EXPLANATORY STATEMENT
DEPARTMENT OF AGRICULTURE, FISHERIES AND FORSTRY
Australian Meat and Live-stock Industry
(Beef Export to the United States of America – Quota Year 2013)
Order 2012
Statutory Basis
Under the Australian Meat and Live-stock (Quotas) Act 1990 and the Australian Meat and Live-stock Industry Act 1997, the Secretary of the Australian Government Department of Agriculture, Fisheries and Forestry (the department) may, where restrictions are imposed on exports of Australian meat, establish a scheme to allocate quota among holders of export licences.
This order is made under section 17 of the Australian Meat and Live-stock Industry Act 1997.
Background to Order
In 1995 the United States of America (US) applied a tariff rate quota regime to certain beef imports as part of the World Trade Organisation (WTO) Uruguay Round outcome. When Australia’s country-specific quota was filled in 2001 the Government agreed to industry requests to establish a quota administrative system for the fair and orderly management of beef exports to the US.
In 2005 the Australia-US Free Trade Agreement (AUSFTA) came into effect, providing additional access amounts for beef. Since 2005 Australia has had tariff free in-quota access with quota amounts increasing in set stages. This arrangement will continue until 2022 when in that year the out-of-quota tariff will become zero and a quota management system will no longer be required. Instead, from 2023 a US safeguard provision will allow for beef exports in excess of 448 634 tonnes to be subject to a price-based tariff.
For the purpose of this order, the quota year is from 1 January 2013 to 31 December 2013.
Consultation
The US beef quota system is managed by the department on an industry-agreed cost recovery basis. The current administrative system was put in place in 2006 following a review of the 2002 arrangements. US beef orders are re-issued each year to accommodate calendar changes and on-going developments under the AUSFTA. These changes are mechanical in nature and do not require consultation.
The regulatory impact analysis conducted in line with Office of Best Practice Regulation guidelines indicates the changes would have low or no impact on businesses (OBPR ID 14409).
Summary of Order
The US beef quota access will be 413 214 tonnes in 2013, which combines the static WTO amount of 378 214 tonnes and the AUSFTA amount of 35 000 tonnes (AUSFTA increased by 5 000 tonnes over the 2012 amount). The order explains how beef may be exported tariff free to the US in 2013.
There are no company-specific quota allocations. The quota is managed on a first-come-first-served (FCFS) basis with a safeguard trigger applying if shipments to the US reach 85 per cent of the quota tonnage (of 351 231 900 kg in 2013) before 1 October in any year. If the trigger level is reached, eligible exporters (as defined in section 9 of the order) will be informed of their Provisional Trigger Allocation (PTA) in November prior to the start of the next quota year. Where the trigger level is not reached, the FCFS arrangements will continue.
An exporter requires a quota certificate to land the beef tariff free. The order details the procedure for acquiring such a certificate and the rules that apply to the calculation, use, non‑use and trade of PTAs.
Explanation of Amendments
The amendments are to the dates and quota amounts, which reflect the timelines and AUSFTA arrangements applying for the 2013 quota year.
All other provisions remain unchanged.
Human Rights Compatibility
The amendments to the Order are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The amendments to the order do not raise any human rights issues as their focus is on continuing existing administrative arrangements into the next quota year. The compatibility statement is set out in the Attachment.
ATTACHMENT
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Australian Meat and Live-stock Industry (Beef Export to the USA – Quota Year 2013) Order 2012
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
Each year the United States of America (US) grants Australia a country specific quota for beef exports. Shipments made in-quota allow product to enter at a zero tariff rate. The order is updated each year and continues existing administrative arrangement into the next quota year.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Thomas Parnell
Delegate to the Secretary of the Department of Agriculture, Fisheries and Forestry