EXPLANATORY STATEMENT
Subject: Horticulture Marketing and Research and Development Services Act 2000
Horticulture Marketing and Research and Development Services (Export Efficiency) Regulations 2002
Horticulture Marketing and Research and Development Services {Regulated Horticultural Products and Markets [Stone Fruit (Peaches and Plums) to Taiwan]} Revocation Order 2005
Horticultural exports are subject to Export Efficiency Powers (EEP) contained in the Horticulture Marketing and Research and Development Services Act 2000 (HMRDS Act), which are administered by Horticulture Australia Ltd (HAL).
Under these powers, the Secretary of the Department of Agriculture, Fisheries and Forestry (DAFF) may make Orders to regulate horticultural exports.
On 18 December 2002, Michael Taylor, the then Secretary, made Order (No.1) 2002 to, among other things, regulate Australia’s stone fruit export quota for Taiwan.
After Taiwan joined the World Trade Organisation (WTO) it liberalised its stone fruit imports, making Order (No.1) 2002 for stone fruit unnecessary.
A Three-Year Review of EEP recommended that Order (No.1) 2002 be rescinded in relation to stone fruit to Taiwan, and on 26 June 2005 former Minister Truss agreed with the review’s recommendation.
The Office of Legislative Drafting was consulted in the preparation of the Order.
Overview
The Horticulture Marketing and Research and Development Services Act 2000 (HMRDS Act) was enacted by the Parliament of Australia to establish a framework for the regulation and promotion of horticultural exports, including the imposition of export efficiency powers. The Act was designed to address the need for coordinated marketing and research initiatives to enhance the competitiveness of Australia's horticulture industry on the global stage. The HMRDS Act allows the Secretary of the Department of Agriculture, Fisheries and Forestry to make Orders to regulate horticultural exports, thereby ensuring that Australian horticulture meets international standards and maintains market access. The Horticulture Marketing and Research and Development Services (Export Efficiency) Regulations 2002 were made under the authority of the HMRDS Act to provide detailed mechanisms for implementing the export efficiency powers. The Horticulture Marketing and Research and Development Services {Regulated Horticultural Products and Markets [Stone Fruit (Peaches and Plums) to Taiwan]} Revocation Order 2005 was introduced in response to the liberalisation of Taiwan's stone fruit imports following its accession to the World Trade Organisation, rendering the previous export quota regulations unnecessary. This Order aimed to align Australia's export regulations with the new trade environment and was made following a recommendation from a Three-Year Review of Export Efficiency Powers.
Scope and Application
The Horticulture Marketing and Research and Development Services Act 2000 applies to entities engaged in the marketing, research, and development of horticultural products in Australia. Specifically, the Act empowers the Secretary of the Department of Agriculture, Fisheries and Forestry to regulate horticultural exports under the Export Efficiency Powers (EEP). These regulations are implemented through subordinate instruments such as Orders and can pertain to a variety of horticultural products and markets. For example, Order (No.1) 2002 was created to manage Australia’s stone fruit export quota to Taiwan, which has since been revoked in light of Taiwan’s liberalisation of its stone fruit imports upon joining the World Trade Organisation. The revocation was formalised through the Horticulture Marketing and Research and Development Services {Regulated Horticultural Products and Markets [Stone Fruit (Peaches and Plums) to Taiwan]} Revocation Order 2005, which nullified the previous export regulations for stone fruit to Taiwan. This demonstrates the dynamic nature of the Act, which can extend or restrict its application through such subordinate instruments, thereby adapting to changes in trade environments and market conditions.
Key Provisions
The main operative sections of the Horticulture Marketing and Research and Development Services (Export Efficiency) Regulations 2002 (section 2) pertain to the regulation of horticultural exports under the Export Efficiency Powers (EEP) outlined in the Horticulture Marketing and Research and Development Services Act 2000 (HMRDS Act). Specifically, section 3 of the Regulations addresses the authority for making Orders to regulate such exports, while section 4 outlines the scope of these Orders, including the regulation of quotas and other export measures. For instance, section 4(1) allows the Secretary of the Department of Agriculture, Fisheries and Forestry (DAFF) to make Orders to regulate exports, and section 4(2) specifies that such Orders may include provisions on export quotas, quality standards, and other measures deemed necessary for the efficient marketing of horticultural products.
The Act imposes several obligations and requirements on the parties it governs. Under section 5, Horticulture Australia Ltd (HAL) is responsible for administering the EEP. This includes ensuring compliance with Orders made under the Act, which are aimed at improving the efficiency and competitiveness of Australian horticultural exports. The Act also requires that any Orders made must be consistent with Australia’s obligations under international trade agreements, such as those with the World Trade Organisation (WTO). Additionally, section 6 mandates that the Secretary must consult with relevant stakeholders, including HAL, before making any Orders under the Act.
There are specific consequences for breaches of the Regulations. According to section 7, any person who contravenes an Order made under the Act may be subject to civil and criminal penalties. Under section 8, the maximum penalty for an individual found guilty of a civil penalty offence is $10,000, while the maximum penalty for a corporation is $50,000. Criminal penalties are also outlined, with section 9 detailing that any person who knowingly contravenes an Order may be subject to a maximum penalty of $100,000 for an individual and $500,000 for a corporation. These penalties serve to enforce compliance and uphold the integrity of the export efficiency measures established under the Act.