EXPLANATORY STATEMENT
AUSTRALIAN GOVERNMENT DEPARTMENT OF AGRICULTURE, FISHERIES & FORESTRY
AUSTRALIAN MEAT AND LIVE‑STOCK INDUSTRY
(HIGH QUALITY BEEF EXPORT TO THE EUROPEAN UNION) AMENDMENT ORDER 2005 No. 1
(Amendment Order)
1. Statutory basis
1.1 Under the Australian Meat and Live‑stock (Quotas) Act 1990 and the Australian Meat and Live‑stock Industry Act 1997, the Commonwealth may, where restrictions are imposed on exports of Australian meat, establish a scheme to allocate quotas among the holders of export licences.
1.2 This Amendment Order is made under section 17 of the Australian Meat and Live‑stock Industry Act 1997.
2. Background to order
2.1 The European Commission each year, commencing 1 July, allows Australia to ship 7,000 tonnes of high quality beef to the European Union (EU) under a country-specific quota.
2.2 The Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) issues an order each year relating to the export of beef to the EU. The Australian Meat and Live-stock (High Quality Beef Export to the European Union) Order 2004 (the Order) was made on 24 February 2004 and gazetted on 26 February 2004 for the quota year from 1 July 2004 to 30 June 2005.
2.3 In providing details of how quota is used, the Order provides that quota not committed by eligible exporters and approved as a quota shipment by 1 March 2005 will lapse and will be available for use by any eligible exporter. An eligible exporter is defined as an exporter that has been allocated quota or to whom quota has been transferred. This process is intended to make maximum use of the annual access amount before the conclusion of the quota year on 30 June 2005.
2.4 The effect of this provision is to permit access to the quota by eligible exporters that have already surrendered the quota they have been unable to use and is therefore inconsistent with the intent of the Order.
2.5 The amendment removes the constraint whereby only eligible exporters have access to the uncommitted quota. It provides that any licensed exporter may apply for approval to export from the uncommitted amount, up to the annual access amount in the 2005 quota year.
3. Summary of order
3.1 This Amendment Order extends the opportunity for any exporters to use the uncommitted amount of quota entitlement available at the end of the 2004-2005 quota year.
4. Consultation
4.1 The administrative arrangements for meat export quotas have been developed in consultation with industry.
5. Explanation of sections under the Amendment Order
5.1 Section 1 – Name of order. This section provides for how the Amendment Order is to be cited.
Section 2 – Commencement. This section provides that the Amendment Order commences upon registration with the Federal Register of Legislative Instruments.
Section 3 – Amendment of Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Order 2004. This section advises that where ‘eligible’ appears in Subsections 12 (1), 13 (1), 14, 18 (1) and 18 (2), it should be deleted and that the definition of ‘eligible exporter should be deleted.
Overview
The Australian Meat and Live-stock (High Quality Beef Export to the European Union) Amendment Order 2005 No. 1 was enacted to address a gap in the allocation of beef export quotas to the European Union, ensuring the maximum utilisation of available quotas. This Amendment Order is made under section 17 of the Australian Meat and Live-stock Industry Act 1997, with the aim of correcting inconsistencies in the previous year’s Order. Specifically, it removes the restriction that only eligible exporters, those who have been allocated quota or to whom quota has been transferred, can access uncommitted quota. Instead, any licensed exporter can now apply for approval to use the uncommitted quota, up to the annual access amount for the 2005 quota year. This change was made in consultation with the industry and is intended to make better use of the annual quota before the end of the quota year. The Order commences upon registration with the Federal Register of Legislative Instruments.
Scope and Application
The Australian Meat and Livestock (High Quality Beef Export to the European Union) Amendment Order 2005 No. 1 is an amendment to the Australian Meat and Livestock Industry (High Quality Beef Export to the European Union) Order 2004, which was established to manage the export of high-quality beef to the European Union under a specific annual quota. This Amendment Order applies to any person or entity with an export licence for beef to the EU, effectively broadening the eligibility to any licensed exporter rather than restricting it to those who have been previously allocated quota. The Order operates within the Commonwealth jurisdiction, aligning with the Australian Meat and Livestock (Quotas) Act 1990 and the Australian Meat and Livestock Industry Act 1997. Its purpose is to ensure that the annual quota is fully utilized by allowing any exporter to access the uncommitted portion of the quota. This change aims to maximize the use of the allocated 7,000 tonnes of beef exports to the EU, thereby improving efficiency and economic benefits for the beef industry. The Order comes into effect upon its registration with the Federal Register of Legislative Instruments, as stipulated in Section 2 of the Amendment Order.
Key Provisions
The main operative sections of the Australian Meat and Live-stock (High Quality Beef Export to the European Union) Amendment Order 2005 (No. 1) (Amendment Order) include the amendment of the Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Order 2004. Specifically, section 3 of the Amendment Order provides that where 'eligible' appears in subsections 12(1), 13(1), 14, 18(1) and 18(2), it should be deleted, and the definition of 'eligible exporter' should also be deleted. This amendment is intended to extend the opportunity for any exporters to use the uncommitted amount of quota entitlement available at the end of the 2004-2005 quota year.
The Amendment Order imposes obligations on the parties or entities it governs by providing a scheme to allocate quotas among the holders of export licences. Under this scheme, any licensed exporter may apply for approval to export from the uncommitted amount of quota entitlement, up to the annual access amount in the 2005 quota year. The Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) is responsible for issuing an order each year relating to the export of beef to the European Union (EU), and this Amendment Order is made under section 17 of the Australian Meat and Live-stock Industry Act 1997.
Any breach of the provisions of the Amendment Order may result in civil or criminal consequences. However, the maximum penalties for such breaches are not specified in the Explanatory Statement. The Amendment Order was developed in consultation with industry, and the administrative arrangements for meat export quotas have been developed in consultation with industry as well.
In summary, the Australian Meat and Live-stock (High Quality Beef Export to the European Union) Amendment Order 2005 (No. 1) amends the Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Order 2004 to extend the opportunity for any exporters to use the uncommitted amount of quota entitlement available at the end of the 2004-2005 quota year. The Amendment Order imposes obligations on the parties or entities it governs by providing a scheme to allocate quotas among the holders of export licences, and any breach of its provisions may result in civil or criminal consequences, although the maximum penalties are not specified in the Explanatory Statement.