EXPLANATORY STATEMENT
Issued by Authority of the Minister for Agriculture
Quarantine Act 1908
Quarantine Service Fees Amendment (Import Clearance Fees) Determination 2014
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, among other things, specified examinations, services or other quarantine measures carried out or provided under the Act.
The Quarantine Service Fees Determination 2005 (the Determination) sets out the fees that must be paid in relation to the doing of anything in connection with specified examinations, services or other quarantine measures carried out or provided under the Act.
Items 2, 3 and 5 of Schedule 1 to the Determination sets basic fees for the provision of indirect biosecurity services that provide benefits to users of the biosecurity system. These fees include basic fee for scientific analysis, risk profiling, intelligence and surveillance services.
Purpose
The purpose of the Quarantine Service Fees Amendment (Import Clearance Fees) Determination 2014 (Amendment Determination) is to amend the Determination, by removing fee items 2, 3 and 5. Fees for the services provided for under these items will now be imposed under the Quarantine Charges (Imposition-Customs) Act 2014. The replacement of these fee items in the Quarantine Charges (Imposition-Customs) Act 2014 provides a more appropriate legal structure for the recovery of costs associated with the indirect biosecurity services undertaken by the Department of Agriculture (the department).
This amendment will enable the department to maintain the financial sustainability of its regulatory responsibilities in relation to the provision of indirect biosecurity services such as risk profiling, intelligence gathering and surveillance. The amendment will support the continued and timely provision of services and other regulatory functions that serve to ensure the effective management of potential quarantine risks entering into Australia.
Background
Historically, the department’s approach to biosecurity has relied on mandatory border intervention targets for specified imports. This approach did not take into account the varying levels of risk posed by different passengers, goods, import businesses or incursions, or where intervention would be most effective (offshore, onshore or at the border).
As the amount and complexity of imports entering into Australian territory has increased the department has developed a risk-based approach to biosecurity informed by scientific analysis, intelligence and surveillance (indirect biosecurity services). This approach enables higher risk goods, passengers and mail to be targeted for intervention and allows the department to more effectively target its regulatory efforts without compromising biosecurity risk outcomes.
The shift to the risk-based approach has occurred under the legacy of cost recovery arrangements and has exposed the department to financial and potential legal risks. Currently, there is only legal authority under the Quarantine Act to collect individual fees-for-service for direct intervention. There is no opportunity to recover the costs of indirect services. This is resulting in the under recovery of costs where surveillance, compliance, analysis and intelligence capabilities are deployed to target biosecurity risks.
To address this under recovery and to ensure the ongoing capacity of the department to adequately manage potential quarantine risks entering into Australia, Items 2, 3 and 5 of Schedule 1 of the Determination will be removed and reimposed under the Quarantine Charges (Imposition-Customs) Act 2014.
Impact and Effect
The removal of Items 2, 3 and 5 from the Determination as a result of the Amendment Determination will ensure that the department has a secure legal basis for recovering the ongoing costs of indirect biosecurity services. The Amendment Determination will also ensure that users of Australia’s import biosecurity services are not charged twice for the provision of the same indirect biosecurity service as a result of the Quarantine Charges (Imposition-Customs) Act 2014.
Despite the removal of these fees under the Determination and their reimposition under the Quarantine Charges (Imposition-Customs) Act 2014, it is the departments intention that the relevant fee items under the Determination and the new charges imposed under the Quarantine Charges (Imposition-Customs) Act 2014 operate in the same manner, to the extent possible.
Consultation
The Office of Best Practice Regulation was consulted by the department and has determined the amendment to be of minor nature and that no further analysis was required in the form of a Regulation Impact Statement (OBPR Reference Number: 16131).
The Department of Finance and Deregulation was consulted by the department in the preparation of a Cost Recovery Impact Statement (CRIS). The approved CRIS will be made available to the public via publication on the department’s website.
The Determination is 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 the Attachment.
Details of the Quarantine Service Fees Amendment Determination 2014
Section 1 – Name of Determination
This section provides that the name of the Amendment Determination is the Quarantine Service Fees Amendment (Import Clearance Fees) Determination 2014.
Section 2 - Commencement
This Section provides for the Amendment Determination to commence on the day after it is registered.
Section 3 – Authority
This Section provides that authority for making the Amendment Determination is under the Quarantine Act 1908.
Section 4 - Schedule(s)
This Section provides that each instrument that is specified in Schedule 1 is amended or repealed as set out in the applicable items in the Schedule and that any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 - Amendments
Item 1 Repeals table Items 2, 3 and 5 of Schedule 1, Part 1, Division 1 of the Quarantine Service Fees Determination 2005.
The purpose of the amendment is to remove Items 2, 3 and 5 of Schedule 1, Part 1, Division 1 of the Quarantine Service Fees Determination 2005 which is are now imposed under the Quarantine Charges (Imposition - Customs) Act 2014.
ATTACHMENT
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Quarantine Service Fees Amendment Determination 2014
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 Quarantine Service Fees Amendment (Import Clearance Fees) Determination 2014 amends the Quarantine Service Fees Determination 2005 by removing Items 2, 3 and 5 of Schedule 1, Part 1, Division 1.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Barnaby Joyce MP,
Minister for Agriculture