Industry News
ODMA Reacts To The Recent Revocation of Tariff Concession Order on Plastic Optical Frames
The Optical Distributors and Manufacturers Association of Australia (ODMA) has been working to achieve a solution on the matter of the revocation of the tariff concession order on plastic optical frames that would see the best overall result for the whole of the optical industry.
ODMA is concerned about the effect of the recent revocation given the current economic climate and the continued importance of the import market in Australia for the supply of optical frames. ODMA was instrumental in gaining the tariff concession for optical frames nearly twenty years ago.
In June, as soon as ODMA became aware that an application had been made, research was conducted to identify the party involved given that detail was not publicly available. This was to enable ODMA to take action as soon as possible and to find a solution hopefully before the concession was revoked. On discovery that the party involved was Optex, over the next few weeks, ODMA engaged in multiple discussions and negotiations with Optex to identify a mutually beneficial solution for both local manufacturing and those that import and distribute products. Optex declined the offers made and the revocation was passed.
It should be noted that ODMA supports the Australian manufacture of frames and offers various vehicles to help Australian businesses promote their product and service offerings. ODMA provides access to digital and print media as well as live industry events, whether they be members or non-members of ODMA. According to ODMA, these items that were offered to assist Optex in the future in the hope that these channels would provide more benefit than any competitive advantage gained by pursuing the revocation.
Unfortunately, many ODMA members now find themselves in a situation that will either squeeze their business margins and/or increase the price to retailers and consumers at a time when economic pressures are escalating such as increased fuel prices and wages to mention just a few couple.
The quick nature of how this concession was able to be overturned and the little value placed on the volume capacity of the manufacturer making an application for revocation is also of concern as ODMA appreciates businesses' attempts to plan and budget ahead for the future. ODMA acknowledges this would have been a shock to many ODMA and industry members and that this places further pressure on importers from areas such as Europe, where unlike China, there is currently no free trade agreement.
ODMA was busily working behind the scenes in private negotiations to attempt to resolve the situation that had developed and had hoped for a different outcome.
ODMA is currently engaging with numerous industry members to gain feedback and is reviewing all immediately available alternative courses of action.
