The Optical Distributors and Manufacturers Association (ODMA) has appointed a regulatory consultant as it seeks to lobby the government for a reversal of an Australian Border Force decision that wiped a 5% tariff concession on acetate frames, increasing importation costs on eyewear from Europe.
It comes after Australia’s border authority refused an appeal by ODMA for a review of a decision, backdated to 13 May 2022, that ultimately overturned a Tariff Concession Order (TCO) on plastic frames that ODMA instigated around 20 years ago.
TCOs are an Australian Government revenue concession that exists where there are no known Australian manufacturers of goods that are substitutable for imported goods. The original TCO meant importers of acetate frames were exempt from paying a 5% duty rate in Australia. But that privilege has now ended after Port Macquarie-based Optex Australia notified the ABF that it produces acetate eyewear in Australia.
The move has hit importers of European eyewear the hardest because Australia doesn’t have a free trade agreement with the continent yet.
ODMA consulted with the industry and lodged an appeal to the Customs Delegate for the revocation approval to be reviewed, but was advised in September that it was unsuccessful.
“Border Force found the limited manufacturing capability of Optex quite acceptable in its original decision. Border Force deemed that Optex Australia was producing, in their view, substitutable goods that are produced in Australia and that Optex Australia were prepared to accept an order to supply,” ODMA stated.
“It was deemed there was no requirement for Optex Australia to be supplying a certain volume, and given this, as feared, the appeal avenue did not turn out to be a successful one. This is of course an unfortunate outcome given the work to date to avoid this current situation the industry faces, and whilst Border Force’s due process has been followed, we do not feel a bigger picture has been considered in this decision and that this potentially inflationary outcome has come at a bad economic time for all involved.”
As a result, ODMA urged eyewear importers to ensure they have a Declaration of Origin (DOO) to clearly state goods originating out of those countries where Australia has a free trade agreement so a duty is not wrongfully applied.
It also urged suppliers to ensure their order data can be split between metal frames and plastic frames to reduce instances of tariffs being applied to a whole invoice when it should only apply to part. The TCO for metal frames remains in place.
ODMA said it would continue to pursue the matter and has appointed a regulatory consultant to help prepare correspondence to relevant ministers and government departments.
The organisation is also urging eyewear business owners to submit letters to ODMA to evidence the impact of the revoked TCO.
“I can then ensure that examples are referred to as we now go forward and put our case to government that this was not a common-sense application of the law,” ODMA acting CEO Ms Amanda Trotman said.
“And whilst I will take the [regulatory consultant’s] advice on what we include, I have offered to pass on any supporting statements I receive that contains evidence of the impact, especially on Australian businesses, employees and consumers.
“We will continue to fight the decision made on the industry’s behalf, I will continue to update ODMA members via bulletins as I have updates and I will ensure we keep across the developing European Free Trade agreement to hopefully share how that will mitigate the effects of this recent TCO revocation we would hope some time in 2023.”
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