Primary Industries (Customs) Charges Amendment Regulations 2001 (No. 5) 2001 No. 216
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 216
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges Act 1999
National Residue Survey (Excise) Levy Act 1998
Primary Industries (Excise) Levies Amendment Regulations 2001 (No. 7)
Primary Industries (Customs) Charges Amendment Regulations 2001 (No. 5)
Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2001 (No. 3)
Section 8 of the Primary Industries (Excise) Levies Act 1999 [the Excise Act], Section 8 of the Primary Industries (Customs) Charges Act 1999 [the Charges Act] and Section 8 of the National Residue Survey (Excise) Levy Act 1998 [the NRS Act], each provide that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to that Act.
The following sections of the various schedules to the Excise Act and the Charges Act each require that before making a regulation effecting the respective operative levy or charge rate the Minister must take into consideration any recommendation made to the Minister by the representative industry organisation:
• Section 5 of Schedule 7 to the Excise Act;
• Section 7 to Schedule 8 to the Excise Act;
• Section 5 of Schedule 5 to the Charges Act; and
• Section 5 of Schedule 6 to the Charges Act.
The regulations provide for a reduction in the operative rates of levy and export charge for deer and deer velvet. The new operative rates are:
• Deer slaughter levy: 9.5 cents per kg (down from 15 cents per kg);
• Live Deer export charge: $7.75 per head (down from $10 per head);
• Deer Velvet levy: 3.5% of the sale value of the velvet (down from 5%);
• Deer Velvet export charge: 3.5% of the declared value of the velvet (down from 5%); and
• National Residue Survey (NRS) levy on the slaughter of deer: 1 cent per kg (down from 3 cents per kg).
Following agreement by the Deer Industry Association of Australia, (DIAA), the recognised industry body, and the Australian Deer Industry Group, ninety seven per cent of respondents to a nation wide survey of deer levy payers and potential levy payers voted to reduce the levy rates on deer and deer velvet as above.
A reduction to the operative levy rates does not change their purpose and function and are strongly endorsed by industry. The levies were originally set at higher rates compared to other industries to "kick start" the Rural Research and Development Corporation (RIRDC) research and development (R&D) program for deer and deer velvet, and are no longer supported by the industry at those levels.
In anticipation of the reductions RIRDC has agreed to maintain its current level of R&D funding for deer for the next three years.
The NRS has also agreed to reduce the NRS component of the Deer Slaughter Levy from 3 cents to 1 cent. The NRS implements chemical residue monitoring programs and recovers the costs of the programs from participating industries. These programs form the basis for documentation that enables the Australian Government to certify that raw food products bound for export and domestic consumption are free from significant chemical contamination.
Other than the reduction in the operative rates of levy and charge, there are no policy changes or new requirements for levy payers. The details for each levy or charge now follow a standard format to simplify readability. Similar principles have been used for the National Residue Survey levies.
The regulations commence on 1 October 2001.
Overview
The Primary Industries (Customs) Charges Amendment Regulations 2001 (No. 5) were enacted to address the need for a reduction in the operative rates of levies and export charges for deer and deer velvet, following recommendations from the industry and a nationwide survey of levy payers. These regulations, issued under the authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, modify the rates set out in the Primary Industries (Excise) Levies Act 1999, the Primary Industries (Customs) Charges Act 1999, and the National Residue Survey (Excise) Levy Act 1998. The policy objective is to reflect the current industry support and funding commitments for research and development, while ensuring that the necessary chemical residue monitoring programs are adequately funded. The amendments reduce the operative rates of the deer slaughter levy, live deer export charge, deer velvet levy, deer velvet export charge, and the National Residue Survey (NRS) levy on deer slaughter, in line with the recommendations of the Deer Industry Association of Australia and the Australian Deer Industry Group.
Scope and Application
The Primary Industries (Customs) Charges Amendment Regulations 2001 (No. 5) pertains to entities and individuals engaged in the deer and deer velvet industry, including producers, processors, and exporters within Australia. These regulations apply across the nation, ensuring uniformity in the application of reduced levies and charges as stipulated by the Primary Industries (Excise) Levies Act 1999, the Primary Industries (Customs) Charges Act 1999, and the National Residue Survey (Excise) Levy Act 1998. The regulations mandate a decrease in the operative rates for various levies and export charges associated with deer and deer velvet, as recommended by the Deer Industry Association of Australia and supported by a majority of industry stakeholders. These reductions do not alter the fundamental purpose and function of the levies, which are intended to fund research and development activities and monitor chemical residues in deer products. The commencement date for these regulations is 1 October 2001.
Key Provisions
The Primary Industries (Customs) Charges Amendment Regulations 2001 (No. 5) primarily deal with the reduction of certain levies and charges for deer and deer velvet as per sections 5 of Schedule 5 and 6 of the Primary Industries (Customs) Charges Act 1999 (Charges Act) and sections 5 of Schedule 7 and 8 of the Primary Industries (Excise) Levies Act 1999 (Excise Act). The new rates, effective from 1 October 2001, are a result of recommendations from the Deer Industry Association of Australia (DIAA) and feedback from a nationwide survey of deer levy payers and potential levy payers. The changes include a decrease in the deer slaughter levy from 15 cents per kilogram to 9.5 cents per kilogram, a reduction in the live deer export charge from $10 per head to $7.75 per head, a decrease in the deer velvet levy from 5% of the sale value to 3.5%, a reduction in the deer velvet export charge from 5% of the declared value to 3.5%, and a drop in the National Residue Survey (NRS) levy on the slaughter of deer from 3 cents per kilogram to 1 cent per kilogram.
These regulations impose certain obligations on the parties and entities governed by them. Firstly, the Minister for Agriculture, Fisheries and Forestry must consider any recommendations made by the representative industry organisation, such as the DIAA, before making a regulation affecting the operative levy or charge rates as per sections 5 of Schedule 7 to the Excise Act, sections 7 to Schedule 8 to the Excise Act, sections 5 of Schedule 5 to the Charges Act, and sections 5 of Schedule 6 to the Charges Act. Secondly, the new operative rates of levy and charge must be adhered to by the levy payers and the industry as a whole. Lastly, the Rural Research and Development Corporation (RIRDC) must maintain its current level of R&D funding for deer for the next three years as agreed upon with the industry.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the regulations for breach. However, failure to comply with the new operative rates of levy and charge may result in legal consequences or penalties as per the relevant Acts, i.e., the Excise Act and the Charges Act. These may include fines, imprisonment, or other penalties as prescribed by the respective Acts. It is essential for the parties and entities governed by these regulations to adhere to the new rates to avoid any potential legal consequences.