Primary Industries (Customs) Charges Amendment (Potatoes and Vegetables) Regulations 2018

Administered by Department of Agriculture

Legislation au F2018L01236 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

 

Issued by Authority of the Minister for Agriculture and Water Resources

 

Primary Industries (Customs) Charges Act 1999

 

Primary Industries (Customs) Charges Amendment (Potatoes and Vegetables) Regulations 2018

 

Legislative Authority

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

 

Section 8 of the Customs Charges 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.

 

Schedule 14 of the Customs Charges Act provides that regulations may impose charges on primary industry products, set the rate of the charge and specify the person liable to pay the charge. Schedule 10 of the Customs Charges Act imposes a charge on unprocessed potatoes and vegetables.

 

Section 13(2) of Schedule 14 of the Customs Charges 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. AUSVEG, the peak industry for the Australian potato and vegetable industry, was designated as the body for unprocessed potatoes and vegetables by the Minister through the Primary Industries (Customs) Charges (Designated Bodies) Declaration 2017 in line with the Act.

 

Purpose

The purpose of the Primary Industries (Customs) Charges Amendment (Potatoes and Vegetables) Regulations 2018 (the Regulations) is to activate an Emergency Plant Pest Response (EPPR) charge on:

  • unprocessed potatoes to 10 cents per tonne; and
  • vegetables to 0.01 per cent of the free on board value of the vegetables immediately before export.

 

Charges are introduced, administered and collected by the Australian Government, usually at the request of industry. The Department of Agriculture and Water Resources (the department) collects the charge and disburses the funds to the relevant recipient body.

 

Background

On 21 December 2017 AUSVEG advised that it would request that the department activate the EPPR charge on unprocessed potatoes and vegetables and set the charge at a rate of 10 cents per tonne on unprocessed potatoes and 0.01 per cent of the free on board value of the vegetables immediately before export. On 16 January 2018 AUSVEG formally made the request.

 

The funds raised through the EPPR charge on unprocessed potatoes and vegetables will be used to repay the Australian Government for costs paid on behalf of AUSVEG for the emergency response plan to manage the tomato potato psyllid incursion in Western Australia.

 

The department has assessed the AUSVEG request and considers that it meets the Australian Government Levy Principles and Guidelines for the activation of an EPPR charge.

 

Impact and Effect

The amendments will result in the activation of the EPPR charges for unprocessed potatoes and vegetables. The charge will be set at a rate of:

  • 10 cents per tonne on unprocessed potatoes, and
  • 0.01 per cent of the free on board value of the vegetables immediately before export.

 

The charge rates for unprocessed potatoes and vegetables were calculated to ensure that the industries’ liability to the Australian Government will be repaid within approximately three years, at which time AUSVEG intends to request that the charges are reset to a nil rate.

 

The charge increases are a small amount that is unlikely to influence the price of potato and vegetable products.

 

Consultation

Consistent with the Australian Government Levy Principles and Guidelines for the activation of an EPPR charge, AUSVEG notified charge payers of its intention to activate the charge through notifications on their website, via email (3051 in database), articles in their weekly update (3051 subscribers) and e-bulletin (2935 receivers) and emails to charge agents (669 agents).

 

AUSVEG held an objection period from 29 January 2018 to 14 March 2018 and received three objections. AUSVEG wrote to the stakeholders to explain the intent of the charges, to clarify that the EPPR charge would not be collected in perpetuity and detailed how information on the proposed changes had been made available.

 

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 (Potatoes and Vegetables) Regulations 2018

 

Section 1 – Name of Regulations

 

This section provides that the name of the Regulations is the Primary Industries (Customs) Charges Amendment (Potatoes and Vegetables) Regulations 2018.

 

Section 2 – Commencement

 

This section provides for the Regulations to commence on 1 October 2018.

 

Section 3 – Authority

 

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

 

Section 4 – Schedule

 

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

 

Schedule 1 – Amendments

 

Item 1 amends subclause 14.7(2) of Schedule 10 to provide that the EPPR charge on unprocessed potatoes is 10 cents per tonne.

 

Item 2 amends subclause 17.8(2) of Schedule 10 to provide that the EPPR charge on vegetables is 0.01% of the free on board value of the vegetables immediately before export.

 


 

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 (Potatoes and Vegetables) Regulations 2018

 

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 (Potatoes and Vegetables) Regulations 2018 (the Regulations) is to activate an Emergency Plant Pest Response (EPPR) charge on:

  • unprocessed potatoes to 10 cents per tonne, and
  • vegetables to 0.01 per cent of the free on board value of the vegetables immediately before export.

 

The Regulations commence on 1 October 2018.

 

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 and Water Resources

 

Overview

The Primary Industries (Customs) Charges Amendment (Potatoes and Vegetables) Regulations 2018 were introduced to address a specific issue within the Australian potato and vegetable industries by implementing an Emergency Plant Pest Response (EPPR) charge. Enacted under the authority of the Primary Industries (Customs) Charges Act 1999, these regulations aim to provide a mechanism for reimbursing the Australian Government for costs incurred during the emergency response to the tomato potato psyllid incursion in Western Australia. The charge rates were set to ensure the industries' liability is repaid within approximately three years, after which AUSVEG intends to request that the charges are reset to a nil rate. The charges are expected to have a minimal impact on the price of potato and vegetable products. The regulations were developed following consultation with AUSVEG, the designated body for these products, and were subject to an objection period to gather stakeholder feedback. These amendments seek to activate the EPPR charge at a rate of 10 cents per tonne for unprocessed potatoes and 0.01 per cent of the free on board value of the vegetables immediately before export, commencing on 1 October 2018. The Australian Government is responsible for collecting these charges and disbursing the funds to the relevant recipient body. The regulations have been assessed to be compatible with human rights, as they do not engage any of the applicable rights or freedoms.

Scope and Application

The Primary Industries (Customs) Charges Amendment (Potatoes and Vegetables) Regulations 2018 applies to entities and persons involved in the export of unprocessed potatoes and vegetables within Australia. These regulations pertain specifically to the imposition of Emergency Plant Pest Response (EPPR) charges on these products. The scope of this legislation is defined by the Primary Industries (Customs) Charges Act 1999, which authorises the imposition of charges on primary industry products, sets the rate of the charge, and specifies the person liable to pay the charge. The regulations were enacted in response to a request from AUSVEG, the peak industry body for the Australian potato and vegetable industry, which was designated as the relevant body for these products. The EPPR charge is intended to repay the Australian Government for costs incurred in managing the tomato potato psyllid incursion in Western Australia. The geographic reach of these regulations is national, as they apply to exports throughout Australia. The regulations do not include any stated exclusions or exemptions, nor do they establish specific thresholds, but they do provide for the activation of charges on the specified products at specified rates. The application of the Act can be extended or restricted through subordinate instruments, as authorised by the Customs Charges Act.

Key Provisions

The Primary Industries (Customs) Charges Amendment (Potatoes and Vegetables) Regulations 2018 primarily focuses on the imposition of Emergency Plant Pest Response (EPPR) charges on unprocessed potatoes and vegetables. Under Section 4, the Regulations amend the Primary Industries (Customs) Charges Regulations 2000 to set a charge of 10 cents per tonne on unprocessed potatoes (Item 1 of Schedule 1) and 0.01 per cent of the free on board value of vegetables immediately before export (Item 2 of Schedule 1). The Regulations come into effect on 1 October 2018, as stated in Section 2. These Regulations impose specific obligations on parties involved in the import and export of unprocessed potatoes and vegetables. The charges are to be collected by the Department of Agriculture and Water Resources and subsequently disbursed to the relevant recipient body, which in this case is AUSVEG, the peak industry body for the Australian potato and vegetable industry. The funds raised are intended to repay the Australian Government for costs incurred in managing the tomato potato psyllid incursion in Western Australia. AUSVEG is responsible for notifying charge payers and collecting relevant data to facilitate the charge implementation. Breaching the provisions of these Regulations can lead to legal consequences. While specific penalties are not outlined in the explanatory statement, non-compliance with customs charges generally can result in fines or other penalties under the Customs Act 1901. The maximum penalties can vary, but they may include fines up to 10,000 penalty units or imprisonment for serious offences, as stipulated in the relevant sections of the Customs Act. Additionally, failure to remit charges can result in civil actions to recover the unpaid amounts, along with interest and additional costs.

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Customs Law
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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.