EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture Fisheries and Forestry
Export Control Act 1982
Export Control (Fees) Amendment Orders 2002 (No. 1)
Sub-section 25(1) of the Export Control Act 1982 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act or necessary or convenient to be prescribed for the carrying out or giving effect to this Act.
Paragraph 25(2)(d) of the Act allows regulations to be made for the imposition of fees in connection with the performance of services by authorised officers and the remission of fees so imposed. Paragraph 25(2)(g) of the Act provides that the Governor-General may make regulations empowering the Minister to make orders, not inconsistent with the regulations, with respect to any matter for or in relation to which provision may be made by the regulations.
Regulation 3 of the Export Control (Orders) Regulations 1982 provides that the Minister may, by instrument in writing, make orders, not inconsistent with regulations made under the Act, with respect to any matter for or in relation to which provision may be made by regulations made under the Act.
The Export Control (Fees) Orders 2001 provide the legislative basis for the imposition of fees in connection with the performance of services by authorised officers. The Export Control (Fees) Amendment Orders 2002 (No. 1) (the Amendment Orders) remove the fee for routine audits that are conducted by Area Technical Managers for establishments that have an approved Meat Safety Quality Assurance (MSQA) program in place. The fees for routine audits at establishments that do not have a MSQA program in place and for non-routine audits at all establishments will remain the same. This fee reduction is part of a broader fee reduction arising from the Government’s announcement in August 2001 to reduce export fees by 40%.
The MSQA program is established under Part 32 of the Export Meat Orders 1985. It allows for the Australian Quarantine and Inspection Service (AQIS) to enter into arrangements with companies that demonstrate effective in-house quality management, whereby the companies under agreed conditions take over the functions previously performed by the Government. Government involvement is then converted to monitoring the effectiveness of the company’s management of this quality function through a continuing audit program. Granting greater responsibility to industry has the aims of instilling a quality culture of meat processing into the meat industry and of encouraging innovation.
The purpose of these amendments is to recognise the efficiencies achieved by establishments that have a MSQA program in place by removing the charge for routine audits at these establishments.
The Amendment Orders will commence on 1 April 2002. This date was agreed with industry bodies. Retrospective commencement will not disadvantage any establishments, as the fees remain the same except for the removal of the fee for routine audits at establishments that have an MSQA program in place.
Details of the Amendment Orders are as follows:
Order 1 provides that the Orders are names the Export Control (Fees) Amendment Orders 2002 (No. 1).
Order 2 provides that the Orders commence on 1 April 2002. The Orders need to commence on 1 April because of the Government’s decision to fund 40 % of AQIS’ export inspection costs. The initial fee reductions commenced on 1 November 2001 and this reduction further implements the Government’s decision. The retrospective commencement date will not disadvantage any person. The fees imposed for all audits at non-MSQA establishments and for non-routine audits at MSQA establishments remain the same.
Order 3 provides that Schedule 1 amends the Export Control (Fees) Orders 2001.
Schedule 1
Item 1 inserts in suborder 4(1) a definition of an “MSQA establishment” and a “non-MSQA establishment”.
Item 2 amends item 1 of Schedule 1. The effect of this item is to omit the existing hourly rate for services performed by an Area Technical Manager and to insert a revised hourly rate structure. Instead of there being only one application of the rate for services provided by an Area Technical Manager, there are now two applications. The first application is for all services, other than routine audits, performed at an MSQA establishment. The second application is for all services performed at a non-MSQA establishment.
Item 3 amends item 2 of Schedule 1. The effect of this item is to omit the existing daily rate for services performed by an Area Technical Manager and to insert a revised daily rate structure. Instead of there being only one application of the rate for all services provided by an Area Technical Manager, there are now two applications. The first application is for all services, other than routine audits, performed at an MSQA establishment. The second application is for all services performed at a non-MSQA establishment.
Overview
The Export Control (Fees) Amendment Orders 2002 (No. 1) were enacted by the Governor-General under the authority of the Export Control Act 1982 to amend the Export Control (Fees) Orders 2001. These amendments aim to recognise the efficiencies achieved by meat processing establishments that have an approved Meat Safety Quality Assurance (MSQA) program in place by removing the fee for routine audits conducted by Area Technical Managers at these establishments. This change supports the broader objective of encouraging industry innovation and instilling a quality culture within the meat processing sector, as established under the Export Meat Orders 1985. The amendments were introduced to provide a financial incentive for companies to adopt and maintain effective quality management systems, thereby reducing the government's direct involvement in quality assurance processes. The Amendment Orders commenced on 1 April 2002, aligning with the Government's decision to fund 40% of the Australian Quarantine and Inspection Service's export inspection costs, and do not disadvantage any establishment as fees for non-routine audits and audits at non-MSQA establishments remain unchanged.
Scope and Application
The Export Control (Fees) Amendment Orders 2002 (No. 1) pertain to the fees charged for services rendered by authorised officers under the Export Control Act 1982. These amendments specifically modify the fees for audits conducted by Area Technical Managers in the meat industry, recognising the efficiencies achieved by establishments that have an approved Meat Safety Quality Assurance (MSQA) program. This Act applies to entities within the meat industry, particularly those involved in the export of meat products, and it governs the fees associated with audits and inspections conducted by authorised officers from the Australian Quarantine and Inspection Service (AQIS). The amendment lowers the fees for routine audits at establishments with an MSQA program, while maintaining the fees for non-routine audits and routine audits at establishments without an MSQA program. These changes are part of a broader initiative to reduce export fees by 40%, as announced by the government in August 2001. The regulations, which come into effect on 1 April 2002, are designed to incentivise industry participation in quality assurance programs by reducing the financial burden on compliant establishments.
Key Provisions
The main provisions of the Export Control (Fees) Amendment Orders 2002 (No. 1) involve changes to the fees imposed on services performed by authorised officers, particularly those associated with routine audits conducted by Area Technical Managers. Under section 25(1) of the Export Control Act 1982, the Governor-General has the authority to make regulations, not inconsistent with the Act, which prescribe matters required or permitted by the Act or necessary or convenient to be prescribed for its implementation. Pursuant to this authority, the Export Control (Fees) Orders 2001 establish the basis for imposing fees related to the performance of services by authorised officers, and these amendments modify those fees. Specifically, Order 3 of the Amendment Orders amends Schedule 1 of the Export Control (Fees) Orders 2001 by introducing a revised hourly and daily rate structure for services provided by Area Technical Managers. This amendment introduces a distinction between services provided at Meat Safety Quality Assurance (MSQA) establishments and those provided at non-MSQA establishments, with different rates applying to each category.
The Amendment Orders impose obligations on parties and entities governed by the Export Control Act 1982. The Minister is required to implement these amendments in a manner consistent with the regulations and orders made under the Act. The Australian Quarantine and Inspection Service (AQIS) is also obligated to monitor and enforce these fee structures in accordance with the revised rates specified in the Amendment Orders. For MSQA establishments, these obligations include maintaining compliance with the MSQA program to benefit from the reduced fee for routine audits, while non-MSQA establishments must adhere to the unchanged fee structure for all audit services. The Minister's role extends to ensuring that the implementation of these changes does not disadvantage any party, particularly since the fee for routine audits is waived only for MSQA establishments.
Breach of the provisions outlined in the Export Control (Fees) Amendment Orders 2002 (No. 1) could result in various civil and criminal consequences. While specific offences and penalties are not detailed in the explanatory statement, the general provisions of the Export Control Act 1982 suggest that non-compliance could lead to enforcement actions, fines, or other penalties as prescribed by the Act. The maximum penalties for breaches could vary depending on the nature and severity of the offence, but they could include substantial fines or other administrative actions to ensure compliance with the Act and its regulations. The Act provides a framework for such enforcement, and the Amendment Orders ensure that the fee structure is implemented in a manner that aligns with the broader objectives of the Act, including the reduction of export fees as part of the Government’s broader policy.