Overview

The Dairy Produce Levy (No. 2) Act 1986 was enacted by the Commonwealth Parliament to address the issue of imported dairy products that had previously been exported from Australia and subsequently re-imported, potentially circumventing certain domestic market support measures. This Act was introduced alongside the Dairy Produce Act 1986 to ensure that any market support payments made on exported dairy products are recovered when those products are imported back into Australia. The policy objective is to maintain fairness within the domestic dairy market by ensuring that support payments are not undermined by the re-importation of these products. The Act imposes a levy on certain re-imported dairy products, with the levy rate calculated based on the market support payments made on the exported products, and requires the importer to be responsible for paying this levy.

Scope and Application

The Dairy Produce Levy (No. 2) Act 1986 applies to the importation of dairy products into Australia, specifically targeting those products that have been exported from Australia and subsequently re-imported, as well as those that have received market support payments. This Act imposes a levy on such dairy products, which is payable by the importer. The levy rate for these products is determined by the aggregate of the rate of market support payment and the rate of supplementary market support payment, if any, at the time of importation. The Act is geographically limited to Australia and extends to any imported dairy products that meet the specified criteria. Notably, the Act does not explicitly provide for exclusions or exemptions, suggesting that all re-imported dairy products and those with support payments are subject to the levy unless otherwise specified through subordinate instruments. This Act is incorporated and to be read as one with the Dairy Produce Act 1986, ensuring a cohesive legal framework governing the levy on dairy products in Australia.

Key Provisions

The Dairy Produce Levy (No. 2) Act 1986 establishes a levy on certain dairy products that are imported into Australia. Section 5 of the Act imposes a levy on dairy products that have been exported from Australia and are subsequently imported, subject to a certificate under section 9(2) of the Dairy Produce Levy (No. 1) Act 1986. The rate of this levy is determined by section 6, which refers to the rate prescribed under section 10 of the Dairy Produce Levy (No. 1) Act 1986. The importer of these dairy products is responsible for paying this levy, as outlined in section 7. The Act also imposes a levy on dairy produce that has been exported from Australia, received a market support payment, and is then imported back into Australia in the same or substantially the same form. This is detailed in section 8. The rate of this levy, according to section 9, is the sum of the rate of market support payment and any supplementary market support payment at the time of importation. The importer of such dairy produce must pay this levy, as stipulated in section 10. The Act imposes several obligations on parties it governs. Importers of dairy products that meet the criteria in sections 5 and 8 are required to pay the specified levies. This includes ensuring that any applicable certificates are obtained and that the correct rates are applied. Furthermore, the Act necessitates that the importer accurately calculates and pays the levy based on the prescribed rates. Breach of the provisions in this Act can lead to civil and criminal consequences. For instance, failure to pay the levy when due may result in penalties. While the Act does not explicitly state the maximum penalties, it is understood that penalties for such breaches can include fines. The exact amount of the fines would be determined based on the severity of the breach and applicable laws governing administrative penalties. Additionally, persistent non-compliance could potentially lead to criminal charges, with the severity of the charges and subsequent penalties depending on the nature and extent of the non-compliance.