IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 26 Apr 2016 | Removal date: open ended
Still in force

Local sourcing

 On 6 May 2016, the Australian Defence Minister was quoted saying that the government will require at least 70% local content requirement in a submarine contract discussed with the French shipbuilder DCNS.
The Defence Ministry also reiterated its promise of using Australian steel in the production. Previously, on 26 April 2016, PM Turnbull said that "I am determined that every dollar we spend on defence procurement as far as possible should be spent in Australia (...) You see, a strong Australia, a strong and secure Australia does not depend alone upon the physical capabilities that our Defence Forces have. The ships and the planes and the submarines, it depends on a strong defence industry and we have not had enough continuous investment in our defence industry, in our advanced manufacturing. This is what our whole naval ship building plan demonstrates, a commitment across the decades, across the generations, that will see well past the middle of this century - ships and submarines being built here and the technology and the skills, the know-how, the science that will come from that, will not simply sustain a better navy, it will do that, but it will also ensure the spillover benefits right across the economy".
In the same press conference, when asked whether the submarine would be built hybrid overseas or locally, the Prime Minister went on to state "Firstly the cost implications of an overseas hybrid or a local build were comprehensively examined and weighed up and were the subject of submissions from the three parties that made offers pursuant to the competitive evaluation process. So yes we have taken that into account. The characteristics of the steel that will be required will obviously await the completion of the design process, but our commitment is that that steel will be made - will be Australian steel".

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

411 Basic iron & steel
7207 Semifinished products of iron or nonalloy steel.
720719 Other
412 Products of iron or steel
7208 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, hotrolled, not clad, plated or coated.
720837 Of a thickness of 4.75 mm or more but not exceeding 10 mm
720851 Of a thickness exceeding 10 mm
720852 Of a thickness of 4.75 mm or more but not exceeding 10 mm
720853 Of a thickness of 3 mm or more but less than 4.75 mm
7209 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, coldrolled (coldreduced), not clad, plated or coated.
720916 Of a thickness exceeding 1 mm but less than 3 mm
720917 Of a thickness of 0.5 mm or more but not exceeding 1 mm
7210 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, clad, plated or coated.
721011 Of a thickness of 0.5 mm or more
721012 Of a thickness of less than 0.5 mm
721030 Electrolytically plated or coated with zinc
721049 Other
721050 Plated or coated with chromium oxides or with chromium and chromium oxides
721069 Other
721070 Painted, varnished or coated with plastics
721090 Other
7211 Flatrolled products of iron or nonalloy steel, of a width of less than 600 mm, not clad, plated or coated.
721114 Other, of a thickness of 4.75 mm or more
7212 Flatrolled products of iron or nonalloy steel, of a width of less than 600 mm, clad, plated or coated.
721220 Electrolytically plated or coated with zinc
721230 Otherwise plated or coated with zinc
721240 Painted, varnished or coated with plastics
721250 Otherwise plated or coated
7214 Other bars and rods of iron or nonalloy steel, not further worked than forged, hotrolled, hotdrawn or hotextruded, but including those twisted after rolling.
721420 Containing indentations, ribs, grooves or other deformations produced during the rolling process or twisted after rolling
721491 Of rectangular (other than square) crosssection
721499 Other
7215 Other bars and rods of iron or nonalloy steel.
721550 Other, not further worked than coldformed or coldfinished
7216 Angles, shapes and sections of iron or nonalloy steel.
721621 L sections
721640 L or T sections, not further worked than hotrolled, hotdrawn or extruded, of a height of 80 mm or more
721661 Obtained from flatrolled products
721669 Other
721691 Coldformed or coldfinished from flatrolled products
721699 Other
493 Ships
8906 Other vessels, including warships and lifeboats other than rowing boats.
890610 Warships
890690 Other

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