AUSTRALIA Australia. Labels must also give the name and address of a person in Australia responsible for the information provided on the label. State rules requiring that the mass or volume of a package's contents be expressed on labels to the nearest five milliliters or kilograms are expected to be changed as state standards are harmonized. Packaging: Some importers, particularly of food products, encounter packaging and labelling requirements which vary from state to state. The new ASAQ agreement, which allows for interstate recognition of standards, should eliminate this problem. Motor Vehicles: Under the Motor Vehicle Standards Act of August 1, 1989, the import of used vehicles (only those manufactured after 1973 for personal use) is banned, except when the car was purchased and used overseas by the buyer for a minimum of three months. Commercial importers must apply for a "compliance plate" costing A$20,000 for each make of car imported. Left-hand drive cars must be converted to right hand drive before they may be driven in Australia. Only approved (licensed) garages are permitted to make these conversions. Because of these requirements, only a small number of used cars are imported into Australia each year. An Export Facilitation Scheme lets domestic automobile manufacturers credit vehicle and parts exports against tariffs on imported components. Passenger vehicle tariffs, currently 35 percent, will be phased down to 15 percent on January 1, 2000. The Export Facilitation Scheme that allowed credits to the industry to exceed 7.5 percent was abolished as of January 1, 1991. The entire Scheme will be phased to zero on January 1, 1995. Foreign investment: All foreign direct investments in the media, mining, and certain types of transportation, as well as those in new businesses valued over A$10 million, those involving acquisition of 15 or more percent of shares in a business with total assets of A$5 million or more, and certain proposals to acquire real estate, are subject to approval by the government's Foreign Investment Review Board (FIRB). However, there are very few rejected proposals. In mining, proposals for the acquisition of an interest in an existing mining business are approved where it is demonstrated that there are sufficient economic benefits to offset any reduction in Australian ownership and control. Proposals for the establishment of businesses valued at A$10 million or more are allowed to proceed if there is a minimum of 50 percent Australian equity and control. If Australian capital is not available on reasonable terms and conditions, foreign equity beyond 50 percent may be approved. Divestment cannot be forced without due process of law. There is no record of forced disinvestment outside that stemming from investments or mergers which tend to create market dominance, contravene laws on equity participation, or result from unfulfilled contractual obligations. Government Procurement: In October 1991, the government abandoned the 30-percent offset investment in Australia AUSTRALIA required on most contract sales valued at more than A$2.5 million. The office maintaining the "national offsets program, " which pooled state and federal government offset liabilities and audited compliance, was also disbanded. Although the federal government has abandoned the offset program, some state governments may require offsets in some cases. During 1991, two key industrial states abandoned the policy of giving Australian and New Zealand bidders on government contracts a 20-percent preference over foreign bidders. Other states and the territories are expected to join them in 1992. On July 1, 1990, government agencies became liable to pay tariff duties on imported products. However, tariffs are assessed only on products that are made or could be made in Australia, which constitute a very small part of government procurement. Beginning on February 1, 1992, the government plans to implement a Restricted Systems Integration Panel (RSIP) scheme. The RSIP will be a panel of 20 to 25 selected private companies through which all Commonwealth information technology requirements involving systems integration activity are to be sourced, except for purchases with an estimated value of less than A$1 million. Firms applying for panel membership will be evaluated on "demonstrated competence, commercial viability and potential to contribute to government policy objectives, including expansion into Asian-Pacific markets, particularly those of North and South-East Asia." The net effect of the panel will be to hinder non-member participation in government systems integration contracts. Use of the panel is expected to be extended to state and territory governments in 1993. Technically, panel membership will not be closed. However, access will remain severely restricted and a new applicant (domestic or foreign) would have to demonstrate overwhelming eligibility to join or be able to offer expertise not available within the panel. The U.S. has express concern regarding the criteria that firms must meet to be eligible to participate on the panel. Quarantines: Because of its geographic location, Australia is relatively free of many animal diseases (rabies, hoof-and-mouth, etc.) and pests that plague other parts of the world. To preserve its environment, Australia imposes extremely stringent animal and plant quarantine restrictions. Except for horses, livestock imports are limited to reproductive material and a few valuable breeding animals that must undergo long quarantines. Tobacco: Local manufacturers are encouraged to use at least 50 percent local leaf in their products through the offer of concessional duties on imported leaf. In practice, an "informal" agreement between growers and cigarette manufacturers extends the local content requirement to 57 percent. This local content rule is to be removed on July 1, 1995. Since October 12, 1989 the government has banned the sale of smokeless tobaccos (chewing tobacco, snuff for oral use), leaving the market solely to local products used for oral purposes, but not labeled as such. Fruit drinks: Noncarbonated fruit drinks containing 20 AUSTRALIA percent or more local fruit juice are assessed a sales tax of 10 percent, whereas fruit drinks with below 20 percent local fruit juice content are assessed a 20 percent sales tax. U.S. industry claims the discriminatory tax on content results in a significant amount of lost sales. A law, which was to have become effective on July 1, 1991, taxing all fruit juice regardless of origin at ten percent, was withdrawn. The Australian government provides export market development reimbursement grants of up to A$250,000 for most qualifying domestic firms exporting goods and services. Other mechanisms provide for drawbacks of tariffs, sales, and excise taxes paid on exported finished products or their components. In some cases, government grants and low-cost financing are provided to exporters for bonding, training, research, insurance, shipping costs, fees, market advice, and to meet other costs. "Bounties" (production subsidies) are paid to manufacturers of some textile products, bed sheets, new ships, some machine tools, computer and moulding equipment, and photographic film coatings to help them compete with cheaper foreign-made substitutes. On July 1, 1991, qualifying thresholds for bounties were raised. Existing bounties are to be phased down until they expire. Bounty expiration dates are as follows: photographic film and books December 31, 1993; shipbuilding, citrus fermentation and textiles June 30, 1995; computers and circuit boards - December 31, 1995; machine tools and robots - June 30, 1996. All bounties will be reviewed before expiration with the possibility of extension or conversion to tariffs. The government provides financial support and research and developments grants to Australian industry for development of internationally competitive products and services for which the Federal or state governments are the primary purchasers. Such support is expected to be A$361.7 million in AFY 1991/92. On March 12, 1991, the government announced that the 150-percent corporate tax deduction allowance for research and development will be reduced to 125 percent on June 30, 1993. Electricity generation is the purview of state governments, all of which subsidize the industry and, indirectly, users of electricity. States also control and subsidize railroads. New South Wales and Queensland make up for railroad losses through charges to their coal industries. In competing for investment, states offer a wide range of negotiable concessions on land, utilities, and labor training, some of which amount to subsidies. Australia is a signatory of the GATT Subsidies Code. 7. Protection of U.S. Intellectual Property Copyrights, patents, trademarks, designs and integrated circuits are protected by Australian law. Australia is a member of the World Intellectual Property Organization, the Paris Convention for the Protection of Industrial Property, the Berne Convention for the Protection of Literary and AUSTRALIA Artistic Works, the Universal Copyright Convention, the Geneva Phonograms Convention and the Patent Cooperation Treaty. Australian law is broad and protects new technology, including genetic engineering. Patents: Patents are available for inventions in all fields of technology (except for human beings and biological processes for their production). They are protected by the Patents Act, which offers coverage for 16 years, subject to renewal. However, patents for pharmaceutical substances may have the term of protection extended to 20 years. Trade secrets are protected by common law, such as by contract. Designs can be initially protected by registration under the Designs Act for one year, which may be extended for six years and for further periods of five and five years respectively, upon application. Trademarks: Trade names and marks may be protected for seven years and renewed by registration under the Trademark Act. Once used, trade names and marks may also, without registration, be protected by common law. Protection also extends to parallel importing; that is, imports of legally manufactured products ordered by someone other than a person or firm having exclusive distribution rights in Australia. Copyrights: Copyrights are protected under the Copyright Act. Works do not require registration and copyright automatically subsists in original literary, artistic, musical and dramatic works, film and sound recordings. Computer programs are legally considered to be literary works. Copyright protection is for the life of the author plus 50 years. Although copyright protection also extends to parallel importing, Parliament recently passed a bill that will reducing such protection for books. The new law provides that, if, within 30 days of publication abroad, those persons having distribution rights within Australia have not begun distribution in Australia, anyone may import legally-produced copies from abroad for local distribution. The U.S. has made submissions to the Australian Government contesting this proposal, particularly the adverse effect it would have on normal channels of distribution for U.S. textbooks. Australia does not provide exclusive rental sights for sound recordings or computer software. In July 1991, the Attorney General rejected a proposal to amend Australia's Copyright Act to provide such protection. As a result, the U.S. industry is concerned that rental shops for sound recordings and software would proliferate, significantly undermining U.S. sales. The Australian Copyright Act provides protection regarding public performances in hotels and clubs, and against video piracy and unauthorized third-country imports. No complaints about unauthorized public showings of films have been received for over three years. The Attorney General's Department monitors the effectiveness of industry bodies and enforcement agencies in curbing the illegal use of copyrighted material. Data on the incidence of piracy of copyrighted material is not available, although industry sources indicate that the AUSTRALIA crime is less prevalent in Australia than in the United States. Close monitoring by customs has virtually eliminated pirated books and other material from the market. Press reports indicate that commercial pirating is prosecuted. Industry sources complain that copying of videos, tapes, and computer software for personal use is widespread, but difficult to monitor. New Technologies: Illegal infringement of technology does not appear to be a significant problem. Australia has its own software industry and accords protection to foreign and domestic production. Australia manufactures only basic integrated circuits and semiconductor chips. Its geographic isolation precludes most U.S. satellite signal piracy. Australian networks, which pay for the rights to U.S. television programs, jealously guard against infringement. Cable television is not yet established in Australia. Workers in Australia fully enjoy and practice the right to associate, to organize and to bargain collectively; rights enshrined in the Arbitration Act of 1904. Although there is no legal right to strike in Australia, work stoppages are well-established in practice. In general, industrial disputes are resolved either through direct employer-union negotiations or under the auspices of the various state and federal industrial relations commissions whose mandate includes resolution of disputes through conciliation and arbitration. Australia has also ratified the major International Labor Organization conventions regarding worker rights. b. The Right to Organize and Bargain Collectively Over 40 percent of the Australian workforce belongs to unions. Workers have the right, by law and in practice, to organize and bargain collectively. They are also protected from antiunion discrimination. Chinese contract workers in the Northern Territory's Trade Development Zone (TDZ) were "extremely underpaid" and their right to organize was abridged until these practices were exposed by a government report. As a result the special immigration agreement for the TDZ was cancelled. C. Prohibition of Forced or Compulsory Labor Compulsory and forced labor is prohibited and not practiced in Australia. d. Minimum Age for Employment of Children There is no federal law mandating minimum age for employment, but an effective floor is maintained on the age at which children may be employed full time by the enforced requirement that children attend school until age 15. |