EXPLANATORY STATEMENT

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

Export Control (Orders) Regulations 1982

Export Control (Fees) Amendment Orders 2007 (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.

Subsection 9B (3) of the Act provides that regulations may provide for the payment by veterinarians of fees for the making of applications for accreditation. 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) (daaa) of the Act allows regulations to be made for the imposition of fees in connection with the performance of a service by the Secretary or a delegate of the Secretary. 

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 the Secretary, delegates of the Secretary and authorised officers.

The Australian Quarantine and Inspection Service (AQIS) is one of the business units within the Australian Government Department of Agriculture, Fisheries and Forestry (‘the Department’).  AQIS  has operated in a cost recovery environment since 1993.  Changes to the fees and charges must be consistent with the Australian Government Cost Recovery Guidelines which provide the framework for cost recovery practices.

The purpose of the Export Control (Fees) Amendment Orders 2007 (No.2) (‘the Amendment Orders’) is to reduce a range of fees applicable to the export of live animals and to make some minor technical changes.   In September 2006 fees applicable to the export of live animals were increased to alleviate the continued under recovery of costs by the Live Animals Export (LAE) Program within AQIS (see Export Control (Fees) Amendment Orders 2006 (No.2)).

The increased fees and charges, put in place on 1 September 2006, were set at a level so that the accumulated deficit incurred by the LAE Program in preceding years, could be recovered in the first full year of operation of the revised fees. This strategy was agreed at the time with industry, with the understanding that fees would be reduced when the accumulated deficit was recovered.  A review of fees conducted in July 2007 by the LAE Program determined that at the end of the 2006/07 financial year the LAE Program had recovered the accumulated deficit.  Accordingly, the Amendment Orders reduce the fees to give immediate relief to industry and to prevent over recovery.

Consultation has occurred with the Livestock Exports Industry Consultative Committee (‘LEICC’), which comprises representatives from key industry sectors:

• Australian Livestock Exporters’ Council
• LiveCorp
• Cattle Council of Australia
• Sheepmeats Council of Australia
• Australian Veterinary 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 Australian livestock exports.  LEICC indicated that they supported a fee reduction in the current year.

The Office of Best Practice Regulation advised that the Amendment Orders have no or low impact on business, and imposed no or low compliance costs. Therefore no further analysis (in the form of a Business Cost Calculator Report or Regulation Impact Statement) was required.

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 2007 (No. 2).

Order 2 provides that the Amendment Orders commence on 1 October 2007.

Order 3 provides that Schedule 1 amends the Principal Orders.

Order 4 provides for transitional arrangements in relation to fees connected with applications.  In particular, this order provides that the new fees relate to applications made on or after the commencement date of 1 October 2007.  For accreditation of veterinarians, an application is made when the approved form and prescribed fees are lodged with the Secretary as specified in order 42A of the Principal Orders.

Schedule 1 - Amendments

Item 1

Item 1 substitutes a new Table 23AA.1, into suborder 23AA (2) in the Principal Orders, which deals with fees for inspection of cattle, buffalo, sheep and goats to be exported by sea.  The purpose of this amendment is to reduce all fees listed in Table 23AA.1 and make minor formatting changes to bring Table 23AA.1 into line with current drafting standards. 

The per head fees listed in Table 23AA.1 of the Principal Orders were introduced in 2006 for livestock (cattle, buffalo, sheep and goats) exported by sea to existing markets. The fees were divided into tiers and species, differentiating between countries on the basis of the level of complexity of the importing country protocol.

The per head fees inserted into the Principal Orders in 2006 for livestock exported by sea were 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.

At 30 June 2006, the associated deficit in the Industry Equalisation Account (IEA) was approximately $740,000.  Accordingly, the fees set in Table 23AA.1 of the Principal Orders (by the Export Control (Fees) Amendment Orders 2006 (No.2)) were set at a level so that the accumulated deficit incurred by the LAE Program in preceding years, could be recovered in the first full year of operation of the revised fees.  A further review of fees for the LAE Program was conducted in July 2007 and the review concluded that the accumulated deficit has now been recovered.  Accordingly, the Amendment Orders reduce fees to ensure that there is not an over recovery resulting in a surplus in the IEA.  The reduction is approximately a 7% reduction of all fees in Table 23AA.1 and will result in a small surplus at the end of the year and maintain the IEA balance at the end of the 2007/08 financial year at approximately 10%.

Each of the fees in Table 23AA.1 have also been standardised to a quarter hour unit of time.  This is consistent with the approach taken for other time based fees relating to live animals set out in Schedule 4 of the Principal Orders.

Item 2

Item 2 substitutes a new order 23AB setting out fees payable for applications.  Order 23AB of the Principal Orders was originally inserted by the Export Control (Fees) Amendment Orders 2006 (No.3), to specify the amounts payable in respect of an application by a veterinarian for accreditation. The new order 23AB also provides fees payable for assessment, processing and giving notice of a decision for two further application categories.

The new suborder 23AB (1) provides that the fee payable for the making of an application for the purposes of subsection 9B (3) of the Act is $192 (reduced from $208), and the fee payable for each quarter hour of services has also been reduced from $52 per quarter hour to $48 per quarter hour.  The item also makes minor amendments to the scope of services to which the quarter hour charge applies.    It makes it clear that the quarter hour charge is for the assessment of the application, the giving of a notice of accreditation and for any time spent on processing the application beyond the one hour period contemplated by the set fee.

New suborder 23AB (2) specifies the amounts payable in relation to an application for registration of premises under Division 2.2 of the Export Control (Animals) Order 2004 (‘the Animals Order’).   The new suborder prescribes a fee of $48 for each quarter hour for services performed by an authorised officer, the Secretary or a delegate of the Secretary.  The quarter hour fee is for the assessment of the application, the processing of the application and for giving notice of a decision under section 2.08 of the Animals Order.

This fee was previously set out in item 7 of Schedule 4 of the Principal Orders.  It was determined that it should be removed from Schedule 4 and inserted into order 23AB of the Principal Orders.  The note under suborder 23AB (2) has been inserted to assist, it references the relevant provision in the Animals Order.  Paragraph 2.06 (1) (b) of the Animals Order provides that the Secretary (for the purpose of considering an application for registration of premises) may ask the applicant to permit an authorised officer to inspect the premises and the facilities and equipment to be used in the operations, or watch a demonstration of the operations and procedures to be followed at the premises.  The fee prescribed under suborder 23AB (2) is payable for these inspection services.

This amendment also has the effect of decreasing the fee charged for the registration of premises where live animals are held prior to export from Australia from $52 per quarter hour (previously set out in item 7 of Schedule 4) to $48 for each quarter hour.

New suborder 23AB (3) specifies amounts payable in relation to an application for approval of premises under Part 3 of the Animals Order.  The new suborder prescribes a fee of $48 for each quarter hour for services performed by an authorised officer, the Secretary or a delegate of the Secretary.  The quarter hour fee is for the assessment of the application, the processing of the application and for giving notice of a decision under subsection 3.07 (3) of the Animals Order.

This fee was previously set out in item 7 of Schedule 4 of the Principal Orders.  It was determined that it should be removed from Schedule 4 and inserted into order 23AB of the Principal Orders. 

The note under suborder 23AB (3) has been inserted to assist, it references the relevant provision in the Animals Order.  Paragraph 3.06 (2) (b) of the Animals Order provides that the Secretary (for the purposes of considering whether premises may be approved under subsection 3.06 (1)) may request the applicant for the notice of intention to export to allow an authorised officer to inspect the premises.  The fee prescribed under suborder 23AB (3) is payable for these inspection services.

This amendment also has the effect of decreasing the fee charged for the approval of premises where live animals are held prior to export from Australia from $52 per quarter hour (previously set out in item 7 of Schedule 4) to $48 for each quarter hour.

Under Order 4 of the Principal Orders, the expression ‘quarter hour’ is defined to include a part of a quarter hour.

A review of the fees for the LAE Program was conducted in July 2007 and it determined that the continued charging of fees at their current level would result in an over recovery of fees resulting in a surplus in the IEA.  The reduction of the fees in paragraph 23AB (1) (a) from $208 to $192 and  paragraph 23AB(1) (b), and suborders 23AB (2) and 23AB (3) from $52 to $48 per quarter hour, along with the reduction of other fees made by these Amendment Orders will result in a small surplus at the end of the year and maintain the IEA balance at the end of the 2007/08 financial year at approximately 10%.

Item 3

Item 3 corrects a cross reference in order 42A of the Principal Orders that is required because of the amendments made by Item 2 to suborder 23AB.  Order 42A requires the fee imposed by paragraph 23AB (a) (now 23AB (1) (a)) to be paid at the time of making the application.   The correction is needed to order 42A to remove paragraph ‘23AB (a)’ and insert paragraph ‘23AB (1) (a)’.

Item 4

Item 4 omits the occasions of the ‘$52’ in items 1 to 5 of Schedule 4 of the Principal Orders and replaces the amount with ‘$48’.  The effect of this item is to reduce the amount payable for each quarter hour for the services set out in those items in Schedule 4.

This amendment has the effect of decreasing the fee in:

• Item 1 of Schedule 4, that is charged for processing documents for the export of live animals or animal reproductive material from $52 for each quarter hour to $48 for each quarter hour;
• Item 2 of Schedule 4, that is charged for inspection of live animals or animal reproductive material otherwise than in the circumstances provided for in order 23AA, from $52 for each quarter hour to $48 for each quarter hour;
• Item 3 of Schedule 4, that is charged for the performance of an audit by an authorised officer, from $52 for each quarter hour to $48 for each quarter hour;
• Item 4 of Schedule 4, that is charged for the preparation of an application by an authorised officer at the request of an exporter where the consignment of live animals or animal reproductive material does not meet the applicable import protocol, from $52 for each quarter hour to $48 for each quarter hour; and
• Item 5 of Schedule 4, that is charged for the vaccination of the first animal, that is part of a consignment of live animals intended for export, against rabies, from $52 to $48 for that animal.

A review of the fees for the LAE Program was conducted in July 2007 and determined that the continued charging of fees at their current level would result in an over recovery of fees resulting in a surplus in the IEA.  The reduction of the amounts in items 1 to 5 of Schedule 4 from $52 to $48, along with the reduction of other fees made by these Amendment Orders will result in a small surplus at the end of the year and maintain the IEA balance at the end of the 2007/08 financial year at approximately 10%.

Item 5

Item 5 omits $26 from item 5 of Schedule 4 and substitutes $24.  The effect of this item is to reduce the amount payable for each additional live animal that is vaccinated against rabies, where that animal is part of a consignment intended for export.  The fee payable for the first animal that is vaccinated against rabies, where that animal is part of a consignment intended for export is $48, see the amendment made by Item 4 above.

A review of the fees for the LAE Program was conducted in July 2007 and determined that the continued charging of fees at their current level would result in an over recovery of fees resulting in a surplus in the IEA.  The reduction of the amount for the vaccination of each additional animal in item 5 of Schedule 4 from $26 to $24, along with the reduction of other fees made by these Amendment Orders will result in a small surplus at the end of the year and maintain the IEA balance at the end of the 2007/08 financial year at approximately 10%.

Item 6

Item 6 omits item 7 from Schedule 4.  This item set out the fee per quarter hour payable for each authorised officer involved in approving or registering premises where live animals or animal reproductive material are held prior to export from Australia.  This item in Schedule 4 is no longer required as it has been recast as new suborders 23AB (2) and 23AB (3).