EXPLANATORY STATEMENT
DEPARTMENT OF AGRICULTURE, FISHERIES AND FORSTRY
Australian Meat and Live-stock Industry
(Sheepmeat and Goatmeat Export to the European Union – Quota Year 2012)
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
At the industry’s request the department administers the quota to provide a fair and orderly operating environment for Australian exporters of sheepmeat and goatmeat to the EU.
Each December the European Union (EU) updates its zero tariff rate quota regime for sheepmeat and goatmeat imports. Australia’s country-specific quota amount is normally 18 786 tonnes. However, the EU has advised that the quota amount will increase by 400 tonnes because of the accession of Bulgaria and Romania in 2007. The increase is expected to be available for the 2012 quota year.
For the purpose of this order, the quota year is from 1 January 2012 to 31 December 2012.
Consultation
The current administrative arrangements were developed in consultation with industry. This order is a repeat of the order made for 2011. The changes made to this order are mechanical in nature. They amend the dates to align with administrative and operating requirements for the next quota year and do not require additional consultation with industry.
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 13073).
Summary of Order
The order explains the method used to calculate the yearly allocation of the quota among licensed exporters, how to get approvals to export and obtain quota certificates, what constitutes performance and individual exporters’ quota accounts, and a number of administratively significant dates. The main characteristics of the quota arrangements are also promulgated in the order, namely:
- To be eligible for quota, licensed exporters must either be an EU-accredited meat processing plant or must source their product from those plants.
- Eighty per cent of the quota is allocated on the basis of recorded shipments of quota meat to the EU sheepmeat and goatmeat market during the previous year.
- Twenty per cent of the quota is allocated on the basis of exporters’ performance credits for exports to all destinations from EU-accredited meat processing establishments.
- Exporters may trade quota entitlement but transfers of quota are absolute, a feature designed to ensure that quota is available only to active exporters to the EU sheepmeat and goatmeat market. Exports may also trade export performance but transfers of performance may be made only within the constraints set out in section 19 of the order.
Explanation of Amendments
The amendments are to the dates to allow for new timelines that apply to the 2012 quota year.
All other provisions remain unchanged.