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.
Overview
The Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2014) Order 2013 was enacted to establish and administer the quota arrangements for the export of sheepmeat and goatmeat from Australia to the European Union for the quota year from 1 January 2014 to 31 December 2014. This order was made under the Australian Meat and Live-stock Industry Act 1997 and the Australian Meat and Live-stock (Quotas) Act 1990, with the aim of ensuring a fair return and the best commercial interests of the industry. The order was developed in consultation with the industry and aims to provide a fair and orderly operating environment for Australian exporters, reflecting the EU's updated zero tariff rate quota regime. The amendments to the order primarily adjust the dates to align with the 2014 quota year and include minor changes to enhance readability without altering the substantive content of the legislation.
Scope and Application
The Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2014) Order 2013 applies to licensed exporters of sheepmeat and goatmeat who wish to export these products to the European Union (EU) within the specified quota year from 1 January 2014 to 31 December 2014. This order is applicable to entities that are either EU-accredited meat processing plants or source their product from such plants. It outlines the method for calculating the yearly allocation of the 19,186-tonne quota among eligible exporters, the process for obtaining approvals to ship in-quota and securing quota certificates, and the criteria for performance and individual exporters' quota accounts. The order is administered by the Department of Agriculture under the Australian Meat and Live-stock Industry Act 1997 and the Australian Meat and Live-stock (Quotas) Act 1990. The amendments primarily update the administrative dates for the 2014 quota year, and minor readability improvements have been made to enhance clarity. There are no stated exclusions, exemptions, or thresholds in this order, and it does not extend or restrict application through subordinate instruments.
Key Provisions
The Australian Meat and Livestock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2014) Order 2013, which is grounded in sections 17 of the Australian Meat and Livestock Industry Act 1997 and the Australian Meat and Livestock (Quotas) Act 1990, details the procedures for exporting sheepmeat and goatmeat from Australia to the European Union for the 2014 quota year. This order delineates the allocation of the annual quota, the process for obtaining necessary approvals and certificates, and the criteria for performance and individual exporters’ quota accounts. According to section 2 of the order, the quota for the year is set at 19,186 tonnes, with 80% of this quota being allocated based on previous year’s shipments to the EU market, and the remaining 20% based on exporters' performance credits for exports to all destinations.
The order imposes several obligations on the parties involved. Firstly, to be eligible for quota, licensed exporters must either be an EU-accredited meat processing plant or source their product from such plants (section 4). Secondly, exporters must adhere to the specified timeline for trading quota entitlement and export performance, with transfers of quota being absolute to ensure quota availability to active exporters only (section 18). Additionally, exporters must comply with the administrative dates outlined in the order for activities such as quota applications and performance reporting (section 20).
Failure to comply with the provisions of this order can lead to civil or criminal consequences. While the specific penalties are not detailed in the explanatory statement, violations of meat and livestock export regulations generally can result in significant penalties under the Australian Meat and Livestock Industry Act 1997 and other related legislation. For example, non-compliance with quota requirements can lead to fines or other penalties, and in severe cases, criminal charges may be pursued against individuals or entities that deliberately or negligently breach the terms of the order. The maximum penalties for such offences can be substantial, reflecting the seriousness with which the Australian Government treats compliance with meat and livestock export regulations.