EXPLANATORY STATEMENT

Issued by the authority of the Minister for Agriculture, Fisheries and Forestry

Export Control (Orders) Regulations 1982

Export Control (Fees) Amendment Orders 2006 (No. 2)

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 to be prescribed or necessary or convenient to be prescribed for the carrying out or giving effect to the 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 (‘the Principal Orders’) impose fees in connection with the performance of services by authorised officers.

The purpose of the Export Control (Fees) Amendment Orders 2006 (No. 2) (‘the Amendment Orders’) is to:

• amend the current fees for the delivery of certification, inspection and audit services for the Live Animal Exports Program;
• create a new fee establishing a per head rate for livestock (cattle, buffalo, sheep and goats) exported by sea to existing markets;
• establish a fee for attendance of an authorised officer at an outport;
• create a new fee for attendance by a veterinarian on board a vessel; and
• amend the current fee for travel contained in Order 24 to change the fee from a time based fee to a kilometre based fee of $0.50 per kilometre for all export related travel;

Consultation has occurred with the Livestock Exports Industry Consultative Committee, which comprises representatives from key industry sectors:

• Australian Livestock Exporters’ Council
• LiveCorp
• Cattle Council of Australia
• Sheepmeats Council of Australia
• Australian Veterinarians Association
• Australian Maritime Safety Authority
• Meat and Livestock Australia
• LiveShip.

The LEICC is the principal advisory forum for AQIS and the livestock export industry to consult on all issues relating to Australia livestock exports.

The following industry bodies were also consulted Australian Horse Industry Council, Goat Industry Council of Australia, Pet Industry Association of Australia, Central Australian Camel Association, Deer Industry Association of Australia, Australian Buffalo Industry Council, Australian Alpaca Association, and the Reproductive Veterinarians of Australia.

The Amendment Orders are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Details of Amendment Orders are as follows:

Order 1 provides that the name of the Amendment Orders is the Export Control (Fees) Amendment Orders 2006 (No. 2).

Order 2 provides that the Amendment Orders commence on the day after they are registered.

Order 3 provides that Schedule 1 amends the Principal Orders.

Schedule 1 - Amendments

Item 1

Item 1 amends the heading to Part 4 of the Principal Orders and replaces it with a more appropriate heading.  It substitutes the existing heading with ‘Fees in relation to live animals and animal reproductive material’. 

Item 2

Item 2 repeals Order 22 of the Principal Orders.  Order 22 is repealed as in light of the amendments being made by the Amendment Orders this Order is unnecessary.

Item 3

Item 3 inserts a new Order 23AA ‘Fees for inspection of cattle, buffalo, sheep and goats to be exported by sea.’ 

Suborder 23AA(1) provides definitions for the purposes of order 23AA, in particular, it defines a ‘tier 1 foreign country’ and a ‘tier 2 foreign country’.

New sub-order 23AA(2) sets out that the fee payable by an exporter where inspection services are made available in the connection with the intended export by sea of cattle, buffalo, sheep or goats to a place in a foreign country that is a tier 1 foreign country or tier 2 foreign country is the sum of:

• the per head fee – calculated in accordance with Table 23AA.1; and
• if suborder (3) applies – the suborder (3) fee, calculated in accordance with Table 23AA.1; and
• if the inspections are made available at an outport – the relevant outport fee set out in Column 2 of Table 23AA.2.

Suborder 23AA(2) in conjunction with Table 23AA.1 sets out a new per head fee for exported livestock.  The new per head fee is established for livestock (cattle, buffalo, sheep and goats) exported by sea to existing markets. The fee is divided into tiers and species, which differentiates between countries on the basis of the level of complexity of the importing country protocol. 

For livestock exported by sea the per head fee was calculated on the following:

• the benchmark hours of AQIS involvement for consignments based on the market and livestock species;
• the number of livestock exports forecast for 2006/07; and
• the fixed costs and associated deficit for livestock exports by sea, approximately $2,370,000 per annum.

The associated deficit in the industry equalisation reserve is approximately $740,000 at 30 June 2006.  This amount accumulated over the last three years primarily due to a reduction in export activity and a nine month delay in implementing revised fees scheduled for implementation in  October 2003 and not implemented until 1 July 2004.

This new order 23AA will allow exporters to accurately estimate AQIS fees and charges for each consignment and will result in consistent charging across all AQIS regional offices.  If the inspection exceeds the number of hours specified in Table 23AA.1, and an officer conducting the inspection is of the opinion that the additional time was needed because of inadequate preparation by the exporter, additional fees are payable on an hourly basis. This suborder 23AA(3) introduces an incentive for the livestock industry to improve efficiencies, and reduce risk of unrecoverable AQIS involvement where poor preparation has occurred.

Table 23AA.2 in sub-order 23AA(4) sets out the fee payable by an exporter for inspection services made available at an outport.   This establishes a set fee for an officer to travel to an outport (Table 23AA.2).  This allows for a consistent fee to be charged that is not dependant on time taken to travel to a location.  This also allows exporters to accurately estimate AQIS fees for travel and ensures that there is consistent charging for the multiple journeys to the same destination.

Suborder 23AA(5) makes it clear that when an exporter makes an arrangement under order 23AA for an authorized officer to travel to an outport by air, that the exporter must arrange and meet the cost of the air ticket for the authorized officer.

Suborder 23AA(6) provides that only one outport fee is payable where arrangements are made by or on behalf of 2 or more exporters for inspections of cattle, buffalo, sheep or goats which are going to be exported on the same voyage and where the inspection is carried out at the same outport.  Suborder 23AA(6) also makes exporters jointly and severally liable to pay the outport fee in this situation. The advantage of this option is that exporters are able to accurately estimate AQIS fees and charges for each consignment.

Item 4

Item 4 amends suborder 24(1) of the Principal Orders.  It replaces the travel fee with a fee of $0.50 per kilometer.   The travel rate has been changed from a time based fee to a kilometre based fee of $0.50/km for all export related travel.  This fee is based on the average travel per consignment and the cost of Australian Quarantine and Inspection Service vehicles to the Live Animal Export Program.  This allows for a consistent fee to be charged that is not dependant on time taken to travel to a location.  This allows exporters to accurately estimate AQIS fees for travel and there is consistent charging for the multiple journeys to the same destination.

Item 5

Item 5 inserts a new suborder (3) into Order 24.  This new suborder makes it clear that where inspections services are made available at an outport (as defined in order 23AA) the travel fee in suborder 24(1) does not apply.  The new suborder instead says the fee payable for travel reasonably undertaken for the purposes of the inspection services by the officer while at or based at the outport is $0.50 per kilometre.  For example, travel to the registered premises to inspect the livestock prior to loading on the vessel at the outport.  This is not included in the outport fee as the location and number of registered premises will vary for each consignment.

Item 6

Item 6 amends Schedule 4 of the Principal Orders.  It omits Schedule 4 and replaces it with a new Schedule 4.   Where possible each of the fees in this Schedule have been standardised to a quarter hour unit of time.

Item 1 of the new Schedule 4 has the effect of increasing the fee charged for processing documents for the export of live animals or animal reproductive material from $37.50 for each quarter hour to $52.00 for each quarter hour.  The increase in this rate reflects the increased expenditure associated with delivery of these services.

Item 2 of the new Schedule 4 has the effect of increasing the fee charged for inspection of live animals or animal reproductive material from $75.00 for each half hour to $52.00 for each quarter hour.  The increase in this rate reflects the increased expenditure associated with delivery of these services.  This item also makes it clear that in the circumstances provided for in order 23AA the fee is different.  Only major export markets for which benchmarks of inspection services were known were able to be provided for in order 23AA.

Item 3 of the new Schedule 4 has the effect of increasing the fee charged for performance of an audit by an authorized officer from $75.00 for each half hour to $52.00 for each quarter hour.  The increase in this rate reflects the increased expenditure associated with delivery of these services. 

Item 4 of the new Schedule 4 has the effect of increasing the fee charged for preparation of an application by an authorized officer at the request of the exporter where the consignment of live animals or animal reproductive material does not meet the applicable import protocol from $75.00 for each half hour to $52.00 for each quarter hour.  The increase in this rate reflects the increased expenditure associated with delivery of these services.

Item 5 of the new Schedule 4 has the effect of increasing the fee charged for vaccinating live animals, that are part of a consignment intended for export, against rabies from $37.50 for the first animal and $15.75 for each additional animal to $52.00 for the first animal and $26.00 for each additional animal.  The increase in these rates reflects the increased expenditure associated with delivery of these services.

Item 6 of the new Schedule 4 provides a fee for the use of vaccines or other non-reusable materials purchased by the Commonwealth to provide services mentioned in items 1 -5.  This fee was contained in Item 7 in the old Schedule 4.  This item has remained unchanged in substance.

Item 7 of the new Schedule 4 provides a fee for the approval or registration of premises where live animals or animal reproductive material are held prior to export from Australia.   This fee was previously contained in Item 12 in the old Schedule 4.  This amendment has the effect of increasing the fee charged for the approval or registration of premises where live animals or animal reproductive material are held prior to export from Australia from $75.00 per half hour for each officer involved to $52.00 for each quarter hour for each officer involved.  The increase in these rates reflects the increased expenditure associated with delivery of these services.

Item 8 of the new Schedule 4 inserts a new fee for attendance on board a vessel by a veterinarian being $850 for each day or part thereof.  This fee provides for an AQIS veterinarian to provide services to accompany a livestock vessel on a voyage.  This is a new requirement following the Keniry review of Australia’s livestock export industry and is part of a range of initiatives aimed at facilitating improvements in the livestock export system and animal welfare practices.

The following items have been removed from Schedule 4 by item 6 of the Amendment Orders.

• Item 6 of the old Schedule 4 has been removed as the cost of the provision of services at times outside working hours has now been combined into Items 1-5 in the new Schedule 4. 
• Item 11 has been removed.  Quarantine stations are no longer used for preparing animals for export following changes to the Export Control (Animals) Order 2004 in December 2004.