Export Market Development Grants Regulations (Amendment) 1993 No. 44
EXPLANATORY STATEMENT STATUTORY RULES 1993 No. 44
ISSUED BY AUTHORITY OF THE MINISTER FOR TRADE EXPORT MARKET DEVELOPMENT GRANTS ACT 1974
EXPORT MARKET DEVELOPMENT GRANTS REGULATIONS (AMENDMENT)
Subsection 43(1) of the Export Market Development Grants Act 1974 (the Act) provides that the Governor-General may make Regulations, not inconsistent with the Act, prescribing all matters prescribed or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The Act provides grants to Australian residents who have incurred expenditure promoting overseas Australian goods, services, industrial property rights, and know how. Access to grants is relatively free of limitations with respect to the overseas markets in which promotional activity may be undertaken. Exporters, however, are limited, inter alia, to eight grants under the Act.
The Export Market Development Grants Amendment Act 1992 (the Amendment Act) amended the Act to provide that Australian exporters who have achieved their eight grant maximum, and who meet certain criteria, may receive additional grants in respect of "new markets".
A "new market" is defined essentially on a country/product basis. Access to a country is allowed where the exporter's export earnings in respect of goods, services, industrial property rights, and know how, in respect of that country, over a specified past period of time, do not exceed a specified amount.
The past period of time, and the amount, are set down in the Amendment Act (three years immediately preceding, and $300,000/$1 million).
The definition of those goods, services, property rights and know how eligible for "new market" access, however, are not set down in the Amendment Act, but, in terms of subsection 15(8), must be prescribed by Regulation. These Regulations define those goods, services, industrial property rights and know how, eligible in terms of subsection 15(8).
The Regulations do not provide for any expansion of those categories of goods, services, industrial property rights, and know how allowed for under the general provisions of the Act, and the retrospectivity of the Regulations does not disadvantage any person in terms of subsection 48(2) of the Acts Interpretation Act 1901.
Overview
The Export Market Development Grants Regulations (Amendment) 1993 No. 44 were issued under the authority of the Minister for Trade to amend the Export Market Development Grants Regulations 1974, which were made under the Export Market Development Grants Act 1974. This legislative amendment aimed to address the limitation on the number of grants an Australian exporter could receive under the Act by providing a mechanism for additional grants for new markets. The policy objective was to encourage Australian exporters to diversify into new markets without being restricted by the previous cap of eight grants per exporter. The Amendment Act introduced the concept of "new markets," which are defined based on the exporter's earnings in a particular country over a specified period. These Regulations further defined the types of goods, services, industrial property rights, and know-how eligible for grants in these new markets, without expanding the general categories allowed under the Act. The Regulations ensure compliance with the Acts Interpretation Act 1901 by not disadvantaging any person due to their retrospective nature.
Scope and Application
The Export Market Development Grants Regulations (Amendment) 1993 No. 44, issued under the authority of the Minister for Trade, modify the Export Market Development Grants Act 1974 to provide additional grants to Australian exporters who have reached the eight grant limit and meet specific criteria for entering new markets. This Act applies to Australian residents who have incurred expenditure in promoting Australian goods, services, industrial property rights, and know-how overseas, with a relatively unrestricted approach to the markets involved. The Amendment Act specifies a "new market" based on a country/product combination, where the exporter’s earnings from that country do not exceed a certain threshold over a defined past period. The categories of goods, services, industrial property rights, and know-how eligible for new market access are prescribed by these Regulations, aligning with the general provisions of the Act without any retrospective disadvantage to persons as per the Acts Interpretation Act 1901. These Regulations do not expand the existing categories but ensure compliance with the legislative intent set forth in the Amendment Act.
Key Provisions
The Export Market Development Grants Regulations (Amendment) 1993 No. 44 primarily addresses the amendments made by the Export Market Development Grants Amendment Act 1992 to the Export Market Development Grants Act 1974. Section 43(1) of the Act authorises the Governor-General to make regulations necessary to carry out the Act, and these regulations are intended to define the eligibility criteria for certain types of goods, services, industrial property rights, and know-how under the new market provisions. The regulations themselves, however, do not expand on the categories already permitted under the Act but rather clarify and prescribe the specifics of the new market criteria as required by subsection 15(8).
These regulations impose obligations on parties seeking to access additional grants through the new market provisions. Exporters who have reached their eight-grant maximum under the Act must meet the criteria to qualify for additional grants. They must demonstrate that their export earnings in the specified new market, as defined by the regulations, do not exceed the prescribed amounts for the specified period of three years preceding the application. This means that exporters must keep accurate records of their export earnings to satisfy the eligibility requirements.
The regulations do not introduce new offences or penalties but rather specify the criteria for accessing additional grants. Any failure to meet the eligibility criteria for the new market provisions could result in disqualification from receiving the additional grants. However, since the regulations do not create new criminal or civil offences, the primary consequence of non-compliance is the denial of the grants. It is important to note that the regulations are designed to ensure that no existing entitlements are adversely affected, as stipulated by subsection 48(2) of the Acts Interpretation Act 1901. This means that the amendments do not disadvantage any person who was already eligible for grants under the original provisions of the Act.