EXPLANATORY STATEMENT
Issued with the authority of the Minister for Agriculture, Fisheries and Forestry.
Quarantine Act 1908
Quarantine Service Fees Amendment Determination 2009 (No. 2)
Legislative Authority
Section 86E of the Quarantine Act 1908 (‘the Act’) provides that the Minister may make determinations that require specified fees to be paid for or in relation to the doing of anything in connection with, inter alia, specified examinations, services or other quarantine measures carried out or provided under the Act, or for the management and maintenance of animals at a quarantine station in Australia. Section 86E also provides that the determination may, in respect of the reservation of space at a quarantine station or at a place approved under section 46A for an animal, require the payment of a booking fee and/or a deposit.
The Quarantine Service Fees Determination 2005 (‘the Determination’) sets out the fees that must be paid in respect of specified services carried out or provided under the Act. The Determination sets out fees for services performed by Programs of
the Australian Quarantine and Inspection Service (‘AQIS’), including caring for animals in quarantine at quarantine stations.
Background
AQIS has operated in a cost recovery environment since 1993. The Australian Government Cost Recovery Guidelines (July 2005) have provided a framework for cost recovery practices.
Prior to making of this Quarantine Service Fees Amendment Determination 2009 (No. 2) (‘the Amendment Determination’), the Post Entry Animal Quarantine (PEAQ) Program had been experiencing an increasing deficit. A scheduled review of the PEAQ fees, aimed at addressing this under recovery, was delayed as a result of the outbreak of equine influenza in 2007. The fee review was postponed until after the completion of the Equine Influenza Inquiry conducted by the Hon. Ian Callinan AC.
After the release of the Report of the Equine Influenza Inquiry in April 2008 the PEAQ fees were reviewed. Whilst undertaking the cost modelling process, it was identified that there were a number of activities performed at the quarantine stations in relation to post entry animal quarantine that were not cost recovered. As a result, a new fee structure for the PEAQ Program was developed.
Purpose and Impact
The purpose of the Amendment Determination is to amend the Determination to implement the new fee structure. The Amendment Determination increases fees to allow AQIS to fully cost recover for post entry animal quarantine services. The new fee structure increases the daily accommodation charges for a number of animals, including cats and dogs. In addition, it introduces a number of new charges relating to accommodation for importers or their agents, and booking fees and deposits for the reservation of quarantine station space for certain animals. The Amendment Determination also clarifies a number of existing provisions that were in the Determination.
Consultation
The Office of Best Practice Regulation determined that the amendment would have a low impact on business, and would impose no or low compliance costs. Therefore, no consultation was required for the proposed changes. In accordance with this assessment, no consultation was undertaken with respect to the ruminant, camelid and live bird fee changes.
However, consultation was undertaken in relation to the dogs, cats and birds’ eggs for hatching. The majority of import permits for live animals are for dogs and cats. Most of these importers will import only once and, as a result, there is no peak industry body to represent these individuals. As a courtesy, the PEAQ program contacted the Pet Industry Association of Australia to advise on the fee increases and provide an opportunity for comment. No response was received from the Pet Industry Association of Australia. Consultation was undertaken with the Torrens Island Stakeholder Group. The Torrens Island Stakeholder Group represents the importers of birds’ eggs for hatching.
Operation
Details of the Amendment Determination are set out below.
Section 1 provides that the name of the Amendment Determination is the Quarantine Service Fees Amendment Determination 2009 (No. 2).
Section 2 provides that the Amendment Determination commences on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 provides that Schedule 1 amends the Quarantine Service Fees Determination 2005.
Section 4 provides for transitional arrangements for the increased fees, the liability to pay booking fees and deposits and the application of new fees for importer housing.
Subsection 4(1) inserts two definitions for the purposes of the transitional provisions. ‘Start day’ is the day on which the Amendment Determination commenced. This definition ‘start day’ has been inserted to simplify the wording of the later subsections. The definition of ‘week’ clarifies that, for the purposes of the transitional provision, a week is a continuous period of 7 days.
Subsection 4(2) provides that the introduced booking fees and deposits for the reservation of space at a quarantine station only apply to bookings made on or after the start day (commencement). Therefore, a reservation made before commencement will not attract a booking fee or deposit.
Subsection 4(3) provides that the new and increased fee structure for accommodation and care of animals apply to consignments that arrive on or after the start day (commencement). To avoid doubt, the subsection also clarifies that the previous charges continue to apply to animals already undertaking quarantine (including those fees that have otherwise been removed by the Amendment Determination).
Subsection 4(4) provides that where an importer, or an importer’s agent, is using accommodation at the Torrens Island Quarantine Station, the new fees apply from the first day of the next week after commencement (the ‘start date’). A week is a continuous period of 7 days (as provided by the new subsection 4(1)). The previous fees, therefore, apply until the current week for which the importer or agent is using the accommodation expires. To avoid doubt, this is clarified by paragraph 4(4)(b). For example, where an importer begins using the accommodation on a Wednesday, and the instrument commences on the following Monday, the new fees will apply from the following Wednesday. The old fees will continue up to, and including, the following Tuesday.
SCHEDULE 1 AMENDMENTS
Items 1 and 2 insert definitions for ‘bird’, ‘booking fee’, ‘consignment’ and ‘deposit’ into subsection 5(1).
A ‘bird’ does not include a chick that hatches while the egg is in quarantine. The introduction of this definition is required to differentiate the fees charged in relation to live birds from those charged in relation to the chicks that hatch from eggs.
A ‘booking fee’ is the fee provided for in section 7A. A ‘deposit’ is the deposit required, in respect of a service, by section 7B. Both of these referenced sections are inserted by Item 6 of the Amendment Determination. These definitions were introduced for clarification.
‘Consignment’ has the meaning affected by subsections 5(4) and 5(5), which are inserted by Item 5. This definition has been introduced for clarification and the policy reasons outlined under Item 5.
Item 3 substitutes the reference to ‘subregulation 50(2)’ in the definition of ‘full import declaration’ in the new subsection 5(1) with ‘subregulation 50(2) of the Quarantine Regulations 2000. This corrects an omission from the Determination.
Item 4 inserts a definition for ‘quarantine station’ into the new subsection 5(1). A ‘quarantine station’ is a place appointed as a quarantine station by the Quarantine Proclamation 1998. This definition was inserted in subsection 5(1) to avoid repetition throughout the Determination. A list of quarantine stations can be found in Schedule 1 of the Quarantine Proclamation 1998.
Item 5 inserts subsections 5(4) and 5(5) which affect the meaning of ‘consignment’, as defined in subsection 5(1), inserted by Item 2. Subsection 5(4) provides that there are three elements to a ‘consignment’. Firstly, there must be one or more eggs or animals. Secondly, the eggs or animals must be consigned by the same person to the same importer. Thirdly, the eggs or animals must arrive at the quarantine station on the same day. This definition applies for the purposes of Parts 3 and 3A of Schedule 1, in relation to basic fees for animals and booking fees and deposits for animals respectively. Part 3A is inserted by Item 16. Subsection 5(5) clarifies that one egg or animal may constitute a consignment.
The insertion of this definition is intended to clarify that animals that are imported days apart cannot share accommodation for the purpose of reducing fees. Animals that arrive at different times will each have their own health status, depending on the time at which the pre-importation tests and certification activities were conducted. Managing animals with different health statuses in the same accommodation is logistically and administratively burdensome.
Item 6 inserts sections 7A to 7D which introduce provision for the charging and payment of booking fees and deposits in relation to animals. The related fees are then inserted into Schedule 1 by Item 16 as a new Part 3A.
Section 86E of the Act provides that booking fees and deposits may be charged for animals only. Accordingly, the liability for the booking fee or deposit for consignments of fertile eggs for hatching is based on the chick that hatches from the egg. For this reason, the liability for booking fees and deposits is triggered differently in the sections inserted by Item 6 and the relevant items in Schedule 1 inserted by Item 16. How the liability is triggered depends on whether the booking fee or deposit is for an animal or a chick to be hatched from an egg held for that purpose in quarantine.
Section 7A provides for the payment of booking fees. Booking fees are payable for the animals, and at the amounts, specified under item 38B of Schedule 1. This item is inserted by Item 16 of the Amendment Determination. Booking fees have been introduced for certain animals to recover the costs of administering the booking system.
Sections 7B, 7C and 7D provide for the payment of deposits. The operation of each section is explained below.
Section 7B provides that a deposit is payable for the animals, and at the amounts, specified under item 38C of Schedule 1. Item 38C of Schedule 1 is inserted by Item 16 of the Amendment Determination. A deposit must be paid where space is reserved at a quarantine station for an animal listed in item 38C of Schedule 1 and a basic fee will be payable for the management and maintenance of that animal. The amount of the deposit, to the extent that it is not forfeited, will be deducted from the final basic fee for the management and maintenance of that animal.
Section 7C specifies the circumstances where whole or part of a deposit paid in accordance with section 7B is forfeited. Generally, a deposit if forfeited where an importer reserves space and fails to use it. The two triggers for forfeiture are listed under subsection 7C(2) and relate to chicks hatched from eggs and animals. As explained above, the operation of section 86E of the Act necessitated the separation of the forfeiture triggers. The first trigger, in relation to reserved space for eggs for hatching, allows forfeiture of the deposit where the importer does not deliver any eggs for hatching to the quarantine station at the commencement of the period for which the space was reserved. The second trigger, in relation to animals, allows forfeiture where an importer does not deliver an animal for the period for which the space was reserved or an animal is not held in quarantine for at least 7 days of the reserved period.
Subsections 7C(3) and 7C(4) provide the exceptions to the forfeiture of deposits. An exception for the forfeiture of the deposit for animals is provided where the animal dies after the deposit was paid. An exception to both triggers (chicks hatched from eggs and animals) is provided where the Secretary cancels the reservation in accordance with the terms on which the space was reserved. In addition to these exceptions, the Secretary has a discretion under subsection 7C(5) to determine that part of a deposit should be returned, despite the existence of either of the two triggers set out in subsection 7C(2). The final amount that is forfeited is determined in accordance with subsection 7C(6) by subtracting the amount (if any) that the Secretary determines should be returned from the whole of the deposit.
Section 7D provides how a deposit or part of a deposit must be returned. Where the deposit is not forfeited or where the Secretary determines that part of the deposit should be returned under section 7C, the returned deposit must be paid to the person liable to pay the fee on account of which the deposit was charged (subsections 7D(1) and 7D(2)). The Commonwealth will deduct from the returned amount any fees payable under section 86E of the Act (that is, fees under the Determination) in respect of the animal or egg and any expenses incurred of the kind mentioned under section 64 of the Act in respect of the animal or egg. Alternatively, if the person liable elects, the Commonwealth can deduct any other fees payable under the Determination, not only those in relation to the animal or egg.
The introduction of deposits for certain animals is intended to facilitate fair access to the quarantine facilities for those animals where there limited space. The payment of a deposit allows AQIS to obtain confirmation of the initial booking by the importer. The forfeiture mechanism ensures efficient and fair use of highly limited and sort after quarantine space. For this reason, deposits have only been introduced for animals where quarantine space is extremely limited and in high demand. The exception provisions for the return of whole or part of a deposit are intended to recognise that there are some circumstances out of the importer’s control that may warrant refund of the deposit. For example, while it is unlikely that all animals will die in a consignment (as deposits introduced by this Amendment Determination are provided for animals where there is generally a large consignment), the exception against forfeiture where the animals die will address circumstances where there is an outbreak of disease in a consignment. Conferring a discretion on the Secretary is intended to address situations unforeseen by the Program when the amendment was drafted.
Item 7 inserts two subsections after subsection 8(1) that prescribe the periods in which booking fees and deposits must be paid.
Subsection 8(1A) prescribes the period for the payment of booking fees. Two options are provided. The option that applies will depend on whichever period ends the earliest. The first specified period for payment is within 7 days of the booking being made (paragraph 8(1A)(a)). This is intended to address the usual situation where bookings are commonly made months or years in advance. Paragraph 8(1A)(b) is provided for circumstances where a booking is cancelled. In these circumstances, the space may be booked by a different importer just before the animal or egg arrives at the quarantine station, and may be made less that 7 days before the animal or egg arrives. Therefore, the booking fee must be paid before or on the day which the animal or egg arrives at the quarantine station.
Subsection 8(1B) prescribes the period for the payment of deposits. As with the provisions in relation to forfeiture of deposits inserted by Item 6, the due dates are specified according to whether it is a deposit for reservation of space for a chick to be hatched from an egg, or for an animal. For a chick that hatches from an egg, the deposit must be paid at least six months before the consignment of eggs concerned is accepted at the quarantine station (paragraph 8(1B)(a)). For any other animal, the deposit must be paid at least one month before the animal concerned is accepted at the quarantine station (paragraph 8(1B)(b)). Deposits for both chicks and animals may be paid from the date which the booking is made.
These periods have been set based on the demand for the facilities, the general length of the quarantine period and the pre-export requirements for the animals. For hatching eggs, the facilities are high demand and there is usually a long quarantine period of 95 days per consignment with a three to four week period for cleaning and preparing the facility for the next consignment. As a result, the facilities are tentatively booked up to ten years in advance. Also, due to the complexity of the pre-export requirements, it is difficult to find importers to fill the space if the booking is cancelled. For this reason, the deposit is required at least six months in advance to allow AQIS to receive a confirmation of a booking. If a booking is cancelled at this point, the space is more likely to be filled, reducing the waste of facilities. For other animals, the deposit need only be paid at least one month in advance as the space is in less demand, the quarantine period is shorter and the pre-export conditions are less complex.
Item 8 substitutes new subsections 8(5) and 8(6) which have been amended to clarify that they apply to deposits in addition to fees (includes basic service fees and booking fees). This amendment was necessary as a consequence of the introduction of booking fees and deposits. Subsection 8(5) provides that demands for payment of fees or deposits are not made unless the intended recipient of the service, or person’s agent, has been informed of the amount payable. Subsection 8(6) ensures that a quarantine officer may withhold the provision of services until the required fee or deposit is paid.
Item 9 substitutes a new heading for Schedule 1 (Fees). The new heading has been amended to reference the new sections 7A and 7B (inserted by Item 6) as the basis for some fees, in addition to sections 6 and 6A. This is necessary as sections 7A and 7A introduce booking fees and deposits, which are inserted into Schedule 1 by Item 16.
Item 10 substitutes a new title for Part 3 of Schedule 1 and inserts a cross-referencing note. The new title specifies that Part 3 sets out basic fees for animals and eggs. This was necessary to allow the insertion of the new Part 3A which sets out booking fees and deposits. The note directs the reader to the definition of ‘consignment’ in subsections 5(4) and 5(5) that applies for the purposes of Part 3.
Item 11 substitutes new introductory words to item 36 of Schedule 1 and clarifies the service and fee under subitem 36(a). The new introductory words have been amended to add eggs and simplify the references to ‘quarantine station’, the definition having been inserted into subsection 5(1) by Item 4. The service definition (column 2) was amendment to clarify that the fee applies to all ruminants and camelids.
The new fee has been simplified to a flat fee in of $25 per day for each animal, rather than different fees depending on the number of animals in the consignment. This simplification is in line with recommendations 37 and 38 of the Report of the Equine Influenza Inquiry (2008). These recommendations were agreed to by the government. The new subitem has also been reworded to make it clear that the fee does not cover care and maintenance or the provision of feed or veterinary supplies.
Item 12 substitutes new subitems in relation to cats and dogs which amend, clarify and introduce fees. The new fee structure implements full cost recovery.
The new subitem 36(c) amends the accommodation fees for cats. The daily rate for the first cat in a consignment has been increased from $13.55 to $29.00. The daily rate for each additional cat in a consignment, if sharing accommodation with the first, has been increased from $10.55 to $23.00. The increased daily fees incorporate services in relation to housing, daily monitoring, sustenance, cleaning of facilities and varying factors such as staff overtime, costs of attending to medication reliant animals, additional feeding requests, destruction of abandoned animal crates, grooming, transport of samples to a laboratory for testing and accompanying animals offsite for private veterinary attention. The fee structure has also been simplified by incorporating the conveyance fee into the daily rate (the conveyance fee was omitted by Item 14). The separate lower additional animal charge for cats sharing accommodation with others in the same consignment has been retained to reflect the reduced costs of servicing animals sharing accommodation, subject to section 5(4) inserted by Item 5. Where animals share accommodation less space is used and less time is required for quarantine staff to clean the facilities. A cat does not include a kitten that is less than 12 weeks old. Therefore, where a kitten is imported on its own and is over 12 weeks of age, it will be charged the cat rate of $29.00 a day.
The new subitem 36(d) increases the one-off fee for a cat that bears kittens in quarantine, in addition to the daily accommodation fee, from $300 to $1500. The fee has increased significantly to take into account the requirement for a dedicated staff member to monitor the animal before, during and after the birth, staff overtime, transport to veterinary treatment, administering medication, cleaning of bedding, equipment and facilities and disposal of any associated quarantine waste.
Subitem 36(da) introduces a daily fee for kittens in the litter of a cat of $11.00. This fee takes into account the additional monitoring and cleaning required for kittens. The mothering cat will always be the first cat in a consignment under subitem 36(c). There will never be more than one cat mothering kittens sharing space. The operation of 36(c), therefore, ensures that the total daily fee for a cat and her kittens will always be $40.00.
The new subitem 36(e) amends the accommodation fees for dogs. The daily rate for the first dog in a consignment has increased from $17.55 to $39.00. The daily rate for each additional dog in a consignment, if sharing accommodation with the first, has been increased from $12.55 to $33.00. The increased daily fees incorporate services in relation to housing, daily monitoring, sustenance, cleaning of facilities and varying factors such as staff overtime, costs of attending to medication reliant animals, additional feeding requests, destruction of abandoned animal crates, grooming, transport of samples to a laboratory for testing and accompanying animals offsite for private veterinary attention. The fee structure has also been simplified by incorporating the conveyance fee into the daily rate (the conveyance fee was omitted by Item 14). The separate lower additional animal charge for dogs sharing accommodation with others in the same consignment has been retained to reflect the reduced costs of servicing animals sharing accommodation, subject to section 5(4) inserted by Item 5. Where animals share accommodation less space is used and less time is required for quarantine staff to clean the facilities. A dog does not include a pup that is less than 12 weeks old. Therefore, where a pup is imported on its own and is over 12 weeks of age, it will be charged the dog rate of $39.00 a day.
The new subitem 36(f) provides a one-off fee of $1500.00 for a bitch that bears pups in quarantine in addition to daily accommodation charges. This new one-off fee simplifies the previous fees that were based on the number of hours of supervision required ($400.00 for up to seven hours of supervision and $19.00 per hour for each additional hour of supervision). Simplifying the fee makes it easier for clients to determine the costs of quarantine. The fee has increased to take into account the requirement for a dedicated staff member to monitor the animal before, during and after the birth, staff overtime, transport to veterinary treatment, administering medication, cleaning of bedding, equipment and facilities and disposal of any associated quarantine waste.
Subitem 36(fa) provides a new simplified fee of $11.00 a day for one or more pups in the litter of a bitch. This replaces the fee of ‘up to $5 a day’ for each pup. This simplification makes it easier for clients to determine the costs of quarantine. The new fee takes into account the additional monitoring and cleaning required for pups. The mothering bitch will always be the first dog in a consignment under subitem 36(e). There will never be more than one bitch mothering pups sharing space. The operation of 36(e), therefore, ensures that the total daily fee for a bitch and her pups will always be $50.00.
Item 13 substitutes new subitems 36(j), 36(ja) and 36(k) which amend the fees in relation to avians and other animals not otherwise listed.
The fees in relation to live birds and birds’ eggs (previously provided for under subitem 36(j)), have been separated into the new subitems 36(j) and 36(ja). This separation is intended to clarify the application of the fees. The new subitem 36(j) increases the daily fee for a consignment of live birds from $400.00 to $450.00. The new subitem 36(ja) increases the daily fee for a consignment of birds’ eggs for hatching from $472 to $525. The service definition (column 2) was amended from ‘birds eggs’ to ‘birds’ eggs for hatching’ to clarify that the eggs referred to are fertile eggs that hatch while in quarantine (as opposed to non-fertile eggs which are a prohibited import). The new fee for the birds’ eggs for hatching also clarifies that the fee covers the days after which the eggs have hatched into chicks and these chicks remain at the quarantine station.
The fees for avians have increased significantly to address an under recovery in relation to those quarantine services. The facilities for accommodating live birds and birds’ eggs for hatching are highly technical to address the difficulty in containing highly virulent avian diseases. For this reason, the costs of operating these facilities is high. While funding offsets some of these costs, the review revealed an under recovery in relation to these services for which the new fee structure is intended to address.
The new subitem 36(k) clarifies the application of fees for services in relation to an animal not otherwise specified in item 36. For animals weighing up to 60 kilograms, the amendment clarifies that the fees is charged on a per animal basis. The amendment also clarifies that animals weighing exactly 60 kilograms will incur the same fee as animals weighing more than 60 kilograms. For all animals falling under this subitem (regardless of weight), the amendment clarifies that the fees does not cover the provision of feed or veterinary supplies.
Item 14 omits item 37 of Schedule 1 which provided conveyance fees for transporting cats, dogs and live birds to quarantine stations. This cost has now been rolled into the daily accommodation fees for the relevant animals to simplify the fee structure.
Item 15 substitutes an amended item 38 and inserts a new item 38A into Schedule 1. These items relate to accommodation for importers or their agents.
The amended item 38 clarifies that the fee applies to importer housing at all quarantine stations, except for the Torrens Island Quarantine Station which is provided for under the new item 38A. The item has also been amended to clarify that the fee does not cover the cleaning of accommodation. The term ‘week’ has been defined to be a continuous period of seven days to clarify that the charging week begins on the day the importer arrives.
The new item 38A introduces a separate fee for the use of the Torrens Island Quarantine Station housing by importers or their agents. The fee is $180 for the use of the house for each week or part of the week. For clarity, a week is defined for the purposes of the item as being a continuous period of seven days. The charging week will, therefore, begin on the day the importer arrives. Where an importer stays only part of a week, the full fee will be charged (as opposed to a pro rata rate). The fee does not cover cleaning of accommodation.
The Torrens Island Quarantine Station houses imported birds’ eggs for hatching and the chicks once hatched. Importers or their agents accompany consignments of birds to monitor the incubation of the eggs and care for the hatchlings. While staying at the station, the importers or their agents stay in a house maintained by AQIS for this purpose and provided to facilitate the shared responsibility concept between AQIS and importers for the servicing of consignments. The fee review revealed that it is more appropriate and accurate to charge a unique fee for the use of this accommodation (rather than relying on the general fee under item 38). The unique fee accounts for the overheads and expenses associated with maintaining the importer accommodation at the station but does not to cover cleaning of accommodation.
Item 16 inserts the new Part 3A of Schedule 1 which specifies the booking fees and deposits provided for under the new sections 7A and 7B (inserted by Item 6). Division 1 of Part 3A specifies booking fees and Division 2 of Part 3A specifies deposits. The note directs the reader to the definition of ‘consignment’ in subsections 5(4) and 5(5) that applies for the purposes of Part 3A.
The new Division 1 of Part 3A inserts item 38B. This item specifies booking fees for ruminants and camelids, live birds and chicks that hatch from eggs. Subitem 38B(a) specifies a booking fee of $1000.00 for ruminants, camelids and live birds. Subitem 38B(b) specifies a booking fee of $1000.00 for a chick that hatches from an egg. As explained above at Item 6, the operation of section 86E of the Act necessitated the separation of the booking fee for the chicks hatched from eggs. The booking fees account for the staff costs associated with administrating the booking process, including the maintenance of records. Where a booking is cancelled, considerable staff effort is required to fill the vacancy, involving extensive liaison between AQIS and all relevant importers.
The new Division 2 of Part 3A inserts item 38C which specifies deposits for live birds and chicks that hatch from eggs. The amounts for the deposits are specified as being a multiple of the basic fee specified in item 36. Therefore, the amount of the deposit will automatically adjust if the basic fee is amended in future. The deposit for live birds is seven times the daily fee. The deposit for the chicks that hatch from the eggs is 25 times the daily fee.
The amount of the deposit is set to encourage importers to confirm the initial booking and facilitate fair and efficient use of limited facilities in high demand. The space for eggs for hatching, for example, is significantly limited, with bookings made tentatively ten years in advance. Due to the timeframes necessary to conduct quarantine of consignments and the cleaning and preparation of the facilities, only three consignment per year can undertake quarantine, resulting in a high demand for the facility. For this reason, the deposit is set at a high amount. The presumption that the deposit if forfeited if the reserved space is not used encourages importers to confirm their booking. The confirmation process give AQIS sufficient time to fill the space in the event of a cancellation. This allows the most effective use of highly limited facilities. Importers are not disadvantaged if they use the reserved space, as the deposit amount is deducted from the final cost of quarantine services through the operation of subsection 7B(3) (inserted by Item 6).
Booking fees and deposits are payable for the first animal in a consignment only. This is a consequence of the operation of section 86E of the Act. Section 86E provides that booking fees and deposits can be charged for the reservation of space for animals, not consignments. The requirement that the booking fee or deposit is payable for the first animal only ensures that importers are not liable to pay a booking fee or deposit for each animal in a consignment, while also allowing a charge for the reservation of space for the whole consignment.