Export Payments Insurance Corporation Regulations (Amendment)

Overview

Statutory Rules 1973 No. 209, made under the Export Payments Insurance Corporation Act 1956-1973, was enacted to provide for the regulation of export payments insurance. These regulations were introduced to address the need for adjustments to the financial parameters within which the Export Payments Insurance Corporation operates, specifically the minimum advances for guarantees and the maximum percentage of guarantees. The Governor-General, Paul Hasluck, acting on the advice of the Executive Council, issued these regulations. The policy objective, as indicated by the amendments, is to adapt the financial thresholds to better support and facilitate export activities in changing economic conditions. The regulations modify the minimum advance amount for guarantees from two hundred thousand dollars to thirty thousand dollars and increase the maximum percentage of guarantees from eighty per cent to ninety per cent.

Scope and Application

The Statutory Rules 1973 No. 209, made under the Export Payments Insurance Corporation Act 1956-1973, primarily amend the Export Payments Insurance Corporation Regulations, affecting the operations of the Export Payments Insurance Corporation. These regulations apply to entities and individuals engaged in export activities within Australia, including exporters who seek insurance for their export transactions. The amendments revise the minimum advance amount for guarantees, lowering it from two hundred thousand dollars to thirty thousand dollars, and increase the maximum percentage of guarantees that can be provided from eighty per cent to ninety per cent. This change aims to provide more flexible and accessible insurance coverage for exporters, thereby potentially stimulating trade and commerce. The regulations have a national reach, applying across Australia and are not limited by state or territory boundaries. There are no specific exclusions or exemptions outlined in these regulations, but the application and scope can be further defined or restricted through subordinate instruments as necessary.

Key Provisions

The main operative sections of the Statutory Rules 1973 No. 209, which amend the Export Payments Insurance Corporation Regulations, are Regulations 10 and 11. Regulation 10 reduces the minimum advance amount for guarantees from two hundred thousand dollars to thirty thousand dollars (Reg. 10). Regulation 11 increases the maximum percentage of guarantees that can be provided from eighty per cent to ninety per cent (Reg. 11). These amendments adjust the financial parameters within which the Export Payments Insurance Corporation operates, allowing for more flexible and potentially more widespread insurance coverage for export transactions. The obligations and requirements imposed by these regulations pertain primarily to the Export Payments Insurance Corporation, which is tasked with insuring export payments. The reduced minimum advance amount in Regulation 10 means that the Corporation can now insure smaller transactions, potentially increasing the number of exporters who can benefit from its services. Regulation 11’s increase in the maximum percentage of guarantees allows the Corporation to cover a greater proportion of the value of an export transaction, thereby providing more comprehensive protection to exporters. These changes require the Corporation to reassess its risk management and underwriting strategies to accommodate the new parameters. Breaching these regulations, or failing to comply with the amended provisions, can result in various civil and criminal consequences. While the specific penalties are not detailed within the statutory rules themselves, under the Export Payments Insurance Corporation Act 1956-1973, breaches could lead to legal actions, fines, or other administrative penalties. The exact penalties would depend on the nature and severity of the breach, and would be determined in accordance with the broader legislative framework governing the Corporation’s operations. In summary, the Statutory Rules 1973 No. 209 amend the Export Payments Insurance Corporation Regulations to lower the minimum advance amount for guarantees and increase the maximum percentage of guarantees. These changes aim to make the Corporation’s services more accessible and comprehensive for exporters. Compliance with these regulations is essential to avoid potential civil or criminal consequences, although specific penalties are not outlined in these rules but would be determined under the overarching Act.