EXPLANATORY STATEMENT
Export Market Development Grants (Made in Australia) Guidelines 2016
Authority
The Export Market Development Grants (Made in Australia) Guidelines 2016 is made by the Minister for Trade and Investment under paragraph 101(1)(ba) of the Export Market Development Grants Act 1997 (the EMDG Act).
Purpose
This Legislative Instrument details guidelines to be complied with by the Chief Executive Officer (CEO) of Austrade in determining, for paragraphs 24(a) and 37(1)(b) and subparagraphs 37(1)(c)(i) and (g)(i) of the Export Market Development Grants Act 1997, whether goods are made in Australia.
Background
The EMDG Act provides for grants to eligible Australian businesses which have incurred eligible 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.
Entitlement to a grant depends on (among other things) whether the goods are made in Australia. Section 24(a) of the EMDG Act requires that, to be eligible, goods must be made in Australia. A separate guideline exists for goods not made in Australia, but where the CEO of Austrade is satisfied that Australia may still derive a ‘significant net benefit’ from the export of the goods.
Paragraph 37(1)(b) and sub-paragraphs 37(1)(c)(i) and (g)(i) of the EMDG Act also refer to the origin of goods.
The guidelines will assist applicants to clarify whether their goods are likely to be eligible under the EMDG scheme and increase the transparency and accountability of Austrade’s decision-making about the eligibility of goods.
Decisions in relation to the eligibility of goods for EMDG purposes are subject to review in the Administrative Appeals Tribunal.
Commencement
The Guideline is made to repeal and replace the Export Market Development Grants (Made in Australia) Guidelines 2006, which is due to sunset on 1 October 2016.
The Guideline is the same in substance as the Export Market Development Grants (Made in Australia) Guidelines 2006.
The Guidelines apply when working entitlement to a grant in respect a grant made on or after 1 July 2016.
Consultation
Austrade conducted extensive stakeholder consultations before remaking this instrument. All stakeholder responses supported this instrument being remade, unchanged.
Regulation Impact Statement
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required (reference: OBPR 20848).
This Guideline is a Legislative Instrument for the purposes of the Legislation Act 2003.
This Guideline is compatible with human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Export Market Development Grants (Made in Australia) Guidelines 2016
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2001.
Overview of the Legislative Instrument
The Legislative Instrument provides Guidelines for the Chief Executive Officer of Austrade to use in determining whether goods are made in Australia.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Export Market Development Grants (Made in Australia) Guidelines 2016 were enacted to provide clear criteria for determining the eligibility of goods for grants under the Export Market Development Grants Act 1997. This Act, established by the Parliament of Australia, aims to facilitate the export of Australian goods, services, and intellectual property by offering grants to eligible businesses. The primary purpose of the guidelines is to assist applicants in understanding whether their goods qualify for the scheme and to enhance the transparency and accountability of Austrade's decision-making process regarding the origin of goods. These guidelines, made by the Minister for Trade and Investment under the authority of the EMDG Act, replace the outdated 2006 guidelines and apply to grants made on or after 1 July 2016. Extensive consultations with stakeholders ensured widespread support for the unchanged guidelines, aiming to maintain consistency and clarity in the application process.
Scope and Application
The Export Market Development Grants (Made in Australia) Guidelines 2016 applies to Australian businesses seeking eligibility for grants under the Export Market Development Grants Act 1997. This includes the determination of whether goods are made in Australia, which is a fundamental criterion for eligibility under the Act. The guidelines are specifically designed to assist the Chief Executive Officer of Austrade in making informed decisions about the origin of goods for the purposes of grant eligibility. The scope of these guidelines is limited to the interpretation and application of specific sections of the EMDG Act, such as sections 24(a), 37(1)(b), and sub-paragraphs 37(1)(c)(i) and (g)(i). These guidelines apply to grants made on or after 1 July 2016 and replace the previous guidelines which were set to expire on 1 October 2016. The guidelines themselves do not contain any substantive changes but ensure continuity in the application of the EMDG scheme. The geographic reach of these guidelines is aligned with the national scope of the EMDG Act, affecting businesses across Australia. The application of these guidelines can be extended or restricted through subordinate instruments, as per the provisions of the EMDG Act.
Key Provisions
The Export Market Development Grants (Made in Australia) Guidelines 2016 (section 3) are instrumental in guiding the Chief Executive Officer (CEO) of Austrade when determining whether goods qualify as "made in Australia" for the purposes of the Export Market Development Grants Act 1997 (EMDG Act). This is crucial under sections 24(a), 37(1)(b), 37(1)(c)(i), and 37(1)(g)(i) of the EMDG Act, which specify that eligibility for grants depends on the origin of the goods. Essentially, these guidelines help clarify the criteria for determining the Australian origin of goods, thereby ensuring that the grant process remains transparent and accountable.
Under the EMDG Act, entities governed by these guidelines must meet specific requirements to be eligible for grants. The Act requires that goods must be made in Australia to qualify for a grant (section 24(a)). Additionally, for goods not made in Australia, the CEO of Austrade must be satisfied that Australia may still derive a significant net benefit from the export of these goods (section 37(1)(b)). The guidelines provide detailed criteria and processes for making these determinations, ensuring that all parties understand the standards and evidence required to demonstrate that goods meet the "made in Australia" criteria.
Failure to comply with the guidelines or providing false information about the origin of goods can result in serious consequences. While the EMDG Act does not specify particular offences or penalties within the guidelines themselves, any fraudulent claims or misrepresentations could lead to legal action, including potential civil penalties under the EMDG Act. Additionally, any breaches of the guidelines that result in misuse of public funds could lead to criminal charges and penalties under Australian law. These consequences are designed to maintain the integrity of the grant program and ensure that only eligible goods receive support.
The guidelines serve to enhance the transparency and accountability of Austrade's decision-making process, ensuring that the grants are awarded fairly and only to those who meet the specified criteria. This not only protects the integrity of the grant program but also ensures that Australian businesses receive the support they need to successfully promote their goods in international markets. The guidelines are subject to review by the Administrative Appeals Tribunal, providing an additional layer of oversight and accountability.