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Tariff Removal On Bras

The government says it intends to remove the import tariff on bras because of a lack of locally made bras on the New Zealand market.

The Acting Minister of Commerce Trevor Mallard said the decision followed a review of the availability of New Zealand made bras after Bendon announced in October last year its intention to stop New Zealand production. Production stopped here at the end of March.

"Bendon was producing more than 99 percent of the locally made bras for the domestic market," he said "It was also a significant exporter."

"Since Bendon stopped production imports have increased rapidly on the local market. Imported bras carry a 19 percent tariff, or in the case of very low cost product a specific tariff.

"While we recently froze tariffs at existing levels to assist domestic industry, it was not intended to maintain tariffs in cases where it is deemed unnecessary.

"Bendon’s decision to cease New Zealand production removed justification for a tariff. The decision to remove that tariff reflects the Government’s pragmatic and balanced approach.

"I hope consumers will soon see the tariff removal reflected by price reductions," Trevor Mallard said.

The Tariff removal will be achieved through a tariff concession under Part II of the Tariff.

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