EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 150
Issued by the Authority of the Minister of State
Primary Industry
DAIRY PRODUCE EXPORT CONTROL (LICENCES) REGULATIONS (AMENDMENT)
The Dairy Produce Export Control (Licences) Regulations prohibit the exportation of dairy products from, the Commonwealth except in accordance with such conditions and restrictions as are prescribed in the regulations.
Australia has entered into certain treaty obligations under the General Agreement on Tariffs and Trade (GATT) International Dairy Arrangement (IDA) and, as a result, has undertaken to observe the conditions for the export of dairy products as specified by the IDA. The IDA includes the Protocol Regarding Certain Milk Powders, the Protocol Regarding Milk Fat and the Protocol Regarding Certain Cheeses, which provide, inter alia, for minimum export prices for certain dairy products to be observed at the free on board level, ie net of freight and insurance charges subsequent to boarding.
On 31 May 1985 the Committees of Protocol of the IDA regarding Milk Fat and Certain Milk Powders decided to establish new lower minimum prices for butter, anhydrous milk fat and whole milk powder to apply from 5 June 1985.
The minimum prices applying from 5 June for the range of products covered by the IDA, along with the rates previously applying are as follows:
Dairy Products | Rate prior to 5 June 1985 | Price applying from 5 June 1985 |
| | |
| $ US Per Tonne |
| | |
Skimmed milk powder | 600 | 600 |
Whole milk powder | 950 | 830 |
Butter milk powder | 600 | 600 |
Anhydrous milk fat | 1,440 | 1,200 |
Batter | 1,200 | 1,000 |
Cheese | 1,000 | 1,000 |
On 31 May 1985 the International Dairy Products Council (IDPC) of the IDA also rescinded its Resolution of 16 November 1984 which had provided for sales of butter by participants in the IDA other than the EC at prices below the minima specified in the Protocol Regarding Milk Fat.
To enable Australian exports at the new lower prices Regulation 8 of the Dairy Produce Export Control (Licences) Regulations was amended to replace the minimum prices per tonne currently specified for butter, anhydrous milk fat and whole milk powder with the new minimum prices. The date of effect of the amendment was 5 June 1985, the date of effect of the Resolution of the Protocol Committees establishing the lower prices.
Additionally, as the existing Regulation 8 defined the IDA as that in force at 1 December 1984 this was amended to redefine the IDA as that in force at noon on 5 June 1985. The opportunity was also taken to avoid any ambiguity in the application of the Regulations to circumstances permitted by or under the Arrangement.
Overview
The Dairy Produce Export Control (Licences) Regulations (Amendment) 1985, issued under the authority of the Minister for Primary Industry, was enacted to align Australian regulations with the new minimum export prices for dairy products set by the International Dairy Arrangement (IDA) as of 5 June 1985. The primary objective of this amendment was to facilitate compliance with the GATT International Dairy Arrangement and to ensure that Australian exporters could operate under the newly established lower minimum prices for butter, anhydrous milk fat, and whole milk powder, as determined by the IDA's Protocol Committees. This change was necessitated by the decision of the IDA's Committees of Protocol on 31 May 1985 to lower these prices, effective from the same date. The amendment aimed to reflect these changes accurately within Australian legislative frameworks, thereby maintaining the integrity of international trade agreements and supporting the economic interests of Australian dairy producers.
Scope and Application
The Dairy Produce Export Control (Licences) Regulations (Amendment) Statutory Rules 1985 No. 150, issued under the authority of the Minister of State for Primary Industry, applies to the exportation of dairy products from Australia, governing the conditions and restrictions on such exports in line with Australia's commitments under the General Agreement on Tariffs and Trade (GATT) International Dairy Arrangement (IDA). This regulation specifically targets entities and persons involved in the export of dairy products, ensuring compliance with the new minimum prices set by the IDA. The geographic scope of these regulations is national, as they apply across the Commonwealth of Australia, ensuring a unified approach to dairy export controls in accordance with international obligations. The amendment also includes a redefinition of the IDA to reflect its status as of 5 June 1985, thereby aligning the regulatory framework with the most current international standards and commitments. These regulations do not specify exclusions or exemptions but are applicable to all exports of specified dairy products, subject to the conditions and minimum prices set out in the amended regulations.
Key Provisions
The Dairy Produce Export Control (Licences) Regulations (Amendment) (SR 1985 No. 150) primarily addresses the amendment of existing regulations concerning the export of dairy products from Australia. Specifically, Regulation 8 of the Dairy Produce Export Control (Licences) Regulations has been modified to reflect new minimum prices for certain dairy products. These changes are effective from 5 June 1985 and align with the updated conditions of the International Dairy Arrangement (IDA) as agreed upon by the Committees of Protocol of the IDA on 31 May 1985. The new minimum prices pertain to butter, anhydrous milk fat, and whole milk powder, which have been reduced to comply with the IDA's new lower prices. This amendment ensures that Australian exports adhere to the IDA's stipulations, particularly the minimum export prices set for these dairy products.
Under the amended regulations, parties involved in the export of dairy products are obligated to comply with the new minimum prices set for butter, anhydrous milk fat, and whole milk powder. These obligations are critical in ensuring that Australian exports meet the international standards and agreements outlined in the IDA. Additionally, the regulations have been clarified to avoid ambiguity in their application, ensuring that all permitted circumstances under the Arrangement are explicitly covered. This includes a redefinition of the IDA to reflect its state as of noon on 5 June 1985, replacing the previous definition that was based on the IDA as of 1 December 1984.
Failure to comply with the provisions of the Dairy Produce Export Control (Licences) Regulations can result in significant legal consequences. The Act imposes penalties and other sanctions for non-compliance, which may include fines and other civil or criminal penalties. While the specific maximum penalties are not detailed in the explanatory statement, it is clear that adherence to the regulations is mandatory and violations could lead to enforcement actions by relevant authorities. This underscores the importance of entities and individuals involved in the export of dairy products to fully comply with the updated regulations to avoid any legal repercussions.