Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2004 (NO. 1) 2004 NO. 1

Statutory Basis

Section 8 of the Primary Industries (Customs) Charges Act 1999 (the Customs Act) and section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) provide that the Governor-General may make regulations, not inconsistent with the these Acts, prescribing all matters required or permitted by these Acts to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to these Acts.

Purpose of the Regulations

The purpose of the Primary Industries (Customs) Charges Amendment Regulations 2004 (the Customs Regulations) is to impose a charge on the export of certain live animals. The charge will recover the costs incurred by the Government and by Meat and Livestock Australia during the resolution of an incident involving the rejection by the government of Saudi Arabia of a consignment of Australian live sheep on board the MV Cormo Express in August 2003.

The purpose of the Primary Industries Levies and Charges Collection Amendment Regulations 2004 is to provide for the efficient and effective collection of the charge imposed under the proposed Customs Regulations.

Background to the Regulations

In September 2003, in response to the rejection by Saudi Arabian authorities of a consignment of live sheep in August, the Australian Government purchased the consignment from the importer to ensure it could exercise some level of control over the subsequent action to resettle the sheep.

Following the discharge of the consignment in Eritrea in November, the costs incurred by both the Australian Government Department of Agriculture, Fisheries (the Department) and by Meat and Livestock Australia (MLA) have been assessed at approximately $10.3 million.

Both the Government and MLA require recovery of the costs incurred in resolving this incident of considerable impact on Australia's live animal export. Industry representative bodies have agreed to the imposition by the Government of a charge on live animal exports for the purpose of recovering these costs.

DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2004 (No. 1)

Explanation of Clauses Under the Regulations

Regulation 1 provides for the citation of the regulations.

Regulation 2 provides that the regulations will commence on 1 March 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000.

Schedule 1 amends Schedule 14 of the Primary Industries (Customs) Charges Regulations 2000 by, after Part 5, inserting a new Part 6.

Part 6       Live animal export. Part 6 includes a note that makes reference to the imposition of the charge on cattle, sheep and goats to recover the costs associated with the Cormo Express.

Clause 6.1 Interpretation. This clause provides a number of definitions used in the Regulations.

Clause 6.2 Imposition of charge. This clause provides that for subclause 2 (1) of Schedule 14 the charge is imposed on animals produced in Australia that are exported from Australia after 1 March 2004.

Clause 6.3 Rate of charge. This clause identifies the rates of the charges to be:

For cattle other than dairy cattle:       $1.50 per head;

For goats:        40 cents per head;

For sheep:        60 cents per head; and

For all other animals:         $0.

Clause 6.4 Who pays the charge. This clause provides that the charge is payable by the producer of the animals or, where an agent exports the animals - that agent. A note explains that, in reference to clause 8.3 of Schedule 37 to the Primary Industries Levies and Charges Collection Regulations 1991, producer means the person who exports the animals.

Clause 6.5 Cessation of effect of Part. This clause provides that Part 6 ceases to have effect after 30 June 2009 and includes a note that if the costs associated with the charge are recovered earlier or later than this date, then the clause will be amended to reflect the required date.

THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2004 (No. 1)

Explanation of Clauses Under the Regulations

Regulation 1 provides for the name of the regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2004 (No. 1).

Regulation 2 provides for the commencement date to be 1 March 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations).

Item 1 inserts a new Part 8 about live animal export into Schedule 37 to the Collection Regulations.

Clause 8.1 Application. This clause provides that the part applies to the export of live animals. A note states that Schedule 14, Part 6 of the Customs Charges Regulations, which imposes the live animal export charge, ceases at the end of 30 June 2009.

Clause 8.2 Definitions for Part 8. This clause provides definitions for use in the Part.

Clause 8.3 Who is a producer. This clause prescribes chargeable animals for the definition of producer. A note identifies that the producer for live animal exports is the person who exports the live animals from Australia.

Clause 8.4 Liability of intermediaries for charge - exporting agents. This clause prescribes chargeable animals for the purpose of subsection 7(3) of the Collection Act in relation to the liability of exporting agents. A note indicates that exporting agents are liable to pay, on behalf of producers, any unpaid charge and a late payment penalty.

Clause 8.5 When charge is due for payment. This clause states that charge is due for payment by the last day for lodging a monthly return under Clause 8.7. Note indicates penalties can be imposed for late payment.

Clause 8.6 Who must lodge a return. This clause prescribes that a producer or export agent who export chargeable animals in a month must lodge a return for the month. A note refers to the Collection Act for offences that may be applicable in relation to returns.

Clause 8.7 When a return must be lodged. This clause provides that a monthly return must be lodged within 28 days of the end of the month to which it relates. A note indicates offences may be applicable.

Clause 8.8 What must be included in a return. This clause stipulates what information must be included in a monthly return. A note indicates offences may be applicable.

Clause 8.9 What records must be kept. This clause stipulates what records must be kept by producers. A penalty of 10 penalty units is provided for breaches of the regulations. Section 4AA of the Crimes Act 1914 provides that a penalty unit equals $110. An offence under this clause is an offence of strict liability. A note indicates offences may be applicable.