EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS (PROHIBITED EXPORTS) REGULATIONS (AMENDMENT)
STATUTORY RULES 1990 NO. 333
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SMALL BUSINESS AND CUSTOMS
Section 112 of the Customs Act 1901 provides in part thats
“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 import 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 Statutory Rules contain several amendments to the Regulations which:
i) add twenty chemicals to the existing list of thirty chemicals in Schedule 15 to the Regulations, and
ii) effect two minor technical drafting corrections.
Background
Regulation 13D of the Regulations provides that the exportation of certain goods which contain 10% or more, by weight, of a chemical compound listed in Schedule 15 to the Regulations is prohibited unless the Minister for Foreign Affairs and Trade, or a person authorised by him, grants a permission to export the goods. The chemicals listed in Schedule 15 are referred to as “chemical weapon precursors” ie. they are used as an “ingredient” for chemical weapons.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1990 No. 333, issued under the authority of the Minister of State for Small Business and Customs, amend the Customs (Prohibited Exports) Regulations to address the need for enhanced regulation of the export of dangerous chemicals that can be used as precursors for chemical weapons. The Customs Act 1901 empowers the Governor-General to prohibit the exportation of goods from Australia, and the Regulations implement this by specifying the conditions or restrictions that must be complied with before such goods can be exported. The stated policy objective of these amendments is to strengthen the control over the export of chemicals that have the potential to be used in the production of chemical weapons by adding more chemicals to the list of prohibited exports and making minor technical corrections to existing regulations.
These amendments reflect a commitment to aligning Australian export controls with international obligations and enhancing national security by preventing the proliferation of materials that can be used to manufacture weapons of mass destruction. By updating Schedule 15 to include twenty additional chemicals, the Regulations aim to ensure that Australia's export controls are comprehensive and effective in addressing contemporary threats and challenges in the global context.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1990 No. 333 amend the Customs (Prohibited Exports) Regulations to expand the list of chemicals classified as chemical weapon precursors, thereby tightening control over the exportation of these substances from Australia. The amendment adds twenty chemicals to the existing list of thirty chemicals in Schedule 15, thereby increasing the scope of substances subject to export restrictions under the Regulations. These Regulations apply to individuals and entities that seek to export goods containing specified chemicals, ensuring that such exports comply with the necessary conditions or restrictions as prescribed by the Minister for Foreign Affairs and Trade or an authorised person. The Regulations impose an absolute prohibition on the export of goods that contain 10% or more, by weight, of a chemical compound listed in Schedule 15 unless a permission to export is granted. This applies nationally, as the Regulations are a part of the Customs Act 1901, which is a Commonwealth Act, thereby extending its reach across all states and territories of Australia. The amendment does not introduce any new exclusions or exemptions but rather strengthens the existing framework by expanding the list of restricted chemicals.
Key Provisions
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1990 No. 333 amend the Customs (Prohibited Exports) Regulations by adding twenty chemicals to the existing list of thirty chemicals in Schedule 15 of the Regulations, and making two minor technical drafting corrections (Regulation 13D). The primary purpose of these amendments is to expand the scope of controlled chemicals that are subject to export restrictions under the Customs Act 1901. Specifically, these regulations now include an additional twenty chemicals to the list of substances that, when present in a good at a concentration of 10% or more by weight, are deemed as chemical weapon precursors and thus subject to export prohibition unless permission is granted by the Minister for Foreign Affairs and Trade or an authorised person.
Under these Regulations, the exportation of goods that contain certain specified chemicals in concentrations of 10% or more by weight is strictly controlled. These chemicals, listed in Schedule 15, are classified as "chemical weapon precursors" because of their potential use in the manufacture of chemical weapons. To export such goods, an individual or entity must obtain a permission to export from the Minister for Foreign Affairs and Trade or a person authorised by the Minister. This requirement ensures that the export of substances that could potentially be used for the development of chemical weapons is closely monitored and regulated to align with international obligations and national security interests.
The Regulations impose specific obligations on exporters who seek to export goods containing the listed chemicals. Exporters must ensure that they obtain the necessary permissions before attempting to export such goods. This involves applying to the relevant authority for a permission to export and complying with any conditions or restrictions that may be imposed as part of the permission process. Failure to comply with these obligations can result in significant legal consequences, including potential criminal charges and penalties.
Breaches of these Regulations can lead to serious civil and criminal consequences. For instance, exporting goods that contain the specified chemicals without the required permission is an offence under the Customs Act 1901. The Act prescribes severe penalties for such violations, which can include substantial fines and, in more serious cases, imprisonment. The specific penalties depend on the nature and severity of the breach, but the potential for significant legal repercussions underscores the importance of adhering to the regulatory requirements.