EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO. 42
Issued by the Authority of the Minister for Primary Industry
DAIRY PRODUCE REGULATIONS (AMENDMENT)
The Dairy Produce Regulations prescribe conditions for the export of controlled dairy produce. One of the conditions is that licensees only export controlled dairy produce in accordance with the International Dairy Arrangement. This requirement reflects the fact that 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 1 October 1986 the Committees of Protocol of the IDA regarding Certain Milk Powders and Certain Cheeses decided to establish new higher minimum prices for skimmed milk powder, whole milk powder, buttermilk powder and cheese to apply from 2 October 1986. The minimum prices applying from 2 October 1986 for the range of products covered by the IDA, along with the prices previously applying, are as follows:
Dairy Products | Price Prior to | Price Applying |
| 2 October 1986 | from 2 October 1986 |
| $US Per Tonne |
Skimmed milk powder | 600 | | 680 |
Whole milk powder | 830 | | 880 |
Buttermilk powder | 600 | | 680 |
Anhydrous milk fat | 1,200 | | 1,200 |
Butter | 1,000 | | 1,000 |
Cheese | 1,000 | | 1,030 |
To account for these changes the amendment to sub-regulation 4(2) redefines the IDA as that in force at noon on 2 October 1986. The opportunity has also been taken to extend the application of the requirements to observe the IDA to the Australian Dairy Corporation (ADC) when trading in its own right. This merely formalises existing practice whereby the ADC fully observes IDA conditions as to minimum pricing, when trading in its own right.
Overview
The Dairy Produce Regulations (Amendment) Statutory Rules 1987 No. 42, issued by the authority of the Minister for Primary Industry, were enacted to update the regulatory framework governing the export of controlled dairy produce in accordance with the International Dairy Arrangement (IDA). The IDA, which is part of the General Agreement on Tariffs and Trade (GATT), sets minimum export prices for certain dairy products to be observed at the free on board level, meaning net of freight and insurance charges subsequent to boarding. The amendment was necessary to reflect the changes in minimum export prices for skimmed milk powder, whole milk powder, buttermilk powder, and cheese, effective from 2 October 1986. This legislative update formalises existing practices and ensures that the Australian Dairy Corporation observes IDA conditions when trading in its own right. The policy objective is to maintain compliance with international dairy trade agreements while ensuring that Australian dairy exports meet the stipulated minimum prices.
Scope and Application
The Dairy Produce Regulations (Amendment) Statutory Rules 1987 No. 42 apply to the export of controlled dairy produce by licensees in Australia, reflecting the country's obligations under the International Dairy Arrangement (IDA) pursuant to the General Agreement on Tariffs and Trade (GATT). This amendment aligns the regulations with the new minimum export prices for certain dairy products, established by the Committees of Protocol of the IDA on 2 October 1986. The scope of the regulations extends to ensuring that licensees adhere to the IDA's conditions, including minimum pricing for products such as skimmed milk powder, whole milk powder, buttermilk powder, cheese, anhydrous milk fat, and butter. The amendment also formalises the application of these IDA conditions to the Australian Dairy Corporation when it trades independently. This legislation ensures that Australia complies with its international commitments under the GATT and the IDA, thereby maintaining the integrity of its dairy export practices and supporting global trade agreements.
Key Provisions
The main operative sections of the Dairy Produce Regulations (Amendment) (F1996B00616) are concerned with the export of controlled dairy produce and specifically reference the International Dairy Arrangement (IDA). Section 4(2) amends the regulation to redefine the IDA to include the specific conditions in force at noon on 2 October 1986, which set new higher minimum prices for certain dairy products such as skimmed milk powder, whole milk powder, buttermilk powder, and cheese. These changes reflect the updated treaty obligations under the GATT IDA. By requiring licensees to adhere to these specific conditions, the Act ensures that Australian dairy exports comply with the international standards set by the IDA.
The obligations imposed by the Act on the parties it governs are primarily concerned with compliance with the IDA. Licensees must ensure that their exports of controlled dairy produce are conducted in accordance with the minimum export prices and other conditions specified by the IDA. This includes the requirement for observing the new minimum prices for various dairy products as detailed in the amendment. Additionally, the Australian Dairy Corporation (ADC) is formally included in the scope of these requirements, ensuring that when it trades in its own right, it adheres to the same IDA conditions.
The legislation does not explicitly state specific offences, penalties, or consequences for breach within the provided text. However, the requirement to comply with the IDA suggests that failure to adhere to the minimum prices and other conditions could result in non-compliance with international trade obligations, potentially leading to trade disputes or sanctions. While the text does not detail maximum penalties, it is reasonable to infer that breaches of such international agreements could result in significant legal and financial repercussions for the entities involved.