G/STR/N/14/AUS/Add.1  
 
29 April 2016  
(16-2442)  Page: 1/7  
Working Party on State Trading Enterprises  Original: English  
 
   
STATE TRADING 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE  
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII 
AUSTRALIA  
Addendum 
The following communication, dated 29 April 2016, is being circulated at the request of the 
Delegation of Australia.  
_______________ 
  
Pursuant to Article XVII:4(a) of the GATT 1994 and paragraph 1 of the Understanding on the 
Interpretation of Article XVII of the General Agreement on Tariffs and Trade, Australia makes the following new and full interim notification of its state trading enterprise for the year 2011/12. G/STR/N/14/AUS/Add.1 
 
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  1  ENUMERATION OF STATE TRADING ENTERPRISES 
1.1  IDENTIFICATION OF STATE TRADING ENTERPRISES 
The Rice Marketing Board for the State of New South Wales.  
 
1.2  DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODUCT DESCRIPTION) 
Rice grown in the State of New South Wales [HS 1006].  
 
2  REASON AND PURPOSE 
2.1  REASON OR PURPOSE FOR ESTABLISHING  AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
The objects of the Rice Marketing Board for the State of New South Wales include: 
 
 to encourage the development of a competitive domestic market for rice.  
 to ensure the best possible returns from NSW grown rice sold outside Australia based on 
the quality differentials or attributes of Australian grown rice. 
2.2  SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
The legal basis for the rice marketing board (the  Board) for the State of New South Wales is 
provided by the State of New South Wales Rice Ma rketing Act 1983. Effectively, all rice produced 
in NSW and not sold on the domestic market is vested in the Board. A single export license has been issued by the board to Ricegrowers limited (trading as SunRice).  
3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
3.1  SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
All rice grown in the State of New South Wales is divested from producers and becomes the 
property of the Rice Marketing Board for th e State of New South Wales under a vesting 
proclamation. However, the Board has given exemption from vesting if the rice is sold on the domestic market to an Authorised Buyer. Authorised Buyers are appointed by the Board and all 
applicants are eligible to become Authorised Buyers, subject only to the Board's discretion to 
refuse an application where it has reason to believ e that the applicant will breach the conditions of 
appointment, which primarily relate to not exporting the rice.  
 
The Rice Marketing Board for the State of New South Wales does not negotiate contracts for the sale of rice. All rice trading is conducted on behalf of the Rice Marketing Board for the State of New 
South Wales by Authorised Buyers. Authorised Buyers are able to freely buy and sell rice grown in 
New South Wales on the domestic market in Australia. All sales contracts are entered into on a commercial basis.  
The Rice Marketing Board for the State of New South Wales has appointed Ricegrowers Limited 
(trading as SunRice) as its sole exporter. As part of its obligations under this agreement SunRice is obliged to act as a buyer of last resort if other Authorised Buyers do not purchase the rice. 
SunRice has no obligation to set a benchmark price and has not done so. Ricegrowers Limited, 
which is a public company, is also an Authorised Buyer.   
It is the Board's responsibility to ensure that these arrangements generate the maximum 
monetary returns on behalf of all New South Wales rice growers.   G/STR/N/14/AUS/Add.1 
 
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  3.2  SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY 
THE STATE TRADING ENTERPRISE 
The State of New South Wales Rice Marketing Act 1983 entitles the Rice Marketing Board for the 
State of New South Wales to award an Authorised Bu yer with the exclusive, or non-exclusive, right 
to export rice grown in the State of New South Wales 
 3.3  TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATIO N/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
Rice can be imported into Australia by any entity. 
 
Ricegrowers Limited (trading as SunRice) is the sole exporter of rice grown in New South Wales. 
The Board does not have special or exclusive privileges to import rice.   
There are no statutory restrictions on the export of rice grown in other Australian states.  
 
3.4  HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING 
ENTERPRISE 
Australian rice import and export levels are determined by market forces on a commercial basis. 
There are no tariffs or quantitative restrictions applied on the import of rice (HS 1006) into Australia. The Rice Marketing Board for the State of New South Wales has no role in regulating imports of rice into Australia.  
 
3.5  HOW EXPORT PRICES ARE DETERMINED 
Export prices are determined by the market for Australian rice at levels influenced by the quality of 
the rice and prevailing world prices.  
 3.6  HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
Not applicable. The arrangements for rice grown in New South Wales do not cover imports.  
 
3.7  WHETHER LONG-TERM CONTRACTS ARE NE GOTIATED BY THE STATE TRADING 
ENTERPRISE. WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL CONTRACTUAL OBLIGATIONS ENTERE D INTO BY THE GOVERNMENT 
All sales contracts are entered into on a commercial basis. The Rice Marketing Board for the State 
of New South Wales was not used to fulfil contractual obligations entered into by the government nor did the government enter into any obligations on behalf of the Rice Marketing Board for the 
State of New South Wales.  
 
3.8  BRIEF DESCRIPTION OF MARKET STRUCTURE 
The Australian market is open to competition from imports and significant quantities of rice are 
imported. There are no tariffs or quantitative restrictions applied on the import of rice (HS 1006) 
into Australia.  About 99 per cent of total rice grown in Australia is grown in the State of New South Wales.  
 
Effective from 1 July 2006, the domestic marketing arrangements for rice grown in New South Wales were deregulated and a system of multiple authorised buyer permits for sales within 
Australia was introduced. Entities wanting to participate in the domestic market for rice grown in 
New South Wales must apply to the Rice Marketing Board for the State of New South Wales to become an Authorised Buyer. 
 
Authorised Buyers are able to buy and sell rice grown in New South Wales on the domestic market in Australia.  G/STR/N/14/AUS/Add.1 
 
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  3.9  Statistical Information (see attached Tables I - III) 
The data contained in the attached tables is not available on a consistent basis and figures in 
different columns are generally not comparable. In particular, no adjustments have been made for factors such as quality, transport terms, and di fferent time periods (e.g. marketing year versus 
fiscal year). Differing sources have had to be used, also resulting in non-comparability. In addition, 
much of the data is not collected or is otherwise not available.  
Key to notes: 
 NA Not available. N/A Not applicable. 
 
3.10  Reason why no foreign trade has taken place (as appropriate) 
Not applicable. The Australian market is open to competition from imports and significant 
quantities of rice are imported. There are no tariffs or quantitative restrictions applied on the 
import of rice (HS 1006) into Australia. 
 
3.11  Additional Information (as appropriate) 
On 19 December 2012 the New South Wales Minister for Primary Industries announced that the 
NSW Government would renew the vesting powers of the NSW Rice Marketing Board, with vesting 
in the Rice Marketing Board extended until 30 June 2017    
  G/STR/N/14/AUS/Add.1  
 
- 5 - TABLE I 
STATISTICAL INFORMATION, IMPORTS 
Description of product(s)  
(including HS number(s)) UNIT Year Total 
quantity 
imported Quantity 
imported by 
state trading 
enterprise Average 
import price Average 
representative 
domestic sales 
price Mark-up National 
production 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes 2011/2012 1461 Nil A$1040/t NA NA 9412 
 
                                               
1 DFAT STARS Database, based on ABS Cat No 5368.0, January 2013. 
2 Estimate by the Australian Bureau of Agricultural and Resource Econom ics and Sciences (ABARES).  See the Australian crop report : February No.165 2013 p18.   
  G/STR/N/14/AUS/Add.1  
 
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STATISTICAL INFORMATION, EXPORTS 
	
Description of product(s)  
(including HS number(s)) Unit Year Total 
quantity 
exported Quantity 
exported by 
state trading 
enterprises Average 
procurement 
price Average 
representative 
domestic sales 
price Average 
export price National 
production 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes 2011/2012 5383 NA NA NA A$840/t 941 
 
                                               
3 Australian Bureau of Agriculture and Resource Economics, Agricultural commodities , March Quarter 2013 p244.   
  G/STR/N/14/AUS/Add.1  
 
- 7 - TABLE III 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Description of product(s) 
(including HS number(s)) Unit Year Domestic 
purchases by state 
trading enterprise National 
production Domestic sales by 
state trading 
enterprise National 
consumption 
1   2 3 4 5 
Rice (HS 1006)  '000 tonnes 2011/2012 NA 941 N/A 2144 
 
 
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4 Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Agricultural commodity statistics 2012  p 188.