Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 1) 2003 No. 2
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 2
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges Act 1999
Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 1)
Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 1)
Section 8 of both the Primary Industries (Excise) Levies Act 1999 (the Excise Levies Act) and the Primary Industries (Customs) Charges Act 1999 (the Customs Charges Act) provide that the Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to those Acts.
The purpose of the regulations is to provide for the levy and charge that fund the Sugar Industry Reform Programme to cease on 31 December 2007.
The Sugar Industry Reform Programme announced by the Minister on 10 September 2002 will provide support for the industry to ensure its long-term viability and sustainability. This support consists of immediate assistance, in the form of income support, replanting interest rate subsidies and exit grants. The programme also contains long-term reform initiatives in the form of an Industry Guidance Group, Regional Guidance Groups and Regional Project Assistance. The programme will be administered by the Commonwealth Department of Agriculture, Fisheries and Forestry (AFFA) and levy will be paid by Levies Revenue Service into the Consolidated Revenue Fund and appropriated by the AFFA programme managers in accordance with the demands of the programme. Payments of income support and interest relief have commenced, with exit grants to be available from 1 February 2003. Funding under the Regional Projects component will be available commencing in 2003-04.
The Regulations will provide that the Sugar levy and customs charge cease to have effect at the end of 31 December 2007.
Details of the Regulations are set out in the Attachment.
The Regulations will commence on gazettal.
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ATTACHMENT
PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2003 (No. 1)
Regulation 1 provides for the name of the regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 1).
Regulation 2 provides for the commencement date to be on gazettal.
Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999 (the Excise Levies Regulations).
SCHEDULE 1 AMENDMENT
Item 1 inserts a new clause into Part 6 about Sugar in Schedule 27 of the Excise Levies Regulations.
Clause 6.6 provides that Part 6 of Schedule 27 of the Excise Levies Regulations ceases to have effect at the end of 31 December 2007.
The note states that this clause may be amended any time before 31 December 2007 to change the date if, for example, the financial requirements of the Sugar Industry Reform Programme are met before this date.
PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2003 (No. 1)
Regulation 1 provides for the name of the regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 1).
Regulation 2 provides for the commencement date to be on gazettal.
Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 1999 (the Customs Charges Regulations).
SCHEDULE 1 AMENDMENT
Item 1 inserts a new clause into Part 4 about Sugar in Schedule 14 of the Customs Charges Regulations.
Clause 4.5 provides that Part 4 of Schedule 14 of the Customs Charges Regulations ceases to have effect at the end of 31 December 2007.
The note states that this clause may be amended any time before 31 December 2007 to change the date if, for example, the financial requirements of the Sugar Industry Reform Programme are met before this date.
Overview
The Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 1) were enacted to amend the Primary Industries (Customs) Charges Act 1999, and were issued under the authority of the Minister for Agriculture, Fisheries and Forestry. The aim of these regulations was to address the need to cease the levy and charge funding the Sugar Industry Reform Programme by 31 December 2007. This programme, announced on 10 September 2002, provides both immediate and long-term support to ensure the viability and sustainability of the sugar industry. The policy objective of these regulations is to align the cessation of the sugar industry support measures with the completion of the reform programme, ensuring a smooth transition and the efficient use of allocated funds. The regulations were made to facilitate the orderly termination of the sugar levies and charges, thereby concluding the financial support structure established for the industry's reform.
Scope and Application
The Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 1) applies to the operations of the sugar industry in Australia, specifically those subject to the Primary Industries (Customs) Charges Act 1999. These regulations pertain to the cessation of the sugar levy and customs charge that fund the Sugar Industry Reform Programme, which is designed to support the long-term viability and sustainability of the sugar industry. The cessation is set to occur on 31 December 2007. The programme, managed by the Commonwealth Department of Agriculture, Fisheries and Forestry, includes immediate income support, replanting interest rate subsidies, exit grants, and long-term reform initiatives. The levies collected are deposited into the Consolidated Revenue Fund and are appropriated by the Department according to the programme's needs. The Regulations will come into effect upon gazettal, providing that the sugar levy and customs charge will cease to have any effect at the end of 31 December 2007. These regulations extend the application of the Primary Industries (Customs) Charges Act 1999 by specifically targeting the sugar industry, and they can be amended if the financial requirements of the Sugar Industry Reform Programme are met before the stipulated date.
Key Provisions
The Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 1) and the Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 1) serve to amend the existing regulatory framework concerning sugar levies and charges under the Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999. According to section 8 of both Acts, the Governor-General has the authority to make regulations that are necessary for the implementation and enforcement of these Acts. The primary objective of these regulations is to terminate the Sugar Industry Reform Programme funding mechanisms, specifically the sugar levy and customs charge, by the end of 31 December 2007.
These regulations impose specific obligations on the entities they govern, ensuring that the sugar levy and customs charge will cease to apply after the specified date. The Primary Industries (Excise) Levies Amendment Regulations 2003 (No. 1) amend the Primary Industries (Excise) Levies Regulations 1999 to include a new clause that renders Part 6 of Schedule 27 ineffective from 31 December 2007. Similarly, the Primary Industries (Customs) Charges Amendment Regulations 2003 (No. 1) modify the Primary Industries (Customs) Charges Regulations 1999 by introducing a new clause that nullifies Part 4 of Schedule 14 from the same date. It is noteworthy that these clauses can be altered before 31 December 2007 if the financial needs of the Sugar Industry Reform Programme are met earlier.
Failure to comply with these regulations could lead to legal consequences. While the regulations themselves do not explicitly outline penalties for non-compliance, breaches of the Excise Levies Act 1999 and Customs Charges Act 1999 can result in significant penalties. Under section 32 of the Excise Levies Act, any person who contravenes a provision of the Act or the regulations can be fined up to 10,000 penalty units or imprisonment for up to five years, or both. Similar penalties apply under the Customs Charges Act. These severe penalties underscore the importance of adhering to the regulations and the legislative framework governing sugar levies and charges.