Export Market Development Grants (Iran Sanctions) Repeal Declaration 2016

Overview

The Export Market Development Grants (Iran Sanctions) Repeal Declaration 2016 was made under the authority of the Minister for Trade and Investment, pursuant to section 44 of the Export Market Development Grants Act 1997. This Repeal Declaration aims to repeal the Export Market Development Grants (Iran Sanctions) Declaration 2008, thereby removing Iran from the list of countries subject to trade sanctions for the purposes of the Export Market Development Grants Act 1997. The policy objective of this repeal is to allow eligible expenses of applicants to the Export Market Development Grants (EMDG) scheme relating to promotional activities and products to be considered eligible from the date of commencement of the Repeal Declaration. The repeal is designed to have retrospective effect, aligning with the date Australia lifted all nuclear-related economic and financial sanctions on Iran, thus ensuring fairness for EMDG claimants. The Repeal Declaration does not engage with, and is therefore compatible with, human rights and freedoms as recognised in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Export Market Development Grants (Iran Sanctions) Repeal Declaration 2016 applies to the repeal of the Export Market Development Grants (Iran Sanctions) Declaration 2008 under the Export Market Development Grants Act 1997. It specifically affects entities and individuals engaged in export activities with Iran by removing the sanctions that previously restricted eligibility for grants under the Export Market Development Grants scheme. The Repeal Declaration has a Commonwealth jurisdictional reach, as it is made under the authority of the Minister for Trade and Investment and operates nationally across Australia. The repeal of the 2008 Declaration means that expenses related to eligible promotional activities and products for Iran are now eligible for grants under the Export Market Development Grants Act 1997. This change became effective from 18 January 2016, with the repeal taking effect from 17 January 2016. The declaration does not incorporate any documents by reference and, due to its nature, did not require industry consultation. The Repeal Declaration's retrospective commencement aims to benefit EMDG claimants by allowing them to include expenditure as eligible from the repeal date rather than the registration date, aligning with the date Australia lifted nuclear-related economic and financial sanctions on Iran.

Key Provisions

The Export Market Development Grants (Iran Sanctions) Repeal Declaration 2016 (section 1) effectively names the instrument as such and sets the stage for its operation. Section 2 stipulates that this Repeal Declaration applies retrospectively from 18 January 2016, meaning that the effects of the repeal will be recognised as applying from this date, despite being made later. This is significant as it allows eligible expenses incurred from the date of retrospective commencement to be considered eligible for the Export Market Development Grants (EMDG) scheme. Section 3 is the core of the Repeal Declaration, as it repeals the Export Market Development Grants (Iran Sanctions) Declaration 2008, effective from 17 January 2016. This repeal means that Iran is no longer subject to trade sanctions for the purposes of the Export Market Development Grants Act 1997, thereby making expenses related to eligible promotional activity and eligible products incurred by applicants to the EMDG scheme eligible for the grants. The Repeal Declaration imposes certain obligations on parties and entities governed by the Export Market Development Grants Act 1997. Firstly, it requires that all expenses related to eligible promotional activities and products now qualify for grants, provided they were incurred on or after 18 January 2016. This includes ensuring that all claims submitted to the EMDG scheme post-retrospective commencement date are in line with the new provisions. Additionally, it mandates that Austrade and other relevant bodies inform all EMDG claimants and consultants about the repeal and its implications. This involves clear communication regarding the eligibility criteria for expenses and the process for claiming grants in light of the repealed sanctions. Breach of the provisions of the Export Market Development Grants Act 1997 can lead to various civil and criminal consequences. While the Repeal Declaration itself does not explicitly outline penalties for non-compliance, the overarching Act may include provisions for offences related to false claims or misrepresentation of expenses. Penalties for such offences can range from fines to more severe criminal charges, depending on the nature and extent of the breach. The maximum penalties for offences under the Export Market Development Grants Act 1997 could include substantial financial penalties and imprisonment, reflecting the seriousness with which the Act treats fraudulent activities. It is important for claimants and consultants to adhere to the guidelines and ensure their claims are accurate and fully supported by documentation to avoid any potential legal repercussions.