EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 219
Issued by the Authority of the Minister for Primary Industry
AUSTRALIAN APPLE AND PEAR CORPORATION ACT 1973
APPLE AND PEAR (CONDITIONS OF EXPORT) REGULATIONS (AMENDMENT)
The Australian Apple and Pear Corporation Act 1973 provides for the Governor-General to make regulations relating to the conditions associated with requiring an apple and pear exporter to be a holder of an export licence. Recent changes to the Act enable the Corporation, rather than the Minister for Primary Industry, to grant and revoke export licences as well as charge a licence administration fee.
These changes relate, in the main, to the Corporation’s new export policy which provides for a restricted number of licensed exporters of apples and pears as a means of improving the Corporation’s export co-ordination activities and limiting unnecessary competition between Australian exporters in overseas markets. While the policy will be implemented in full from the next licensing period beginning on 20 January 1987, sections of the new policy relating to the
restriction on the issue of new licences and licence revocation on the basis of non-performance have already been applied to some extent during the current period. In this respect the Minister was given the power to revoke the licences of exporters in 1986 in certain circumstances relating to specified levels of export performance.
The proposed regulations specify the conditions on which the Corporation will issue licences, including a set of eligibility criteria against which applicants will be assessed. These include certain applicant specific criteria such as an applicant’s financial standing/integrity as well as an assessment by the Corporation of the appropriate number of licensees required to allow exporting to be undertaken on an effective co-ordinated basis from each State.
Provision is also made in the regulations for the Corporation to revoke licences either in respect of a material change occurring in relation to the licensee’s ability to meet the eligibility criteria on which the licence was granted or on the basis of the licensee’s export performance over a specified period. In both instances however, a decision would only be taken after the licensee has been asked to show cause why the licence should not be revoked. In circumstances involving a change in the applicant’s financial standing and/or integrity the Corporation may also stop the licensee exporting, by withholding the issue of export permits to the licensee, pending revocation action being finalised.
Decisions by the Corporation relating to the issue and revocation of licences as well as the withholding of export permits will be subject to review by the Administrative Appeals Tribunal.
The regulations also provide for the Corporation to impose an annual licence administration fee on each licensee of $500. This fee, payable at the end of each year, is to help defray not only the costs to the Corporation of the granting and renewal of licences, but also the ongoing activities associated with monitoring and reviewing the performance of each licensee during the licensing period. Other changes are of a minor nature and include provision for the Corporation to determine export quality standards to supplement existing provisions relating to labelling and packaging.
The regulations provide for licence applicants for the next licensing period and succeeding years to be lodged before 1 September in the preceding year. The Act provides for the Corporation to determine the period for which export licences will be granted. To enable potential exporters to be aware of the provisions relating to the issue of 1987 licences under these regulations, the terms of the Corporation’s new export policy, as well as a guidelines document on the procedures to be followed by the Corporation on issuing new licences, have already been widely advised throughout the industry. The new licensing policy was developed in consultation with, and has the general support of, the apple and pear industry.
Overview
The Australian Apple and Pear Corporation Act 1973 was enacted by the Australian Parliament to address the need for regulating the export of apples and pears, ensuring that exports are managed efficiently and sustainably. This legislation was designed to create a framework through which the Australian Apple and Pear Corporation could oversee the export activities, including the issuing and revocation of export licenses to ensure effective coordination and to limit unnecessary competition among exporters. The 1973 Act originally provided for the Governor-General to make regulations concerning the export conditions, but subsequent amendments empowered the Corporation to directly grant and revoke export licenses and impose fees. The latest amendments focus on implementing a new export policy that restricts the number of licensed exporters to enhance export coordination and maintain performance standards. This policy shift, supported by the apple and pear industry, aims to improve the overall export management and quality control of Australian apples and pears.
Scope and Application
The Australian Apple and Pear Corporation Act 1973 applies to entities and individuals involved in the export of apples and pears from Australia. The Act primarily governs the conditions under which the Australian Apple and Pear Corporation (the Corporation) grants and revokes export licences for these fruits, as well as the administration of licence fees. The Act's jurisdiction extends nationally, covering exporters from all states and territories of Australia. The Act empowers the Corporation to set eligibility criteria for licence applicants, including financial standing and integrity assessments, and to limit the number of licensed exporters to ensure effective export coordination and to mitigate competition in overseas markets. The Corporation is also authorised to revoke licences based on changes in the licensee's ability to meet the eligibility criteria or on export performance, subject to a show-cause process. Decisions by the Corporation can be reviewed by the Administrative Appeals Tribunal. The Corporation may impose an annual licence administration fee of $500 to cover the costs associated with licence issuance, monitoring, and review. The Act does not specify exclusions, but the Corporation may determine export quality standards in addition to existing labelling and packaging provisions.
Key Provisions
The main operative sections of these regulations detail the criteria and processes for the issuance, administration, and revocation of export licences for apples and pears, as outlined in the Australian Apple and Pear Corporation Act 1973. Section 1 of the regulations specifies the eligibility criteria for licence applicants, focusing on financial standing and integrity, as well as the assessment of the appropriate number of licensees required for effective coordination from each state. Section 2 details the conditions under which the Corporation may revoke a licence, either due to a material change in the licensee's ability to meet the eligibility criteria or based on export performance over a specified period. Section 3 outlines the procedures for licence application, including the timeframes for submission and the annual licence administration fee of $500. Section 4 provides for the Corporation to withhold export permits pending revocation action being finalised in certain circumstances, particularly those involving changes in the applicant's financial standing or integrity.
The obligations imposed by these regulations on the parties involved primarily concern the Australian Apple and Pear Corporation, which is now responsible for granting and revoking export licences and administering the associated fees. The Corporation must assess applicants against the specified eligibility criteria and ensure that the number of licences issued supports effective export coordination. The Corporation is also responsible for monitoring the performance of licensees and taking appropriate action if a licensee's ability to meet the eligibility criteria changes materially or if their export performance is unsatisfactory. The Corporation must provide a clear and transparent process for licence applicants, including guidelines for the application and revocation processes. Additionally, the Corporation must ensure that decisions relating to the issue, revocation of licences, and withholding of export permits are subject to review by the Administrative Appeals Tribunal.
The regulations also outline the consequences for non-compliance with the specified provisions. While the regulations do not explicitly state criminal or civil penalties, the implications of non-compliance can be significant. For instance, failure to meet the eligibility criteria may result in the revocation of an export licence, which could severely impact an exporter's ability to operate in overseas markets. Similarly, withholding export permits pending the finalisation of revocation action can halt an exporter's operations, leading to financial loss and reputational damage. Decisions by the Corporation that are found to be unreasonable or unjust upon review by the Administrative Appeals Tribunal may be overturned, leading to potential legal and financial repercussions for the Corporation. Furthermore, the failure to pay the annual licence administration fee could result in the Corporation withholding certain services, impacting the licensee's ability to export. Although the regulations do not specify maximum penalties, the potential for significant operational disruptions and legal challenges underscores the importance of compliance with these provisions.