ACIS Administration Act 1999 - Permission to apply for registration in the national interest (27/07/2004)

Overview

The ACIS Administration Act 1999 was enacted to address the need for regulation of the Automotive Component Industry Scheme (ACIS) in Australia, ensuring compliance with international agreements and promoting the national interest in the automotive sector. The Act provides a framework for the registration of motor vehicle producers and the imposition of conditions that safeguard the interests of various stakeholders within the industry. The legislation was enacted by the Parliament of Australia, with a policy objective to balance the benefits of free trade agreements with the protection of domestic industries and employment. In the context of Mitsubishi Motors Australia Ltd (MMAL), the Minister for Industry, Tourism and Resources granted permission for the company to apply for registration as an MVP under the Act, subject to specific conditions. The Minister's decision was based on the consideration that it was in the national interest for MMAL to be registered, despite not meeting certain requirements. The permission and any subsequent registration of MMAL as an MVP were made subject to conditions, including the production of a new model of passenger motor vehicle in Australia by 31 December 2006 and the requirement to produce a minimum number of motor vehicles or engines annually, subject to review by the Secretary. This legislative instrument aims to facilitate the registration of MMAL while ensuring compliance with the broader objectives of the ACIS Administration Act 1999.

Scope and Application

The ACIS Administration Act 1999 governs the registration of manufacturers of vehicles in the passenger motor vehicle (PMV) industry in Australia, and under this Act, the Minister for Industry, Tourism and Resources can grant permission for entities such as Mitsubishi Motors Australia Ltd (MMAL) to apply for registration as a manufacturer of vehicles in the PMV industry, provided it is in the national interest. In this specific case, the Minister has given permission for MMAL to apply for registration as an MVP, subject to MMAL meeting all registration requirements except those specified in paragraphs 16(1)(a) and (b) of the Act. The Act applies to entities involved in the manufacture of PMVs and their engines in Australia, extending to the entire Commonwealth. The Minister's permission and any subsequent registration of MMAL as an MVP are subject to certain conditions, including the production of a new model of passenger motor vehicle in Australia by 31 December 2006, and the production of at least 30,000 motor vehicles or engines in each ACIS year from the beginning of the calendar year following a review by the Secretary. The Act does not specify exclusions or exemptions, but its application may be extended or restricted through subordinate instruments.

Key Provisions

The key operative sections of this legislation allow Mitsubishi Motors Australia Ltd (MMAL) to apply for registration as an MVP under the ACIS Administration Act 1999, subject to certain conditions (subsections 20(2) and (5)). The Minister for Industry, Tourism and Resources has determined that it is in the national interest for MMAL to be registered as an MVP, despite MMAL not meeting the usual requirements set out in paragraphs 16(1)(a) and (b) of the Act. The permission is conditional upon MMAL fulfilling specific obligations, including producing a new model of passenger motor vehicle in Australia by 31 December 2006 and ensuring that from the beginning of the calendar year following the Secretary’s decision, at least 30,000 motor vehicles or engines are produced in Australia each year. The obligations imposed on MMAL by this legislation are significant. Firstly, MMAL must introduce a new model of passenger motor vehicle in Australia by the specified deadline. Secondly, MMAL must submit to an annual review by the Secretary starting from 1 January 2007, continuing until the Secretary is satisfied that MMAL will meet the production requirement outlined in condition (iii). Upon the Secretary’s satisfaction, MMAL must then produce at least 30,000 motor vehicles or engines annually in Australia. These conditions ensure that MMAL’s registration will contribute to national interests by enhancing the automotive industry's output and innovation. Failure to comply with the conditions set out in the legislation may lead to serious consequences. While the specific penalties for breach are not detailed in the legislative instrument, under the ACIS Administration Act 1999, non-compliance could result in various civil or criminal penalties, including fines or other sanctions. The severity of these penalties may depend on the nature and extent of the breach, but they underscore the importance of adhering to the stipulated requirements to avoid adverse legal repercussions.