Customs (Prohibited Exports) Regulations (Amendment) 1997 No. 383
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 383
Issued by the Authority of the Minister for Customs and Consumer Affairs
Customs Act 1901
Customs (Prohibited Exports) Regulations (Amendment)
Section 112 of the Customs Act 1901 (the Act) provides in part that the Governor-General may make regulations prohibiting the exportation of goods from Australia.
The Regulation proposes amendments to the Customs (Prohibited Exports) Regulations on two disparate matters (A and B) as follows.
A. Amendments to control the exportation of ozone-depleting substances
The Customs (Prohibited Exports) Regulations (the Regulations) control the exportation of 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 Minister or a specified person.
The purpose of regulations 2 and 3 is to implement the Commonwealth's responsibilities and obligations accepted under the Montreal Protocol on Substances that Deplete the Ozone Layer to control the importation and exportation of ozone depleting substances.
The exportation of ozone-depleting substances is controlled under the Ozone Protection Act 1989. However, the Ozone Protection Act 1989 does not contain any provision for these prohibitions to be enforced at the customs border. The amendments to the Regulations make the ozone depleting substances which are specified under the Ozone Protection Act 1989 prohibited exports under the Customs Act 1901, thus allowing illegal exports of thies substances to be seized by Customs officers at the border.
The regulations prohibit the exportation of ozone depleting substances in bulk form; it is not intended at this time to control normal household goods which contain those substances, and the regulations contain exemptions for this purpose.
Regulation 2 inserts a new regulation 13F in the Regulations.
New subregulation 13F(3) prohibits the exportation of the ozone depleting substances listed in the new Schedule 15 to the Regulations unless a licence to export the goods has been granted under Section 16 of the Ozone Protection Act 1989, and that licence, or a copy of it, is produced to a Collector.
New sub-regulation 13F(2) provides for exemptions to the prohibition by reference to the tariff classification of the exempt goods. Generally speaking, these goods are to be exempt because they are manufactured goods which use the ozone depleting substance as part of their everyday operation (such as a refrigerator), or they are made from a product which contains the substance (such as a plastic). The exemptions apply to the following goods:
Reference in the Customs Tariff Act 1995 | General Tariff Description | Example of good granted an exemption |
Heading 3004 | "Medicaments ... " etc | Asthma Spray Dispensers. |
Chapter 39 | "Plastics and Articles thereof" | Polystyrene packaging and insulation. |
Chapter 84 | "Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof" | Refrigerators, air conditioning equipment. |
New regulation 3 inserts a new Schedule 15 into the Regulations, which contains the list of ozone-depleting substances to which new regulation 13F applies, specifically:
Chlorofluorocarbons (Part 1),
Halons (Part 2),
Carbon Tetrachloride (Part 3),
Methyl Chloroform (Part 4),
Hydrochlorofluorocarbons (Part 5),
Hydrobromofluorocarbons (Part 6) and
Methyl Bromide (Part 7).
B. Technical amendments resulting from the Customs, Excise and Bounty Legislation Amendment Act 1995 - Act 85 of 1995
Regulation 4 replaces the now obsolete references to the Comptroller in the Regulations with references to the CEO (which is defined in section 4 of the Act as meaning 'the Chief Executive Officer of Customs').
The Customs, Excise and Bounty Legislation Amendment Act 1995 (the CEBLA Act) provided in subsection 18(1) that a reference to the Comptroller was to be taken on and after 1 July 1995 (the date of Royal Assent of the CEBLA Act) to be a reference to the Chief Executive Officer of Customs.
The regulations commenced on gazettal.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) 1997 No. 383 was enacted to address two primary concerns: the control of the exportation of ozone-depleting substances and technical amendments resulting from the Customs, Excise and Bounty Legislation Amendment Act 1995. This amendment to the Customs (Prohibited Exports) Regulations was issued by the Minister for Customs and Consumer Affairs under the authority of the Customs Act 1901. The policy objective behind these amendments was to ensure the effective enforcement of Australia's international obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer and to streamline the administrative references within the regulations to align with the recent legislative changes. The amendment specifically aimed to prohibit the export of certain ozone-depleting substances in bulk form, thereby preventing illegal exports and enabling customs officers to seize these substances at the border. Additionally, the amendment replaced references to the Comptroller with references to the Chief Executive Officer of Customs, as mandated by the CEBLA Act.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) 1997 No. 383 applies to the export of goods from Australia, particularly focusing on the prohibition of exports of ozone-depleting substances and making technical amendments to the existing regulations. The amendments are designed to align with Australia’s commitments under the Montreal Protocol on Substances that Deplete the Ozone Layer and to update references within the regulations to reflect changes in the Customs, Excise and Bounty Legislation Amendment Act 1995. The regulations affect entities involved in the export of goods, specifically targeting substances listed in the Ozone Protection Act 1989. The geographic reach of these regulations is national, as they apply to all exports from Australia. However, they do not apply to normal household goods containing these substances and provide exemptions for certain manufactured goods and products made from materials containing ozone-depleting substances. These exemptions are listed under specific headings in the Customs Tariff Act 1995. The regulations also include a new Schedule 15 listing the ozone-depleting substances subject to the prohibitions. Subordinate instruments may further extend or restrict the application of these regulations as necessary.
Key Provisions
The Customs (Prohibited Exports) Regulations (Amendment) 1997 No. 383, under Section 112 of the Customs Act 1901, primarily focuses on the amendment of the exportation controls of certain goods from Australia, specifically targeting ozone-depleting substances and updating certain references within the regulations. Regulation 2 introduces a new regulation 13F, which, according to subregulation 13F(3), prohibits the exportation of listed ozone-depleting substances unless a valid licence under Section 16 of the Ozone Protection Act 1989 is presented to a Collector. This amendment ensures that illegal exports of these substances can be intercepted at the customs border. Exemptions are provided for in subregulation 13F(2) for certain goods classified under the Customs Tariff Act 1995, such as medicament dispensers, polystyrene packaging, and certain appliances.
These regulations impose specific obligations on parties intending to export the listed ozone-depleting substances. They must ensure that any export of these substances is accompanied by a valid licence under the Ozone Protection Act 1989. Additionally, they must be aware of and comply with the exemptions provided, ensuring that any export of goods containing these substances falls within the specified classifications. Failure to comply with these requirements can result in the seizure of the goods by Customs officers.
Under the amended regulations, any breach of the prohibitions on the exportation of ozone-depleting substances may lead to significant consequences. The primary consequence is the seizure of the goods by Customs officers at the border. While the explanatory statement does not detail specific penalties for breaches, it is reasonable to infer that the penalties would align with those prescribed under the Customs Act 1901 and the Ozone Protection Act 1989. These could include fines, imprisonment, or both, depending on the severity and intent of the breach. For instance, under the Ozone Protection Act 1989, penalties for illegal exportation of controlled substances can include fines of up to $55,000 for individuals and $275,000 for corporations, along with potential imprisonment terms.