G/STR/N/15/AUS  
 
7 July 2014  
(14-3871)  Page: 1/6  
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  
The following communication, dated 30 June 2014, is being circulated at the request of the 
Delegation of Australia. 
 
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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 Agre ement on Tariffs and Trade, Australia makes the 
following new and full interim notification of its state trading enterprise for the year 2012/13 and 
2013/14.  
 
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 (inc luding 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 an d/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 gr own rice sold outside Australia based on the 
quality differentials or attributes of Australian grown rice. 
 
2.2  Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summa ry 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 Marketing 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). 
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  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.  
 3.2  Specification of exclusive or special righ ts 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 tr ading enterprise that are allowed to engage 
in importation/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 estab lished 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 im ported products are determined 
Not applicable. The arrangements for rice grown in New South Wales do not cover imports.  
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  3.7  Whether long-term contracts are nego tiated by the state trading enterprise. 
Whether the state trading enterprise is used to fulfil contractual obligations entered 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% 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.  
4  STATISTICAL INFORMATION (S EE 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. 
 5  REASON WHY NO FOREIG N 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.  
6  ADDITIONAL INFORMATION ( AS APPROPRIATE ) 
On 19 December 2012 the New South Wales Minister for Primary Industries announced that the 
NSW Government was renewing the vesting powers of the NSW Rice Marketing Board, with vesting 
in the Rice Marketing Board extended until 30 June 2017. 
   
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TABLE I 
STATISTICAL INFORMATION, IMPORTS 
 
Description of 
product(s) 
(including HS 
number(s)) Unit Year Total 
quantity 
imported1 Quantity 
imported by 
state trading 
enterprise Average 
import price2 Average 
representative 
domestic sales 
price Mark-up National 
production3 
1   2 3 4 5 6 7 
Rice (HS 1006) '000 tonnes 2012/2013 137 Nil 1071 A$/t NA NA 1161 
Rice (HS 1006) '000 tonnes 2013/2014 124 Nil 1212 A$/t NA NA 825 
 
 
                                               
1 Source: DFAT STARS Database, based on ABS catalogue number 5368.0, April 2014. 2013/14 data is July 2013-April 2014. 
2 As above. 
3 Source: ABARES Agricultural Commodities  June 2014. 2013/2014 data is forecast. Marketing year (April-March). Paddy rice.  
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TABLE II 
STATISTICAL INFORMATION, EXPORTS 
 
Description of 
product(s) 
(including HS 
number(s)) Unit Year Total 
quantity 
exported1 Quantity 
exported by 
state trading 
enterprises Average 
procurement 
price Average 
representative 
domestic sales 
price Average 
export 
price2 National 
production3 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2012/2013 584 NA NA NA 785 A$/t 1161 
Rice (HS 1006) '000 tonnes 2013/2014 531 NA NA NA 880 A$/t 825 
 
 
                                               
1 Source: ABARES Agricultural Commodities  June 2014. 2013/2014 data is forecast. Fiscal year (July-June). Milled equivalent. Includes the milled grain equivalent of ric e 
flour. 
2 As above. 
3 Source: ABARES Agricultural Commodities  June 2014. 2013/2014 data is forecast. Marketing year (April-March). Paddy rice.  
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TABLE III 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
Description of 
product(s) 
(including HS 
number(s)) Unit Year Domestic purchases 
by state trading 
enterprise National 
production1 Domestic sales by 
state trading 
enterprise National 
consumption2 
1   2 3 4 5 
Rice (HS 1006)  '000 tonnes  2012/2013 NA 1161 NA 356 
Rice (HS 1006) '000 tonnes 2013/2014 NA 825 NA 362 
 
 
 
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1 Source: ABARES Agricultural Commodities  June 2014. 2013/2014 data is forecast. Marketing year (April-March). Paddy rice. 
2 Source: ABARES. 2013/14 data is forecast. Marketing year (April-M arch). Milled equivalent. National consumption refers to appa rent consumption, production plus imports 
less exports less any observed or assumed change in stocks.