EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS (PROHIBITED EXPORTS) REGULATIONS (AMENDMENT)
STATUTORY RULES 1987 NO 317
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE AND SMALL BUSINESS
As part of the policy to eliminate unnecessary export controls, the Government has decided to abolish or amend export controls on certain products. This amendment to the Customs (Prohibited Exports) Regulations gives effect to that decision.
This Regulation also gives effect to the decision of the Government to free crude oil, and its associated products (except for liquefied petroleum gas and liquefied natural gas) from export controls as from 1 January 1988, although sales of petroleum products to South Africa will still be subject to export controls. The Regulation provides as follows:
Regulation 1: | provides that the proposed regulations will come into operation on 1 January, 1988. |
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Regulation 2: | identifies the Customs (Prohibited Exports) Regulations (“the Regulations”) as the regulations being amended. |
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Regulation 3: | omits subregulation 9(4), relating to the definition of “petroleum products” &c. from the Regulations, as a consequence of the proposed transfer of this definition to regulation 13C (see regulation 4). |
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Regulation 4: | adds a new subregulation 13C(3) to the Regulations, which defines the meaning of “petroleum”, “petroleum products” and “petroliferous mineral” for the purpose of item 8 in Schedule 14 to the Regulations. The definitions were previously contained in subregulation 9(4), which is omitted from the Regulations by Regulation 3 (above) |
Regulation 5: | removes the following goods from export controls: |
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| (i) goods and materials intended for human consumption and declared in writing by an officer of Customs to be unfit for export by reason of being contained in containers which are soiled, disfigured or damaged; |
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| (ii) wines (fortified or unfortified) declared in writing by the Minister for Industry, Technology and Commerce to be of such a quality that their exportation would be harmful to the reputation of Australian wine in a country to which they were to be exported; |
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| (iii) opium prepared for smoking, including dross and any other form of charred opium; and |
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| (iv) ketobemidone and its salts and preparations containing ketobemidone or any of its salts |
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| • the latter two items have been transferred to the export control regime contained in the Eighth Schedule to the Regulations (see regulation 9 below). |
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Regulation 6: | removes goods shipped as ship’s stores and the items contained in Part IV of Schedule 2 (“Goods capable of being used for purposes of War”) from export controls. |
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Regulation 7: | removes serum produced from the blood of a bovine animal, including the foetus of a bovine animal, and any product derived from serum so prepared, from export controls. |
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Regulation 8: | removes lead ores and concentrates, crude lead, slag and other residues, manganese ores, beneficiated manganese ores, manganese concentrates and agglomerates of manganese, nickel ores and concentrates, nickel matte, nickel oxide sinters, nickel cobalt sulphide and other intermediate products of nickel metallurgy, copper ores, zinc ores and concentrates, slags and other residues, petroleum and petroleum products (other than liquefied petroleum gas and liquefied natural gas), from export controls. |
Regulation 9: | imposes export controls on ketobemidone and its salts and preparations containing ketobemidone or any of its salts and opium prepared for smoking, including dross and any other forms of charred opium. |
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| • These goods are removed from the First Schedule to the Regulations by Regulation 5, discussed above, which prohibits the exportation of these goods absolutely. They have now been placed in Part 1 of the Eighth Schedule to the Regulations, which prohibits the exportation of the goods unless permission to export the goods has been granted by the Secretary for Health and Community Services. |
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Regulation 10: | prohibits the exportation of crude oil, petroleum and petroleum products that is to be exported to Namibia or South Africa, unless permission has been granted by the Minister for Foreign Affairs and Trade, or an authorised person. |
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| • While export controls on these products generally have been lifted, as part of the Government’s decision to deregulate the crude oil market as from 1 January, 1988, the embargo on the exportation of these products to South Africa is to be continued. |
Overview
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1987 No 317 were enacted to implement the Government's policy to eliminate unnecessary export controls, thereby promoting trade and economic efficiency. Issued under the authority of the Minister of State for Science and Small Business, these regulations amend the Customs (Prohibited Exports) Regulations, specifically targeting the deregulation of certain export items. The policy objective behind these amendments is to streamline export processes by removing controls on goods that no longer require such restrictions, while maintaining necessary controls on sensitive items to protect national interests and reputation. These regulations also reflect the decision to free crude oil and its associated products from export controls, with exceptions for liquefied petroleum gas and liquefied natural gas, and the continuation of the embargo on the exportation of these products to South Africa.
The regulations, which came into operation on 1 January 1988, involve a series of amendments to existing regulations, including the removal of certain goods from the list of prohibited exports and the reclassification of others to require explicit permission for export. These amendments aim to enhance the flexibility of export policies while ensuring that critical controls remain in place for items that could potentially harm Australia's economic or diplomatic standing. By refining the scope of export controls, the regulations seek to balance the need for economic growth with the imperative to safeguard national interests.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1987 No 317 applies to the Commonwealth of Australia, and amends the Customs (Prohibited Exports) Regulations by removing certain goods from the scope of export controls. The amendment applies to both individuals and entities involved in the exportation of goods, as well as industries that produce the specified goods. The Regulations affect a wide range of goods, including petroleum products, opium, certain pharmaceuticals, and other materials previously subject to export controls. The geographic scope of the Regulations is national, impacting all exports from Australia. However, there are exceptions for the export of certain goods to South Africa and Namibia, where export controls on petroleum products remain in place. The Regulations came into effect on 1 January 1988, and subordinate instruments may further extend or restrict their application.
Key Provisions
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1987 No 317, issued by the authority of the Minister of State for Science and Small Business, implement the Government's policy to eliminate unnecessary export controls. Key sections include Regulation 1, which sets the commencement date of the regulations as 1 January 1988, and Regulation 2, which identifies the Customs (Prohibited Exports) Regulations as the regulations being amended (regs 1, 2). Regulation 3 removes subregulation 9(4) related to the definition of "petroleum products," and Regulation 4 adds a new subregulation 13C(3) to define "petroleum," "petroleum products," and "petroliferous mineral" (regs 3, 4). Regulation 5 removes certain goods from export controls, such as goods unfit for export, certain wines, opium prepared for smoking, and ketobemidone and its salts (reg 5). Regulation 6 removes goods shipped as ship's stores and items from Part IV of Schedule 2 from export controls (reg 6). Regulation 7 removes serum produced from the blood of a bovine animal and related products from export controls (reg 7). Regulation 8 removes various ores, concentrates, and residues, as well as petroleum products (excluding liquefied petroleum gas and liquefied natural gas) from export controls (reg 8). Regulation 9 imposes export controls on ketobemidone and its salts, and opium prepared for smoking, requiring permission from the Secretary for Health and Community Services (reg 9). Regulation 10 prohibits the exportation of crude oil, petroleum, and petroleum products to Namibia or South Africa without permission from the Minister for Foreign Affairs and Trade or an authorised person (reg 10).
The Regulations impose specific obligations on parties and entities affected by these changes. Exporters must ensure compliance with the new export controls for ketobemidone, opium, and petroleum products destined for Namibia or South Africa. For other products removed from export controls, exporters are no longer required to obtain permits or authorisations. For products like ship's stores, wines of questionable quality, and opium, the Regulations require written declarations by relevant authorities, such as Customs or the Minister for Industry, Technology and Commerce, to substantiate claims related to unfitness for export or quality concerns.
Breaches of the amended Regulations can result in civil or criminal penalties. For example, exporting prohibited items without the necessary permissions, such as opium or petroleum products to South Africa, can lead to criminal charges. The maximum penalties are not specified in the provided text but would typically align with the severity of the breach, potentially including fines and imprisonment. Additionally, civil penalties may apply for non-compliance with the new requirements, such as the failure to obtain proper declarations for wines or opium. The exact penalties would be determined by the relevant authorities based on the specific circumstances of the breach.