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JUDGMENT No... 883.4,.9
CATCHWORDS
ADMINISTRATIVE LAW - Judicial review - Report by Anti-Dumping
Authority in relation to alleged dumping of goods exported
from Singapore - Report prepared on Authority's own initiative
- Recommendation that dumping duty notice issue - Whether
recommendation amounts to a decision reviewable under
Administrative Decisions (Judicial Review) Act 1977 (Cth)
CUSTOMS - Dumping duty - Goods exported to Australia from
Singapore - Determination of normal values - Whether Minister
entitled to be satisfied that sufficient information not
available to ascertain normal values under. particular
statutory provisions - Whether Minister failed to take into
account relevant considerations or took into account
irrelevant considerations - Whether Minister's decision s0
unreasonable that no reasonable person would have made it -
Whether normal values determined by the Minister' so
unreasonable that no reasonable person could have determined
those amounts - Whether dumping duty notice might be expressed
to apply to all goods exported from Singapore rather than
goods exported by a particular exporter - Whether
determination that material injury to the Australian industry
was caused or threatened by exports from Singapore at dumped
prices was so unreasonable that no reasonable person could
have arrived at it - Whether Minister bound to take into
account possible effects of economic recession during period
under review
Administrative Decisions (Judicial Review) Act 1977 (Cth), s 5
Customs Act 1901 (Cth), ss 269TAC(2)(c) and (6), 269TP
Anti-Dumping Authority Act 1988 (Cth), s 9(2)
Ross v Costigan (1982) 41 ALR 319 applied
Edelsten v Health Insurance Commission (1990) 27 FCR 56
applied
Excell v Harris (1983) 51 ALR 137 applied
Enichem Anic Srl v Anti-Dumping Authority (1992) 39 FCR 458
applied
VREDELCO FOOD INDUSTRIES PTE LIMITED v ANTI-DUMPING AUTHORITY
and_ ORS
No. ACT G 12 of 1994
Neaves J.
Canberra
22 November 1994 FEDERAL COURT OF
AUSTRALIA
PRINCIPAL
REGISTRY
IN THE FEDERAL RT OF AUSTRALIA
Al TAN ITAL TERRITORY
No. ACT G 12 of 1994
DISTRICT REGISTRY
EN DIVISION
BETWEEN: VREDEL' FOOD INDUSTRIES _ PTE
LIMITED
Applicant
AND: ANTI-DUMPING AUTHORITY
First Respondent
HRISTOPHER LELAND HT in
his capacity as Minister of
State for Science and Small
Business
Second Respondent
MEADOW LEA FOODS LIMITED
Third Respondent
MINUTE OF ORDER
JUDGE MAKING ORDER : Neaves J.
DAT: F_ ORDER : 22 November 1994
WH: MADE : Canberra
THE COURT ORDERS THAT:
1. The application be dismissed.
2. The applicant pay the respondents' costs of and
incidental to the application.
Note: Settlement and entry of orders is dealt with in Order
36 of the Federal Court Rules.
IN THE FEDERAL RT OF AUSTRALIA
A RALIAN CAPITAL TERRITORY
D REGISTRY
ENERAL DIVISION
No. ACT G 12 of 1994
ee ee ww
BETWEEN: VREDEL' FOOD INDUSTRIE PTE
LIMITED
Applicant
AND: ANTI-D' ING AUTHORITY
First Respondent
HRISTOPHER LELAND Hi in
his capacity as Minister of
State for Science and Small
Business
Second Respondent
MEADOW LEA FOODS LIMITED
Third Respondent
CORAM: Neaves J.
DATE: 22 November 1994 -
RE. IN R D NT
This is an application by Vredelco Food Industries
Pte Limited ("Vredelco") under s.5 of the Administrative
Decisions (Judicial Review) Act 1977 (Cth) ("the Judicial
Review Act"). The first respondent to the application is the
Anti-Dumping Authority ("the Authority") established by s.4 of
the <Anti-Dumping Authority Act 1988 (Cth). The second
respondent is Christopher Cleland Schacht, the Minister of
State for Science and Small Business ("the Minister"). The
third respondent is Meadow Lea Foods Limited ("Meadow Lea").
The application is supported by the several
affidavits of John Francis McDermott sworn respectively on 9
February 1994, 27 May 1994 and 29 July 1994. No affidavits in
reply have been filed on behalf of any of the respondents and
the matter has proceeded on the basis of Mr McDermott's
affidavits and on an agreed bundle of documents (Exhibit "A"),
it being common ground that the bundle represents "part of the
Material that was before the decision-maker". The only oral
evidence before the Court is that of Mr McDermott who was
cross-examined by counsel who appeared for the Authority and
the Minister and by counsel for Meadow Lea. What is stated in
those affidavits, particularly the affidavit sworn on 29 July
1994, is to be read subject to the answers Mr McDermott gave
in cross-examination.
Before proceeding further, it is desirable to
mention a collateral matter. As appears from the affidavits
to which I have referred, Mr McDermott was, during 1993 and
until 30 May 1994, employed by the solicitors for Vredelco as
a Customs Adviser and, as such, he was involved in various
aspects of the preparation of the matter before the Court.
His affidavit sworn on 29 July 1994 refers to his undertaking,
in May 1994, of "an assessment of available information to
determine the profit margin apparently applied by the Anti-
Dumping Authority to the Applicant's [Vredelco's] products in
making its findings" and states that, in making that
assessment, he had access to "Annexure 'A' to the Australian
Customs Report to the Anti-Dumping Authority on its
verification visit to" Vredelco. A copy of that document is
annexed to the affidavit as Annexure "A".
When the hearing commenced, counsel for the
Authority and the Minister raised the question whether Mr
McDermott had been given access to the document marked as
Annexure "A" to his affidavit sworn on 29 July 1994 in breach
of undertakings given to the Court by the legal advisers of
Vredelco. Provision for the giving of such undertakings was
made at a directions hearing on 16 March 1994. An order was
then made, by consent, to the effect that the Authority and
the Minister allow counsel for, and the legal advisers of,
Vredelco to inspect the documents held by the Authority and
the Minister relating to the proceeding providing such counsel
and legal advisers had signed, filed and served an appropriate
form of undertaking: see Kanthal Australia Pty Ltd v Minister
for Industry, Technology and Commerce (1987) 14 FCR 90 and
Commonwealth v Northern Land Council (1991) 30 FCR 1 at p.30.
The form of undertaking required, inter alia, that, pending
further order of the Court and except with the prior written
consent of the Authority and the Minister, the counsel or
legal adviser giving the undertaking would not disclose, or
permit to be disclosed, or discuss any "Confidential
Information" to or with any person other than a person who had
signed, filed in the Court and served on the Authority and the
Minister (or their solicitors) an undertaking in similar
terms. "Confidential Information" was defined as follows:
"'Confidential Information' means any information
described as confidential in the Lists of Documents
prepared by the First and Second Respondents and provided
by the First and Second Respondents to the Applicant in
these proceedings but NOT INCLUDING information
confidential to the Applicant."
Counsel for the Authority and the Minister informed
the Court that, although most of the information contained in
Annexure "A" to the affidavit sworn on 29 July 1994 was
confidential to Vredelco, the annexure included information
that was confidential to a company other than Vredelco. It
was submitted that, as Mr McDermott was not a person who had
signed an undertaking, there had been a breach of the
undertakings given to the Court. Counsel referred to certain
correspondence between the Australian Government Solicitor and
the solicitors for Vredelco relating to the matter, that
correspondence being verified in the affidavit of Simon Banks
sworn on 7 October 1994.
In that correspondence, the solicitors for Vredelco
said they had considered that the use of the information that
was confidential to the other company was not a use in breach
of the undertakings. The solicitors stated that that
information had come into their possession when they, at an
earlier time, were advising that company. It was further
stated that the solicitors had obtained an authorisation from
that company in relation to the use of its material. It must
be said, however, that the copies of correspondence between
the solicitors and that company to which the solicitors
referred does not support the assertion that the solicitors
were authorised to use the information in relation to the
present proceeding. What the correspondence authorised did
not extend beyond making the information available to the
Court. Counsel for Vredelco, however, conceded that what had
occurred amounted to a breach of the undertakings though he
sought to categorise the breach as technical.
Although such of the information contained in
Annexure "A" to Mr McDermott's affidavit sworn on 29 July 1994
as was confidential to the other company may have been
available to the solicitors in other circumstances, I am
satisfied that the making of the document available to Mr
McDermott involved a breach of the undertakings to the Court
to which reference has been made.
While it has not been suggested that any further
action should be taken by the Court in respect of the breach,
it must be emphasised that it is essential that there be
strict compliance with any undertaking given to the Court.
There should be no departure from such an undertaking, even if
the departure be thought to be slight, or technical, or
apparently insignificant, unless the departure has been
sanctioned by an order of the Court made with knowledge of the
whole of the relevant circumstances.
I return to a consideration of the application which
is expressed to be an application to review the decision of:
&
"1. The First Respondent of November 1993 contained in
Report No.113 to make certain recommendations to the
Second Respondent;
2. The Second Respondent of 30 November 1993 notified
to the Applicant [Vredelco] on 22 December 1993
declaring, pursuant to section 269TG(2) of the
Customs Act 1901, that section 8 of the Customs
Tariff (Anti-Dumping) Act 1975 applies to certain
goods exported from Singapore and ascertaining the
normal values, export prices and _ non-injurious
prices for those goods; and
3. The Second Respondent of 30 November 1993 notified
to the Applicant [Vredelco] on 22 December 1993
directing, pursuant to section 8(5) of the Customs
Tariff (Anti-Dumping) Act 1975, the amount of
interim dumping duty payable on the export of
certain goods from Singapore to Australia."
The goods in question are refined edible vegetable
oils in retail packs up to and including 6 litres. Edible
vegetable oils are used in cooking oil, in margarine, as a
filler in tinned foods and in a number of other applications.
The oils are soya bean oil, sunflower oil, rape seed (canola)
oil and blends of edible vegetable oils.
Vredelco is a company that manufactures = and
distributes edible vegetable products world wide. It exports
to Australia soya bean and sunflower oils in 750 ml
containers, rape seed oil (canola oil) in containers of 750
ml, 2 litres and 4 litres and blended vegetable oil in
containers of 750 ml, 1 litre, 2 litres and 4 litres. It does
not sell those goods in Singapore nor does it export them to
third countries. Vredelco is a wholly owned subsidiary of
Vredelco Investments Pte Limited, as is Wintercorn Edible
Products Pte Limited.
Z
The circumstances which led to the institution of
the proceeding before the Court are as follows. On 23
November 1992, an application pursuant to subs.269TB(1) of the
Customs Act 1901 (Cth) requesting that the Minister publish a
dumping duty notice or a countervailing duty notice in respect
of the goods in question imported from Singapore and Malaysia
was lodged with the Australian Customs Service ("Customs") by
KPMG Peat Marwick ("KPMG") representing The Australian
Oilseeds Federation Incorporated. It is unnecessary for
present purposes to refer further to the imports from
Malaysia.
The application under subs.269TB(1) alleged that
imported generically and brand labelled edible vegetable oils
were causing and threatening material injury to that part of
the Australian oilseeds industry that refines edible vegetable
oil (or purchases refined edible vegetable oil) and packages
the refined oil in containers of up to 6 litres for retail
sale. Meadow Lea is a company that engages in that activity.
The application identified the main problem as being that
imported low priced generically labelled oil forced down the
prices of local generic oil and, in turn, the prices of brand
oils which enjoyed a price premium.
On 29 March 1993, a delegate of the Comptroller-
General of Customs ("the Comptroller"), after holding an
inquiry into the allegations, made preliminary findings
pursuant to s.269TD of the Customs Act that there were not
sufficient grounds for the publication of a dumping duty
notice or a countervailing duty notice in respect of the
subject goods exported to Australia from Singapore. Those
preliminary findings were made after the delegate concluded,
in respect of the subject goods, that exports from Singapore
had been at dumped prices, that exports from Singapore were
causing injury, but not material injury, to the Australian
industry producing like goods and that exports from Singapore
represented a threat of injury, though not material injury, to
that Australian industry.
By a facsimile message dated 20 April 1993, KPMG,
pursuant to s.269TF, requested the Authority to review the
negative preliminary finding by the delegate of the
Comptroller. In conducting that review, the Authority was
confined to a consideration of the information that was
available to the Comptroller at the time the preliminary
finding was made (see Anti-Dumping Authority Act, subs.8(3)).
On 21 June 1993, the Authority found that edible vegetable
oils had been exported to Australia from Singapore at dumped
prices and that the Australian industry producing like goods
had suffered material injury, but that there was insufficient
information to conclude that the dumping had caused, or
threatened to cause, the material injury to the Australian
industry producing like goods. In those circumstances, the
Authority regarded itself as having no option but to confirm
the negative preliminary finding but considered, on the basis
of the information before it, that it had been unable to make
a truly informed decision. The Authority decided that, in the
interests of all parties to the preliminary finding, it would
initiate, under subs.9(2) of the Anti-Dumping Authority Act,
its own inquiry into whether dumping or subsidisation of
edible vegetable oils that are sold as cooking oils had caused
(or was threatening) material injury to the Australian
industry producing edible vegetable oils. Subsection 9(2)
provides:
"(2) The Authority may, where it considers it appropriate
to do so, consider and prepare and give to the
Minister a report on any anti-dumping matter."
In November 1993, the Authority gave to the Minister
Report No.113 concluding, so far as is relevant for present
purposes, that:
". there is no evidence that exports of edible
vegetable oil to Australia from Singapore .... have
been subsidised;
. edible vegetable oil has been exported to Australia
from Singapore .... at dumped prices;
the Australian industry producing like goods has
suffered material injury;
dumping of edible vegetable oils by exporters in
Singapore .... has caused material injury to the
local industry producing like goods; and
there is a threat of material injury to the
Australian industry from future imports of edible
vegetable oils at dumped prices from Singapore ....
In light of the above, the Authority recommends that the
Minister take anti-dumping action against imports of
edible vegetable oils from Singapore .... Further
details of the Authority's recommendations are at Chapter
11. o
Chapter 11 of the Report, headed "Recommendations",
contained the following:
"The Authority recommends that the Minister be satisfied
that:
.
sufficient information has not been furnished or is
not available to enable the normal value of edible
vegetable oil to be ascertained under subsections
269TAC(1) or (2) of the Customs Act 1901, and that
he determine normal values for Singapore .... under
subsection 269TAC(6) of the Customs Act 1901;
sufficient information has not been furnished or is
not available to enable the export price of certain
edible vegetable oils to be ascertained under
paragraph 269TAB(1)(a), (b) or (c) of the Customs
Act 1901;
the amount of the export price of edible vegetable
oil is less than the amount of the normal value of
those goods and, because of that, material injury to
the Australian industry producing edible vegetable
oils is being caused; and
the amount of the export price of edible vegetable
oil that has already been exported to Australia is
less than the amount of the normal value of those
goods, and the amount of the export price of edible
vegetable oil that may be exported to Australia in
the future may be less than the normal value of the
goods and, because of that, material injury to the
Australian industry producing edible vegetable oil
is threatened.
The Authority recommends that the Minister:
determine export prices for certain edible vegetable
oils exported to Australia from Singapore under
paragraph 269TAB(1)(c) and under subsection
269TAB(3) of the Customs Act 1901;
pursuant to subsection 269TG(2) of the Customs Act
1901, declare, by notices in the Gazette, that
section 8 of the Customs Tariff (Anti-Dumping) Act
1975 applies to edible vegetable oil that is
exported from Singapore .... to Australia after the
date of publication of the notices, and the amount
of the export price of which is less than the amount
of the normal value;
il
pursuant to subsection 8(5) of the Customs Tariff
(Anti-Dumping) Act 1975, direct that the element of
interim dumping duty referred to in paragraph
8(4)(a) of the Customs Tariff (Anti-Dumping) Act
1975, for edible vegetable oil be ascertained by
reference to a measure of the quantity (litre) of
the goods;
. ascertain, for the purposes of the interim dumping
duties, the normal values, the export prices and the
non-injurious prices at Confidential Attachment 10;
and
: publish legal instruments under subsection 269TG(2)
of the Customs Act 1901 and under subsection 8(5) of
the Customs Tariff (Anti-Dumping) Act 1975,
(relating to the element of interim dumping duty)."
It is unnecessary for present purposes to refer to
Confidential Attachment 10.
On 30 November 1993, the Minister signed a
declaration pursuant to subs.269TG(2) of the Customs Act and a
direction pursuant to subs.8(5) of the Customs Tariff (Anti-
Dumping) Act. The declaration read as follows:
"I, CHRISTOPHER CLELAND SCHACHT, Minister of State for
Science and Small Business, pursuant to subsection
269TG(2) of the Customs Act 1901, am satisfied that in
respect of refined edible vegetable oils (canola, soya
bean, sunflower and blends) in retail packs up to and
including 6 litres (hereinafter referred to as the
'goods') exported from Singapore to Australia, that:
(a) the amount of the export price of like goods that
have already been exported to Australia is less than
the amount of the normal value of those goods, and
the amount of the export price of like goods that
may be exported to Australia in the future may be
less than the normal value of the goods; and
(b) because of that, material injury to an Australian
industry producing like goods has been caused and is
threatened;
and, therefore, hereby DECLARE that section 8 of the
Customs Tariff (Anti-Dumping) Act 1975 applies to like
goods
(a) that are exported to Australia from the above
mentioned country after the date of publication of
this Notice; and
(b) the amount of the export price of which is less than
the amount of its normal value
and hereby ASCERTAIN that the normal values, export
prices and non-injurious prices for the goods are those
amounts set out in the Table attached."
The direction read:
"I, CHRISTOPHER CLELAND SCHACHT, Minister of State for
Science and Small Business, pursuant to subsection 8(5)
of the Customs Tariff (Anti-Dumping) Act 1975 (the Act)
hereby DIRECT, after having regard to subsection 8(5A),
that the element of the interim dumping duty payable on
refined edible vegetable oils (soya bean, sunflower,
canola and blends) in retail packs up to and including 6
litres (hereinafter referred to as the 'goods') as shown
in Columns 1 and 2 of the Table attached exported from
Singapore to Australia shall be the amount shown in
Column 3 of the Table attached being the difference
between the non-injurious price of the goods of that kind
as ascertained and the export price of the goods of that
kind as ascertained.
The interim dumping duty applies to goods entered for
home consumption from the date of publication of this
Notice."
It is unnecessary for present purposes to reproduce the tables
referred to in the declaration and the direction respectively.
The declaration and the direction were published in the
Commonwealth of Australia Gazette on 22 December 1993.
In the light of the authoritative exposition by the
High Court in Australian Broadcasting Tribunal v Bond (1990)
170 CLR 321 of the essential features of a reviewable decision
under 8.5 of the Judicial Review Act and the absence of any
legislative provision making subs.3(3) of that Act applicable
(see Ross v. Costigan (1982) 41 ALR 319 at p.332 and Edelsten
v Health Insurance Commission (1990) 27 FCR 56 at p.70), the
Authority clearly made no decision which is reviewable in the
present proceeding. However, it is common ground that the
Minister made no independent inquiries into the subject matter
of the declaration and direction to the text of which
reference has already been made but accepted and acted upon
the recommendations of the Authority in that regard. It
follows that, if what the Authority did was contrary to the
legal principles applicable, the decisions made by the
Minister, which are admittedly reviewable decisions under the
Judicial Review Act, will be equally tainted: Excell v Harris
(1983) 51 ALR 137 at p.159.
Section 8 of the Customs Tariff (Anti-Dumping) Act
relevantly provides:
"8. (1) see.
(2) There is imposed, and there must be collected
and paid, on goods to which this section applies by
virtue of a notice under subsection 269TG(1) or (2) of
the Customs Act, a special duty of Customs, to be known
as dumping duty calculated in accordance with subsection
(6).
(3) Pending final assessment of the dumping duty
payable on goods the subject of a notice under subsection
269TG(1) or (2) of the Customs Act, an interim dumping
duty is payable on those goods.
(4) Subject to subsection (5), the interim dumping
duty payable on goods the subject of a notice under
subsection 269TG(1) or (2) of the Customs Act is an
amount equal to the sum of:
(a) the difference between the export price of
goods of that kind as ascertained, or last
ascertained, by the Minister for the purpose of
the notice and the normal value of goods of
that kind as so ascertained, or last' so
ascertained; and
(b) if the export price of those particular goods
is lower than the export price of goods of that
kind as ascertained, or last ascertained, by
the Minister for the purpose of the notice -
the amount by which the latter export price
exceeds the former.
(5) The Minister must, by signed notice, direct
that the element of interim dumping duty referred to in
paragraph 4(a) in respect of particular goods be
ascertained:
(a) as a proportion of the export price of those
particular goods or of the export price of
goods of that kind as ascertained, or last
ascertained, by the Minister for the purpose of
the dumping duty notice, whichever is the
greater; or
(b) by reference to a measure of the quantity of
those particular goods; or
(c) by reference to a combination of a proportion
of the kind referred to in paragraph (a) and a
measure of the quantity of those particular
goods;
and the notice has effect accordingly.
(5A) The Minister must, in exercising his or her
powers under subsection (5) in respect of particular
goods the subject of a notice under subsection 269TG(1)
ox (2), if the non-injurious price of goods of that kind
as ascertained or last ascertained by the Minister for
the purposes of the notice is less than the normal value
of goods of that kind as so ascertained, or last so
ascertained, have regard to the desirability of fixing a
lesser amount of duty such that the sum of:
(a) the export price of goods of that kind as so
ascertained or last so ascertained; and
(b) that lesser duty;
does not exceed that non-injurious price.
(6) The dumping duty payable on goods the subject
of a notice under subsection 269TG(1) or (2) of the
Customs Act is an amount equal to:
(a) unless paragraph (b) applies - the difference
between the amounts that the Minister
ascertains to be the export price and the
normal value of those particular goods; or
(b) if, in a notice under subsection (5), the
Minister determines that the whole or a part of
the interim dumping duty payable on _ those
particular goods is to be ascertained by
reference to the non-injurious price of goods
of that kind as ascertained, or last
ascertained, by the Minister for the purpose of
the first-mentioned notice - the difference
between:
(i) the amount that the Minister ascertains to
be the export price of those particular
goods; and
(ii) the lower of the amount that the Minister
ascertains to be the normal value of those
particular goods and that non-injurious
price.
Sub-section 269TG(1) of the Customs Act, which
concerns goods that have been exported to Australia, provides:
"(1) Subject to section 269TN, where the Minister is
satisfied, as to any goods that have been exported to
Australia, that:
(a) the amount of the export price of the goods is
less than the amount of the normal value of
those goods; and
(b) because of that:
(i) material injury to an Australian industry
producing like goods has been or is being
caused or is threatened, or the
establishment of an Australian industry
producing like goods has been or may be
materially hindered; or
(ii) in a case where security has been taken
under section 42 in respect of any interim
duty that may become payable on the goods
under section 8 of the Anti-Dumping Act -
material injury to an Australian industry
producing like goods would or might have
been caused if the security had not been
taken;
the Minister may, by notice published in the Gazette,
declare that section 8 of that Act applies to those
goods."
Sub-section 269TG(2) concerns goods that may be
exported to Australia in the future. It provides:
"(2) Where the Minister is satisfied, as to goods of
any kind, that:
(a) the amount of the export price of like goods
that have already been exported to Australia is
less than the amount of the normal value of
those goods, and the amount of the export price
of like goods that may be exported to Australia
in the future may be less than the normal value
of the goods; and
(b) because of _ that, material injury to an
Australian industry producing like goods has
been or is being caused or is threatened, or
the establishment of an Australian industry
producing like goods has been or may be
materially hindered;
the Minister may, by notice published in the Gazette
(whether or not he or she has made, or proposes to make,
a declaration under subsection (1) in respect of like
goods that have been exported to Australia), declare that
section 8 of the Anti-Dumping Act applies to like goods:
(c) that are exported to Australia after the date
of publication of the notice or such later date
as is specified in the notice; and
(d) the amount of the export price of which is less
than the amount of their normal value."
Section 269TN is not relevant for present purposes. The
expression "like goods" is defined in s.269T to mean goods
that are identical in all respects to the goods' under
consideration or that, although not alike in all respects to
the goods under consideration, have characteristics closely
resembling those of the goods under consideration.
Subsection (3) of s.269TG provides:
"(3) Where:
(a) a notice under subsection (1) declares
particular goods to be goods to which section 8
of the Anti-Dumping Act applies; or
(b) a notice under subsection (2) declares like
goods in relation to goods of a particular kind
to be goods to which that section applies;
the notice must, subject to subsection (3A), include a
statement of the respective amounts that the Minister
ascertained, at the time of publication of the notice:
(c) was or would be the normal value of the goods
to which the declaration relates; and
(d) was or would be the export price of those
goods; and
(€) was or would be the non-injurious price of
those goods."
It is unnecessary to refer to the terms of subs.(3A).
Section 269TAB of the Customs Act deals with the
ascertainment of the export price of goods, s.269TAC with the
ascertainment of the normal value of goods, s.269TACA with the
ascertainment of the non-injurious price of goods exported to
Australia and s.269TAE with the question whether material
injury to an Australian industry has been, or is being, caused
or is threatened.
The challenge to the decisions made by the Minister
turn on the determination of the normal value of the subject
goods and the conclusion that material injury to an Australian
industry producing like goods has been caused and is
threatened by the importation of the subject goods from
Singapore.
The Determination of Normal Values
Section 269TAC relevantly provides:
"(1) Subject to this section, for the purposes of
this Part, the normal value of any goods exported to
Australia is the price paid for like goods sold in the
ordinary course of trade for home consumption in the
country of export in sales that are arms length
transactions by the exporter or, if like goods are not so
sold by the exporter, by other sellers of like goods.
(2) Subject to this section, where the Minister:
(a) is satisfied that:
(i) by reason of the absence of sales that
would be relevant for the purpose of
determining a price under subsection (1);
or
(ii) by reason that the situation in the
relevant market is such that sales in that
market that would otherwise be relevant
for the purpose of determining a price
under subsection (1) are not suitable for
use in determining such a price;
the normal value of goods exported to Australia
cannot be ascertained under subsection (1); or
(b) is satisfied, in a case where like goods are
not sold in the ordinary course of trade for
home consumption in the country of export in
sales that are arms length transactions by the
exporter, that it is not practicable to obtain,
within a reasonable' time, information in
relation to sales by other sellers of like
goods that would be relevant for the purpose of
determining a price under subsection (1);
the normal value of the goods for the purposes of this
Part is:
(c) except where paragraph (d) applies, the sum of:
(i) such amount as the Minister determines to
be the cost of production or manufacture
of the goods in the country of export; and
(ii) on the assumption that the goods, instead
of being exported, had been sold for home
consumption in the ordinary course of
trade in the country of export:
(A) such amounts as the Minister
determines would be the delivery
charges and other costs necessarily
incurred in that sale; and
(B) subject to subsection (13), an amount
calculated in accordance with such
rate, if any, as the Minister
determines would be the rate of
profit on that sale; or
(ad) where the Minister so directs, the price
determined by the Minister to be representative
of the price paid for like goods sold in the
ordinary course of trade in the country of
export for export to a third country, being
sales that are arms length transactions.
(6) Where the Minister is satisfied that sufficient
information has not been furnished or is not available to
enable the normal value of goods to be ascertained under
the preceding subsections, the normal value of those
goods is such amount as is determined by the Minister
having regard to all relevant information.
(7) For the purposes of subsection (6), the
Minister may disregard any information that he or she
considers to be unreliable.
(8) Where the normal value of goods exported to
Australia is the price paid for like goods and that price
and the export price of the goods exported:
(a) relate to sales occurring at different times;
or
(b) are not in respect of identical goods; or
(c) are modified in different ways by taxes or the
terms or circumstances of the sales to which
they relate;
that price paid for like goods is to be taken to be that
price paid adjusted in accordance with directions by the
Minister so that those differences would not affect its
comparison with that export price.
(9) Where the normal value of goods exported to
Australia is to be ascertained in accordance with
paragraph (2)(c) or (4)(e), the Minister must make such
adjustments, in determining the costs to be determined
under that paragraph, as are necessary to ensure that the
normal value so ascertained is properly comparable with
the export price of those goods.
Subsection (1) of s.269TAA provides:
"(1) For the purposes of this Part, a purchase or
sale of goods shall not be treated as an arms length
transaction if:
(a) there is any consideration payable for or in
respect of the goods other than their price; or
(b) the price is influenced by a commercial or
other relationship between the buyer, or an
associate of the buyer, and the seller, or an
associate of the seller; or
(c) in the opinion of the Minister the buyer, or an
associate of the buyer, will, directly or
indirectly, be reimbursed, be compensated or
otherwise receive a benefit for, or in respect
of, the whole or any part of the price."
In its Report No.113, the Authority noted that,
during the preliminary inquiry, Vredelco had informed Customs
that it did not sell the goods under reference on the domestic
market in Singapore with the consequence that normal values
could not be assessed under subs.269TAC(1). The Report omits
to state that Vredelco had also informed Customs (as appears
from the Customs Report No.93/5 of its preliminary findings
and the Authority's Report No.101 upon the review of those
findings) that there were no sales of like goods in Singapore,
it being necessary to negative the making of such sales by
sellers other than Vredelco before it could be concluded that
subs.269TAC(1) was not applicable. The Authority also noted
that, on the information supplied during the preliminary
inquiry, normal values could not be assessed under
par.269TAC(2)(c) or par.269TAC(2)(d), the latter paragraph
being inapplicable because there were no sales to third
countries. In relation to par.269TAC(2)(c), the Authority
said:
"The information that the company provided to Customs
dealt with the costs to make and sell the goods exported
to Australia and the profit achieved on those export
sales: adding up these costs and profits amounts to a
'reconstruction' of the export price rather than to the
construction of a normal value. No information was
available to show the delivery and other costs that would
have been incurred in domestic sales or the amount of
profit that would have been made on domestic sales."
The Authority then stated that additional
information had been supplied by Vredelco since the
preliminary inquiry had been concluded, including information
that, while Vredelco did not sell edible vegetable oil in
retail packs in Singapore, Wintercorn Edible Products Pte
Limited ("Wintercorn"), described as a sister company of
Vredelco, did so. Report No.113 continued:
"Because Wintercorn's domestic sales are subject to
rebates, the Authority considered that the sales are not
arms length transactions and that, therefore, normal
values could not be assessed under subsection 269TAC(1)
of the Act.
The company provided no evidence of sales to third
countries in its submission or at the verification visit.
The Authority was, therefore, unable to assess normal
values under paragraph 269TAC(2)(d) of the Act....
Vredelco provided the Authority with detailed information
on its costs to make and sell, with actual profits
achieved on its total operations (involving mainly bulk
oil sales), and with estimates of the profit it normally
expects to achieve and of the profit the Singaporean
industry could expect to achieve from selling oils in
retail packs.
The Authority compared the normal values which would
result from the company's cost to make and sell and
profit information with Sime Darby's selling prices and
with the applicant's information on prices in Singapore.
The comparison revealed that the normal values would be
significantly below the prices provided by both Sime
Darby and the applicant. The Authority considered that
the normal values may be low because of the amount of
profit estimated by the company.
The Authority, therefore, contacted the consultant for
Vredelco to see if Vredelco could demonstrate that normal
values assessed under paragraph 269TAC(2)(c) of the Act
would reflect actual selling prices. vredelco provided
two Wintercorn invoices for domestic sales of 2 kg
bottles of soya bean oil. The price in both invoices was
similar to those provided by Sime Darby and by the
applicant. The Authority, therefore, considered that
normal values assessed under paragraph 269TAC(2(c) of the
Act would be understated and, therefore, not relevant.
The Authority has assessed normal values for both
Vredelco and Wintercorn under subsection 269TAC(6) of the
Act, based on the applicant's information. The Authority
did not assess normal values on the basis of the two
Wintercorn invoices because information available to the
Authority indicates that 2 litre bottles (similar in size
to the 2 kg bottles sold on the Singaporean market) of
soya bean oil are not exported to Australia by Vredelco."
The references to "the applicant" and to "the applicant's
information" are references to The Australian Oilseeds
Federation Incorporated and to the information supplied by it.
The references to "Sime Darby" are references to Sime Darby
Edible Products Limited, a company carrying on business in
Singapore. I shall refer to that company as "Sime Darby".
Sime Darby's main activities are the refining and packaging of
edible vegetable oils for sale in Singapore and for export to
most parts of the world. It exports to Australia soya bean
oil in containers of 2 litres and 4 litres, sunflower oil in
containers of 2 litres and blended vegetable oils in
containers of 2 litres, 3 litres and 4 litres.
The principal submission advanced by counsel on
behalf of Vredelco was that the Minister had erred in law in
ascertaining the normal value of the subject goods under the
provisions of subs.269TAC(6), it being contended that such
values should have been ascertained under par.269TAC(2)(c).
It was submitted that it was appropriate for the Minister to
ascertain the normal value of the goods in question under the
provisions of subs.269TAC(6) if, and only if, in terms of that
subsection, he was satisfied that sufficient information had
not been furnished or was not available to enable the normal
value of the goods to be ascertained under par.269TAC(1) or
par.269TAC(2)(c). It was, however, conceded that
par.269TAC(1) was not applicable. It was submitted that, in
determining that sufficient information was not available to
enable a determination to be made under par.269TAC(2)(c), the
Authority, and in turn the Minister, failed to take into
account relevant considerations in that, in comparing "the
normal values which would result from the company's
[Vredelco''s] cost to make and sell and profit information"
with "Sime Darby's selling prices", there was a failure to
take into account -
(a) that the Sime Darby selling prices were only invoice
prices which had not been verified in the sense that
there was no proof that the prices shown on the
invoices had actually been paid by the customer;
(b) that, in the context of ascertaining' the normal
value of containers of 2 litres of soya bean oil and
sunflower oil exported to Australia by Sime Darby,
the Authority had expressed itself as not being
satisfied that the evidence of sales provided by
that company referred to in (a) above was
"sufficiently reliable" to meet the requirements of
subs .269TAC(1);
(c) that the information provided as to "Sime Darby's
selling prices" made no allowance for rebates and
"give-aways" which may have been made available to
customers by that company"; and
(d) that the Authority had before it a detailed break-
down of the Wintercorn invoices.
Conversely, it was submitted that, in taking into account the
Sime Darby selling prices, the Authority and the Minister took
into account an irrelevant consideration because those selling
prices were not verified and were treated by the Authority as
not being "sufficiently reliable" to meet the requirements of
subs.269TAC(1) when ascertaining the normal value of Sime
Darby's goods. The submission was also made that the decision
that normal values could not be determined in accordance with
the provisions of par.269TAC(2)(c) was so unreasonable that no
reasonable person could have made it.
In my opinion, there was ample justification for the
conclusion by the Minister, in terms of subs.269TAC(6), that
he was satisfied that sufficient information had not been
furnished or was not available to enable the normal value of
the goods to be ascertained under par.269TAC(2)(c). The
normal value of the goods could have been ascertained under
that paragraph only if the Minister had sufficient information
to enable a determination to be made -
(a) of the amount that represented the cost of
production or manufacture of the goods in Singapore;
and
(b) on the assumption that the goods, instead of being
exported, had been sold for home consumption in the
ordinary course of trade in Singapore -
(i) of an amount representing the delivery charges
and other costs necessarily incurred in that
sale; and
(ii) of the rate of profit referable to such a sale.
It is clear from its report No.101 made in June 1993
upon its review of the negative preliminary finding by Customs
that the Authority was satisfied that the information then
available to it was not sufficient to enable the necessary
determinations to be made under par.269TAC(2)(c). The
Authority said:
"The information that the company provided to Customs
deait with the costs to make and sell the goods exported
to Australia and the profit achieved on those export
sales: adding up these costs and profits amounts to a
'reconstruction' of the export price rather than to the
construction of a normal value. No information was
available to show the delivery and other costs that would
have been incurred in domestic sales or the amount of
profit that would have been made on domestic sales."
An examination of the material that was then before the
Authority demonstrates that the conclusion to which it came
was one that was reasonably open to it.
Subsequently, further material was made available to
the Authority on behalf of Vredelco. Under cover of a letter
dated 18 August 1993, Vredelco's solicitors made a submission
to the Authority which included a document referred to as
containing "a breakdown of cost to manufacture vegetable oils
in Singapore". The letter contained the following assertion
the correctness of which was not accepted by Customs or the
Authority:
"All these costs have been verified by Customs from
invoice and payment details to banks. Direct labour,
fixed overheads, administration, finance and _ selling
expenses have been derived and verified by Customs from
company accounts."
The relevant attachment to the letter, and the later revised
version of the attachment, could properly have been seen by
the Authority, as indeed they appear to have been seen, as
failing to provide the detailed material necessary to remedy
the deficiencies that were identified in the material
previously provided. In particular, the view was taken that
the further material did not provide details of the delivery
charges and other costs that would necessarily have been
incurred if the goods had been sold on the domestic market.
It was, indeed, confirmed by Mr Sundstrom, an officer of
Customs, in a telephone conversation with Mr John Arndell, an
officer of the Authority, on 26 August 1993 that the selling
and administration expenses put forward by Vredelco had no
other foundation than that company's profit and loss statement
for its total operations which, as appears elsewhere in the
material, consisted in the main of sales in bulk, not sales in
retail packs.
By a memorandum dated 18 October 1993, Vredelco
provided two sample invoices evidencing domestic sales of 2 kg
containers of soya bean oil by Wintercorn and a costing sheet
in respect of such oil. The costing sheet showed that the
cost of manufacturing and selling the goods was significantly
higher than the costs set out in the material provided by
Vredelco to which I have referred.
It must be accepted that the Authority's Report
No.113 does not specifically refer to the absence of
sufficient details of the costs that would have been incurred
in domestic sales in Singapore of the subject goods had such
sales been made. However, I am unable to conclude from the
absence of such specific reference that the Authority had
resiled from the view it had expressed in Report No.101 and
concluded that it had sufficient information before it to
enable a determination to be made under par.269TAC(2)(c) of
the costs to manufacture and sell the goods on the domestic
market in Singapore. It is clear that, if the Authority did
continue to hold the view expressed in Report No.101, it would
have had no basis for determining the normal value of the
goods under par.269TAC(2)(c).
What the Authority emphasised in Report No.113 was
the absence of sufficient information to enable a
determination to be made as to the rate of profit referable to
the sale of the goods on the domestic market in Singapore on
the assumption that such sales were made. Having expressed
that view, a view that on a consideration of the material
before the Authority was, in my opinion, reasonably open to
it, the Authority concluded, as appears from the extract from
the report set out earlier in these reasons, that the total of
the costs of production provided by Vredelco, the estimates
made by that company of direct labour costs, fixed overheads
and selling and administration expenses and the company's
estimate of profit on assumed domestic sales gave prices which
were well below the range of prices which appeared to have
been paid for like goods in Singapore based on the information
supplied by Sime Darby, the prices evidenced by the invoices
of Wintercorn and the information supplied by The Australian
Oilseeds Federation Incorporated, the latter information being
information as to cooking oil prices provided by Cold Storage
Trading, a division of Cold Storage Singapore (1983) Pte
Limited, and by NTUC Fairprice Co-operative Limited.
Further, it is not correct to say that the
Authority's conclusion that normal values could not _ be
ascertained under par.269TAC(2)(c) was based simply on its
concern about the rate of profit properly referable to
domestic sales of the subject goods. It was clearly concerned
with the question whether Vredelco could demonstrate that the
constructed normal values for which it contended bore a
reasonable relationship to actual selling prices.
Earlier in these reasons I have identified the four
considerations which Vredelco contends that the Authority
failed to take into account in determining that normal values
could not be determined under par.269TAC(2)(c). As to the
first of those considerations, there can be no doubt that the
Authority was well aware that there had been no verification
that the customers of Sime Darby had paid the prices shown on
the invoices produced by that company. That, however, was
not a circumstance which required that the information
contained in the invoices be disregarded when considering
whether par.269TAC(2)(c) was the appropriate provision to
apply in ascertaining the normal value of the goods in
question. It was a matter for the Authority to determine
whether it would rely on those invoices and, if it decided to
do so, to determine what weight it should give to them.
In relation to the second of the considerations
which Vredelco contends was not taken into account, I am of
opinion that the fact that the Authority was not prepared to
regard the invoices as sufficient to enable it to determine
under the provisions of subs.269TAC(1) normal values for goods
exported by Sime Darby did not preclude the Authority from
having regard to those invoices in order to test whether the
normal values constructed by Vredelco under par.269TAC(2)(c)
could be accepted.
As to the third consideration relied on by Vredelco,
it would have been reasonably open to the Authority to have
taken the view that the material before it did not establish
that Sime Darby was engaged in the practice of giving rebates
or "give-aways" to its customers. The only material before
the Authority to which counsel for Vredelco could point in
support of the contention that allowances of that nature "may
have been made available" to customers by Sime Darby was the
following statement in the memorandum of Mr Sundstrom dated 26
February 1993 relating to the ascertainment of normal values
in respect of Sime Darby's goods:
"It was also claimed that prices to all domestic
customers are the same with no discounting for volume.
The only concession given is for special promotions when
bonus goods (e.g. 1 extra carton for every 4 cartons
purchased) are supplied. However it was also claimed
that if any domestic customer were to purchase similar
quantities to those of Australian customers discounts
would be given. The company was unable to positively
quantify this claim."
It is to be noted that that statement was made in the context
of considering whether normal values for Sime Darby's goods
could properly be determined under' subs.269TAC(1), Mr
Sundstrom concluding that they could.
It must also be remembered that the exercise in
which the Authority was engaged was to test whether the
constructed normal values put forward by Vredelco could be
accepted and, as part of that process, to compare those
constructed normal values with the prices at which the subject
goods were sold on the domestic market in Singapore. The
prices charged by Sime Darby were only part of the material on
which the Authority relied: it specifically referred in Report
No.113 to information concerning prices in Singapore provided
by the two companies to which I have referred. It also had
the invoices from Wintercorn. What appears to have been
significant from the Authority's viewpoint was the degree of
consistency between the prices evidenced by that material and
the size of the discrepancy between the range of prices so
disclosed and the constructed normal values. Whether Sime
Darby made available to its customers rebates or "give-aways"
was not of significance in the process in which the Authority
was engaged.
As to the fourth consideration, it has not been
shown to my satisfaction that the information provided by
Vredelco's solicitors under cover of their letter dated 18
October 1993 was not taken into account. In any event, that
information does not detract from the conclusion reached by
the Authority that normal values could not be determined under
par.269TAC(2)(c).
It follows from what I have already said that the
principal submission advanced by counsel for Vredelco is
rejected. In particular, the submission that the decision
that normal values could not be determined in accordance with
par.269(2)(c) was so unreasonable that no reasonable person
could have made it cannot be sustained.
It was also submitted on behalf of Vredelco that the
normal values ascertained by the Minister were so unreasonable
that no reasonable person could have arrived at the amounts so
ascertained. It was contended that, as the Authority, and
therefore the Minister, knew the cost of production of
Vredelco's products and the cost of delivery and other charges
that would necessarily have been incurred in the sale of those
products in Singapore, the normal values ascertained by the
Minister resulted in "profit levels for Vredelco of positively
ludicrous proportions", levels far in excess of those
applicable in the industry generally, and in Singapore in
particular, and levels which no reasonable person could accept
as realistic.
It was frankly conceded by counsel for Vredelco that
this submission could only be sustained if the Authority is to
be taken as having accepted the information provided by
Vredelco as to the cost of manufacturing the subject goods and
the estimated selling and administration expenses in relation
to selling the goods on the domestic market assuming such
sales to have been made. However, having regard to the
matters to which I have referred in considering the principal
submission advanced on behalf of Vredelco, there is no proper
basis upon which the Authority can be taken to have accepted
that information. Further, the Authority, in determining the
normal values under subs.269TAC(6), did not make a calculation
in which an amount representing a rate of profit on assumed
domestic sales was an integer. It determined those values by
reference to evidence it regarded as indicating the prices at
which the goods in question were sold on the domestic market
in Singapore.
The submission is rejected.
A further submission was made on behalf of Vredelco
based on the provisions of s.269TP of the Customs Act, that
section providing:
"A notice under subsection 269TG(2), 269TH(2),
269TJ(2) or 269TK(2) in respect of a kind of goods, may,
without limiting the generality of those provisions, be
expressed to apply to:
(a) goods of that kind exported from a particular
country; or
(b) goods of that kind exported by a particular
exporter."
It was submitted that the Minister, in expressing the notice
under subs.269TG(2) to apply to goods of the specified kind
exported from Singapore rather than expressing the notice to
apply to goods of that kind exported by a particular exporter,
had failed to take into account the possibility that Vredelco
had a different cost structure to that of other exporters of
those goods from Singapore and, in particular, different from
that of Sime Darby. In the alternative, it was submitted
that, on the material before the Authority and the Minister,
the only proper conclusion that could have been reached was
that different normal values should be fixed for Vredelco and
Sime Darby, thus rendering unlawful the decision to apply the
normal values ascertained by the Authority and adopted by the
Minister to all exporters from Singapore of the subject goods.
Section 269TP does not expressly identify the
circumstances in which the Minister, in issuing a notice under
8.269TG(2), may properly adopt one or other of the forms
authorised by the provision. The section, therefore, must be
taken to confer a wide discretion, the factors which may be
taken into account being unconfined except in so far as there
may be found in the subject-matter, scope and purpose of the
statutory provisions some implied limitation on the factors to
which the Minister may legitimately have regard: Minister for
Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24 at
p-40. Section 269TP may be thought to reflect Art.8(2) of the
Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade which provides:
"2. When an anti-dumping duty is imposed in respect of
any product, such anti-dumping duty shall be collected in
the appropriate amounts in each case, on a= non-
discriminatory basis on imports of such product from all
sources found to be dumped and causing injury, except as
to imports from those sources, from which price
undertakings under the terms of this Code have been
accepted, The authorities shall name the supplier or
suppliers of the product concerned. If, however, several
suppliers from the same country are involved, and it is
impracticable to name all these suppliers, the
authorities may name the supplying country concerned. If
several suppliers from more than one country are
involved, the authorities may name either all the
suppliers involved, or, if this is impracticable, all the
supplying countries involved."
But whether or not the provisions of that Article
are to be seen as limiting the width of the discretion
implicit in the provisions of s.269TP, there is nothing in the
material before the Court to sustain the proposition that, in
issuing the notice under subs.269TG(2) in this case, the
exercise of the discretion miscarried. The assertion on
behalf of Vredelco that the cost structures of that company
may have been different from those of Sime Darby, Vredelco
having put forward no material to support the existence of any
relevant difference, provides no basis for concluding that the
Minister erred in expressing the notice to apply to goods of
the relevant kind exported from Singapore.
Material Injury
The application under s.269TB of the Customs Act
claimed that imports of edible vegetable 011 from Singapore
were causing, and threatening to cause, material injury
through price undercutting, price depression, price
suppression and reduced profitability. The Australian
Oilseeds Federation Incorporated claimed that the Australian
industry had been forced to lower its prices of branded and
generic oils to compete, and maintain its market position,
against the price undercutting of the dumped imports. In
Report No.113, the Authority explained that it regarded price
undercutting as occurring when a company sells goods at a
price below that achieved by competitors; price depression as
occurring when an industry, for some reason, lowers its
prices; and price suppression as occurring when the margin
between the industry's costs and prices is reduced.
As a result of its examination of the economic
condition of the Australian industry and recent' trends
therein, the Authority expressed its conclusions as follows:
", the local industry has lost market share for branded
oils, but still retained some 92 per cent of the
Australian market for edible vegetable oils;
. the Authority found evidence of some _ price
undercutting, mainly confined to a small segment of
the market;
. the local industry has experienced some _ price
depression, particularly on generics;
. the local industry has experienced price suppression
on most of its edible vegetable oil products; and
. the industry has experienced increased losses and
low profitability."
The Authority was satisfied that the Australian industry
producing edible vegetable oils in containers up to 6 litres
had suffered material injury.
The Authority then considered whether the material
injury to the Australian industry was caused by the
importation into Australia from Singapore of the subject goods
at dumped prices. It answered that question in the
affirmative, the expression of that conclusion being preceded
by the following:
"The local industry, in its application to Customs and in
submissions to the Authority, has claimed that it had to
reduce its prices in order to avoid losing market share.
The Authority notes that the price depression found in
its material injury analysis, particularly on generic
products, is consistent with this claim. The Authority
has also sighted correspondence between Meadow Lea and
two of its major customers which demonstrates that in
1992 and 1993 Meadow Lea cut its prices in an effort to
maintain its sales to those customers.
The Authority also notes that the local industry has
invested in new plant and equipment over recent years at
its vegetable oil plants around Australia. This
investment has led to increased efficiencies and reduced
operating costs. The reduced operating costs could have
contributed, in part, to the industry's reduced prices.
However, the Authority notes that the local industry's
prices for edible vegetable oils have tended to fall at a
faster rate than its costs.
The Authority has found that dumped imports represent
only a small share of the vegetable oil market - about
seven per cent. On the face of it, it would seem
unlikely that such a small share could cause material
injury to the local industry. Nevertheless, the
Authority has evidence that quotations by exporters have
been used to influence the prices subsequently offered by
the local industry. In the light of this, the Authority
is satisfied that the presence and availability of dumped
imports have exerted downward pressure on prices in the
Australian market."
The Authority then explored the question whether dumping posed
a threat of continuing material injury to the Australian
industry and concluded that it did.
Vredelco does not contend that the Authority erred
in law in setting out the test to be applied in determining
whether there was material injury to the relevant Australian
industry because of the export of the subject goods to
Australia from Singapore at dumped prices. It was, however,
submitted that the material to support the Authority's
conclusions was such that no reasonable person could have
reached the conclusion that dumping had caused material injury
to the Australian industry. It was asserted that the evidence
of material injury to the Australian industry was, on the
Authority's own findings, slender. The Authority's assessment
of market shares was said to have resulted in a finding that
there was a rising market share for imported oil which was
offset by a rising market share for Australian-produced
generic oils. Reliance was also placed on the Authority's
findings -
. that there was "some evidence" of price undercutting
but that this was confined to a small part of the
market;
. that there was "no consistent trend" in relation to
price depression; and
. that, overall, the Australian industry's
profitability was very low.
It was also submitted that the evidence relied upon
to support the conclusion that the material injury to the
Australian industry had been caused by the dumping was
confined to correspondence between Meadow Lea and two of its
major customers which, the Authority said (see the passage
quoted above), demonstrated that in 1992 and 1993 Meadow Lea
cut its prices in an effort to maintain its sales to those
customers. The assertion was made that there was nothing
before the Court to show that the Authority had verified that
the requests from the two customers to lower prices were
genuinely based on quotes from overseas sources and that that
material, therefore, did not support the conclusion to which
the Authority came. It was submitted that the decision that
the dumping had caused material injury to the Australian
industry was, thus, a decision to which no reasonable person
could have come.
In my opinion, there was material before the
Authority on which it was entitled to rely which tended to
support the conclusion to which it came. The weight to be
given to that material was a matter for the Authority, and in
turn the Minister, to consider. Notwithstanding the criticism
of that material that has been advanced on behalf of Vredelco,
I am unable to conclude that it was so insubstantial that a
decision based upon it should be set aside as manifestly
unreasonable (Minister for Aboriginal Affairs v Peko-Wallsend
Ltd (1986) 162 CLR 24 per Mason J. at pp.40-2) or as an abuse
of power (Attorney-General (NSW) v Quin (1990) 170 CLR 1 per
Brennan J. at p.36).
It was further submitted that the Authority had
failed to take into account a relevant consideration, namely
the effect on the industry of the recession during the period
under review. The substance of the submission was that,
although Vredelco had placed no material before the Authority
bearing upon the effect of the recession on the Australian
industry, the Authority was required to make inquiries into
that aspect of the matter because the recession may have
explained, so it was submitted, every indication of material
injury found by the Authority.
I have read and considered the whole of the material
that was placed before the Court. I am, however, unable to
discover any cogent evidence to support the contention that
the economic recession had any substantial adverse impact on
the relevant Australian industry. The only document relied
upon by Vredelco in this regard does not support its
contention. Indeed, the Authority, as a result of its
analysis of market supplies, found that, far from the
Australian market for edible vegetable oils declining in the
relevant period (a decline which, had it occurred, may have
been attributable, in whole or in part, to the economic
recession), that market had in fact grown "from 25,500 tonnes
in 1988-89 to 30,400 tonnes in 1992-93, representing an annual
average increase of around four per cent".
In Enichem Anic Srl v Anti-Dumping Authority (1992)
39 FCR 458, Hill J. (with whose judgment Gummow and
O'Connor JJ. agreed) said, at p.469:
4l
"Decision-making is a function of the real world. A
decision-maker is not bound to investigate each avenue
that may be suggested to him by a party interested.
Ultimately, a decision-maker must do the best on the
material available after giving interested parties the
right to be heard on the question."
The position is a fortiori where the matter sought to be
relied upon in the course of judicial review was not raised as
an issue before the decision-maker. As Wilcox J. said in
Prasad v Minister for Immigration and Ethnic Affairs (1985) 6
FCR 155 at pp.169-170:
"The circumstances under which a decision will be invalid
for failure to inquire are, I think, strictly limited.
It is no part of the duty of the decision-maker to make
the applicant's case for him."
See also J Wattie Canneries Ltd v Comptroller-General of
Customs (1987) 16 FCR 136 at p.150-1.
Contrary to the submission of counsel for Vredelco,
there is nothing in the judgment of this Court in ICI
Australia Operations Pty Ltd v Fraser (1992) 34 FLR 564 which
supports the contention advanced on behalf of Vredelco that
the Authority and the Minister were, in the circumstances of
this case, bound to inquire into the possible effects of the
economic recession on the relevant Australian industry.
Conclusion
For the reasons set out above,
dismissed.
The applicant must pay the respondents'
and incidental to the application.
Counsel for the applicant
Solicitors for the applicant
Counsel for the first
and second respondents
Solicitor for the first
and second respondents
Counsel for the third
respondent
Solicitors for the third
respondent
Dates of hearing
Date of judgment
I certify that this and the preceding
copy of the
for Judgment herein of the
Honourable thé Neaves.
pM
41 pages
Reasons
Dated:
oe oe oe rey ee ce
are a true
- a
22 November 1994
Mr C.M. Erskine
Clayton Utz
Mr S.J.Gageler
Australian Government
Solicitor
Mr P.P. Strasser
Landerer & Company
10 and 11 October 1994
22 November 1994
the application is
costs of