EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 173
Issued by the Authority of the Minister for Home Affairs
Customs Act 1901
Customs (Prohibited Exports) Amendment Regulations 2008 (No. 2)
Customs Amendment Regulations 2008 (No. 5)
Subsection 270(1) of the Customs Act 1901 (the Act) provides, in part, that the Governor‑General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed for giving effect to the Act.
Section 112 of the Act provides, in part, that the Governor‑General may, by regulation, prohibit the exportation of goods from Australia and that the power may be exercised by prohibiting the exportation of goods absolutely or by prohibiting the exportation of goods unless specified conditions or restrictions are complied with.
The amending Regulations amend the Customs (Prohibited Exports) Regulations 1958 (the PE Regulations) and the Customs Regulations 1926 (the Customs Regulations) to reflect the termination by the United Nations Security Council (the UNSC) of restrictions on the supply, sale or transfer of arms and related matériel to Rwanda.
The PE Regulations prohibit the exportation from Australia of goods specified in the various regulations and the Schedules to the PE Regulations, by prohibiting the exportation absolutely or by making the exportation subject to a permission or licence.
Regulation 13CG of the PE Regulations prohibits the exportation to Rwanda of paramilitary goods specified in Schedule 14B, unless the written permission to export the goods is obtained from the Minister for Foreign Affairs or an authorised person of the Department of Foreign Affairs and Trade. Regulation 13CG and Schedule 14B were enacted to implement Australia's obligations to impose trade sanctions against Rwanda under UNSC Resolution 1011 (1995). However on 10 July 2008, the UNSC adopted Resolution 1823, which terminated the trade sanctions imposed under Resolution 1011.
The purpose of the amending Regulations is to give effect to the termination of the trade sanctions against Rwanda under UNSC Resolution 1823 by repealing regulation 13CG and Schedule 14B of the PE Regulations. The amending Regulations also remove cross-references to regulation 13CG in regulation 13H of the PE Regulations.
Regulation 179AAA and Schedule 1AB to the Customs Regulations prescribe UN-sanctioned goods for the purposes of the criminal offences of importing and exporting UN-sanctioned goods. UN-sanctioned goods are goods that are subject to trade sanctions under UNSC Resolutions and goods that are subject to UNSC trade sanctions that apply to Rwanda are included in items 1 and 12 of Part 2 to Schedule 1AB.
As a result of the UNSC trade sanctions against Rwanda being terminated, it is no longer necessary to prescribe such goods as UN-sanctioned goods. Therefore, the amending Regulations also omit item 1, and paragraph (i) of item 12, of Part 2 of Schedule 1AB to the Customs Regulations, and re-number the items in Part 2 as a consequence.
No consultation was undertaken specifically in relation to the amending Regulations as they implement Australia’s international obligations under the Security Council resolution.
The amending Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
0816908A
0816908B
Overview
The Customs (Prohibited Exports) Amendment Regulations 2008 (No. 2) and Customs Amendment Regulations 2008 (No. 5) were enacted to adjust Australia's regulatory framework in alignment with international obligations under United Nations Security Council Resolution 1823. This resolution terminated trade sanctions imposed on Rwanda by Resolution 1011 (1995). These regulations were issued under the authority of the Customs Act 1901, with the primary objective of reflecting the UNSC's decision by removing specific prohibitions and classifications related to exports to Rwanda. Regulation 13CG of the Customs (Prohibited Exports) Regulations 1958, which required written permission for the export of paramilitary goods to Rwanda, was repealed, as was Schedule 14B that listed such goods. Additionally, the Customs Regulations 1926 were amended to omit certain goods from the list of UN-sanctioned goods, reflecting their removal from the scope of UNSC trade sanctions. These amendments ensure that Australian regulations are consistent with international law and effectively implement the UNSC's updated stance on trade restrictions to Rwanda.
Scope and Application
The Customs (Prohibited Exports) Amendment Regulations 2008 (No. 2) and the Customs Amendment Regulations 2008 (No. 5) apply to all persons and entities involved in the exportation of goods from Australia, particularly those engaged in the export of goods that were previously subject to trade sanctions under United Nations Security Council resolutions. These regulations operate within the jurisdictional reach of the Commonwealth of Australia, as they are amendments to the Customs Act 1901. They specifically address the termination of trade sanctions against Rwanda, which were previously implemented under the Customs (Prohibited Exports) Regulations 1958 and the Customs Regulations 1926. The regulations repeal the prohibitions on the exportation of specified paramilitary goods to Rwanda, as well as the associated references and prescriptions within the PE Regulations and the Customs Regulations, in response to the UNSC Resolution 1823 which terminated these sanctions. The application of these regulations is therefore restricted to the context of trade activities involving Rwanda and the specified goods that were once subject to UNSC trade sanctions.
Key Provisions
The Customs (Prohibited Exports) Amendment Regulations 2008 (No. 2) and the Customs Amendment Regulations 2008 (No. 5) primarily focus on repealing certain provisions related to the export of goods from Australia to Rwanda. Specifically, Regulation 13CG of the Customs (Prohibited Exports) Regulations 1958, which prohibited the export of paramilitary goods to Rwanda, is repealed (regs 1 and 3). Additionally, Schedule 14B of the PE Regulations, which listed the specific paramilitary goods affected by this prohibition, is also repealed (regs 1 and 3). The Regulations further remove cross-references to Regulation 13CG in Regulation 13H of the PE Regulations (regs 1 and 3). Additionally, Regulation 179AAA and Schedule 1AB to the Customs Regulations 1926 are amended to remove items 1 and 12 of Part 2 of Schedule 1AB, which pertained to goods subject to UN-sanctioned trade restrictions against Rwanda (regs 2 and 4). These amendments reflect the termination of trade sanctions against Rwanda by the United Nations Security Council.
The primary obligation imposed by these Regulations is the removal of the restrictions on the export of specified goods to Rwanda, effectively lifting the previous prohibition on such exports. These Regulations require that any existing export permits related to the now-repealed provisions be reviewed and, where necessary, rescinded or modified accordingly. Additionally, entities previously subject to the restrictions must ensure compliance with the updated regulatory framework by ceasing any actions that were previously prohibited under the repealed provisions.
Breaching the provisions of the Customs Act 1901, including the now-repealed regulations, can result in significant penalties. Under Section 278 of the Act, a person who contravenes any regulation made under the Act is liable to a penalty not exceeding 10,000 penalty units or imprisonment for a term not exceeding five years, or both. The specific penalties for breaching the repealed regulations would depend on the nature and severity of the breach. Additionally, failure to comply with the updated regulations could result in civil or administrative penalties, including fines or other enforcement actions as determined by the relevant authorities.