EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS (PROHIBITED EXPORTS) REGULATIONS (AMENDMENT)
STATUTORY RULES 1989 NO. 264
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR INDUSTRY, TECHNOLOGY AND COMMERCE
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”.
The Customs (Prohibited Exports) Regulations (“the Regulations”) impose restrictions on goods specified in Schedules to the Regulations, by prohibiting exportation absolutely, or subject to the permission of a specified Minister of State.
The Statutory Rules contain two amendments to the Regulations which:
i) remove an existing anomaly from the Regulations; and
ii) remove sugar from export controls.
Background
i) Definition of “Petroleum” and “Petroleum Products”
Sub-regulation 2A(2) of the Regulations defines “petroleum” and “petroleum products” by reference to sub-regulation 9(4). However, sub-regulation 9(4) was removed from the regulations by Statutory Rules No. 317 of 1987, as a consequence of the Government’s Decision that crude oil and its associated products (except liquefied petroleum gas and liquefied natural gas) be free of export controls (with the exception of sales to South Africa). The definition previously contained in sub-regulation 9(4) is now contained in regulation 13C of the Regulations.
Regulation 2 of the Statutory Rules will amend “the Regulations” to remove the definition of “petroleum” and “petroleum products” from sub-regulation 2A(2).
ii) Third Schedule Amendment
Regulation 5 of “the Regulations” provides, inter alia, that the exportation from Australia of goods specified in the Third Schedule is prohibited unless an approval in writing for the exportation of the goods issued by the Minister for Primary Industries and Energy or by an authorised officer is produced to the Collector.
Item 28A of the Third Schedule specifies “Sugar (including plain, coloured and flavoured sugar) and sugar syrups” as being goods which are subject to regulation 5.
Following the removal of the import embargo on sugar from 1 July 1989 and the termination of administered domestic pricing arrangements the Government decided that there is no longer a need for any export controls on sugar. Regulation 3 of the Statutory Rules will amend “the Regulations” to effect this decision by removing the sugar item from export controls.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1989 No. 264 were enacted to address specific anomalies and remove certain export controls as mandated by the Australian government. The Regulations amend the Customs (Prohibited Exports) Regulations under the authority of the Minister of State for Industry, Technology and Commerce, as provided by Section 112 of the Customs Act 1901. The primary objective of these amendments is to rectify an existing definitional anomaly concerning petroleum and petroleum products and to eliminate export controls on sugar. The first amendment removes the definition of "petroleum" and "petroleum products" from sub-regulation 2A(2) to align with the current regulatory framework, while the second amendment eliminates sugar from the list of goods subject to export controls following the removal of import embargoes and domestic pricing arrangements. These changes reflect the government's policy decisions aimed at streamlining export regulations and adapting to changing market conditions.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1989 No. 264 amends the Customs (Prohibited Exports) Regulations to refine the scope and application of export restrictions under the Customs Act 1901. This amendment applies to individuals and entities seeking to export goods from Australia, particularly those involved in the export of petroleum products and sugar. Geographically, the amendment operates nationally within Australia. The changes include the removal of an existing anomaly concerning the definition of "petroleum" and "petroleum products" by updating references within the Regulations and the removal of sugar from the export controls list, reflecting recent policy changes regarding sugar exports. These amendments are made under the authority of the Minister of State for Industry, Technology and Commerce, and are designed to ensure that the Regulations remain aligned with current government policies and international trade practices.
Key Provisions
The Customs (Prohibited Exports) Regulations, as amended by the Statutory Rules 1989 No. 264, incorporate two significant changes to the existing regulations. Firstly, sub-regulation 2A(2) of the Regulations previously defined "petroleum" and "petroleum products" by reference to sub-regulation 9(4), which was subsequently removed by Statutory Rules No. 317 of 1987. This left the definition in sub-regulation 2A(2) without a corresponding reference. To rectify this anomaly, Regulation 2 of the Statutory Rules removes the reference to sub-regulation 9(4) from sub-regulation 2A(2), thus aligning the definitions within the Regulations. Secondly, Regulation 5 of the Regulations prohibits the exportation of goods listed in the Third Schedule unless a written approval from the Minister for Primary Industries and Energy or an authorised officer is presented to the Collector. This prohibition includes "sugar (including plain, coloured and flavoured sugar) and sugar syrups" under item 28A. However, due to the removal of the import embargo on sugar and the termination of administered domestic pricing arrangements, the government has decided that export controls on sugar are no longer necessary. Regulation 3 of the Statutory Rules therefore removes sugar from the export controls outlined in Regulation 5.
The obligations imposed by these amendments on the parties governed by the Regulations include ensuring that any definitions used within the Regulations are accurate and up to date, particularly in relation to "petroleum" and "petroleum products". Furthermore, those seeking to export goods listed in the Third Schedule must ensure that they have obtained the necessary written approval from the Minister or an authorised officer if their goods are subject to Regulation 5. The changes also require relevant parties to be aware of the removal of sugar from the list of prohibited export goods, and to adjust their practices accordingly.
For breach of the Regulations, the Customs Act 1901 provides various penalties and consequences. Section 150 of the Act outlines the general penalty for contravening the Customs Act or the Regulations, which includes a fine of up to 100 penalty units, or imprisonment for up to two years, or both. In cases where the breach involves more serious offences, such as smuggling or other deliberate violations, the penalties can be significantly higher, with fines of up to 210 penalty units and/or imprisonment for up to five years. It is important for all parties governed by the Regulations to be fully aware of their obligations and to comply with the requirements to avoid these potential penalties and consequences.