EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 256
Issued by the Authority of the Minister for Resources
EXPORT INSPECTION (SERVICE CHARGE) ACT 1985
EXPORT INSPECTION (SERVICE CHARGE) REGULATIONS (AMENDMENT)
Section 9 of the Export Inspection (Service Charge) Act 1985 (the Act) provides that the Governor-General may make regulations for the purposes of section 7 of the Act.
Under section 7 of the Act, the rate of charge in respect of the provision of an export inspection service at an establishment is such rate, calculated by reference to time, as is applicable under the regulations to that establishment or to the class of establishments in which the establishment is included.
The Export Inspection (Service Charge) Regulations (Amendment) (the Amendment) amends the Export Inspection (Service Charge) Regulations by setting several new rates, as set out below against the relevant commodities, for export inspection services.
Calculation of the new charges has taken into account a number of factors. For the first time the costs of the compliance and malpractice investigation activities of the Australian
Quarantine and Inspection Service have been included into the inspection services cost base. There has been an increase by approximately 100% in the workers compensation cost component with the introduction of Comcare. There has been an increase in the superannuation component of the cost base and an alteration to the method of allocation of Australian Quarantine and Inspection Service head office costs across commodities to more accurately reflect current distribution of costs.
Dairy produce - increased from $49 to $66 per hour or part thereof per each attendance by an authorized officer. This increase follows a more accurate assessment of chargeable hours for inspection services following the first full year of operation of the Approved Quality Assurance system for dairy produce.
Eggs - increased from $49 to $66 per hour or part thereof for each attendance by an authorized officer. The inspection staff for this commodity are the same as those who undertake dairy inspection and the charge is therefore aligned to the charge for dairy produce. The inspection time for eggs represents less than 10% of the time of one inspector per year.
Fish - increased from $50 to $54 for each attendance by an authorized officer for a continuous period of half an hour; and increased from $50 to $54 per period of half an hour or part of that period for each attendance by an authorized officer occurring during a prescribed monthly aggregate.
The Amendment removes from the Export Inspection (Service Charge) Regulations any references to edible game offal, game meat and game meat products with no further revenue being raised under the Act in respect of the provision of inspection services for those items. Cost recovery for inspection services in respect of edible game offal, game meat and game meat products is, as from 1 October 1989, by way of the imposition of fees under the Export Control Act 1982.
The Amendment comes into operation on 1 October 1989.
Overview
The Export Inspection (Service Charge) Act 1985 was enacted by the Parliament of Australia to address the need for a regulatory framework governing the imposition of service charges for export inspection services. The primary objective of this Act is to ensure that fees for such services are fair and accurately reflect the costs incurred by the Australian Quarantine and Inspection Service in providing these services. The Minister for Resources has the authority to make regulations under this Act to specify the rates applicable to different types of export inspections. The Export Inspection (Service Charge) Regulations (Amendment) issued under the authority of the Minister, adjust the service charge rates for various commodities, reflecting changes in cost components such as compliance and malpractice investigation activities, workers' compensation, and superannuation. This amendment also removes certain commodities from the scope of the Act, redirecting their inspection fee collection to another legislative framework.
Scope and Application
The Export Inspection (Service Charge) Act 1985 applies to entities involved in the export of regulated commodities from Australia, specifically those that require inspection services to meet export standards. The Act is administered at a Commonwealth level and is applicable to a range of commodities including dairy produce, eggs, and fish, which are subject to inspection services provided by the Australian Quarantine and Inspection Service. The Act aims to ensure that these entities are charged a fair rate for the export inspection services they receive, with the rates determined by the Export Inspection (Service Charge) Regulations, which have been amended to reflect updated cost structures and new factors such as compliance and malpractice investigation activities, changes in workers compensation costs, and adjustments in the allocation of head office costs. The Amendment to the Export Inspection (Service Charge) Regulations removes references to certain game products, which are now subject to fees under the Export Control Act 1982.
Key Provisions
The Export Inspection (Service Charge) Regulations (Amendment) makes several significant changes to the rates for export inspection services. Section 9 of the Export Inspection (Service Charge) Act 1985 allows for regulations to be made to determine the rates of charge for export inspection services, and these regulations have been amended to set new rates for various commodities. For dairy produce, the rate has increased from $49 to $66 per hour or part thereof for each attendance by an authorized officer (section 1). For eggs, the rate has also increased from $49 to $66 per hour or part thereof for each attendance by an authorized officer (section 2). For fish, the rate has increased from $50 to $54 for each attendance by an authorized officer for a continuous period of half an hour and from $50 to $54 per period of half an hour or part of that period for each attendance by an authorized officer occurring during a prescribed monthly aggregate (section 3). Additionally, the Amendment removes references to edible game offal, game meat, and game meat products, meaning no further revenue will be raised under the Act in respect of the provision of inspection services for these items (section 4).
The Amendment imposes new obligations on parties subject to the regulations, particularly those involved in the export of dairy produce, eggs, and fish. These parties must now comply with the new rates set out in the regulations when paying for export inspection services. The Amendment also shifts the cost recovery for inspection services of edible game offal, game meat, and game meat products to fees imposed under the Export Control Act 1982, rather than through the Act (section 5). This change means that entities exporting these commodities will need to ensure compliance with the new fee structure under the Export Control Act.
Failure to comply with the new rates set out in the Amendment may result in civil or criminal consequences, although the Act itself does not specify penalties for non-compliance. The Amendment does not include explicit provisions for penalties or offences beyond the requirement to adhere to the new rates. However, non-compliance with the payment of applicable charges could potentially lead to enforcement actions under the Export Inspection (Service Charge) Act or other relevant legislation, which could result in fines or other legal consequences. The precise penalties for non-compliance would be determined in the context of any enforcement actions taken under applicable laws.