Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au F2021L00207 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by Authority of the Minister for Agriculture, Drought and Emergency Management

 

Primary Industries (Customs) Charges Act 1999

 

Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021

 

Legislative Authority

 

The Primary Industries (Customs) Charges Act 1999 (the Act) authorises the imposition of primary industries charges, that are duties of customs.

 

Section 8 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Research and marketing component of the cherry charge

 

Clause 2 of Schedule 10 to the Act impose charges on chargeable horticultural products. Subclauses 3(3) and 3(5) of Schedule 10 of the Act permit the regulations to fix the rate of a marketing component and research and the research and development component of those charges.

 

Subclauses 5(3) and 5(4) of Schedule 10 to the Act impose conditions requiring the Minister to consider any relevant recommendations from the industry services body before the Governor-General makes regulations for the purposes of setting the marketing component and research and development component of the charge on cherries. Before making a recommendation to the Minister for the marketing component, the industry services body must consult with the body that, under the regulations, is the eligible industry body.

 

The term ‘industry services body’ is defined in clause 1 of Schedule 10 to the Act as the industry services body declared under section 9 of the Horticulture Marketing and Research and Development Services Act 2000. The industry services body is Horticulture Innovation Australia (HIA): see the Horticulture Marketing and Research and Development Services (New Industry Services Body and Industry Export Control Body) Declaration 2014.

 

Clause 5.5 of Part 5 of Schedule 10 to the Regulations prescribes Cherry Growers of Australia Inc (CGA) to be the eligible industry body for cherries.

 

Emergency response charges

 

Schedule 14, Parts 2, 3 and 4 of the Act provides that Regulations may impose primary industries charges, set the rate of the charge and specify the person liable to pay the charge. Schedule 10 of the Act imposes a charge on horticulture products such as cherries.

 

Subclause 13(2) of Schedule 14 of the Act provides that if there is a single body that is a designated body in relation to a particular product then, before the Governor‑General makes a regulation in relation to the product, the Minister must take into consideration any relevant recommendation made to the Minister by the body. CGA, the national peak body for the cherry industry in Australia, is the designated body for cherries within the Primary Industries (Customs) Charges (Designated Bodies) Declaration 2017.

 

Purpose

 

The purpose of the Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021 (the proposed Regulations) is to:

  • decrease the marketing charge on cherries from 3 c/kg to 1 c/kg.
  • increase the research and development charge on cherries from 3.97 c/kg to 5 c/kg.
  • increase the Plant Health Australia charge on cherries from 0.03 c/kg to 0.3 c/kg.
  • increase the Emergency Plant Pest Response charge on cherries from nil to 0.7 c/kg.

 

Charges are introduced, administered and collected by the Australian Government, usually at the request of industry. The Department of Agriculture, Water and the Environment on behalf of the Commonwealth, collects the charge and disburses the funds to the relevant recipient body.

 

Background and consultation

 

The amendments are the result of two industry consultation processes by CGA, each meeting the requirements of the Australian Government Levy guidelines: How to establish or amend agricultural levies for the type of charge amendment proposed. CGA first consulted with charge payers on changes to the research and development, marketing and Plant Health Australia (PHA) charge components. The research charge would have been increased to 5.7 c/kg, with the marketing and PHA charges as set out in the current proposal and no change to the Emergency Plant Pest Response (EPPR) charge. CGA conducted a ballot that achieved a result of 71 per cent support for these proposed changes.

 

After the ballot it became necessary to activate the EPPR charge as the cherry industry became an affected party in responses under the Emergency Plant Pest Response Deed for varroa mite, brown marmorated stink bug and Torres Strait fruit fly. As cherry growers had strongly supported the overall charge rate remaining at 7 c/kg, CGA proposed the research charge rate be reduced to 5 c/kg and the EPPR charge be set to 0.7 c/kg. Levy payers were notified of the updated proposal. An objection period held from 10 September to 22 October 2020 returned no objections.

 

CGA submitted a request to the Minister, recommending that the cherry charge (and equivalent levy) be amended as described above. HIA also wrote to the Minister in support of the request. The recommendations of CGA and HIA were considered by the Minister before the Governor-General made the Regulations.

 

Impact and effect

 

As the amendments will not change the cherry charge rate overall, the changes will not directly influence the price of that product. The amendments will facilitate an industry-supported increase to industry investment in research and development, and biosecurity, and facilitate repayment of cherry industry emergency eradication response contributions underwritten by the Australian Government.


 

Details / Operation

 

Details of the Regulations are set out in Attachment A.

The Regulations are compatible with the 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 B.

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.


Attachment A

 

Details of the Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021

 

Section 1 – Name

 

This section provides that the name of the proposed Regulations is the Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021.

 

Section 2 – Commencement

 

This section provides for the commencement dates of the proposed Regulations.

 

Sections 1 to 4 commences the day after the proposed Regulations are registered.

 

Schedule 1 commences on 1 April 2021.

 

Section 3 – Authority

 

This section provides that the proposed Regulations are made under the Primary Industries (Customs) Charges Act 1999.

 

Section 4 – Schedules

 

This section provides for the Primary Industries (Customs) Charges Regulations 2000 to be amended as set out in Schedule 1.

 

Schedule 1

 

Item 1 amends clause 5.3 of Schedule 10 to omit “3 cents” and substitute “1 cent”.

 

Item 2 amends clause 5.4 of Schedule 10 to omit “3.97 cents” and substitute “5 cents”.

 

Item 3 amends subclause 5.6(2) of Schedule 10 to omit “nil” and substitute “0.7 cents per kilogram”.

 

Item 4 amends subclause 5.7(2) of Schedule 10 to omit “0.03 cents” and substitute “0.3 cents”.

 

 

Attachment B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021

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 2011.

 

Overview of the Legislative Instrument

The purpose of the Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021 (the proposed Regulations) is to:

  • decrease the marketing charge on cherries from 3 c/kg to 1 c/kg.
  • increase the research and development charge on cherries from 3.97 c/kg to 5 c/kg.
  • increase the Plant Health Australia charge on cherries from 0.03 c/kg to 0.3 c/kg.
  • increase the Emergency Plant Pest Response charge on cherries from nil to 0.7 c/kg.

 

The Regulations commence on 1 April 2021.

 

Human rights implications

These Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

The measures in the Regulations are 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 2011 as the Regulations do not engage any human rights issues.

 

The Hon. David Littleproud MP

Minister for Agriculture, Drought and Emergency Management

 

Overview

The Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021, enacted under the authority of the Minister for Agriculture, Drought and Emergency Management, amend the Primary Industries (Customs) Charges Act 1999 to adjust specific charges related to cherry production. The Act originally enabled the imposition of primary industries charges, considered as duties of customs. The 2021 amendment targets the rates of various charges imposed on cherry products, such as marketing, research and development, Plant Health Australia, and Emergency Plant Pest Response charges. These changes were made in response to industry consultation and the need to address biosecurity threats, while also considering the financial implications for growers. The regulations were developed to ensure that the total charge rate remains constant, thereby not affecting the overall price of cherries, but rather reallocating funds to support increased research, development, and emergency response capabilities within the industry. The policy objective of these amendments is to support the cherry industry's needs in research and biosecurity while maintaining a stable total charge rate, thus protecting growers' interests and ensuring the industry's resilience against plant health threats. The process involved consultation with relevant industry bodies, including Cherry Growers of Australia Inc. and Horticulture Innovation Australia, to align the regulatory changes with the industry's requirements and recommendations.

Scope and Application

The Primary Industries (Customs) Charges Act 1999, as amended by the Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021, applies to chargeable horticultural products, specifically cherries, within Australia. The Act authorises the imposition of primary industries charges, which are duties of customs, and these charges are imposed on cherries, a horticultural product, as regulated under the Act. The primary entities affected by this legislation are those involved in the production, export, and trade of cherries within Australia, as well as the industry bodies such as Horticulture Innovation Australia and Cherry Growers of Australia Inc, which play a role in recommending charge rates to the Minister. The geographic reach of this legislation is national, applying to all cherries produced and traded within Australia. The Act also provides for the consideration of recommendations from industry bodies before the Governor-General makes regulations to set the charge rates. The amendments introduced by the Regulations aim to adjust specific components of the cherry charge, such as the marketing charge, research and development charge, Plant Health Australia charge, and Emergency Plant Pest Response charge. These adjustments are intended to facilitate increased industry investment in research and development and biosecurity, and to manage emergency eradication response contributions. The Regulations specify the new rates for these charges, effective from 1 April 2021, and ensure compatibility with human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021 primarily modify the rates of charges on cherries under the Primary Industries (Customs) Charges Act 1999. These changes are detailed in Schedule 10 of the Act and are designed to adjust the marketing, research and development, Plant Health Australia, and Emergency Plant Pest Response charges on cherries. Specifically, the marketing charge is reduced from 3 cents per kilogram to 1 cent per kilogram, while the research and development charge increases from 3.97 cents per kilogram to 5 cents per kilogram. Additionally, the Plant Health Australia charge is increased from 0.03 cents per kilogram to 0.3 cents per kilogram, and an Emergency Plant Pest Response charge of 0.7 cents per kilogram is introduced. The regulations impose specific obligations on the parties involved, primarily the cherry growers and the relevant industry bodies. Cherry growers must ensure they are aware of the updated charge rates and prepare to pay the new charges as stipulated by the regulations. The eligible industry body, Cherry Growers of Australia Inc (CGA), has the responsibility of consulting with the charge payers and obtaining their support before making recommendations to the Minister for Agriculture, Drought and Emergency Management. Similarly, Horticulture Innovation Australia (HIA), the industry services body, must consult with CGA before making recommendations to the Minister. These consultations ensure that the proposed changes reflect the industry's needs and have the necessary support. The regulations introduce potential civil and administrative consequences for non-compliance. Although the specific penalties for non-payment or failure to comply with the new charge rates are not explicitly stated in the explanatory statement, it is generally understood that failure to comply with customs charges in Australia can result in penalties, fines, or legal action. Under the Customs Act 1901, penalties can include fines up to a certain amount determined by the court, as well as potential imprisonment for more severe breaches. The Primary Industries (Customs) Charges Amendment (Cherries) Regulations 2021 also outline the commencement dates for the new charge rates. Section 1 to 4 of the regulations commence the day after they are registered, while Schedule 1, which details the new charge rates, commences on 1 April 2021. This phased commencement ensures that there is a clear transition period for all stakeholders to adjust to the new charges. The regulations are made under the authority of the Primary Industries (Customs) Charges Act 1999 and are compatible with human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011, ensuring that the amendments do not infringe on any recognised human rights.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.