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General Agreement on Tariffs and Trade

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General Agreement on Tariffs and Trade RESTRICTED L/1820 GENERAL AGREEMENT ON 7 August 1962 TARIFFS AND TRADE Limited Distribution Original: English AUSTRALIAN ACTION UNDER ARTICIE XIX. Notification of Restrictions on Imports of Antibio-.ics The :following communication, dated 3 Auguist 1962, has been received from the Government of Australia: "The Australian Government wishes to advise the CONTRACTING PARTIES that in accordance with the provisions of Article XIX it is imposing temporary quantitative restrictions on. the following items, 280(R) Benaylpenicillin and its salts 280(S) Phernaxymethylpencillin and its salts 280(T) Streptonyein sulphate 285(A) 1 Pharmaceutical preparations etc . of Benzylpenicillin and its salts: Phenoxymethylpenicillin and its salts: Streptomyoin sulphate: Admixtares of Streptomycin sulphate with Benzylpenicillin or its salts or with Phenoxymethyl- penicillin or its salts. "The action has been made necessary following an increase in imports. under such conditions as to cause serious injury to the domestic production of penicillins n Australia and the possibility of increased imports threatening serious damage to streptomycin production. "As delay would cause damage difficult to repair action will be taken as from 3 August 1962. The question of the local industry's normal protective needs is already unde. enquiry by the Australian Tariff Board. The present action is essentially of a holding nature pending the receipt of the Board's full report. Duties on the items concerned are not bound under the GATT. "Followirg evidence of damage to domestic industry, dumping duties were imposed in January 1961 and additional temporary duties in January 1962. This action has, however, been ineffective and there. has. been substantial increase in imports of Benzylpenicillin and Phenoxymethylpenicillin in the six months January/June 1962 compared to the six months ended December 1961. L/1820 Page 2 "Following a recent enquiry, a special advisory authority appointed under the Tariff Board Act found that urgent action was necessary to protect the manufacture of antibiotics and that this protection could be provided effectively only by quantitative restrictions on imports of both penicillins and streptomycin and their preparations. The authority considered action necessary on streptomycin, although imports had not, increased, because of a serious threat from imports in the absence of protective action. "The restrictions will take the form of non-discriminatory quantita- tive licensing on.an administrative basis. Licensing periods will be of six months duration. Licenses for benzylpenicillin and its salts, phenothethylpenicillin and its salts and streptomycin sulphate will be issued on the basis of one imported unit for each nine locally produced units purchased after 2 August 1962. For preparations, licenses will be issued at an annual rate of 20 per cent of imports in 1961/62. Licenses without regard to the above qualifications will be issued for: (i) Goods in transit for Australia on 2 June 1962; (ii) Goods which are not reasonably available from Australian production; (iii) Goods needed for replacement of imported penicillins and stireptonmyein used in the preparation of formulations which have been exported on or after 5 August 1962. "The temporary duties imposed on the items in January 1962.are being withdrawn with the introduction of the quantitative restricc.ons.. "Relevant import statistics are: Benzylpenicillin - Tariff Items 280(A) and ex .285(A)1 Mega July/December 1961 2,156,536 January/June 1962 3,755,590 Phenoxymethylpenicillin - Tariff Items 280(S) and ex 285(A)1 Kgs. July/December 1961 3,997 Janary/June 1962 7,044 Streptomycin Sulphate - Tariff Items280(T) and ex 285(A)1 Kgs. July/December 1961 522 *January/June 1962 143 L/1820 Page 3 "Imports by countries in 1961/62 were: Benzylpenicillin Thousand Mega United States 4,060 France 935 United Kingdom 707 German Federal Republic 152 Denmark 50 Netherlands 6 Total 5,910 Phenoxvmethylpenicillin Kgs. United States 9,620 United Kingdom 1.313 Austria 93 Denmark 15 Total 11,041 Streptomycin Sulphate Kgs. United Kingdom 570 France 90 United States 5 Total 665 "Substantial suppliers have been informed of the proposed action. Australia is willing to consult as provided for in paragraph 2 of Article XIX witih those contracting parties having a substantial interest as exporters in respect of the proposed action.".
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