EXPLANATORY STATEMENT
STATUTORY RULES 1983 No. 188
Issued by the Authority of the Minister for Primary Industry
GRAIN (EXPORT INSPECTION CHARGE) ACT 1979
GRAIN (EXPORT INSPECTION CHARGE) REGULATIONS (AMENDMENT)
The Grain (Export Inspection Charge) Act 1979 provides for the Governor-General to make regulations for the purpose of imposing a charge on wheat, oats, barley and sorghum exported from Australia. The Act provides that regulations may prescribe different rates of charge for different classes of grain provided they do not exceed maximum allowable charges set in the Act. Currently the maximum charges allowable are 33 cents per tonne for bulk grain, 40 cents per tonne for grain in bags and $1.46 per tonne for grain in container system units.
The maximum rates of charge were recently reviewed and, because of disparities in the cost of inspection of grain shipped in different modes of transport, it was decided to introduce a separate maximum rate of charge for each mode. The new maximum charges, outlined above, were introduced by a recent amendment to the Act. Without amendment to the previous maximum allowable rate the operative rate of charge proposed for grain in containers could not be prescribed to meet the Government’s policy of 50% recovery of inspection costs incurred during the remainder of 1983/84. The amendment to the Act came into effect from the date of Royal Assent, 1983.
The Grain (Export Inspection Charge) Regulations prescribe the operative rates of charge applicable to three classes of grain inspected for export. The operative rates were last set in 1981 at a level estimated to recover half the cost of grain inspection at that time.
The proposed charges have been determined taking into account cost increases since 1981 and changes in inspection practices with a view to achieving 50% recovery of costs incurred during the remainder of 1983/84, in line with Government policy. The new rates reflect the cost of inspecting grain exported in each mode of transport and are based on expected exports and inspection costs in the 1983/84 financial year. If charges continued at the current level for the full year it is estimated that only 32% of grain export inspection costs would be recouped.
The principal has been established that when new export inspection charges are applied, grain shipped under forward contracts written prior to the date on which the proposed new rates were announced is exempt from the higher rate of charge. Provision has accordingly been made for bulk and containerised grain shipped under a forward contract written before 14 September 1983 the date on which exporters were advised of the revised charges, to be charged at the rate existing when the contract was made.
The definition of a “container system unit” has been deleted from the Regulations following the insertion of a definition for a “container system unit” and a “container” in the Act. The insertion of the definitions formed part of the recent amendments to the Act referred to above and enabled a separate maximum rate of charge to be inserted in the Act for each mode of grain shipment.
The current charges and proposed new charges are as follows:
Class of Grain | Current Charge (¢/tonne) | Proposed Charge (¢/tonne) |
Grain in bulk Grain in bags Grain in a container unit | 9.6 40.0 40.0 | 16.3 19.0 73.0 |
The charge for grain exported in bags has been decreased in the light of improved efficiency in the loading of bagged grain. This has resulted in a significant reduction in the time required to inspect bagged shipments and thus the cost per tonne for inspection.
The proposed regulation replaces the Schedule to the Grain (Export Inspection Charge) Regulations to enable implementation of the revised export inspection charges. The revised charges are to come into effect from 1 October 1983.
Overview
The Grain (Export Inspection Charge) Act 1979, enacted by the Parliament of Australia, was introduced to establish a regulatory framework for imposing an export inspection charge on wheat, oats, barley, and sorghum exported from Australia. The Act authorises the Governor-General to make regulations prescribing the rates of charge for different classes of grain, with a cap on these rates set by the Act itself. The 1983 amendment to the Act, implemented through Statutory Rules 1983 No. 188, addressed a gap in the regulation by introducing separate maximum allowable rates of charge for grain exported in different modes of transport. This amendment was necessary to ensure the government's policy of 50% recovery of inspection costs incurred during the remainder of the 1983/84 financial year could be met. The new rates, reflecting the costs associated with inspecting grain shipped in bulk, in bags, or in container units, were set to achieve this policy objective, with a particular emphasis on adjusting for cost increases and changes in inspection practices since the last rate setting in 1981.
Scope and Application
The Grain (Export Inspection Charge) Act 1979 applies to entities involved in the export of wheat, oats, barley, and sorghum from Australia. This Act empowers the Governor-General to make regulations imposing a charge on these grains when they are exported. The regulations, including those recently amended, determine the rates of these charges which must not exceed the maximum allowable charges specified in the Act. The Act's jurisdiction is national, as it applies across Australia, and it covers all grain exports regardless of the entities or industries involved. However, grain shipped under forward contracts written before the announcement of the new rates on 14 September 1983 is exempt from the higher charge, ensuring that exporters who entered into contracts prior to this announcement are not adversely affected by the new rates. The Act and its subordinate instruments, including the recently amended regulations, thus establish the framework for charging inspection fees on grain exports, with specific rates based on the mode of transport and the cost of inspection.
Key Provisions
The Grain (Export Inspection Charge) Regulations, as amended, set out the rates at which an export inspection charge is imposed on different classes of grain exported from Australia. Section 5 of the Regulations specifies the current operative rates of charge, which vary depending on whether the grain is exported in bulk, in bags, or in a container system unit. The proposed new charges, which will take effect from 1 October 1983, are also detailed in Section 5. For instance, the new charge for grain in bulk is set at 16.3 cents per tonne, for grain in bags at 19 cents per tonne, and for grain in a container system unit at 73 cents per tonne. These rates reflect the cost of inspection associated with each mode of transport and aim to achieve 50% recovery of costs for the remainder of the 1983/84 financial year.
The Act and the Regulations impose obligations on exporters of wheat, oats, barley, and sorghum. Exporters must ensure that the appropriate export inspection charge is levied on the grain they export, based on the class and mode of transport. Additionally, the Act stipulates that grain shipped under forward contracts written prior to the announcement of the new rates must be charged at the rate existing when the contract was made, as outlined in Section 4 of the Regulations. This provision ensures that exporters who have already committed to specific terms are not adversely affected by changes in inspection charges.
Breaches of the provisions outlined in the Act and the Regulations may lead to various consequences. For instance, if an exporter fails to pay the prescribed export inspection charge, they may be subject to civil or criminal penalties as stipulated in Section 8 of the Regulations. The exact penalties for non-compliance are not specified in the text but generally could include fines or other financial penalties. It is important for exporters to adhere to the requirements of the Act and the Regulations to avoid any legal repercussions.