EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS (PROHIBITED EXPORTS) REGULATIONS (AMENDMENT) STATUTORY RULES 1987 NO 318
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE AND SMALL BUSINESS
These Regulations have two purposes:
(i) to remove an impediment to potential exports of lithium carbonate; and
(ii) to effect consequential amendments to the Customs (Prohibited Exports) Regulations as a result of the new Ministerial arrangements embodied in the Administrative Arrangements Orders of 24 July 1987.
BACKGROUND
(i) Lithium
The Government conducts regular reviews of the Ninth Schedule to the Customs (Prohibited Exports) Regulations to ensure that whilst listings remain relevant to Australia’s nuclear non-proliferation objectives, they do not unnecessarily impede Australian exports.
The export control of lithium has been examined recently in the light of a proposal to produce and export lithium carbonate from spodumene, a lithium ore. The product proposed to be exported would appear to come under export controls pursuant to subitem 15(3) of the Ninth Schedule to the Regulations.
The Regulations thus seek to remove an impediment to potential exports of lithium carbonate in a way which is consistent with the Government’s policy on regulatory processes.
(ii) Other Amendments
Following the re-organisation of the Ministerial structure of the Government on 24 July 1987, many of the references to Ministers and Departments of State cited in the Customs (Prohibited Exports) Regulations have changed.
The Regulations seek to effect those amendments which are necessary to confer the appropriate Departments and Ministers with the responsibility for the administration of the various regulations of the Customs (Prohibited Exports) Regulations.
Details of the Regulations are as follows:
Regulation 1 is a machinery provision which identifies the Customs (Prohibited Exports) Regulations as the “Principal Regulations”.
Regulations 2 to 18 effect consequential changes to references to Ministers and Departments as a result of the re-organisation of the Ministerial structure of the Government on 24 July 1987.
Regulation 19 and the Schedule amend those regulations which refer to the “Director-General of Health” by substituting the new title of “Secretary of the Department of Community Services and Health”.
In addition, Regulation 15 effects the substantive change to the export controls on lithium. It provides that item 15 of the Ninth Schedule is omitted and instead, a new item which is substituted imposes narrower restrictions on the exportation of lithium. This will allow the exportation of lithium carbonate while still maintaining the necessary export controls on those special forms of lithium which may threaten Australia’s nuclear non-proliferation objectives.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1987 No 318, issued by the authority of the Minister of State for Science and Small Business, aim to address two primary issues: the removal of an impediment to potential exports of lithium carbonate and the effecting of consequential amendments to the Customs (Prohibited Exports) Regulations following the new Ministerial arrangements established by the Administrative Arrangements Orders of 24 July 1987. The overarching policy objective of these Regulations is to balance Australia's nuclear non-proliferation objectives with the facilitation of legitimate exports, ensuring that export controls do not unnecessarily impede Australian trade. This is achieved by revising the export restrictions on lithium, allowing for the export of lithium carbonate while maintaining necessary controls on special forms of lithium that may pose a risk to nuclear non-proliferation efforts.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1987 No 318 apply to the export of goods listed in the Customs (Prohibited Exports) Regulations, with a specific focus on lithium and its compounds. The Regulations primarily concern entities involved in the export of lithium carbonate and any other entities or individuals who may be affected by the changes in export controls. The geographic scope of these Regulations is national, as they pertain to exports from Australia and thus affect industries involved in the mining, processing, and exportation of lithium and lithium compounds. The Regulations also accommodate amendments required due to the re-organisation of Ministerial responsibilities within the Australian Government. The principal exclusion in these Regulations is the amendment that allows for the export of lithium carbonate while maintaining stringent controls on other forms of lithium that could be used in nuclear applications. These Regulations extend their application through the machinery provision and consequential amendments, updating references to reflect the new administrative arrangements.
Key Provisions
The Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1987 No 318, issued under the authority of the Minister of State for Science and Small Business, primarily aim to facilitate the export of lithium carbonate while ensuring that export controls remain consistent with Australia's nuclear non-proliferation objectives (Reg. 1). Regulation 1 serves as a machinery provision, establishing the Customs (Prohibited Exports) Regulations as the principal regulations governing the matter. Regulations 2 to 18 address the necessary changes in references to Ministers and Departments due to the re-organisation of the Ministerial structure of the Government on 24 July 1987. Regulation 19 and the Schedule update references to the “Director-General of Health” to the new title of “Secretary of the Department of Community Services and Health”. Crucially, Regulation 15 amends the export controls on lithium by omitting item 15 of the Ninth Schedule and substituting it with a new item that imposes narrower restrictions on lithium exports. This change permits the export of lithium carbonate while maintaining stringent controls on special forms of lithium that could pose a risk to Australia's nuclear non-proliferation objectives.
The Regulations impose several obligations and requirements on parties and entities governed by them. Firstly, entities involved in the export of lithium must now comply with the updated restrictions outlined in Regulation 15, which allows for the export of lithium carbonate while ensuring that more hazardous forms of lithium remain under strict control (Reg. 15). Additionally, entities must ensure that they adhere to the updated references to Ministers and Departments as reflected in Regulations 2 to 18, reflecting the changes in the Ministerial structure of the Government. This includes aligning their documentation and communications with the new titles and roles as specified in the Regulations (Regs. 2-18). Furthermore, any entity previously referred to the “Director-General of Health” must now refer to the “Secretary of the Department of Community Services and Health” as mandated by Regulation 19 and the Schedule.
Breach of the provisions outlined in the Customs (Prohibited Exports) Regulations (Amendment) Statutory Rules 1987 No 318 can result in various civil or criminal consequences. While the specific penalties are not detailed within the text, non-compliance with export controls could potentially lead to fines, penalties, or other legal actions under the Customs Act 1901. For instance, unauthorised export of controlled substances could attract severe penalties, including imprisonment, as stipulated under the broader provisions of the Customs Act. Additionally, failure to comply with updated references to Ministers and Departments might lead to administrative penalties or other corrective measures to ensure adherence to the updated regulatory framework.