EXPLANATORY STATEMENT
CUSTOMS (PROHIBITED EXPORTS) REGULATIONS (AMENDMENT)
STATUTORY RULES 1988 NO. 178
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE, CUSTOMS AND SMALL BUSINESS
The regulations acquit two undertakings to the Senate Standing Committee on Regulations and Ordinances to (a) repeal and remake regulation 13F so as to ensure that the Minister of State for Defence may control the duration of permissions granted under regulation 13E by himself or by authorised persons; and (b) to re-arrange Part I of the Eighth Schedule so that the two items inserted by Statutory Rules 1987 No. 317 appear in alphabetical order.
Further, the regulations remove an unnecessary export control on inferior wine.
Details of the regulations are as follows:
Regulation 1: is a machinery provision which defines the Customs (Prohibited Exports) Regulations as the “Principal Regulations” for the purposes of these Statutory Rules.
Regulation 2: repeals the current Regulation 13F and substitutes a redrafted Regulation 13F. The amendment is required to put beyond doubt that the Minister has the power to control the duration of a permission granted under Regulation 13E either by himself or an authorised person. The Senate Standing Committee on Regulations and Ordinances pointed out in its letter dated 22 February 1988 that the effect of the omission of the words “or an authorised person” as provided for in paragraph 4(a) of Statutory Rules 1987 No. 319 may have had the unforeseen consequence of making the duration of a permission granted by an authorised person incapable of control by the Minister. This result was not intended.
Regulation 3: removes item 9 from the First Schedule to the Customs (Prohibited Exports) Regulations ie. 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.
This item is being removed as part of the Government’s policy to eliminate unnecessary business regulation. It is considered the control of these goods under the Customs (Prohibited Exports) Regulations is unnecessary because of the existence of the controls laid down by the Australian Wine and Brandy Corporation Act 1980 and the associated Australian Wine and Brandy Corporation (Exports) Regulations. That legislation prohibits the exportation of wine in consignments exceeding 200 litres unless prescribed conditions, including soundness and merchantability, have been complied with. It also establishes a control regime which
involves such things as the licensing of exporters, quality checks by the Australian Wine and Brandy Corporation (AWBC), and certification of compliance with the prescribed conditions.
The Australian Customs Service (ACS) will continue to be involved in the control of exported wine insofar as it is responsible for ensuring that all consignments of wine exceeding 200 litres have AWBC approval. The ACS will achieve this by means of outward manifest checks conducted prior to granting a Certificate of Clearance for any vessel carrying the wine.
If a consignment of wine exceeding 200 litres is found not to have AWBC approval for exportation, the ACS will withhold a Certificate of Clearance relying on the AWBC legislation.
Regulation 4: effects a rearrangement of the Eighth Schedule to the Customs (Prohibited Exports) Regulations by renumbering items 70 and 71 so that they appear at items 37A and 49A, ie. in their correct alphabetical position within Part I of the Eighth Schedule.
This rearrangement acquits an undertaking given to the Senate Standing Committee on Regulations and Ordinances.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1988 No. 178 were enacted to address certain issues and gaps in the existing Customs (Prohibited Exports) Regulations. Issued by the authority of the Minister of State for Science, Customs and Small Business, these regulations aim to clarify and rectify specific regulatory provisions while also removing an unnecessary export control on inferior wine. The regulations were made in response to recommendations from the Senate Standing Committee on Regulations and Ordinances, including ensuring the Minister of State for Defence has control over the duration of permissions granted under regulation 13E and re-arranging the Eighth Schedule for clarity. Additionally, they remove a redundant control on the exportation of inferior wine, which is now adequately managed by the Australian Wine and Brandy Corporation Act 1980 and associated regulations. This amendment reflects the government's policy to streamline and eliminate unnecessary business regulation, thereby enhancing efficiency and compliance in the export sector.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1988 No. 178, issued under the authority of the Minister of State for Science, Customs and Small Business, amend the Customs (Prohibited Exports) Regulations to address several issues identified by the Senate Standing Committee on Regulations and Ordinances. The regulations modify the scope of the Minister's authority regarding the duration of permissions granted under Regulation 13E, ensuring that the Minister can control such permissions either personally or through authorised persons, thereby clarifying and correcting a potential oversight in the previous regulation. Additionally, these regulations remove an unnecessary export control on inferior wine, recognising that existing legislation under the Australian Wine and Brandy Corporation Act 1980 provides sufficient regulatory oversight for wine exports. The amendments also involve a minor reorganisation of the Eighth Schedule to ensure items are listed in alphabetical order, fulfilling a commitment made to the Senate Standing Committee.
Key Provisions
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1988 No. 178 primarily serve to amend and clarify existing regulations concerning the export of prohibited items under the Customs (Prohibited Exports) Regulations. Regulation 2 (s2) updates Regulation 13F, ensuring that the Minister of State for Defence or an authorised person can control the duration of permissions granted under Regulation 13E. This amendment was necessary to correct an oversight identified by the Senate Standing Committee on Regulations and Ordinances, which previously may have resulted in the Minister being unable to control the duration of permissions granted by authorised persons. Regulation 3 (s3) removes the control over the export of inferior wine from the Customs (Prohibited Exports) Regulations, aligning with the government's policy to reduce unnecessary business regulation. Instead, the Australian Wine and Brandy Corporation Act 1980 and its associated regulations now manage these exports, ensuring quality and reputation standards are maintained. Lastly, Regulation 4 (s4) reorders items in the Eighth Schedule to ensure they are listed in alphabetical order, fulfilling a commitment to the Senate Standing Committee on Regulations and Ordinances.
The obligations imposed by these regulations require the Minister of State for Defence to oversee the permissions granted under Regulation 13E, ensuring compliance with the stipulated durations. Authorised persons, who are delegated authority by the Minister, must adhere to these regulations when granting such permissions. The Australian Customs Service (ACS) retains its role in verifying that wine consignments exceeding 200 litres have the necessary approval from the Australian Wine and Brandy Corporation (AWBC). This involves conducting checks prior to issuing a Certificate of Clearance for vessels carrying these consignments. Failure to comply with these regulations can lead to the withholding of a Certificate of Clearance, effectively preventing the export of non-compliant goods.
Violations of the Customs (Prohibited Exports) Regulations can result in significant consequences. The regulations do not explicitly state penalties but refer to broader legislative frameworks where penalties may be defined. Typically, breaches of customs regulations can incur civil penalties, including fines, and in severe cases, criminal charges. The specific penalties would be determined based on the severity of the breach and could potentially include substantial fines and imprisonment for individuals found guilty of criminal offences. The exact penalties would be aligned with the provisions of the primary legislation governing customs and related offences in Australia.