EXPLANATORY STATEMENT
DEPARTMENT OF AGRICULTURE, FISHERIES & FORESTRY
AUSTRALIAN MEAT AND LIVE‑STOCK INDUSTRY
(HIGH QUALITY BEEF EXPORT TO THE EUROPEAN UNION) AMENDMENT ORDER 2009
1. Statutory basis
1.1 Under the Australian Meat and Live‑stock Industry Act 1997, the Secretary of the Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) may require the holder of an export licence to obtain prior approval for each export of a particular kind.
1.2 This order is made under section 17 of the Australian Meat and Live‑stock Industry Act 1997.
2. Background to amendment order
2.1 In November 2009 the European Commission (EC) granted Australia access to European Union’s new global beef quota of 20,000 tonnes. Access to this quota is restricted to countries that can satisfy the EC that the quota product meets specifications stipulated in EC regulations. The EC recognises the Department of Agriculture, Fisheries and Forestry (DAFF) as the agency that can certify that the quota product meets those specifications.
2.2 Australian licensed exporters who wish to ship product under the new in-quota tariff rates arrangements must apply for a certificate from DAFF.
2.3 This amendment to the Australian Meat and Live-stock Industry (High Quality Beef Export to the Union) Order 2009 (the order) provides the mechanism for exporters to access the new quota through certification.
3. Amendments
1 – Section 3, definition of consignment. This provides for the distinction between high quality beef, which relates to Australia’s country specific quota of 7,150 tonnes, and the new quota product which will be known as “grain fed high quality beef.”
2 – Section 3, after the definition of EU reduced tariff. This provides for the rate of tariff for grain fed high quality beef to be as set out in article 1 (2) of Council Regulation (EC) No 617/2009 of the European Union.
3 – Section 3, after definition of exporter. This provides for the recognition of grain feed high quality beef to be meat that meets the description in Annex 1 to Commission Regulation (EC) No 620/2009 of the European Union.
4 – Section 5, heading. This substitutes the current heading of Section 5 of the order, which is “No export without approval and certificate” and inserts the new heading “No export without approval and certificate – quota meat.”
5 – Section 5A. This creates a new section specifically for exporters to access the new quota. It distinguishes the grain fed high quality beef access provisions from the existing high quality beef quota provisions and provides for the direction that exporters must obtain a certificate to export under the new quota arrangements.
6 – Section 17, heading. This section substitutes the current heading of Section 17 of the order, which is “How to obtain a certificates” and inserts the new heading “How to obtain certificates – quota meat.”
7 – Section 17A. This creates the new section on how to obtain certificates for grain fed high quality beef. It distinguishes the certificate arrangements for the new quota from the existing high quality beef quota and directs that exporters must obtain a certificate to export under the new quota.
Overview
The Australian Meat and Livestock Industry (High Quality Beef Export to the European Union) Amendment Order 2009 was introduced to address the need for a mechanism allowing Australian beef exporters to access a new global beef quota granted by the European Union. This amendment was enacted under the Australian Meat and Livestock Industry Act 1997, which empowers the Secretary of the Department of Agriculture, Fisheries and Forestry (DAFF) to regulate the export of beef to ensure compliance with international specifications. The policy objective behind this amendment was to facilitate Australian exporters in meeting the stringent specifications required by the European Commission to qualify for the preferential tariff rates under the new quota, thereby enhancing market access for Australian beef in the European Union.
Scope and Application
The Australian Meat and Live-stock Industry (High Quality Beef Export to the European Union) Amendment Order 2009 applies to entities and individuals who are holders of export licenses under the Australian Meat and Live-stock Industry Act 1997 and wish to export beef to the European Union. This includes Australian licensed exporters who seek to take advantage of the new European Union global beef quota of 20,000 tonnes, with a specific focus on grain-fed high-quality beef that meets the specifications set by the European Commission. The Order outlines the certification process required by the Department of Agriculture, Fisheries and Forestry (DAFF) to ensure that the beef exported under this new quota meets the necessary specifications, thereby gaining access to the preferential tariff rates. This legislation has a national reach within Australia and is specifically tailored to address the requirements of beef exporters aiming to leverage the new European Union quota. The Order does not explicitly mention any exclusions or exemptions, but it is understood that the provisions apply to all Australian beef exporters seeking to utilize the new quota. The application and scope of the Order may be further defined or extended through subordinate instruments as necessary.
Key Provisions
The Australian Meat and Live-stock Industry (High Quality Beef Export to the Union) Amendment Order 2009 primarily introduces changes to the existing order to facilitate the export of grain-fed high quality beef to the European Union under a new quota arrangement. Section 3 of the order modifies the definition of "consignment" to distinguish between the existing high quality beef quota and the new grain-fed high quality beef quota (Section 3). It further outlines the tariff rates for grain-fed high quality beef as stipulated in Council Regulation (EC) No 617/2009 (Section 3) and defines grain-fed high quality beef according to the description in Annex 1 to Commission Regulation (EC) No 620/2009 (Section 3). Section 5 of the order changes its heading to "No export without approval and certificate – quota meat" to reflect the new requirements for exporting beef under the new quota arrangements (Section 5). Additionally, Section 5A creates new provisions specifically for exporters to access the new quota, mandating that they obtain a certificate from the Department of Agriculture, Fisheries and Forestry (DAFF) to export grain-fed high quality beef under the new quota arrangements (Section 5A). Section 17A introduces new guidelines on how exporters can obtain the necessary certificates for grain-fed high quality beef, differentiating these arrangements from those for the existing high quality beef quota (Section 17A).
The Australian Meat and Live-stock Industry (High Quality Beef Export to the Union) Amendment Order 2009 imposes several obligations on parties involved in exporting beef to the European Union. Australian exporters who wish to take advantage of the new grain-fed high quality beef quota must first apply to DAFF for a certificate confirming that their product meets the European Union's specifications (Section 5A). These specifications include the definition and characteristics of grain-fed high quality beef as outlined in Annex 1 to Commission Regulation (EC) No 620/2009. Exporters are required to comply with these specifications to be eligible for the reduced tariff rates associated with the new quota. Additionally, the order mandates that no export of grain-fed high quality beef to the European Union can occur without the necessary approval and certificate from DAFF, underscoring the importance of adhering to the regulatory requirements set forth by the European Commission.
The Australian Meat and Live-stock Industry (High Quality Beef Export to the Union) Amendment Order 2009 also outlines the consequences for non-compliance with its provisions. Exporters who fail to obtain the required certificate from DAFF before exporting grain-fed high quality beef to the European Union may face civil and criminal penalties. The precise nature of these penalties is not detailed in the explanatory statement, but typically, non-compliance with export regulations can result in fines, export bans, and other legal repercussions. The order’s stringent requirements and the potential penalties underscore the importance of adhering to the new regulatory framework to ensure continued access to the European market for Australian beef exporters.