Artist's diaries hit with levy

ANDREW GORRIE/The Dominion Post

EXCESS STOCK: Artist Michael McCormack with copies of his 2009 Wellington diaries. He has not

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A Wellington artist says bureaucracy gone mad has forced him out of his fledgling business making diaries.

Michael McCormack, an artist of Irish extraction living in Island Bay, found success when he produced a diary featuring his works of Wellington scenes in 2008.

But when he had another run made in China for 2009, he was surprised to find he could not pick them up until he paid a 53 per cent "anti-dumping" levy.

Talks with the Economic Development Ministry revealed that, with a few select items such as diaries, a levy has been enforced to deter countries selling items in New Zealand at cheaper prices than they do at home.

The ministry made no distinction between Kiwis who outsourced orders and other importers.

Mr McCormack said he had been gobsmacked. "I'm an artist and this is a way for me to pay my bills.

"I argued that my diary was just a gift book, with small local market potential, sold on consignment to a few shops. How could I possibly be accused of dumping?"

At one point, he said, well-meaning ministry staff suggested he re-export the diaries to Australia, even though they featured Wellington scenes.

The cost of the diaries plus tax was $9000, and he still had about 1000 stored under his house although he had managed to sell about half.

Mr McCormack said his bugbear was not the leftover stock, which was to be expected in the risky publishing game, but more about the levy and the opportunity lost to build a market.

"Once someone gets used to your diary, they'll want it year after year, so I'm getting lots of people in now."

Ministry spokeswoman Emilia Mazur said ministerial approval was being sought for a refund for Mr McCormack and it was hoped that could be done before Christmas.

"We appreciate this is a frustrating situation for Michael," she said.

The diary duties were imposed after a complaint from the New Zealand industry, of which Croxley Stationery is the largest producer.

The levies could be applied only if there was evidence not only of dumping but that it was hurting, or threatening to hurt, New Zealand manufacturers of the same product.

Ms Mazur said Mr McCormack would get a 60 per cent refund on his duty based on World Trade Organisation rules on dumping margins at the time of importation and investigation.

The re-exporting idea had been suggested as a way of getting Mr McCormack a refund since the current anti-dumping legislation did not allow for it. However, work on an amendment was under way.