Customs (Prohibited Exports) Amendment Regulations 2004 (No. 2)

Administered by Attorney-General's Department

Legislation au F2004B00128 Regulations Not in force Legislative Instrument

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Customs (Prohibited Exports) Amendment Regulations 2004 (No. 2) 2004 No. 107

EXPLANATORY STATEMENT

STATUTORY RULES 2004 NO. 107

Issued by the Authority of the Minister for Justice and Customs

Customs Act 1901

Customs (Prohibited Exports) Amendment Regulations 2004 (No. 2)

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 or as may be necessary or convenient to be prescribed for giving effect to the Act or for the conduct of any other business relating to the Customs.

Sections 112 of the Act provides in part that the Governor-General may, by regulation, prohibit the exportation of goods into 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 Customs (Prohibited Exports) Regulations 1958 (the PE Regulations) control the exportation of specified goods for the purposes of the Act.

The purpose of the amending Regulations is to introduce new export restrictions on synthetic greenhouse gases and certain air-conditioning and refrigeration equipment and to clarify existing restrictions on ozone depleting gases.

Existing subregulations 13F(1) and 13F(3) of the PE Regulations prohibit the exportation of ozone depleting substances mentioned in Schedule 10 to the PE Regulations unless a licence to export the goods has been granted under the Ozone Protection Act 1989 (the OP Act) and the licence is produced to a Collector.

The OP Act was amended by the Ozone Protection and Synthetic Greenhouse Gas Legislation Amendment Act 2003 (the Amendment Act) and renamed the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the OPSGGM Act).

The existing restrictions in the PE Regulations on ozone depleting substances complement restrictions on the exportation of ozone depleting substances imposed by the former OP Act. This Act controlled the exportation of ozone depleting substances but did not provide for these prohibitions to be enforced at the customs border. Ozone depleting substances were therefore included in the PE Regulations to make them prohibited exports.

The renamed OPSGGM Act contains the same controls on the exportation of ozone depleting substances as the former OP Act, with some minor amendments, and has also introduced new restrictions on such substances.

The amending Regulations amend the PE Regulations to reflect the new and amended export restrictions in the OPSGGM Act.

The amending Regulations insert new substances, consisting of a range of synthetic greenhouse gases and an ozone depleting substance, into Schedule 15 to the PE Regulations. They also substitute new regulation 13F for existing regulation 13F of the PE Regulations.

New regulation 13F prohibits the exportation without a licence of a substance mentioned in Schedule 10 to the PE Regulations and sets out new exceptions to the export restrictions. New regulation 13F also prohibits the exportation of hydrobromofluorocarbons mentioned in Schedule 15 absolutely.

Details of the amending Regulations are in Attachment A.

The amending Regulations commenced on the date of their notification in the Gazette.

0401409B

ATTACHMENT A

DETAILS OF THE CUSTOMS (PROHIBITED EXPORTS) AMENDMENT REGULATIONS 2004 (No. 2)

Regulation 1 - Name of Regulations

Regulation 1 provides that the Regulations are the Customs (Prohibited Exports) Amendment Regulations 2004 (No. 2).

Regulation 2 - Commencement

Regulation 2 provides that the Regulations commence on the date of their notification in the Gazette.

Regulation 3 - Amendment of Customs (Prohibited Exports) Regulations 1958

Regulation 3 provides that Schedule 1 amends the Customs (Prohibited Exports) Regulations 1958 (the PE Regulations).

SCHEDULE 1 - AMENDMENTS

Item 1 - Definition of CFC

Item 1 defines CFC (chlorofluorocarbon) to mean a substance mentioned in Part 1 of Schedule 15, whether existing alone or in a mixture. This term is used in new regulation 13F.

Item 2 - Definitions of HBFC, HCFC and HFC

Item 2 defines HBFC (hydrobromofluorocarbon), HCFC (hydrochlorofluorocarbon) and HFC (hydrofluorocarbon) to mean a substance mentioned in Part 6, Part 5 and Part 9 of Schedule 15 respectively, whether existing alone or in a mixture. These terms are used in new regulation 13F.

Item 3 - Definition of PFC

Item 3 defines PFC (perfluorocarbon) to mean a substance mentioned in Part 10 of Schedule 15, whether existing alone or in a mixture. This term is used in new regulation 13F.

Item 4 - Definition of SGG

Item 4 defines SGG (synthetic greenhouse gas) to mean a HFC or a PFC. This term is used in new regulation 13F and is defined in the same manner as in the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the OPSGGM Act).

Item 5 - Regulation 13F

Item 5 substitutes new regulation 13F.

New subregulation 13F(1) prohibits the exportation of a substance to which regulation 13F applies unless a licence to export that substance granted under the OPSGGM Act, or a copy of that licence, is produced to the Collector. Exportations to external Territories are specifically excluded as these are not subject to the restrictions in the OPSGGM Act.

New subregulation 13F(2) specifies that this regulation applies to a substance mentioned in column 2 of an item in Schedule 15.

In accordance with section 9 of the OPSGGM Act, new subregulation 13F(3) makes it clear that subregulation 13F(1) does not apply to the exportation of a substance mentioned in column 2 of an item in Schedule 15 that is:

(a) contained in goods that will use the substance in the operation of the goods; or

(b) present in goods because the substance was used in the manufacturing process for the goods.

New subregulation 13F(4) provides an exception to the prohibition with respect to a CFC, HCFC, or SGG on a board a ship or aircraft that is used exclusively to service or maintain air-conditioning or refrigeration equipment during international journeys. This exception mirrors section 12B of the OPSGGM Act.

New subregulation 13F(5) prohibits the exportation of a HBFC absolutely. This prohibition is consistent with subregulation 13(2) of the OPSGGM Act. Exportations to external Territories are specifically excluded as these are not subject to the restrictions in the OPSGGM Act.

Item 6 - Schedule 15, Parts 1 to 7, column headings

Item 6 inserts column numbers into the columns in existing Parts 1 to 7 of Schedule 15.

Item 7 - Schedule 15

Item 7 inserts new Parts 8, 9 and 10 into Schedule 15. Part 8 lists a single substance, bromochloromethane, which is an ozone-depleting substance. Part 9 sets out a range of HFCs and Part 10 sets out a range of PFCs.

 

Overview

The Customs (Prohibited Exports) Amendment Regulations 2004 (No. 2) were enacted to align the Customs (Prohibited Exports) Regulations 1958 with the new and amended export restrictions on ozone-depleting substances and synthetic greenhouse gases introduced by the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. These Regulations were made under the authority of the Minister for Justice and Customs, pursuant to subsection 270(1) of the Customs Act 1901, which empowers the Governor-General to make regulations necessary or convenient for the conduct of customs business. The policy objective of these amendments is to ensure that the export controls set out in the Ozone Protection and Synthetic Greenhouse Gas Management Act are effectively enforced at Australia’s customs borders, thereby supporting Australia's obligations under international agreements on ozone depletion and climate change. The Regulations introduce new export restrictions on synthetic greenhouse gases and certain air-conditioning and refrigeration equipment, while also clarifying existing restrictions on ozone-depleting substances. They incorporate the new substances listed in the Ozone Protection and Synthetic Greenhouse Gas Management Act into the Customs (Prohibited Exports) Regulations, ensuring that these substances require a licence for export, except in specific circumstances such as when the substances are used in the operation or manufacturing of goods, or when they are present on a ship or aircraft for servicing international air-conditioning or refrigeration equipment. These amendments aim to provide a comprehensive regulatory framework that supports environmental protection and compliance with international obligations.

Scope and Application

The Customs (Prohibited Exports) Amendment Regulations 2004 (No. 2) apply to the exportation of goods that are subject to restrictions under the Customs Act 1901. These regulations specifically focus on prohibiting or restricting the exportation of certain substances, including synthetic greenhouse gases, ozone depleting gases, and particular air-conditioning and refrigeration equipment. The regulations apply to individuals and entities involved in the exportation of these substances from Australia, aligning with the controls established by the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. The geographical scope of these regulations is nationwide, covering all states and territories of Australia, except for exports to external territories which are exempt from these restrictions. The regulations came into effect on the date of their notification in the Gazette and extend the application of the Customs Act 1901 by specifying new export restrictions and amending existing ones to reflect changes introduced by the Ozone Protection and Synthetic Greenhouse Gas Legislation Amendment Act 2003.

Key Provisions

The Customs (Prohibited Exports) Amendment Regulations 2004 (No. 2) primarily serve to amend the Customs (Prohibited Exports) Regulations 1958 by introducing new restrictions on the exportation of synthetic greenhouse gases and certain air-conditioning and refrigeration equipment, while also clarifying existing restrictions on ozone-depleting substances (section 3). Specifically, new regulation 13F inserted by the amending Regulations replaces existing regulation 13F, prohibiting the export of substances listed in Schedule 15 unless a licence is obtained under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (OPSGGM Act). The new regulation also makes exceptions for certain substances contained in goods or used in manufacturing processes, as well as substances used for servicing or maintaining air-conditioning or refrigeration equipment on ships or aircraft engaged in international journeys. Under the amending Regulations, entities and individuals exporting goods subject to the new restrictions must comply with the export licensing requirements set forth in the OPSGGM Act. This includes obtaining the necessary licences before attempting to export the specified substances. Failure to produce a valid licence or a copy of the licence to a Collector at the time of exportation can result in penalties. Additionally, any export of hydrobromofluorocarbons (HBFC) is absolutely prohibited under new subregulation 13F(5), further reinforcing the stringent controls on certain hazardous substances. Breaches of the provisions under the amending Regulations can lead to civil and criminal penalties. For example, knowingly or recklessly exporting a prohibited substance without a licence can result in substantial fines, as outlined in the OPSGGM Act. The maximum penalty for contravening the export restrictions may vary based on the severity and circumstances of the offence, but it generally includes fines that can be significant, reflecting the importance of adhering to environmental protection laws. These penalties underscore the regulatory framework's intent to enforce strict controls on the exportation of environmentally harmful substances.

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