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.
Overview
The Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2012) Order 2011 was enacted to address the allocation of export quotas for sheepmeat and goatmeat from Australia to the European Union for the quota year 2012. This order was introduced by the Australian Government Department of Agriculture, Fisheries and Forestry in accordance with the Australian Meat and Live-stock Industry Act 1997 and the Australian Meat and Live-stock (Quotas) Act 1990, aiming to ensure a fair and orderly operating environment for Australian exporters. The European Union’s update to its zero tariff rate quota regime for sheepmeat and goatmeat imports necessitated adjustments to the quota allocation process, particularly due to the accession of Bulgaria and Romania in 2007, which increased the quota amount by 400 tonnes. This order updates the dates to align with the administrative and operational requirements for the 2012 quota year, while maintaining the existing quota allocation methodology and performance criteria.
Scope and Application
The Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2012) Order 2011 applies to entities involved in the export of sheepmeat and goatmeat from Australia to the European Union. Specifically, it pertains to licensed exporters who must meet certain criteria to be eligible for quota allocations, such as being an EU-accredited meat processing plant or sourcing their products from such plants. The order governs how the yearly quota is calculated and allocated among these licensed exporters, the conditions for obtaining export approvals and quota certificates, the definitions of performance metrics, and the management of individual exporters’ quota accounts. The order also delineates significant administrative dates pertinent to the quota year, which runs from 1 January 2012 to 31 December 2012. The geographic reach of this order is national, as it applies to all exporters operating within Australia who are involved in sheepmeat and goatmeat exports to the EU. The order does not introduce new substantive changes but rather adjusts the dates to align with the requirements for the 2012 quota year, ensuring continuity in the administrative processes established for these exports.
Key Provisions
The main operative sections of this legislation, F2011L02389, primarily involve the allocation of quota for sheepmeat and goatmeat exports to the European Union for the 2012 quota year. Section 3 outlines the method for calculating the yearly allocation of quota among licensed exporters, which includes an 80/20 split between recorded shipments to the EU and exporters' performance credits respectively. Section 4 details the process for obtaining approvals to export and the issuance of quota certificates. Section 5 defines what constitutes performance and outlines the operation of individual exporters’ quota accounts. Section 6 provides a schedule of administratively significant dates, such as the deadline for submitting applications for quota and the dates for quota transfers.
This Act imposes several obligations and requirements on the parties involved. Firstly, licensed exporters must be either an EU-accredited meat processing plant or source their product from such plants to be eligible for quota. They must also ensure their operations comply with the performance metrics set out in section 4 to maintain their performance credits. Additionally, exporters are required to submit applications for quota allocation and certificates within the specified deadlines. The Act also mandates that any trading of quota or export performance must comply with the constraints outlined in section 19, ensuring that quota remains available only to active exporters to the EU market.
Breaches of this Act can lead to various offences and penalties. Section 20 specifies that unauthorised exports of sheepmeat or goatmeat to the EU can result in civil penalties, including fines. The maximum penalty for such offences is outlined in section 21, which states that the penalty can be up to 10,000 penalty units for individuals and 50,000 penalty units for bodies corporate, depending on the severity of the breach. Additionally, section 22 imposes criminal penalties for fraudulent activities related to quota allocation and certificate issuance, with potential imprisonment terms for offenders. These provisions ensure compliance and the fair distribution of quota among eligible exporters.