Export Inspection (Quantity Charge) Regulations (Amendment) 1991 No. 176
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 176
Issued by the authority of the Minister of State for Resources
EXPORT INSPECTION (QUANTITY CHARGE) ACT 1985
EXPORT INSPECTION (QUANTITY CHARGE) REGULATIONS (AMENDMENT)
Section 10 of the Export Inspection (Quantity Charge) Act 1985 (the Act) provides that the Governor-General may make regulations for carrying out or giving effect to the Act and in particular prescribing different rates of charge in respect of different classes of a prescribed commodity.
Section 6 of the Act provides that subject to that section a charge is imposed on a prescribed commodity in respect of which an export permit is granted.
The Export Inspection (Quantity Charge) Regulations (the principal Regulations) prescribe charges on prescribed commodities in respect of which an export permit is granted.
The Export Inspection (Quantity Charge) Regulations (Amendment) (the Amendment) amends the principal Regulations by setting revised quantity charges for butter, cheese, dairy items other than butter and cheese, and bulk grain.
The quantity charge rate for butter which is item 1 in the Schedule has been amended from $5.00 per tonne to $2.86 per tonne.
The quantity charge rate for cheese which is item 3 in the Schedule has been amended from $9.27 per tonne to $5.29 per tonne.
The quantity charge rate for dairy produce not in items 1 or 3, and which is designated as item 4 in the Schedule, has been amended from $7.87 per tonne to $4.49 per tonne.
The reason for the above reductions in quantity charge is that only part of the recovery of the cost of the provision of the export inspection service for the above products will in future be by means of a quantity charge. The means of recovery for the balance of the cost will be under the Export Inspection (Service Charge) Act 1985. Under these systems of recovery the charges more equitably reflect the cost of the provision of the service and encourage more efficient use of inspection resources.
The quantity charge rate for bulk grain (items 19 and 20) in the Schedule has been amended from 31 cents per tonne to 35 cents per tonne.
The quantity charge rate for containerised grain (items 21 and 22) in the Schedule has been amended from 81 cents per tonne to 91 cents per tonne.
The above two increases for bulk and containerised grain are owing to the estimated decline in grain exports.
The Amendment came into operation on 1 July 1991.
Overview
The Export Inspection (Quantity Charge) Regulations (Amendment) 1991 No. 176 was enacted to amend the Export Inspection (Quantity Charge) Regulations of 1985, which themselves were established to implement the Export Inspection (Quantity Charge) Act 1985. This Act was introduced to address the need for a structured and regulated approach to the imposition of export inspection charges on specific commodities, ensuring that such charges reflect the actual costs incurred in the inspection process and promote efficient use of resources. The regulations were amended by the Parliament of Australia, and the policy objective behind these amendments was to adjust the quantity charges more equitably, reflecting the costs of providing export inspection services, and to shift some of the financial burden to a service charge model under the Export Inspection (Service Charge) Act 1985. The amendments aimed to ensure that the charges more accurately represent the cost of the service provided and encourage optimal utilisation of inspection resources.
Scope and Application
The Export Inspection (Quantity Charge) Regulations (Amendment) 1991 No. 176 applies to the amendments of the quantity charge rates for certain prescribed commodities under the Export Inspection (Quantity Charge) Act 1985. This Act applies to the Commonwealth of Australia, and specifically affects entities involved in the export of prescribed commodities, such as butter, cheese, dairy items other than butter and cheese, and bulk grain. The regulations are designed to adjust the quantity charge rates in order to more accurately reflect the costs associated with the export inspection services, while also considering changes in export volumes. The Amendment reduces the quantity charge rates for butter, cheese, and other dairy items but increases the rates for bulk and containerised grain. These amendments were made to better align the charges with the costs of providing the inspection services and to reflect the anticipated changes in export volumes. The new rates came into effect on 1 July 1991.
Key Provisions
The Export Inspection (Quantity Charge) Regulations (Amendment) 1991 (No. 176) amends the Export Inspection (Quantity Charge) Regulations 1985 by adjusting the quantity charges for specific agricultural commodities. Under Section 10 of the Export Inspection (Quantity Charge) Act 1985, these regulations allow for the imposition of different rates of charge on prescribed commodities based on their class, which is aimed at implementing the Act's provisions effectively. Specifically, the Amendment alters the charges for butter, cheese, other dairy items, and bulk grain. For example, the quantity charge for butter has been reduced from $5.00 per tonne to $2.86 per tonne (Schedule item 1), while for cheese, it has decreased from $9.27 per tonne to $5.29 per tonne (Schedule item 3). Similarly, the charge for other dairy products not classified as butter or cheese has been adjusted from $7.87 per tonne to $4.49 per tonne (Schedule item 4). These reductions are justified by a shift in cost recovery mechanisms, where only a portion of the export inspection service costs will be covered by quantity charges, with the balance being addressed under the Export Inspection (Service Charge) Act 1985. This approach aims to make the charges more equitable and to promote more efficient use of inspection resources.
Entities involved in exporting the commodities affected by these changes must comply with the new charge rates as stipulated in the amended regulations. This means they need to account for these changes in their cost calculations when applying for export permits. The regulations impose an obligation on exporters to ensure that they are aware of and adhere to the updated charge rates to avoid any discrepancies in their export permit applications. Failure to comply with the amended rates may lead to incorrect charges being applied, which could result in disputes or penalties.
The Export Inspection (Quantity Charge) Regulations (Amendment) also introduces increased charges for bulk grain and containerised grain. The charge for bulk grain (Schedule items 19 and 20) has increased from 31 cents per tonne to 35 cents per tonne, while the charge for containerised grain (Schedule items 21 and 22) has risen from 81 cents per tonne to 91 cents per tonne. These increases reflect the anticipated decline in grain exports, which necessitates a revision of the charges to account for the changing economic landscape. Exporters must be aware of these new rates and adjust their financial planning accordingly. Non-compliance with these updated rates could lead to legal and financial repercussions, including the potential for over or underpayment of charges, which may result in further regulatory action or fines.