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New Zealand First Written Submission Animals and Animal Products (DS477) 13 November 2015

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New Zealand First Written Submission Animals and Animal Products (DS477) 13 November 2015 Indonesia – Importation of Horticultural Products New Zealand First Written Submission Animals and animal products (DS477) 13 November 2015 WORLD TRADE ORGANIZATION Panel established pursuant to Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes Indonesia — Importation of Horticultural Products, Animals and Animal Products (WT/DS477) FIRST WRITTEN SUBMISSION OF NEW ZEALAND 13 November 2015 Indonesia – Importation of Horticultural Products New Zealand First Written Submission Animals and animal products (DS477) 13 November 2015 TABLE OF CONTENTS TABLE OF CASES CITED IN THIS SUBMISSION ......................................................................................... TABLE OF GATT PANEL REPORTS CITED IN THIS SUBMISSION ......................................................... TABLE OF ABBREVIATIONS ............................................................................................................................ LIST OF EXHIBITS ............................................................................................................................................... LIST OF JOINT EXHIBITS.................................................................................................................................. LIST OF FIGURES ................................................................................................................................................ LIST OF ANNEXES ............................................................................................................................................... I. INTRODUCTION ........................................................................................................ 1 II. PROCEDURAL BACKGROUND ............................................................................. 2 III. FACTUAL BACKGROUND ...................................................................................... 3 A. IMPORT REGIME FOR ANIMALS AND ANIMAL PRODUCTS ...................... 4 1. Framework legislation for animals and animal products .............................................. 4 2. Import licensing regime for animals and animal products ............................................ 5 (a) Importer Designations ........................................................................................ 9 (b) MOA Recommendations .................................................................................... 9 (c) Import Approvals ............................................................................................. 10 3. Prohibitions and restrictions imposed through Indonesia’s import licensing regime for animals and animal products ....................................................................................... 11 (a) Prohibition of certain beef and offal imports ................................................... 12 (b) Limited application windows and validity periods for MOA Recommendations and Import Approvals ....................................................................................... 15 (c) Fixed Licence Terms ........................................................................................ 16 (d) 80% realisation requirement ............................................................................. 17 (e) Prohibitions and restrictions on the use, sale and distribution of imported animals and animal products ............................................................................ 18 (f) Domestic purchase requirement ....................................................................... 19 (g) Reference price for beef ................................................................................... 20 4. Conclusion .................................................................................................................... 20 B. IMPORT REGIME FOR HORTICULTURAL PRODUCTS ............................... 21 1. Framework legislation for horticultural products ....................................................... 21 2. Import licensing regime for horticultural products ..................................................... 22 (a) Importer Designations ...................................................................................... 24 (b) MOA Recommendations (RIPH) ..................................................................... 25 (c) Import Approvals ............................................................................................. 26 i Indonesia – Importation of Horticultural Products New Zealand First Written Submission Animals and animal products (DS477) 13 November 2015 3. Prohibitions and restrictions imposed through Indonesia’s import licensing regime for horticultural products ................................................................................................... 27 (a) Limited application windows and validity periods for RIPH and Import Approvals ......................................................................................................... 28 (b) Fixed Licence Terms ........................................................................................ 28 (c) 80% realisation requirement ............................................................................. 29 (d) Prohibitions and restrictions based on Indonesian harvest periods .................. 30 (e) Storage ownership and capacity requirement ................................................... 30 (f) Restrictions on use, sale and distribution of imported horticultural products .. 32 (g) Reference prices for chili and shallots ............................................................. 33 (h) Six month harvesting requirement ................................................................... 33 4. Conclusion .................................................................................................................... 34 C. IMPORT RESTRICTIONS BASED ON "SUFFICIENCY" OF DOMESTIC PRODUCTION ................................................................................................................... 34 IV. LEGAL ANALYSIS ................................................................................................... 35 A. ARTICLE XI:1 OF THE GATT 1994 ...................................................................... 36 1. Obligation under Article XI:1 ...................................................................................... 36 2. Indonesia’s import licensing regime for animals and animal products is inconsistent with Article XI:1 of the GATT 1994 ................................................................................. 37 (a) The prohibition on imports of certain animal products is inconsistent with Article XI:1 ....................................................................................................... 38 (b) The prohibition on imports of certain animal products except in emergency circumstances is inconsistent with Article XI:1 ............................................... 39 (c) Limited application windows and validity periods are inconsistent with Article XI:1 ................................................................................................................... 41 (d) The Fixed Licence Terms are inconsistent with Article XI:1 .......................... 45 (e) The 80% realisation requirement is inconsistent with Article XI:1 ................. 47 (f) Prohibitions and restrictions on use, sale and distribution of imported animals and animal products are inconsistent with Article XI:1 ................................... 49 (g) The Domestic Purchase Requirement is inconsistent with Article XI:1 .......... 50 (h) The beef reference price is inconsistent with Article XI:1 ............................... 53 (i) The import licensing regime for animals and animal products "as a whole" is inconsistent with Article XI:1 .......................................................................... 54 (i) The import licensing regime for animals and animal products "as a whole" is a single measure .................................................................................................. 54 ii Indonesia – Importation of Horticultural Products New Zealand First Written Submission Animals and animal products (DS477) 13 November 2015 (ii) The import licensing regime for animals and animal products "as a whole" restricts imports ................................................................................................ 55 (j) The import licensing regime for animals and animal products is made effective through "import licences" or "other measures" ................................................ 56 3. Indonesia’s import licensing regime for horticultural products is inconsistent with Article XI:1 of the GATT 1994 ..................................................................................... 57 (a) Limited application windows and validity periods for RIPH and Import Approvals are inconsistent with Article XI:1 ................................................... 58 (b) Fixed Licence Terms are inconsistent with Article XI:1 ................................. 60 (c) The 80% realisation requirement is inconsistent with Article XI:1 ................. 61 (d) Restrictions based on Indonesian harvest periods are inconsistent with Article XI:1 ................................................................................................................... 63 (e) The storage ownership and capacity requirement is inconsistent with Article XI:1 ..................................................................................................................
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