EXPLANATORY STATEMENT
DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY
Australian Meat and Live-stock Industry
(Sheepmeat and Goatmeat Export to the European Union – Quota Year 2011)
Amendment Order 2011
Statutory Basis
Under the Australian Meat and Live-stock Industry Act 1997 and the Australian Meat and Live-stock (Quotas) Act 1990 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
The department administers the quota system to provide a fair and orderly operating environment for Australian exporters of sheepmeat and goatmeat to the EU. The current administrative arrangements were put in place following consultation with the sheepmeat and goatmeat industries.
Australia’s country-specific sheepmeat and goatmeat quota amount to the EU is 18 786 tonnes a year. An order provides for the management and administration of this quota. Each year the order is re-issued to re-align the administrative dates for the next quota year. However, in November 2011 the Council of the European Union General Secretariat notified that the agreement with Australia to increase the sheepmeat and goat quota by 400 tonnes will take effect on 1 December 2011.
The 400 tonne increase is as a result of the accession of Bulgaria and Romania to the EU in 2007. Because the 2011 quota was fully allocated in 2010, this amendment allows for that extra 400 tonnes to be allocated for the remainder of 2011. The amendment is based on the EU regulation No.1234/2011 giving administrative effect to the increase to apply from 1 December 2011. For 2012 the additional tonnage will be managed under the Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2012) Order 2011 as part of the normal quota arrangements.
Consultation
In anticipation of receiving the additional tonnage, the industry’s peak representative body, the Australian Meat Industry Council (AMIC), held discussions with its members on how the additional tonnage should be allocated. As a result, AMIC requested that preference be given to those exporters who were active in the Bulgarian and Romanian markets during the period that the EU used to determine the additional amount. Further, if the preferred exporters were no longer operating or did not require the additional tonnage, the allocation should be distributed on a pro rata basis to the remaining preferred exporters. After that, any unwanted or unused quota should be made available to other exporters on a first-come-first-served basis.
The regulatory impact analysis conducted in line with Office of Best Practice Regulation guidelines indicates the changes would have a low or no impact on businesses (OBPR ID 13264).
Explanation of Amendments
The amendment reflects industry agreed allocation requirements, in that it:
a) Identifies the additional tonnage (referred to as the additional access amount) as separate to the normal annual quota amount.
b) Identifies who is eligible for the quota.
c) Describes how to apply for the quota and how the allocation amount will be calculated.
d) Makes provision for the charge of the prescribed fee.
e) Provides for the management of lapsed approvals and unwanted or unused quota.
Overview
The Australian Meat and Livestock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2011) Amendment Order 2011 was enacted to address the increase in the Australian sheepmeat and goatmeat quota to the European Union (EU) by 400 tonnes, effective from 1 December 2011. This increase was due to the accession of Bulgaria and Romania to the EU in 2007. The legislation was introduced to ensure that the additional tonnage was managed fairly and effectively, in line with the agreement between Australia and the EU. The order was made under section 17 of the Australian Meat and Livestock Industry Act 1997, administered by the Australian Government Department of Agriculture, Fisheries and Forestry. The policy objective of the amendment is to provide a fair and orderly operating environment for Australian exporters, ensuring that the additional quota is allocated in a manner that reflects the industry's agreed requirements.
Scope and Application
The Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2011) Amendment Order 2011 applies to entities and individuals engaged in the export of Australian sheepmeat and goatmeat to the European Union, specifically those holding export licences under the Australian Meat and Livestock Industry Act 1997 and the Australian Meat and Livestock (Quotas) Act 1990. The amendment order is necessitated by the increase in Australia's country-specific sheepmeat and goatmeat quota to the EU, following the accession of Bulgaria and Romania to the EU in 2007. This order ensures the allocation of an additional 400 tonnes for the remainder of 2011, effective from 1 December 2011, and outlines the administrative procedures for managing this additional quota. The amendment order does not extend beyond the specified quota year and does not alter the broader administrative framework governing meat exports to the EU. Subordinate instruments may further detail the allocation process and operational specifics as required.
Key Provisions
The Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2011) Amendment Order 2011 (F2011L02520) amends the existing quota scheme for sheepmeat and goatmeat exports to the European Union (EU) for the 2011 quota year. Section 3 of the Order specifies the additional tonnage (section 3(1)), clarifies eligibility for this additional access amount (section 3(2)), and outlines the process for applying for the quota and calculating the allocation amount (section 3(3)). Section 4 details the fee to be charged for the additional access amount (section 4(1)), and Section 5 addresses the management of lapsed approvals and unwanted or unused quota (section 5).
This Order imposes specific obligations on the parties involved. Exporter entities must ensure that they meet the eligibility criteria specified in Section 3(2) to qualify for the additional access amount. They must also follow the application procedures and calculations as described in Section 3(3). The Australian Meat Industry Council (AMIC) is tasked with recommending allocation preferences to the Secretary in accordance with industry input, ensuring that the allocation aligns with agreed preferences. The department, in turn, is responsible for administering the quota and ensuring that the allocation process adheres to the provisions outlined in the Order.
Breach of the provisions in this Order may lead to civil or criminal consequences. For instance, providing false information in an application for quota allocation may be considered an offence under Section 17 of the Australian Meat and Live-stock Industry Act 1997. Penalties for such offences could include fines as stipulated under the relevant legislation, although specific fines are not detailed in this Order. Furthermore, failure to manage lapsed approvals and unwanted or unused quota as per Section 5 may result in administrative penalties or other consequences as deemed appropriate by the department.
In summary, the Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2011) Amendment Order 2011 sets out the administrative framework for allocating an additional 400 tonnes of sheepmeat and goatmeat export quota to the EU for the remainder of 2011, following the accession of Bulgaria and Romania to the EU. It details the eligibility criteria, application process, and fee charges, while also outlining the obligations and potential consequences for non-compliance.