EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS (PROHIBITED EXPORTS) REGULATIONS (AMENDMENT)
STATUTORY RULES 1990 NO. 438
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SMALL BUSINESS AND CUSTOMS
Section 112 of the Customs Act 1901 provides in part that:
“1) The Governor-General may, by regulation, prohibit the exportation of goods from Australia.
2) The power conferred by sub-section (1) may be exercised -… (c) by prohibiting the exportation of goods unless specified conditions or restrictions are complied with.
2A) Without limiting the generality of paragraph (2) (c), the Regulations - … (a) may provide that the exportation of the goods is prohibited unless a licence, permission, consent or approval to export the goods or a class of goods in which the goods are included has been granted as prescribed by the regulations; and …”
The Customs (Prohibited Exports) Regulations (the Regulations) control the exportation of the goods specified in the various Regulations or the Schedules to the Regulations, by prohibiting exportation absolutely, or making exportation subject to the permission of a specified person or Minister of State.
The proposed Statutory Rules amend the Regulations to remove export controls on liquefied petroleum gas.
Background
Item 20 of Schedule 7 to the Customs (Prohibited Exports) Regulations prohibits the exportation of liquefied petroleum gas and liquefied natural gas unless the permission of the Minister for Primary Industries and Energy is first obtained.
As a result of a Government review of liquefied gas policies, the Government announced on 21 August 1990, the removal of export controls on liquefied petroleum gas and that this would take effect from 1 January 1991. This removal acknowledges the readiness of the LPG industry for deregulation in relation to both prices and export controls and is consistent with this Government’s attention to microeconomic reform.
New regulation 1 provides for the required 1 January 1991 commencement.
New regulation 2 provides that the Customs (Prohibited Exports) Regulations are amended as set out in these Regulations.
New regulation 3 omits Schedule 7 and substitutes a new Schedule 7 which prohibits the exportation of all goods contained in the previous Schedule 7 except for liquefied petroleum gas, which gives effect to the request from the Minister for Resources. The new Schedule 7 is also made more “user-friendly” by renumbering the items contained therein.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1990 No. 438, issued under the authority of the Minister of State for Small Business and Customs, amend the Customs (Prohibited Exports) Regulations to remove export controls on liquefied petroleum gas. Enacted by the Commonwealth Parliament, these regulations aim to align with the government's broader microeconomic reform agenda by deregulating the liquefied petroleum gas industry, allowing for greater market freedom and efficiency. This legislative amendment recognises the preparedness of the industry for deregulation in relation to both pricing and export controls, thereby facilitating smoother commercial operations and reducing bureaucratic hurdles for exporters.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1990 No. 438 amends the Customs (Prohibited Exports) Regulations to remove export controls on liquefied petroleum gas (LPG). This amendment applies to the exportation of goods from Australia, specifically targeting the removal of restrictions on LPG as per the Customs Act 1901. The Regulations govern the exportation of goods by either prohibiting it outright or making it subject to the permission of a specified person or Minister of State. The amendments are effective from 1 January 1991, reflecting the government's decision to deregulate LPG exports as part of broader microeconomic reform efforts. These changes acknowledge the industry's readiness for deregulation and are intended to streamline the export process, with LPG now exempt from the previous controls that required ministerial permission. The amendment substitutes the existing Schedule 7 with a new version that retains prohibitions on other goods but excludes LPG, thereby giving effect to the Minister for Resources' request and improving the user-friendliness of the schedule through renumbering of items.
Key Provisions
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1990 No. 438, issued under the authority of the Minister of State for Small Business and Customs, aim to amend the Customs (Prohibited Exports) Regulations by removing export controls on liquefied petroleum gas (LPG). Under section 112 of the Customs Act 1901, the Governor-General has the power to prohibit the exportation of goods from Australia, and this power can be exercised by regulation (1). The Regulations provide for the absolute prohibition of certain goods or make exportation subject to the permission of a specified person or Minister of State (2). The amendments to the Regulations, outlined in these Statutory Rules, reflect a government decision to deregulate the LPG industry, consistent with broader microeconomic reforms.
The proposed amendments impose specific obligations on entities wishing to export LPG. Regulation 1 sets the commencement date for these changes, effective from 1 January 1991. Regulation 2 details the amendments to the Customs (Prohibited Exports) Regulations, while Regulation 3 removes the prohibition on the exportation of LPG from Schedule 7. This means that from the commencement date, exporters no longer need to seek permission from the Minister for Primary Industries and Energy to export LPG. Instead, the new Schedule 7 only includes liquefied natural gas among the prohibited exports, and the items within it are renumbered for clarity and ease of use.
Failure to comply with the provisions of the Customs Act 1901 and the Customs (Prohibited Exports) Regulations can result in various legal consequences. The Act stipulates that unauthorised exportation of prohibited goods can lead to criminal charges and penalties. Under section 163 of the Customs Act, a person who contravenes a provision of the Act or the Regulations may be liable to a penalty of up to 50 penalty units for a minor offence, and up to 500 penalty units for a serious offence. Additionally, there are potential civil penalties for breaches, as outlined in section 165. These include fines up to 10,000 penalty units for individuals and 50,000 penalty units for bodies corporate, alongside possible imprisonment terms. The severity of the penalties reflects the seriousness of attempting to export goods without the required permissions or in breach of the specified conditions.