Export Market Development Grants (Grants Entry Requirements) Determination 2016

Overview

The Export Market Development Grants (Grants Entry Requirements) Determination 2016 was enacted by the Chief Executive Officer of Austrade under the authority provided by the Export Market Development Grants Act 1997 (EMDG Act). This Determination was introduced to provide clear guidelines for assessing whether businesses meet the entry requirements for the Export Market Development Grants (EMDG) scheme, which aims to assist Australian businesses in promoting the export of their goods, services, intellectual property rights, and know-how. The objective of the legislation is to ensure that grants are awarded to businesses that have taken reasonable steps to prepare for export, possess sufficient financial resources, and propose export activities that are lawful and practicable. The Determination serves to replace the previous guidelines, ensuring consistency and continuity in the administration of the EMDG scheme.

Scope and Application

The Export Market Development Grants (Grants Entry Requirements) Determination 2016 applies to businesses seeking to receive grants under the Export Market Development Grants Act 1997. It outlines the criteria that must be met by applicants for the grants, which are intended to assist Australian businesses in promoting the export of goods, services, intellectual property rights, and know-how. The Determination applies to any business that is eligible for the grants, which includes both aspiring and current exporters, provided they have not previously received a grant under the scheme. The three criteria for eligibility include having sufficient financial resources to carry on the intended activities, having taken reasonable steps to prepare for export, and proposing export activities that are lawful and practicable. The Determination is applicable on a Commonwealth level, as it is made by the Chief Executive Officer of Austrade, an agency of the Australian Government. The Determination provides the framework within which the Chief Executive Officer of Austrade makes decisions about whether a business meets the grants entry requirements. The Determination applies to grant applications made on or after 1 July 2016 and replaces the previous determination that was due to sunset on 1 October 2016. While the Determination is focused on setting out the criteria for eligibility, it does not specify any exclusions, exemptions, or thresholds beyond those outlined in the EMDG Act. Decisions made under the Determination can be reviewed in the Administrative Appeals Tribunal.

Key Provisions

The Export Market Development Grants (Grants Entry Requirements) Determination 2016 (sections 1 to 5) provides the framework for the Chief Executive Officer of Austrade to assess whether a business meets the entry requirements for the Export Market Development Grants (EMDG) scheme. Under section 1, the Chief Executive Officer must determine if a business has sufficient financial resources to carry on its intended activities, has taken reasonable steps to prepare for export, and proposes export activities that are not unlawful or impracticable. Section 2 specifies that these requirements apply to first-time applicants. Section 3 outlines the procedure for review of decisions made under this Determination by the Administrative Appeals Tribunal. Section 4 notes the repeal and replacement of the 2002 Determination, with the new Determination applying to grants made on or after 1 July 2016. Section 5 confirms that the Determination is compatible with human rights and freedoms as detailed in the attached Statement of Compatibility. The Determination imposes specific obligations on businesses applying for EMDG scheme grants. Firstly, businesses must demonstrate they have adequate financial resources to undertake their proposed export activities (section 1(1)(a)). Secondly, they need to show they have taken reasonable steps to prepare for export, which may include market research, developing export plans, and obtaining necessary certifications (section 1(1)(b)). Lastly, the business must propose export activities that are lawful and feasible (section 1(1)(c)). Failure to meet any of these requirements may result in the denial of grant eligibility. Businesses are encouraged to provide detailed documentation to support their compliance with these criteria. Breaches of the provisions outlined in the Determination may lead to civil or criminal consequences. Under the Export Market Development Grants Act 1997, false or misleading statements made in an application for a grant may result in civil penalties, including fines (section 21(2)(a)). Criminal penalties may apply if the offence is deemed serious, with potential fines and imprisonment (section 21(2)(b)). Additionally, the Administrative Appeals Tribunal can review decisions made under this Determination, providing a mechanism for businesses to challenge adverse decisions (section 3). The maximum penalties for civil and criminal offences are not explicitly stated in the Determination but would be determined by the relevant legislative provisions governing the EMDG Act.