G/STR/N/16/AUS  
 
29 July 2016  
(16-4066)  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 27 July 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 Agre ement on Tariffs and Trade, Australia makes the 
following new and full interim notification of it s state trading enterprise for the year 2014/15. 
  
I.  ENUMERATION OF STATE TRADING ENTERPRISES 
A.  IDENTIFICATION OF STATE TRADING ENTERPRISES 
 The Rice Marketing Board for the State of New South Wales. 
 
B.  DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) ENCOMPASSED IN PRODUCT DESCRIPTION) 
 
Rice grown in the State of New South Wales (HS 1006).  
 
II.  REASON AND PURPOSE 
A.  REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE  
The objectives of the Rice Marketing Board for the State of New South Wales are: 
 
 to encourage the development of a competitive domestic market for rice.  
 
 to ensure the best possible returns from rice sold outside Australia based on the quality 
differentials or attributes of Australia rice. 
 
 to liaise with and represent the interests of all NSW rice growers in relation to the Board’s 
functions and objects. 
 
B.  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 Marketing Act 1983 .  Effectively, all rice produced G/STR/N/16/AUS 
 
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  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).  III.  DESCRIPTION OF THE FUNCTIONIN G OF THE STATE TRADING ENTERPRISE 
A.  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.    B.  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  
 
C.  TYPE OF ENTITIES OTHER THAN THE STATE TRADING 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.    
D.  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.   
 
E.  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.   
 G/STR/N/16/AUS 
 
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  F.  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.    
G.  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.   
 H.  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.  IV.  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 may have been made for factors such as quality, transport terms, and different time periods (e.g. marketing year 
versus fiscal year).  Differing sources may have b een used, also resulting in non-comparability.  In 
addition, some portions of the data are not collected or are otherwise not available.  
 Key to notes: 
  NA Not available.  N/A Not applicable. 
 
V.  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.  
VI.  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. A review is currently under way to 
determine whether these vesting powers should be extended beyond 30 June 2017 and, if so, for 
how long.  
  G/STR/N/16/AUS  
 
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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 2014/2015 158 Nil A$1,261/t NA NA 690 
 
                                               
1 DFAT STARS Database, based on ABS Cat. No. 5368.0, September 2015. 
2 As above. 
3 ABARES Agricultural Commodities  June 2016. Refers to crop that was harvested from March 2015 to May 2015. Paddy rice.  
  G/STR/N/16/AUS  
 
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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 
enterprises2 Average 
procurement 
price Average 
representative 
domestic sales 
price Average 
export 
price3 National 
production4 
1   2 3 4 5 6 7 
Rice (HS 1006)  '000 tonnes  2014/2015 461 NA NA NA A$1,097/t 690 
 
                                               
1 ABARES Agricultural Commodities  June 2016. Fiscal year (July-June). Milled equivalent. Includes th e milled grain equivalent of rice flour. Includes ABARES est imation for 
confidential data. 
2 The Rice Marketing Board for the State of New South Wales has ve sted exclusive exporting powers in Ricegrowers Limited (tradin g as SunRice), which is the sole exporter 
of rice grown in New South Wales.    
3 ABARES Agricultural Commodities  June 2016. Fiscal year (July-June). Milled equivalent. Includes th e milled grain equivalent of rice flour. Includes ABARES est imation for 
confidential data. 
4 ABARES Agricultural Commodities  June 2016. Refers to crop that was harvested from March 2015 to May 2015. Paddy rice.  
  G/STR/N/16/AUS  
 
- 6 - 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  2014/2015 NA 690 NA 308 
 
 
 
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1 ABARES Agricultural Commodities  June 2016. Refers to crop that was harvested from March 2015 to May 2015. Paddy rice. 
2 ABARES. Marketing year (April-March). Milled equivalent. National  consumption refers to apparent consumption, production plus imports less exports le ss any observed or 
assumed change in stocks.