Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 5) 2004 No. 120
EXPLANATORY STATEMENT
Statutory Rules 2004 No. 120
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Customs) Charges Act 1999
Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 5)
The Primary Industries (Customs) Charges Act 1999 (the Act) authorises the imposition of primary industries charges that are duties of customs. Schedule 13 to the Act makes provision for a charge on wine produced in Australia that is exported from Australia, and provides that the rate of charge is to be worked out in accordance with the regulations.
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.
Clause 2 of Schedule 13 to the Primary Industries (Customs) Charges Regulations 2000 (the Principal Regulations) prescribes charge bands and charge rates for the export of wine from Australia. The Wine Export Charge is payable by the producer of the wine.
The Australian Wine and Brandy Corporation (AWBC) is the Australian regulatory authority for the purposes of maintaining the quality and integrity of Australian wine. The export charge collected from producers of wine exported from Australia provides funds for the AWBC, through the Australian Wine Export Council, to undertake international wine promotional work aimed at creating a sustainable increase in the demand for Australian wine.
The Regulations amend Schedule 13 to the Principal Regulations to vary the charge bands applying to the Wine Export Charge. The charge bands relate to the free on board (FOB) sales value of wine exported in a levy year. FOB is a common method of quoting the price of goods for export. When goods are quoted FOB, it is the seller's responsibility to deliver the consignment to the ship at the port of shipment without extra charge to the buyer. The new bands to which differing rates of Wine Export Charge apply are as follows:
• not more than $20 million;
• $20 million to $70 million; and
• over $70 million.
Sub-clause 5(2) of Schedule 13 to the Act provides that the AWBC must not make a recommendation on rate of charge unless a motion to endorse the recommendation has been considered at an annual general meeting of the AWBC. Such a recommendation was passed at the AWBC annual general meeting of 3 December 2003 by a vote of 1,582,923 to 594.
Sub-clause 5(3) of Schedule 13 to the Act provides that before the Governor-General makes regulations to fix the rates of export charge the Minister must take into consideration any relevant recommendations made to the Minister by the AWBC or any relevant matter notified to the Minister under Section 29ZA of the Australian Wine and Brandy Corporation Act 1980.
Section 29ZA of the Australian Wine and Brandy Corporation Act 1980 provides that, when making recommendations to the Minister on the rate of charge, the AWBC must notify the Minister of any resolution relating to the recommendation passed or defeated at the most recent annual general meeting, of the number of votes cast for the resolution and of the number of votes cast against the resolution.
The Regulations give effect to the recommendations made to the Minister by the AWBC that the bands of the Wine Export Charge be varied as tabled below:
Band | Annual Export Value FOB | Charge rate |
1 | Not more than $20 million | 0.20% of FOB value |
2 | $20 million to $70 million | 0.10% of FOB value between $20 million and |
3 | Over $70 million | 0.05% of FOB value over $70 million plus |
The previous charge bands were:
Band | Annual Export Value FOB | Charge rate |
1 | Not more than $10 million | 0.20% of FOB value |
2 | $10 million to $50 million | 0.10% of FOB value between $10 million and |
3 | Over $50 million | 0.05% of FOB value over $50 million plus |
The effect of the Regulations is to increase the total amount of the Wine Export Charge collected by approximately $250,000 per annum. The Regulations will have no effect on those wine companies exporting less than A$10 million per year as they will continue to be charged at 0.20% of FOB value.
The Office of Regulation Review (ORR) was consulted in the preparation of the Regulations. ORR has advised that it is not necessary to prepare a Regulation Impact Statement on this matter (ORR no. 6031).
Details of the regulations are set out in the Attachment.
The regulations commence on 1 July 2004.
0402393A
ATTACHMENT
DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2003 (No. 5)
Regulation 1 provides for the name of the regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 5).
Regulation 2 provides for the Regulations to commence on 1 July 2004.
Regulation 3 provides that Schedule l amends the Primary Industries (Customs) Charges Regulations 2000 (the Principal Regulation).
Schedule 1 Amendments
Item [1] Schedule 13, paragraph 2(a)
This item replaces "$10 million" with "$20 million", so that the first charging band, for wine exported in a levy year, applies "if free on board sales value of the wine is not more than $20 million".
Item [2] Schedule 13, paragraph 2(b)
This item replaces "$10 million but not more than $50 million" with "$20 million but not more than $70 million", so that the second charging band, for wine exported in a levy year, applies "if the free on board sales value of the wine is more than $20 million but not more than $70 million".
Item [3] Schedule 13, subparagraph 2(b)(i)
This item replaces "$10 million" with "$20 million" so that the rate for the second charging band on wine exports over $20 million but not more than $70 million in a levy year is 0.1 % of the difference between the value of the wine exported and $20 million.
Item [4] Schedule 13, subparagraph 2(b)(ii)
This item replaces "$20,000" with "$40,000", so that the new amount is added to the value of the charge derived from subparagraph 2(b)(i).
Item [5] Schedule 13, paragraph 2(c)
This item replaces "$50 million" with "$70 million", so that the third charging band, for wine exported in a levy year, applies "if the free on board sales value of the wine is more than $70 million".
Item [6] Schedule 13, subparagraph 2(c)(i)
This item replaces "$50 million" with "$70 million", so that the rate for the third charging band on wine exports over $70 million in a levy year is 0.05% of the difference between the value of the wine exported and $70 million.
Item [7] Schedule 13, subparagraph 2(c)(ii)
This item replaces "$60,000" with "$90,000", so that the new amount is added to the value of the charge derived from subparagraph 2(c)(i).