Forklift News - Major clash over import concessions

Crown's WR Series is at the centre of the claim.

Australia’s major forklift importers go to battle this week against local manufacturer Crown Forklifts on an issue about tariff concessions.

The five importers are Toyota Material Handling, Linde Material Handling, Powerlift Nissan, Komatsu Forklift and MLA Holdings.

The issue, which is being heard by the Administrative Appeals Tribunal, concerns  tariff concessions which allow importers to bring in electric counterbalanced forklifts duty-free.

Crown wants the concessions revoked because it believes that its locally manufactured electric pedestrian reach truck (the WR Series) can be "substituted" for imported electric counterbalanced forklifts, and are suitable for the same applications in which counterbalanced forklifts are typically used.

In terms of the law, if a locally manufactured machine is suitable to do the same job that an imported machine does, then duty must be paid on the imported machine.

But, argues consultant John Dunkley, who represents the importers, Crown’s pedestrian reach truck is only suitable for certain applications. "In situations where there is an uneven surface or where there is high-intensity work over a large area, for example, in a food market or timber yard or garden centre, the pedestrian forklift is just not going to be able to compete with a ride-on counterbalanced forklift."

He tells Forkliftaction.com News that it is ironic that in 2001, Crown was the original applicant for the concession for counterbalanced forklifts to be imported duty-free even though it was manufacturing its pedestrian walkie stacker at the same time.

"At that time, they obviously felt the two machines were not substitutable," says Dunkley.

So why the change of heart by Crown?

Dunkley explains that once the free trade agreement (FTA) between the United States and Australia came into effect in 2005, Crown was able to import counterbalanced forklifts from the US duty-free anyway.  "It no longer needed the concession as it wouldn’t pay duty on imported US-made forklifts in terms of the FTA."

"In essence, because it no longer needed the concession, Crown wanted it revoked with the effect of preventing other importers (who import machines from other countries) from benefiting from the concession."

Crown’s application was successful, and the concession was revoked in September 2006. However, the other importers objected, and their views were put forward to Customs who then reviewed its decision and reinstated the concession in February 2007.

Crown is appealing the reinstatement of the concession through the Administrative Appeals Tribunal, which will conclude the hearing on the matter on Friday.

The outcome of the AAT’s decision could take some months to finalise. Watch this space.

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