EXPLANATORY STATEMENT
DEPARTMENT OF AGRICULTURE
Australian Meat and Live-stock Industry
(Sheepmeat and Goatmeat Export to the European Union – Quota Year 2014)
Order 2013
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 (the department) may make certain orders in relation to meat or live-stock exports from Australia for the purpose of ensuring a fair return and in the best commercial interests of the industry.
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 quota arrangements to provide a fair and orderly operating environment for Australian exporters of sheepmeat and goatmeat to the European Union (EU).
Each year the EU updates its zero tariff rate quota regime for sheepmeat and goatmeat imports and the order reflects these updates.
For the purpose of this order, the quota year is from 1 January 2014 to 31 December 2014.
Consultation
The current quota administrative arrangements were developed in consultation with industry. Each year the order is updated to re-align the administrative and operating dates for the next quota year. These amendments are mechanical in nature 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 14341).
Summary of Order
Australia’s country-specific EU sheepmeat and goatmeat quota amount is 19 186 tonnes.
The order explains the method used to calculate the yearly allocation of the 19 186 tonnes among eligible exporters, how to get approvals to ship in-quota 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 that are promulgated in the order are:
- 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. Exporters 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 primarily to the dates to reflect the timelines applying to the 2014 quota year.
Some additional minor amendments to improve the readability of the legislation have also been made. These remove references that were circular and definitions that were considered unnecessary.
Human Rights Compatibility Statement
The amendments to the Order are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The amendments to the order do not raise any human rights issues as their focus is on continuing existing administrative arrangements into the next quota year. The compatibility statement is attached.