Export Inspection (Quantity Charge) Regulations (Amendment) 1996 No. 195
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 195
Issued by the authority of the Minister for Primary Industries and Energy
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, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act, and, in particular, exempting a class or classes of a prescribed commodity from charge, and prescribing different rates of charge in respect of different classes of prescribed commodity.
The Export Inspection (Quantity Charge) Regulations (the Regulations) prescribe quantity charges payable by persons in whose name an export permit is issued under the Export Control Act 1982 by the Australian Quarantine and Inspection Service (AQIS). The quantity charges are part of the mix of charges agreed by industry to recover the costs of providing export inspection services.
The purpose of the Export Inspection (Quantity Charge) Regulations (Amendment) is to prescribe revised rates of charge for the 1996/97 financial year. A new Schedule prescribing revised rates of charge for export of grain has been substituted.
As part of the savings announced by the Government in the 1996/97 Budget, Community Service Obligation (CSO) funding in the Prescribed Grain program has been reduced by $68,000. A CSO is an activity that is either undertaken in response to a Government requirement, intended to result in a community or social service, or where no identifiable end-user exists from whom the cost can be recovered.
Given the CSO reduction, an existing revenue shortfall in the program and additional costs associated with a projected increase in export activity, a fee increase is required. The program recorded a significant deficit in 1995/96 due primarily to inaccurate estimating of the level of resourcing required to service industry during a prosperous export year.
The Regulations increase the quantity charge for bulk grain from 7.4 cents to 13.5 cents per tonne and for containerised grain from $4.50 to $5.00 per tonne. The revised fees have been endorsed in principle by the grain industry representative groups.
The previous charge per tonne for the export of dairy produce has been omitted from the Schedule. Responsibility for the inspection of export dairy produce in most States has now been assumed by State Dairy authorities, with AQIS maintaining an auditory role. AQIS's costs in the Dairy program are to be recovered through a mix of establishment registration charges, documentation fees and fee for service charges.
The Export Inspection (Quantity Charge) Regulations (Amendment) amends the Regulations as follows:
Regulation 1 - Commencement
Subregulation 1.1 provides that the Regulations as amended will commence on 1 September 1996.
Regulation 2 - Amendment
Subregulation 2.1 provides that the Regulations are amended as set out in the Export Inspection (Quantity Charge) Regulations (Amendment).
Regulation 3 - Schedule (Rates of Charge)
Subregulation 3.1 replaces the existing schedule of charges. The proposed schedule omits the charge per tonne for the export of dairy produce, sets a quantity charge for bulk grain of 13.5 cents per tonne and for containerised grain of $5.00 per tonne. Other charges have been maintained at existing rates.
Overview
The Export Inspection (Quantity Charge) Regulations (Amendment) 1996 No. 195, issued under the authority of the Minister for Primary Industries and Energy, were enacted to address the need for revised quantity charges for the 1996/97 financial year in line with the Export Inspection (Quantity Charge) Act 1985. The primary objective of this amendment is to adjust the fees payable by entities with export permits issued by the Australian Quarantine and Inspection Service (AQIS), ensuring that the charges reflect the costs of providing export inspection services. This adjustment is necessitated by a reduction in Community Service Obligation (CSO) funding, an existing revenue shortfall in the Prescribed Grain program, and additional costs associated with an anticipated increase in export activity. The Regulations aim to rectify the significant deficit recorded in 1995/96, which was due in part to an underestimation of the resources required during a prosperous export year. By amending the rates, particularly for bulk and containerised grain, and omitting the charge for dairy produce inspections, which are now managed by State authorities, the Regulations seek to achieve a more accurate and sustainable financial model for the export inspection services provided by AQIS.
Scope and Application
The Export Inspection (Quantity Charge) Regulations (Amendment) 1996 No. 195 applies to entities and persons who are involved in the export of goods in Australia and for whom an export permit is issued under the Export Control Act 1982. The regulations specifically pertain to the charges levied by the Australian Quarantine and Inspection Service (AQIS) to cover the costs of export inspection services, and primarily target the agricultural sector, especially grain and dairy industries. The amendment alters the rates of charge for the export of grain to reflect budgetary adjustments and industry cost increases. These changes apply across the nation, given the federal nature of the Export Inspection (Quantity Charge) Act 1985, and therefore impact all states and territories within Australia. The amendments exclude the charge for dairy produce exports, as State Dairy authorities now handle inspections in most states. The new rates were endorsed by grain industry groups and were implemented to address a revenue shortfall and additional costs associated with increased export activity. The regulations came into effect on 1 September 1996, as stipulated by the commencement clause in the amendment.
Key Provisions
The Export Inspection (Quantity Charge) Regulations (Amendment) 1996 No. 195 introduces changes to the rates of charge for the export of certain commodities under the Export Inspection (Quantity Charge) Regulations, as permitted by Section 10 of the Export Inspection (Quantity Charge) Act 1985. These regulations, which apply to the export permit system under the Export Control Act 1982, are administered by the Australian Quarantine and Inspection Service (AQIS). Specifically, the amendments focus on adjusting the quantity charges for bulk grain and containerised grain to reflect the new financial year rates, necessitated by budget savings, revenue shortfalls, and increased export activity.
The new regulations impose specific obligations on the parties governed by them, primarily those who hold export permits for commodities subject to quantity charges. For instance, Regulation 2, through Subregulation 2.1, details the amendments made to the existing regulations, including the replacement of the old charge rates with the new ones specified in the amended schedule. Regulation 3, via Subregulation 3.1, replaces the existing schedule with a new one that sets the charge for bulk grain at 13.5 cents per tonne and for containerised grain at $5.00 per tonne, while omitting the charge for the export of dairy produce, as State Dairy authorities have taken over the inspection responsibilities.
Failing to comply with the new rates of charge as stipulated by the amended regulations can result in civil or criminal consequences, depending on the severity and intent of the breach. The maximum penalties are not explicitly stated in the provided text, but non-compliance with export regulations can typically lead to fines, legal action, or other administrative penalties. It is crucial for entities involved in exporting the affected commodities to adhere to the new charges to avoid such consequences.
The Export Inspection (Quantity Charge) Regulations (Amendment) 1996 No. 195, coming into effect on 1 September 1996 as per Regulation 1, Subregulation 1.1, aims to ensure that the revenue shortfalls in the Prescribed Grain program are addressed through the revised fee structure. This adjustment is intended to maintain the financial sustainability of the export inspection services provided by AQIS while reflecting the economic realities of the export market. The grain industry representative groups have endorsed the revised fees in principle, indicating a broad acceptance of the changes.