EXPLANATORY STATEMENT
DEPARTMENT OF AGRICULTURE, FISHERIES & FORESTRY
AUSTRALIAN MEAT AND LIVE‑STOCK INDUSTRY
(HIGH QUALITY BEEF EXPORT TO THE EUROPEAN UNION) AMENDMENT ORDER 2010 (NO. 1)
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 Secretary of the Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) 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 amendment order
2.1 Each financial year commencing 1 July, the European Union (EU) allows Australia to ship a quantity of high quality beef (HQB) to the EU under a country-specific quota.
2.2 DAFF issues an order each year for the exports of high quality beef in the coming year, being, for the purpose of this order, from 1 July 2010 to
30 June 2011. The order issued for the 2010-11 quota year is the Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Order 2010 (‘the order’).
2.3 According to the order, exporters had to apply for the allocation of quota by
30 April 2010. Applications for standard quota allocations have not been received yet as exporters generally receive a notice notifying them that applications are open. These notices contain the cost of the quota fee. However, due to ongoing discussion with industry on a proposed new quota fee rate, it was not possible to issue these notices, as a decision on the amount of the fee had not been made.
Because discussions on the proposed quota fee rate are ongoing, it has been decided that any new fee will not apply to the export of high quality beef to the European Union during the 2010-11 quota year and that allocations should proceed under the existing order.
Because the 30 April 2010 deadline has now passed, it is impossible to issue quota under the existing order. The application date for standard quota allocations needs to be extended to 30 June 2010 so that standard quota allocations can be made as soon as possible enabling exporters can make the necessary commercial arrangements.
3. Summary of amendment order
3.1 This amendment alters the date by which exporters can apply to be allocated quota from 30 April 2010, to 30 June 2010. This allows sufficient time for the allocation of quota to take place before the commencement of the 2010-11 quota year on 1 July 2010.
4. Consultation
4.1 The administrative arrangements for meat export quotas generally, including EU HQB arrangements, have been developed in consultation with industry.
5. Explanation of sections under the Order
5.1 Schedule 1 Amendment
Section 8 Subsection 2
This section provides the date by which exporters must apply to be allocated quota. This provision changes the date from ’30 April 2010’ to ’30 June 2010.’
Overview
The Australian Meat and Livestock Industry (High Quality Beef Export to the European Union) Amendment Order 2010 (No. 1) was introduced to address a problem that arose due to ongoing discussions regarding a proposed new quota fee rate for the export of high quality beef to the European Union. This delay in setting the quota fee rate meant that exporters could not apply for standard quota allocations by the original deadline of 30 April 2010, as they were not notified of the cost of the quota fee. The Australian Government Department of Agriculture, Fisheries and Forestry (DAFF), under the statutory basis provided by the Australian Meat and Livestock (Quotas) Act 1990 and the Australian Meat and Livestock Industry Act 1997, enacted this amendment order under section 17 of the latter Act. The policy objective of this amendment is to allow exporters sufficient time to apply for quota allocations and make necessary commercial arrangements before the commencement of the 2010-11 quota year on 1 July 2010. This amendment extends the application date from 30 April 2010 to 30 June 2010, thereby facilitating the allocation of quota and ensuring the smooth continuation of beef exports to the European Union.
Scope and Application
The Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Amendment Order 2010 (No. 1) amends the Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Order 2010, which pertains to the allocation of export quotas for high quality beef from Australia to the European Union. This amendment applies to entities and individuals involved in the export of high quality beef to the European Union, particularly those seeking quota allocations for the 2010-11 financial year. The amendment order extends the deadline for exporters to apply for quota allocation from 30 April 2010 to 30 June 2010, thereby providing additional time for exporters to make necessary commercial arrangements. The order is made under the Australian Meat and Live-stock Industry Act 1997 and is applicable on a national level within Australia, specifically addressing the export of beef to the European Union. There are no exclusions or exemptions specified within this amendment order; however, it is noted that the decision to not apply a new quota fee rate for the 2010-11 quota year is also part of this order. The amendment does not extend to any other industries or types of meat exports beyond high quality beef.
Key Provisions
The Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Amendment Order 2010 (No. 1) amends the Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Order 2010, specifically extending the application deadline for quota allocation. The original order mandated that exporters apply for quota allocation by 30 April 2010 (Section 8(2)). However, due to delays in determining the quota fee, this amendment pushes the deadline to 30 June 2010 (Section 8(2), amended). This extension aims to facilitate timely allocation of quotas, ensuring that exporters can make necessary commercial arrangements before the 2010-11 quota year begins on 1 July 2010.
Entities governed by this Act, primarily beef exporters, are now required to apply for quota allocation by the extended date of 30 June 2010. This change in the application deadline is crucial for the efficient management of the quota system and to accommodate the administrative delays caused by the uncertainty over the quota fee. The Department of Agriculture, Fisheries and Forestry (DAFF) will need to manage the allocation process within this new timeframe to ensure that exporters have adequate time to submit their applications and receive their allocations.
Failure to comply with the amended application deadline could result in missed opportunities for exporters to secure their quota allocations for the 2010-11 quota year. Although the specific legal or financial penalties for missing this deadline are not detailed in the Explanatory Statement, non-compliance could indirectly lead to significant commercial disadvantages for the exporters. This could include the inability to export high quality beef to the European Union within the quota year, potentially resulting in lost revenue and market opportunities.