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.
Overview
The Export Market Development Grants Act 1997 was enacted to provide non-discretionary grants to Australian businesses that have incurred specified expenses in promoting the export of Australian goods, services, intellectual property rights, and know-how, offering partial reimbursement of these expenses. The Act aims to facilitate the export activities of eligible entities while excluding those that do not directly participate in export transactions, unless they qualify as "approved bodies." The Australian Parliament established this Act to address the need for a structured grant scheme that recognises and supports the promotional efforts of entities like industry associations, which often promote exports on behalf of their members despite not being the principal parties in export transactions. The policy objective is to encourage and support the export market development efforts of Australian businesses, including those indirectly involved through industry associations, by providing a clear framework for eligibility, approval, variation, and cancellation of approved bodies as outlined in ministerial guidelines.
Scope and Application
The Export Market Development Grants Act 1997 provides a framework for the distribution of grants to Australian businesses that have incurred specific expenses promoting the export of Australian goods, services, intellectual property rights, and know-how. The Act caters to entities that are not the principal or intended principal in export transactions, such as industry associations and chambers of commerce, by granting them "approved body" status, thereby making them eligible for grants. This eligibility hinges on their application to Austrade and the fulfilment of certain criteria, including the status of the applicant within its industry, the level of planning and commercial viability of promotional activities, and the net benefit to Australia. The Act's jurisdictional reach is national, as it operates under Commonwealth legislation. Exclusions and exemptions are determined by the specific criteria laid out in ministerial guidelines, which also govern the variation and cancellation of approved body status. These guidelines operate as a disallowable instrument under the Acts Interpretation Act 1901 and provide detailed considerations for assessing applications, alongside circumstances under which approval may be withheld or revoked.
Key Provisions
The Export Market Development Grants Act 1997 provides for the allocation of grants to Australian businesses that have incurred certain expenses related to the promotion of their exports. Section 5(1) of the Act outlines the eligibility criteria for businesses to receive these grants, which generally include the ownership of the product being exported. However, certain organisations, such as industry associations, may also qualify for grants if they meet specific criteria and apply for "approved body" status with Austrade (subsections 6(2) and 88(1)). These guidelines are established by ministerial guidelines which are considered disallowable instruments under the Acts Interpretation Act 1901 (paragraph 101(1)(c)).
Organisations seeking approved body status must demonstrate their standing within their industry, the level of planning and promotion on behalf of their members, the commercial and financial feasibility of their promotional activities, and the net benefit to Australia. The guidelines provide factors for Austrade to consider when assessing applications, as well as circumstances where approval would generally not be granted. Approved status is contingent on meeting the criteria set out in the guidelines, and can be varied or cancelled if these conditions are not met.
The Act imposes specific obligations on entities seeking or holding approved body status. Firstly, eligible organisations must apply to Austrade for approval, providing detailed information on their industry standing, planning and promotional activities, financial feasibility, and net benefit to Australia. Secondly, once approved, these organisations must adhere to the conditions of their approval, ensuring that their promotional activities align with the guidelines and criteria established by the Act. Failure to meet these conditions can result in the cancellation of their approved status.
The Act also includes provisions for the imposition of penalties and consequences for breach. While the specific offences, penalties, or civil and criminal consequences for breach are not detailed in the explanatory statement, it can be inferred that failure to meet the obligations and conditions set out in the Act could result in penalties. These may include financial penalties, cancellation of approved body status, or other civil or criminal consequences as prescribed by the relevant legislation. The maximum penalties would depend on the specific nature of the breach and the provisions of any related laws.