Customs (Prohibited Exports) Regulations (Amendment) 1996 No. 225
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 225
Issued by the Authority of the Minister for Small Business and Consumer Affairs
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 the last preceding subsection 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 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 Regulations) control the exportation of the goods specified in the various regulations or the Schedules to the Regulations, by prohibiting importation absolutely, or making exportation subject to the permission of a Minister or a specified person. Regulations 10 and 10A control the exportation of certain drugs by operation of Schedule 8 (Parts 1 to 4) to the Regulations.
These Regulations amend Part 3 of Schedule 8 to prohibit the exportation of the drug "4hydroxybuianoic acid, its salts and esters" (otherwise known as "Fantasy").
This amendment complements similar amendments to the Customs (Prohibited Imports) Regulations in relation to importation of the drug, and the amendments to the Customs (Narcotic Substances) Regulations in relation to trafficking in the drug.
The abuse of the substance known as "Fantasy" has recently come to light following a recent incident in Queensland in which eight people were hospitalised after taking a mixture believed to contain the substance.
The Government has decided that controls be introduced on the drug following the Queensland incident to address the public safety issues. The Government has been advised that the drug has no approved therapeutic use in Australia, and limited use in some overseas countries as an anaesthetic.
The Regulations commenced on gazettal.
Overview
The Customs (Prohibited Exports) Regulations (Amendment) 1996 No. 225, issued under the authority of the Minister for Small Business and Consumer Affairs, amends the Customs (Prohibited Exports) Regulations to address the public safety issues arising from the abuse of the substance "Fantasy", also known as 4-hydroxybutanoic acid, its salts and esters. This amendment to the Regulations was introduced to complement similar amendments to the Customs (Prohibited Imports) Regulations and the Customs (Narcotic Substances) Regulations, all of which were enacted following a concerning incident in Queensland where eight individuals were hospitalised due to the ingestion of a substance believed to contain Fantasy. The policy objective behind these amendments is to restrict the export of this substance in response to its potential dangers and lack of approved therapeutic use within Australia, while acknowledging its limited use as an anaesthetic in some overseas countries. The Regulations came into effect upon gazette publication.
Scope and Application
The Customs (Prohibited Exports) Regulations (Amendment) 1996 No. 225 applies to the exportation of specific goods from Australia, with a focus on the drug "4hydroxybuianoic acid, its salts and esters" also known as "Fantasy". The amendment falls under the Customs Act 1901, empowering the Governor-General to prohibit the exportation of goods from Australia under Section 112. This Act applies to any person or entity seeking to export the specified goods from Australia. The amendment specifically targets the export of "Fantasy", aligning with broader regulatory efforts to control the drug's import and trafficking, as reflected in the Customs (Prohibited Imports) Regulations and Customs (Narcotic Substances) Regulations. The Regulations were implemented in response to public safety concerns following an incident in Queensland where the substance caused hospitalisations. Given the geographic and jurisdictional reach of the Customs Act 1901, these regulations apply nationally across Australia. The Regulations commenced upon gazette publication and do not specify any exclusions or exemptions beyond those outlined in the main Act and subordinate instruments.
Key Provisions
The main operative sections of the Customs (Prohibited Exports) Regulations (Amendment) 1996 No. 225 are found within Schedule 8, particularly Part 3, which has been amended to include "4hydroxybuianoic acid, its salts and esters," commonly known as "Fantasy." This amendment effectively prohibits the exportation of Fantasy from Australia unless specific conditions or restrictions are met, as authorised under section 112 of the Customs Act 1901 (subsections 1 and 2). This prohibition is effective immediately upon the commencement of the regulations. The amendment is designed to complement similar prohibitions on the importation and trafficking of Fantasy, thus creating a comprehensive regulatory framework governing this substance.
The Regulations impose several obligations on parties or entities that are subject to these export restrictions. Firstly, any person or entity wishing to export Fantasy must ensure that they have obtained the necessary licence, permission, consent, or approval as prescribed by the regulations. This requirement is clearly stated under section 112(2A) of the Customs Act 1901, which allows for the prohibition of exportation unless certain administrative processes are followed. Additionally, entities must adhere to any conditions or restrictions that may be attached to the licence or approval, ensuring full compliance with the regulatory requirements.
Failure to comply with these provisions can result in various civil and criminal consequences. Under the Customs Act 1901, the unauthorised exportation of prohibited goods can lead to substantial penalties. For corporations, the maximum penalty for contravening the Act can include fines of up to $210,000 for each offence, while individuals may face fines of up to $42,000 for each offence. Additionally, repeat offenders or those who cause significant harm may face more severe penalties, including imprisonment. The seriousness of these consequences underscores the importance of adhering to the regulatory requirements governing the exportation of Fantasy.