Commerce Act 1986

Restrictive trade practices - Exceptions to Part 2

44A: Exceptions in relation to international liner shipping services

You could also call this:

"Some rules don't apply to people working together to provide international shipping services"

Illustration for Commerce Act 1986

If you are involved in international liner shipping services, some rules do not apply to you. You must be working with others to supply this service and your co-operation must improve the service to owners or consignors of goods carried at sea. The rules that do not apply are in section 27(1) and section 27(2) of the Commerce Act.

When you enter into a contract, arrangement, or understanding with others, some parts of the Commerce Act do not apply if you are co-operating to supply an international liner shipping service. This includes section 27(4) and some parts of section 30(1). You must be working together to improve the service to owners or consignors of goods carried at sea.

The circumstances that mean these rules do not apply include you and others supplying an international liner shipping service together. You must be improving the service to owners or consignors of goods carried at sea. The provision must relate to a specified activity, such as co-ordinating schedules, or an activity that is necessary for the co-operation. A cartel provision is a provision in a contract that can restrict output or market allocation. A specified activity includes things like co-ordinating schedules and sharing equipment.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS239751.


Previous

44: Other exceptions, or

"There are some situations where the rules don't apply to contracts or agreements you make with others."


Next

44B: Further exception in relation to international liner shipping services (price fixing in relation to space on ship), or

"Working together on international ship services: exempt from some rules when sharing space and setting prices"

Part 2Restrictive trade practices
Exceptions to Part 2

44AExceptions in relation to international liner shipping services

  1. Nothing in section 27(1) applies to a person in relation to a provision of a contract, arrangement, or understanding if, at the time of entering into or arriving at the contract, arrangement, or understanding, the circumstances in subsection (6) apply.

  2. Nothing in section 27(2) applies to a person in relation to a provision of a contract, arrangement, or understanding if, at the time of giving effect to the provision, the circumstances in subsection (6) apply.

  3. Nothing in section 27(4) affects the enforceability of a provision in any contract to which subsection (1) or (2) applies.

  4. Nothing in section 30(1)(a) applies to a person in relation to a cartel provision that has the effect, or likely effect, of restricting output or market allocating if, at the time of entering into or arriving at the contract, arrangement, or understanding that contains the provision, the circumstances in subsection (6) apply.

  5. Nothing in section 30(1)(b) applies to a person in relation to a cartel provision that has the effect, or likely effect, of restricting output or market allocating if, at the time of giving effect to the provision, the circumstances in subsection (6) apply.

  6. The circumstances are that—

  7. the person and all other parties to the contract, arrangement, or understanding that contains the provision are supplying an international liner shipping service in co-operation with each other; and
    1. the co-operation improves the service supplied to owners or consignors of goods carried at sea; and
      1. the provision relates to—
        1. a specified activity carried out for the purposes of the co-operation; or
          1. an activity ancillary to a specified activity that is reasonably necessary for the purposes of the co-operation.
          2. For the purposes of subsection (6)(a), parties to the contract, arrangement, or understanding excludes persons who are parties only because section 30B(a) applies.

          3. In this section,—

            cartel provision means a cartel provision in a contract, arrangement, or understanding

              specified activity means any of the following:

              1. the co-ordination of schedules and the determination of port calls:
                1. the exchange, sale, hire, or lease (including the sublease) of space on a ship:
                  1. the pooling of ships to operate a network:
                    1. the sharing or exchanging of equipment such as containers:
                      1. capacity adjustments in response to fluctuations in supply and demand for international liner shipping services.

                      Notes
                      • Section 44A: inserted, on , by section 10 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
                      • Section 44A(4): amended, on , by section 7(1) of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).
                      • Section 44A(5): amended, on , by section 7(2) of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).
                      • Section 44A(8) cartel provision: inserted, on , by section 18 of the Commerce Amendment Act 2022 (2022 No 11).