EXPORT MARKET DEVELOPMENT GRANTS ACT 1997
Explanatory Statement
Guidelines for the approval, variation of approval and cancellation of approved bodies
The Export Market Development Grants Act 1997 (the Act) provides non discretionary grants to Australian businesses which have incurred specified expenses promoting the export of their Australian goods, services, intellectual property rights, and know how. The grant is a partial reimbursement of the expenses incurred.
The scheme provides for 'persons' to be eligible to receive a grant in circumstances where the general provisions of the Act would preclude them from eligibility. Persons eligible to receive a grant generally do not include persons who are not the owner of eligible product; that is, persons who are not principle or intended principle in export transactions.
There are a number of organisations which promote on behalf of other people but which are not principle or intended principle in transactions. Industry associations such as chambers of commerce are a good example. These organisations often expend money on overseas promotion. Not only are they precluded from grants eligibility by lack of principal status, but also by the fact that most of the funds expended are provided by the members of the organisation through membership fees and related payments. In most circumstances expenses funded in this way are ineligible.
The Act recognises the contribution to export made by these types of organisations by providing eligibility where they meet certain criteria. Organisations in this category wishing to be allowed to claim grants must apply to Austrade seeking "approved body" status - refer to subsections 6(2) and 88(1) of the Act. The criteria against which Austrade must consider an application for approved body status, and the criteria for varying and cancelling status is established by ministerial guidelines which are a disallowable instrument for the purposes of the Acts Interpretation Act 1901 - refer to paragraph 101(1)(c) of the Act.
The guidelines canvass such issues as the status of the applicant in relation to its industry of association, the level of planning on behalf of members, commercial and financial feasibility of promotional activities, and level of net benefit to Australia, and set down factors against each criteria which are to be considered in assessment. The guidelines also list circumstances where approval would generally not be granted. Cancellation of an approval is generally limited to circumstances where the conditions of approval have not been met by the approved entity.