WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer and Copyright Details
Trade Practices Amendment (Country of Origin
Representations) Bill 1998
Date Introduced: 8 April 1998
House: House of Representatives
Portfolio: Customs and Consumer Affairs
Commencement: The provisions relating to
country of origin representations in Schedule 1 are to commence on
Proclamation, but not later than six months after this Act receives
Royal Assent. The other miscellaneous amendments to the Trade
Practices Act 1974 contained in Schedule 2 are to commence
when this Act receives Royal Assent.
- To introduce a scheme governing
representations about the country of origin of consumer goods
offered for sale in Australia;
- To make a number of other amendments to the Trade Practices
Act 1974 which are unrelated to the primary purpose of the
Bill. These are discussed below, in the 'Main Provisions' section
of this Digest.
Section 52 of the Trade Practices Act
1974 prohibits misleading and deceptive conduct in trade or
commerce. Section 53(eb) of the Act makes it unlawful to make a
false or misleading representation about the origin of goods
offered for sale in Australia. The Section provides that:
53. A corporation shall not, in trade
or commerce, in connexion with the supply or possible supply of
goods or services or in connexion with the promotion by any means
of the supply or use of goods or services-
...
(eb) make a false or misleading
representation concerning the place of origin of goods.
All State and Territory Fair Trading legislation
contain equivalent provisions.(1) However, establishing the test in
relation to what is meant by a 'false or misleading representation'
concerning the origin of goods has been a matter of considerable
difficulty.
Attempts to establish a test
Case law has provided producers and
manufacturers with some guidance on how the rules of country of
origin claims apply to specific products.(2)
The Federal Court of Australia has considered
the meaning of Section 53(eb) of the Trade Practices Act
1974 in only a small number of cases. In Thorpe v CA
Imports Pty Ltd,(3) the question of a misleading
representation concerning the place of origin of certain
manufactured toy koalas arose. In that case, Justice Sheppherd held
that 'the expression "Made in Australia" suggests at least
substantial manufacture', and the fact that the koala casings were
cut and sewn in Korea prevented the statement from being one which
correctly described the toy koalas in question.
Again, in Siddons Pty Ltd v Stanley Works
Pty Ltd,(4) the court held that a metal tool shaped in Taiwan
and later modified and finished in Australia was not made in
Australia. The words 'Made in Australia' in application to a simple
tool like a metal spanner meant, in ordinary language, that most of
the processes by which a piece of metal is transformed into the
spanner which was offered for sale have occurred in Australia.
A third case involved a computer modem. In
Netcomm (Aust) Pty Ltd v Dataplex Pty Ltd,(5) the
expression 'made in Australia' was held by Justice Gummow to
suggest:
that the steps in the composition or
construction of the item, including the design which makes it the
technically proficient equipment it is promoted to be, were taken
in Australia.
In each of these cases the court held that the
words 'made in Australia' and other like terms were to be given
their ordinary meaning. The courts have looked at each case
according to the facts, and have applied various tests, depending
on the context and nature of the goods at issue. It is clear,
however, that even under the current law, the Federal Court has not
required a product to be completely Australian in all respects
before it can carry the label 'Made in Australia'.(6)
Working Groups on Country of Origin
Labelling of Consumer Products
Since 1992 successive Federal Governments have
been working with industry and consumer groups to develop a scheme
to govern representations about Australian origin of consumer
goods. In October 1992 the previous Government set up two Working
Groups to review the extent to which products currently provide an
indication of their country of origin and to develop descriptors
for 'Australian Made' and related terms. The Working Groups
reported together and their Report on Country of Origin
Labelling of Consumer Products was released in May 1993. The
Working Groups were divided in their support for the various
options they identified. The Report's preferred option was to limit
the range of terms describing Australian origin to three, namely
'Made in Australia', 'Product of Australia', and in the case of
unprocessed primary produce, 'Produce of Australia'. The Report
recommended that in order to qualify for these descriptors, the
goods must have acquired their essential character in Australia and
that not less than 85% of the cost of producing the goods must have
been incurred in Australia.(7)
An earlier attempt to legislate
On 23 March 1994 the previous Government
introduced the Trade Practices Amendment (Origin Labelling) Bill
1994 (the 1994 Bill). The purpose of the 1994 Bill was to insert
new provisions into the Trade Practices Act 1974 to deal
with the method of labelling goods which claimed to be made,
manufactured, packed or designed in Australia.(8) The 1994 Bill
incorporated many of the recommendations of the Working Groups'
Report, although a secondary test based on a calculation of the
costs of production incurred in Australia, was abandoned in favour
of a descriptive option for the labelling of consumer goods.
The test used by the 1994 Bill was that goods
could be labelled 'Made in Australia' only if they acquired their
essential character or qualities in Australia. It was stated in the
Explanatory Memorandum to the 1994 Bill that this was the
test applied by the Federal Court in cases brought under the Trade
Practices Act provisions prohibiting false and misleading
claims.(9) Senator Meg Lees, in a Question Without Notice, disputed
that the 'essential character' test proposed in the 1994 Bill was
the same as that used by the Federal Court(10) and others have
commented that the court decisions did not actually use the exact
words stated in the Bill.(11)
The 1994 Bill was referred to two separate
Parliamentary Committees.
- The House of Representatives Standing Committee on Industry,
Science and Technology issued its report on the Trade Practices
Amendment (Origin Labelling) Bill in June 1994.(12) The Committee
concluded that the approach taken by the Bill was probably the best
in practical terms and recommended providing additional information
and clarifying the definitions used in the Bill in order to assist
industry and consumers.
- The Senate Standing Committee on Legal and Constitutional
Affairs issued a report on 1 September 1994.(13) This report, which
contains two separate dissents, also recommended support for the
Bill and for several amendments that had been foreshadowed. The
report canvassed the views of a large number of producer, consumer
and marketing groups and provides a useful analysis of the various
descriptors used to describe the 'Australian-ness' of goods.
In the event, the 1994 Bill lapsed when
Parliament was prorogued prior to the March 1996 election.
Recent Federal Court decisions on
country of origin labelling
At the same time as the 1994 Bill was being
considered by Parliament, another case concerning Section 53(eb) of
the Trade Practices Act 1974 was before the
Federal Court of Australia.
The Trade Practices Commission v QSVD
Holdings Pty Ltd (trading as Bush Friends Australia)(14) (the
Bush Friends Case) again concerned koala soft toys. The
koalas were manufactured partly in China and partly in Australia
and all of the components, with the exception of the filling, were
produced overseas. The toys carried a label containing the
statement 'Made in Australia' in large capital letters. Underneath
those words, in smaller print were the words 'with some imported
components'. The claims on the label were the subject of the
litigation.
In his decision (which was later approved by the
Full Court of the Federal Court of Australia), Justice Davies
considered the possible bases on which an evaluation of whether the
koalas had been 'made in Australia' could be made. He considered
both the use of qualitative tests such as 'essential character' or
'substantial transformation', and quantitative measures such as a
comparison of the costs incurred in each country where something
had been done to produce the end product. He expressly rejected the
'essential character' test laid down in the 1994 Bill and held that
the words 'Made in Australia' and other terms were to be given
their common meaning.(15) In the second Bush Friends
decision, Justice Nicholson said that he regarded the 'ordinary
meaning' test as 'a legitimate technique of statutory
construction'.(16) He justified the subjective nature of this
approach in the following way:
While it is true that the application
of the ordinary meaning of the words leaves the judge deciding the
effect of those words on consumers, it is in fact the impression of
the words which is critical to the determination of whether they
are, in the circumstances as found, misleading and deceptive either
generally or in relation to the origin of the goods.(17)
Some commentators on the Bush Friends
case have seen the decision as establishing a definitive precedent
for the appropriate test to be applied in the case of 'Made in
Australia' claims. The General Editor of the Australian &
New Zealand Trade Practices Law Bulletin, Warren Pengilley
wrote that:
It [the case] puts to rest the
argument that the answer to the question of whether a produce is
'Made in Australia' should be determined by a comparative costing
exercise or by an applications of customs law. The test involves
neither of these issues. It is solely a question of assessing the
effect of the representation on Australian consumers.(18)
In the Explanatory Memorandum to the
current Bill the Government describes the decision in the Bush
Friends case as being restrictive and says that it has
resulted in many firms being potentially excluded from labelling
their products as Australian made for fear of litigation.(19)
A more recent case [Australian Competition
and Consumer Commission v Lovelock Luke Pty Ltd (1997)](20)
concerned air conditioners which consisted of a number of component
parts, one of which (the compressor) was made overseas. The air
conditioners carried labels and a logo, and were advertised by
various combinations of words meaning made in Australia. In
dismissing the case brought by the ACCC, Justice Lockhart held that
'(w)hether an article of commerce is "Made in Australia" must be
determined by reference to the circumstances of each case'.(21)
Following the line of reasoning taken by Justice Sackville in the
second Bush Friends case (the appeal),(22) Justice
Lockhart said:
In my opinion, the expression 'place
of origin' of goods in s53(eb) focuses attention on the finished
product, that is the goods which the public sees and buys, the
place where the goods acquire their essential character as articles
of commerce, the place where the major processes of manufacture
occur which transform the various component parts into a finished
product, the place where the goods are given their essential
function, shape or appearance. This is substantially the approach
taken in the Trade Practices Amendment (Origin Labelling) Bill 1994
which has lapsed. It is a test appropriate to the goods in question
in this case.(23)
According to the Explanatory
Memorandum, this second case has compounded the uncertainty
already created by the Bush Friends case. This is because
the court:
expressly avoided setting down strict
criteria for determining the validity of origin claims. The Court
held that such cases should be resolved on a case-by-case basis.
This represents a considerable impediment to compliance.(24)
In his Second Reading Speech, the Minister for
Customs and Consumer Affairs, Hon Warren Truss MP, said that the
recent court decisions have created confusion about the meaning of
such terms as 'Made in Australia', and as a result, 'the market
value of Australian origin claims has been eroded, to the point
that producers and manufacturers are wary of making claims and many
consumers are losing confidence in labelling altogether'.(25)
The current Bill
The purpose of the current Bill is to introduce
a scheme governing representations about the origin of consumer
goods supplied in Australia. This purpose is to be accomplished by
inserting a new Division 1AA into Part V of the Trade Practices
Act 1974. The Government's intention in introducing the scheme
is to overcome the perceived uncertainty caused by recent Federal
Court decisions, to encourage Australian industry to label products
which have their origin in Australia, and to give consumers a
reliable means of identifying Australian products.
The chief features of the scheme are as
follows:
- It is voluntary and will apply only where a manufacturer or
supplier chooses to represent that Australia or another country is
the place of origin of goods;
- It covers goods produced for the Australian market and goods
produced overseas and sold in Australia;
- It deals with representations that goods are 'Made in', or are
'Produced in' or are a 'Product of' Australia or another
country;
- The scheme consists of a primary and a secondary test:
- The primary test is a qualitative measure, that the goods are
'substantially transformed' in a country if they
undergo a fundamental change in form, appearance or nature such
that the goods existing after the change are new and different
goods from those existing before the change.
- The secondary test is a quantitative measure, and refers to the
costs of production or
manufacture incurred in Australia and other countries. For
example, goods which claim to be 'Made in Australia', must have
incurred 50% or more of their total manufacturing costs in
Australia. Goods which claim to be a 'Product of Australia' or
'Produced in Australia' must have 'all or virtually all' Australian
ingredients or inputs, and 'all or virtually all' of the steps in
the production process must have occurred in Australia.
- The scheme covers representations made in words and by means of
prescribed logos.
- The scheme provides a defence against prosecution for breach of
Section 53(eb) of the Trade Practices Act 1974. This
defence is not extended to regional descriptors such as 'Made in
Queensland' or 'Product of Tasmania'.(26)
The Bill sets out the framework for the scheme.
The details of a number of aspects are to be worked out in
regulations. Some additional points are covered in the
Explanatory Memorandum, including that
- the Australian and New Zealand Food Standards Council will be
asked to determine the need for any additional regulations for
food; and
- the proposed legislative framework will be reviewed after five
years or when the World Trade Organisation's international rules of
origin are finalised.(27)
The test proposed by the current
Bill
'Substantial transformation'
In the United States, the system used under
trade law for determining the origin of a product centres around
the 'substantial transformation test'. This test is a judge-made
rule and it is not defined in legislation. The test, simply stated,
is whether the good has emerged from a given process with a
'distinctive name, character or use' in a particular country. For a
product to be from a particular country, it must be substantially
transformed there. To prevent a product from having multiple
countries of origin, the good is a product of the country where it
last underwent such transformation.
In the Bush Friends case Judge Davies
considered the substantial transformation test. He concluded that,
as a test under customs legislation, it was relevant to a
determination of who should obtain a benefit or drawback in a
tariff preference context, but it was not necessarily relevant in
evaluating where a manufacturing process had occurred. Accordingly,
he decided that the substantial transformation test, though firmly
established under customs regulations, was a different test to that
under the Trade Practices Act 1974. This was because the
Trade Practices Act 1974 test had to relate to the
question of whether consumers in Australia would be misled or
deceived or would be likely to be misled or deceived, and whether
there had been a misleading representation in Australia as to the
place of origin of the goods. Justice Davies did say, however, that
if a substantial transformation test was applied in the Bush
Friends case, he would hold that the component parts were
transformed into a toy koala in Australia and that, prior to their
transformation in Australia, they were merely component
parts.(28)
In the context of discussing the substantial
transformation test, Justice Davies referred to the approach taken
by Joseph A LaNasa III from the Harvard Law School in an article
published in 1993 in the Harvard International Law
Journal.(29) The article discusses the use of the substantial
transformation test in the application of customs legislation in
the United States. The author was critical of the test saying that
it:
Gives customs officials the freedom
to apply the standard on a highly subjective, case by case basis
that often results in seemingly arbitrary decisions. In reviewing
these origin determinations, courts have had a great deal of
trouble discerning the point at which a processing operation causes
a product to be substantially transformed, and, as a result, they
have developed a variety of inconsistently applied criteria. Not
only have the courts failed to develop a uniform set of criteria
for substantial transformation, but they have also applied the test
inconsistently in similar situations depending upon the purpose of
the determination.(30)
In his Second Reading Speech, the Minister for
Customs and Consumer Affairs, Hon Warren Truss MP, said that 'the
use of the substantial transformation test will align Australian
law with international practice'.(31) The Explanatory
Memorandum to the Bill states that '"substantial
transformation" will form the basis for the WTO's [World Trade
Organisation] international rules of origin and is widely utilised
overseas'.(32) For a discussion of country of origin labelling
requirements in other countries, the reader is referred to the
Report of the Working Groups on Country of Origin Labelling of
Consumer Products (May 1993, pages 10-11), and 'It ain't
necessarily so: country of origin labelling' (Department of the
Parliamentary Library, Current Issues Brief 20/1994, pages
4-6).
Comparative costs of production
The issues here include the specified percentage
of local costs, what components and processes are to be included in
calculating the costs of production, and the period over which
costs are to be calculated.
The Working Groups on Country of Origin
Labelling recommended that, where the Australian input exceeded 85%
of the cost of production, goods might be labelled 'Made in
Australia' without qualification.(33) The Senate Standing Committee
on Legal and Constitutional Affairs received submissions suggesting
percentages of Australian input of between 85% and 95%. The
Committee also received evidence that many Australian consumers
believe that 'Made in Australia' means close to 100% Australian
ingredients and processing.(34) The Minister for Customs and
Consumer Affairs has explained the adoption of a figure of 50% by
saying that a higher threshold would disadvantage many local
industries which have always been considered to be producing
Australian products. He went on to say:
These firms employ Australians and
invest in Australia's future. Who would tell a person working at
General Motors-Holden or Ford that the cars they are making are not
Australian, just because some of their components are imported? Our
trading partners do not hesitate to recognise these products as
Australia; nor should we.(35)
The Minister foreshadowed a public education
campaign to make Australian consumers aware of the meaning of
country of origin representations.
On the question of what is to be included in
measuring the costs of production, the Working Groups recommended a
system based on the practice of the Australian Customs Service
which would include the cost of Australian materials received into
the factory, manufacturing wages, factory overhead expenses,
research and development, and the cost of internal containers.
Sales tax, import duty, insurance charges, outer packaging,
distribution and advertising costs would be excluded from the
calculation.(36) The current Bill appears to follow this
recommendation although the details of how costs are to be
attributed throughout the production chain have yet to be spelt
out.
The issue of the comparative cost of production
also came up in the Bush Friends case. Comparative cost
figures were given to the court but the court regarded them as
unhelpful. Judge Davies noted that there was a considerable
difficulty in using a comparison of labour costs because wages in
China were so much lower than wages in Australia. Accordingly, he
held that a mere comparison of cost figures did not accurately
indicate the extent of the work done in one country as against that
carried out in another.(37)
General comments on country of origin
labelling
Country of origin rules were first introduced to
gather statistics to assist in determining supply and demand.
Subsequently, countries entered into tariff arrangements and it
became important to label goods so that a differentiation could be
made for tariff and quota purposes. What was a relatively simple
process, when countries were both the producer and exporter of the
finished product, has now become very complex. The increased
globalisation of business and the economic interdependence of
countries have made the identification of the nationality of a
product very difficult. Products today contain parts or ingredients
from, or have undergone manufacturing processes in many countries
before ending up on our shelves. The situation is not confined to
technical goods but also applies to food manufacture where minor
but important ingredients (such as colouring agents, concentrates
and other additives) may be imported and added to the product for
domestic consumption.
The World Trade Organisation recognises rules of
origin used by Member countries in applications such as government
procurement and trade statistics. Reports of surveys indicate that
a majority of Australian consumers believe that buying Australian
made products helps to support Australian industry, enterprise and
employment.(38) Since 1986 Australian governments have supported
the Australian Made campaign to encourage consumers to purchase
locally made products in preference to imported goods, where
quality and price were comparable. The financial allocation in
1994/95 (the last year in which the Australian Made campaign was
financed by the Commonwealth Government) was $1.5 million. The
Australian Made campaign was evaluated in 1994 by Marsden Jacob
Associates. It was found to have had success in creating new jobs
and in increasing Australian manufacturing output.(39)
The Commonwealth owns the Australian Made
certification mark (logo), a green and gold triangle containing a
representation of a bounding kangaroo. The logo has been available
under licence to manufacturers for inclusion on their product.
Schedule 1
Proposed section 65AB
establishes the general test for country of origin representations.
The test to be adopted is that the goods were 'substantially
transformed' (as set out in proposed section 65AE)
and that 50% or more of the cost of producing or manufacturing the
goods (as determined under Subdivision B of Part 1 of this Bill)
occurred in the country to which a representation of origin is
being made.
The effect of proposed section
65AC is to establish a test for representations that goods
are the 'Product of' or 'Produce of' a country. Those descriptors
may only be used if each of the significant ingredients or
components of the goods come from the country of representation and
virtually all of the production or manufacturing processes
associated with the goods occur in that country.
The purpose of proposed section
65AD is to enable a stricter test to apply to goods
licensed to carry a prescribed logo. Subsection
65AD(2) enables regulations to be made which may prescribe
a higher than 51% component of the costs of production or
manufacture for goods carrying a specified logo.
Proposed section 65AE defines
the term 'substantially transformed'. According to this definition,
for a substantial transformation to occur, goods must undergo a
fundamental change which alters their appearance, purpose or how
they work. The effect of proposed subsection
65AE(2) is to enable regulations to be made which specify
when a change is not a 'fundamental change'.
Proposed subdivision B provides
for the method to be used when calculating the costs of production
or manufacture. The total costs of producing or manufacturing a
good is defined as the sum of the expenditure on materials (as
determined under proposed section 65AJ), the sum
of expenditure on labour (determined under proposed section
65AK), and the sum of expenditure on overheads (determined
under proposed section 65AL). 'Materials' is
defined in proposed section 65AG to include
unmanufactured raw products, manufactured inputs, and the retail
packaging in which the product is offered for sale. The retail
packaging is defined as the 'inner container' to distinguish it
from the outer packaging used when goods are transported. An
example is given of a tin of tomatoes. The tin is included in the
calculation of production costs under the definition of an 'inner
container'. The cardboard box in which the tins are packed for
storage or transport is not.
Proposed sections 65AJ, 65AK, and
65AL provide a legislative framework for what can be
included in the calculation of production costs.
All the costs of materials used in the
production or manufacture of goods may be counted (proposed
section 65AJ) with the exception of costs, or a portion of
the costs, that may be disallowed by regulation (proposed
paragraph 65AJ(2)(a)). Under proposed paragraph
65AJ(2)(b) the Minister is also able to make regulations
prescribing the manner in which the cost of a material may be
worked out. The Minister is given these powers to make regulations
in order to address any possible uncertainty about how costs are to
be attributed throughout the production chain.
The effect of proposed section
65AK is to include all labour costs that can be
'reasonably allocated' (the term is not defined in the Bill) to the
production or manufacture of products in the calculation of
production costs. Again the Minister is able to prescribe in
regulations a manner for determining the cost of labour, and to
disallow particular labour costs (proposed subsection
65AK(2).
Proposed section 65AL deals
with the calculation of expenditure on overheads. All overheads
that can 'reasonably be allocated' to the production or manufacture
of the goods may be included, except where explicitly disallowed by
virtue of a regulation made under proposed paragraph
65Al(2)(a). The Minister is given the power to make
regulations prescribing the manner in which the costs of overheads
may be determined.
Proposed section 65AM enables
the Minister to make regulations prescribing general rules to be
followed when dividing the total costs of production between
different countries. The same rules are to be used to allocate the
costs of production to Australian and to overseas businesses in the
production chain. This power to make regulations will enable the
Minister to fine tune the working of the production cost test.
The effect of proposed subdivision C
(Evidentiary matters) is to confirm that a person who
seeks to rely in court on the defences provided by the proposed new
Division 1AA (Country of Origin Representations), bears the usual
onus of proof.
Part 2 of Schedule 1 contains a
number of amendments that are consequential on the inclusion of
proposed new Division 1AA. The effect of Item 2 is
to limit the application of country of origin representations to
goods sold or made available for retail sale in Australia. The
proposed new Division 1AA has no extra-territorial application.
Items 3-12 insert references to the new Division
1AA in the Trade Practices Act 1974 thereby ensuring
consistency.
Schedule 2
Schedule 2 of the Bill includes
five other amendments to the Trade Practices Act 1974
which have no connection with country of origin representations.
Item 1 concerns the appointment of Commissioners
to the Australian Competition and Consumer Commission (ACCC). The
effect of the proposed amendment is to include consideration of
small business experience as a relevant factor in appointing ACCC
Commissioners. The second change brought about by Item 1 is to
require the Minister to be satisfied that all the factors outlined
in the subsection have been met before the Governor-General
appoints an ACCC Commissioner.
The effect of Item 2 is to
require the Minister, rather than the Attorney-General, to appoint
a Deputy President or Acting Deputy President to the position of
Acting President of the Australian Competition Tribunal should a
vacancy occur.
Item 3 enables the ACCC to take
representative actions on matters of alleged contravention of Part
IV (Restrictive Trade Practices) of the Trade Practices Act
1974. At present the ACCC's powers to take such actions under
subsection 87(1B) are limited to Part IVA (Unconscionable Conduct)
and Part V (Consumer Protection). Item 5 is
retrospective legislation. It extends the rights granted under
Item 3 to include conduct committed before this
amendment is passed.
- A list of Commonwealth, State and Territory legislative
requirements for country of origin labelling as at May 1993 is
included in the Report of the Working Groups on Country of
Origin Labelling of Consumer Products, Canberra, 1993,
Attachment A.
- The Trade Practices Commission also published draft guidelines
on 'Made in Australia' labelling, Australian Trade Practices
Reporter, CCH, Sydney, 1986, para. 30-361.
- Thorpe v C A Imports Pty Ltd (1990) ATPR 40-996.
- Siddons Pty Ltd v Stanley Works Pty Ltd (1990-91) 99 ALR
499.
- Netcomm (Aust) Pty Ltd v Dataplex Pty Ltd (1988) 81
ALR 101.
- Bailey, Brendan, It Ain't necessarily so: country of origin
labelling, Department of the Parliamentary Library, Canberra,
1994 (Current issues brief, Law and Public Administration Group
20/1994), 9.
- Report of the Working Groups on country of origin labelling
of consumer products, Federal Bureau of Consumer Affairs,
Canberra, 1993.
- Bini, Marco, Trade Practices Amendment (Origin Labelling)
Bill 1994, Department of the Parliamentary Library, Canberra,
1994 (Bills Digest 60/1994).
- Explanatory memorandum, Trade Practices Amendment
(Origin Labelling) Bill 1994, 5
- Senate, Debates, 2 March 1995, 1281-2.
- Bailey, Brendan, op cit, 9.
-
The Trade Practices Amendment (Origin Labelling) Bill
1994, House of Representatives, Standing Committee on
Industry, Science and Technology, Canberra, 1994
- The Trade Practices Amendment (Origin Labelling) Bill
1994, Senate Standing Committee on Legal and Constitutional
Affairs, Canberra, 1994.
- Trade Practices Commission v QDSV Holdings Pty Ltd (trading
as Bush Friends Australia) (1994) 128 ALR 551.
- Ibid, 558.
- QSVD Holdings Pty Ltd (t/as Bush Friends Australia) v Trade
Practices Commission (1995), 131 ALR 493 (at 513).
- Ibid, 513.
- Pengilley, Warren, 'Toy koalas and country of origin: the Trade
Practices Act and 'small print' exclusions', Australian and New
Zealand trade practices law bulletin, ,v.10 (9), March 1995,
102.
- Explanatory Memorandum, Trade Practices Amendment
(Country of Origin Representations) Bill 1998, 2.
- Australian Competition and Consumer Commission v Lovelock
Luke Pty Ltd [1977] 1100 FCA (24 October 1977), 39 IPR,
439.
- Ibid, 445.
- QSVD Holdings Pty Ltd (t/as Bush Friends Australia) v Trade
Practices Commission (1995), 131 ALR 493 (at 310-313).
- Australian Competition and Consumer Commission v Lovelock
Luke Pty Ltd [1977] 1100 FCA (24 October 1977).
- Explanatory Memorandum, op cit, 2.
- Second Reading Speech, Trade Practices Amendment
(Country of Origin Representations) Bill 1998, House of
Representatives, Debates, 8 April 1998, 1917.
- A number of Australian States or regions have attempted to
foster consumer awareness of their local products by creating
regional 'brands'. The 1994 Bill was criticised, particularly by
State Governments and industry, for effectively prohibiting the use
of local representations such as 'Product of Tasmania' or 'Made in
Queensland'. The Bill did this by prohibiting the use of any
alternatives to the defined terms 'Product of Australia' or 'Made
in Australia'. Under the 1994 Bill, if manufacturers or suppliers
wished to identify the town, city, region or State of origin of
goods, they could only do so by adding an alternative
identification to the authorised words, such as 'Proudly Tasmanian'
or 'Made in Australia at Bendigo'. The current Bill contains no
such restrictions. However, if a manufacturer chooses to label a
good, for example, both 'Made in Australia' and 'Product of
Tasmania', the manufacturer will know with certainty what 'Made in
Australia' will mean under the current Bill, but will have no
certainty under this legislation about the meaning of the term
'Product of Tasmania'. Such local representations will be subject
to testing under Section 52 of the Trade Practices Act
1974 and/or under the equivalent provisions of State Fair
Trading laws.
- Explanatory Memorandum, op cit, 11.
- Trade Practices Commission v QDSV Holdings Pty Ltd (trading
as Bush Friends Australia) (1994) 128 ALR 551 (at 558).
- LaNasa, Joseph A, 'Rules of origin under the North American
Free Trade Agreement: a substantial transformation into objectively
transparent protectionism', Harvard International Law
Journal, v.34, no.2, Spring 1993, 381-443.
- LaNasa, ibid, 385.
- Second Reading Speech, op cit, 1917.
- Explanatory Memorandum, op cit, 6. See also
Agreement on rules of origin, World Trade Organisation,
[n.d.], available on the Internet at http://www.wto.org/
- Report of the Working Groups on Country of Origin Labelling
of Consumer Products, op cit, ii.
- Senate Standing Committee on Legal and Constitutional Affairs,
op cit, 10 and footnote 31 on that page. This issue is further
discussed in the Dissenting Report by Senator Sid Spindler,
[33-34].
- Second Reading Speech, op cit, 1917.
- Report of the Working groups on Country of Origin Labelling
of Consumer Products, op cit, ii.
- Trade Practices Commission v QDSV Holdings Pty Ltd (trading
as Bush Friends Australia) (1994) 128 ALR 551 (at 556).
- For example, the Advance Australia Foundation reported on a
survey conducted by the Tavener Research Company in May 1995 which
stated that '79% of consumers recognise buying Australian Made
helps the economy and balance of trade', and '95% of consumers
agree that buying Australian Made products in preference to imports
creates jobs for Australians'. The survey also suggested that the
Australian Made campaign had been successful in encouraging more
Australian consumers to purchase goods carrying the Australian Made
logo. In May 1995 86% of consumers said they had purchased products
carrying the green and gold symbol, compared with only 62% of
consumers surveyed in May 1988. Australian Made, Advance
Australia Foundation, Melbourne, July 1955, 1.
- The Australian Made Campaign: relevance, rationale and
general equilibrium effects in unemployment and full
employment, Marsden Jacob Associates, Camberwell, Vic., 28
March 1994.
Rosemary Bell
14 May 1998
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