Customs (Prohibited Exports) Regulations (Amendment) 1992 No. 414
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 414
Issued by the Authority of the Minister for Small Business, Construction and Customs
Customs Act 1901
Customs (Prohibited Exports) Regulations (Amendment)
Section 112 of the Customs Act 1901 (the Act) provides in part that:
"1) The Governor-General may, by regulation, prohibit the exportation of goods from Australia.
2) The power conferred by subsection (1) may be exercised - ... (c) by prohibiting the exportation of goods unless specified conditions or restrictions are complied with.
3) 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 export 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 Pro-export 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 Minister of State or a specified person.
The Regulations implement two reforms to the prohibited exports regime.
The first reform takes into account commentary made by the Senate Standing Committee on Regulations and Ordinances that the delegation power provided by Statutory Rules 1991, No. 288 in respect of regulations 8 and 10 of the Pro-export Regulations is too broad and should be narrowed. Regulations 8 and 10 prohibit the exportation of certain goods unless the permission of the Secretary of the Department of Health, Housing and Community Services or an authorised person is first obtained. Authorised person is then defined as a person authorised in writing by the Secretary. The Senate Standing Committee on Regulations and Ordinances considered this power of authorisation to be too wide, and recommended that it should be limited to persons employed in the Department of Health, Housing and Community Services.
The second reform concerns regulation 12 and Schedule 10 which give effect to the Australia - United States Steel Voluntary Restraint Arrangement (VRA) by prohibiting the exportation of steel mill and basic steel products unless the permission of the Minister for Foreign Affairs and Trade or an authorised person is first obtained. With the expiration of the VRA, it is considered appropriate to remove those export controls by omitting regulation 12 and Schedule 10.
The Regulations, which commence on Gazettal, implement these reforms as follows:
Regulation 1 provides that the Pro-export Regulations are amended by the Regulations.
Regulation 2 limits the delegation power of the Secretary of the Department of Health, Housing And Community Services in respect of regulation 8 of the Pro-export Regulations by ensuring an authorised person for the purposes of the regulation is both authorised in writing by the Secretary and is employed in the Department of Health, Housing and Community Services,
Regulation 3 provides for the same limitation on the Secretary's power of delegation as regulation 2 in respect of regulation 10 of the Pro-export Regulations.
Regulation 4 omits regulation 12 of the Pro-export Regulations to give effect to the expiration of the VRA.
Regulation 5 omits Schedule 10 of the Pro-export Regulations consequential upon the repeal of regulation 12.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) 1992 No. 414, issued under the authority of the Minister for Small Business, Construction and Customs, amends the Customs (Prohibited Exports) Regulations to address specific concerns raised by the Senate Standing Committee on Regulations and Ordinances. This amendment primarily responds to the committee's recommendation to narrow the scope of delegation powers concerning the exportation of certain goods. The Customs Act 1901 allows for the prohibition of goods exports from Australia, and the Regulations implement this by either prohibiting exports outright or subjecting them to ministerial or specified person permission. The 1992 amendment tightens the authorisation process for the Secretary of the Department of Health, Housing and Community Services, restricting the delegation of authority to only those employed within the department. Additionally, the amendment removes export controls on steel mill and basic steel products following the expiration of the Australia-United States Steel Voluntary Restraint Arrangement. These changes aim to ensure a more controlled and specific authorisation process, thereby enhancing regulatory oversight and compliance.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) 1992 No. 414 applies to the exportation of goods from Australia, specifically those regulated under the Customs Act 1901. The amendment restricts the authority to grant export permissions to specific individuals within the Department of Health, Housing and Community Services, addressing concerns raised by the Senate Standing Committee on Regulations and Ordinances regarding overly broad delegation powers. Additionally, the amendment removes the export restrictions on steel mill and basic steel products, which were previously controlled under the Australia-United States Steel Voluntary Restraint Arrangement (VRA), following the expiration of the VRA. These regulations are applicable nationally across Australia, and their commencement is upon gazette. The amendment does not introduce any new exclusions, exemptions, or thresholds but refines the criteria for authorising persons empowered to grant export permissions.
Key Provisions
The Customs (Prohibited Exports) Regulations (Amendment) 1992 No. 414 amends the existing Customs (Prohibited Exports) Regulations to implement two key reforms. Regulation 2 and 3 of the Amendment Regulations revise the delegation power of the Secretary of the Department of Health, Housing and Community Services concerning regulations 8 and 10 of the Pro-export Regulations. These regulations now specify that an authorised person, who can grant permission for the export of certain goods, must be both authorised in writing by the Secretary and employed within the Department of Health, Housing and Community Services. This aligns with the recommendation by the Senate Standing Committee on Regulations and Ordinances that the delegation power should be narrowed to only include authorised personnel within the department.
The Amendment Regulations also address the expiration of the Australia-United States Steel Voluntary Restraint Arrangement (VRA) by removing the export controls that were previously in place. Regulation 4 omits regulation 12 of the Pro-export Regulations, which had required permission for the export of steel mill and basic steel products. Regulation 5 further omits Schedule 10 of the Pro-export Regulations, which listed the specific goods subject to the VRA. These changes reflect the termination of the VRA and the consequent removal of these export controls.
Entities and individuals who seek to export the goods now governed by the amended regulations must comply with the new requirements. They must ensure that any permission for export granted by an authorised person is both in writing and from someone who meets the specified employment criteria within the Department of Health, Housing and Community Services. For exports of steel mill and basic steel products, the previous requirement for ministerial or authorised permission is no longer applicable following the repeal of regulation 12 and Schedule 10.
Breach of these regulations can lead to significant consequences. If an entity or individual exports goods in violation of the amended regulations, they may face both civil and criminal penalties. The exact nature of these penalties is determined by the specific provisions of the Customs Act 1901 and related legislation, but they can include fines and, in severe cases, imprisonment. The maximum penalties for breaches of the Customs Act can be substantial, reflecting the seriousness with which the Australian government regards compliance with export controls.