibility for, and the amount of, the subsidy are established by objective criteria or conditions set out in primary or subordinate legislation or other official documents that are capable of verification; and
(b) eligibility for the subsidy is automatic; and
(c) those criteria or conditions are neutral, do not favour particular enterprises over others, are economic in nature and are horizontal in application; and
(d) those criteria or conditions are strictly adhered to in the administration of the subsidy.
4 Subsection 269TAAC(4)
Omit " Despite the fact that access to a subsidy is established by objective criteria, the ", substitute " The ".
5 Section 269TACC
Repeal the section, substitute:
269TACC Working out whether a financial contribution or income or price support confers a benefit
(1) Subject to subsections ( 2) and (3), t he question whether a financial contribution or income or price support confers a benefit is to be determined by the Minister having regard to all relevant information.
(2) A direct financial payment received from any of the following is taken to confer a benefit:
(a) a government of a country ;
(b) a public body of a country ;
(c) a public body of which a government of a country is a member ;
(d) a private body entrusted or directed by a government of a country or by such a public body to carry out a governmental function .
Guidelines for financial contributions
( 3 ) In determining whether a financial contribution confers a benefit , the Minister must have regard to the following guidelines :
( a ) the provision of equity capital from a government or body referred to in subsection ( 2) does not confer a benefit unless the decision to provide the capital is inconsistent with normal investment practice of private investors in the country concerned;
( b ) the making of a loan by a government or body referred to in subsection ( 2) does not confer a benefit unless the loan requires the enterprise receiving the loan to repay a lesser amount than would be required for a comparable commercial loan which the enterprise could actually obtain;
( c ) the guarantee of a loan by a government or body referred to in subsection ( 2) does not confer a benefit unless the enterprise receiving the guarantee is required to repay on the loan a lesser amount than would be required for a comparable commercial loan without that guarantee ;
( d ) the provision of goods or services by a government or body referred to in subsection ( 2) does not confer a benefit unless the goods or services are provided for less than adequate remuneration;
( e ) the purchase of goods or services by a government or body referred to in subsection ( 2) does not confer a benefit unless the purchase is made for more than adequate remuneration.
( 4 ) For the purposes of paragraphs ( 3 )( d ) and ( e ), the adequacy of remuneration in relation to goods or services is to be determined having regard to prevailing market conditions for like goods or services in the country where those goods or services are provided or purchased.
269TAC D Amount of countervailable subsidy
(1) If the Minister is satisfied that a countervailable subsidy has been received in respect of goods, the amount of the subsidy is an amount determined by the Minister in writing .
( 2 ) After the amount of the countervailable subsidy received in respect of goods has been worked out, the Minister must, if that subsidy is not quantified by reference to a unit of those goods determined by weight, volume or otherwise, work out how much of that amount is properly attributable to each such unit.
6 Subsections 269TAE(1) and (2)
Omit ", (2B) and", substitute "to".
7 After s ubsection 269TAE(2 A )
Insert:
(2AA) A determination for the purposes of subsection ( 1) or (2) must be based on facts and not merely on allegations, conjecture or remote possibilities.
8 After paragraph 269TAE(2C)(d)
Insert:
(da) if the determination is being made for the purposes of section 269TJ or 269TK:
(i) the amount of the countervailable subsidy in respect of the goods the subject of each of the exportations exceeds the negligible level of countervailable subsidy worked out under subsection 269TDA(16); and
(ii) the volume of each of those exportations is not negligible; and
9 At the end of section 269TC
Add :
( 10 ) If, during an investigation in respect of goods the subject of an application under section 269TB, the CEO becomes aware of an issue as to whether a countervailable subsidy (other than one covered by the application) has been received in respect of the goods, the CEO may examine that issue as part of the investigation.
10 Subparagraph 269TDA(2)(b)(ii)
Omit "after the start of", substitute "during".
11 Subsection 269TDA(14) (heading)
Repeal the heading, substitute:
CEO must terminate countervailable subsidy investigation if export causes negligible injury
12 Paragraph 269TDA(14)(b)
Repeal the paragraph, substitute:
(b) in an investigation, for the purpose of the application, of goods the subject of the application that have been , or may be, exported to Australia from a particular country of export, the CEO is satisfied that the injury, if any, to an Australian industry or an industry in a third country that has been, or may be, caused by that export is negligible;
13 Application provision s
(1) The amendments made by items 1 to 8 apply in relation to investigations that are initiated, or to reviews or inquiries that begin, on or after the commencement of th ose items .
(2) The amendment made by item 9 applies in relation to:
(a) investigations that are initiated on or after the commencement of that item; and
(b) investigations that were initiated before that commencement but that were not completed before that commencement.
(3) The amendments made by items 1 0 to 1 2 apply in relation to investigations that are initiated on or after the commencement of those items.