EXPLANATORY STATEMENT
Tradex Scheme Amendment Act 2010
Proclamation
Subsection 2(1) of the Tradex Scheme Amendment Act 2010 (the Act) provides that Schedule 1 to the Act commences on a day to be fixed by Proclamation. However, if any of the provisions in Schedule 1 do not commence within the period of 6 months beginning on the day the Act receives Royal Assent, they commence on the day after the end of that period. The Act received Royal Assent on 18 November 2010.
The purpose of the proclamation is to fix 13 May 2011 as the day on which Schedule 1 to the Act commences. Schedule 1 contains the operative provisions of the Act.
Introduced in 2000, the objective of the Tradex Scheme is to allow for the importation of goods, without payment of customs duty or other taxes, provided the goods are subsequently exported, or incorporated into other goods that are exported.
The Act amends the Tradex Scheme Act 1999 (the 1999 Act) to clarify the eligibility of partnerships and remove redundant provisions.
Previously the 1999 Act required an applicant for the Tradex Scheme to be a ‘legal’ person who proposes to import goods. The Acts Interpretation Act 1901 provides that a person generally includes a body politic or corporate as well as an individual. While a partnership is a relationship recognized by the law, it is an unincorporated body. The status of partnerships under the Tradex Scheme is therefore unclear.
While partnerships were not explicitly referenced in the legislation, they were not intended to be excluded from the Tradex Scheme. The Act clarifies this position in law.
The Act also contains a minor amendment that removes redundant provisions consistent with the Government’s objective of reducing the regulatory burden.
Fixing the date of effect for the Act to 13 May 2011 enables changes to take effect as at the same day as the registration of the Tradex Scheme Amendment Regulations 2011. This simplified the administration of the changes to the Tradex Scheme.
The Proclamation is a legislative instrument for the purposes of the Legislative Instrument Act 2003.
Overview
The Tradex Scheme Amendment Act 2010, enacted by the Parliament of Australia, was introduced to address specific issues within the Tradex Scheme Act 1999, particularly regarding the eligibility of partnerships and the removal of redundant provisions. The Tradex Scheme, established in 2000, allows for the temporary importation of goods without the imposition of customs duties or other taxes, provided these goods are eventually exported or incorporated into other exported goods. The 2010 Act aims to clarify the status of partnerships under the Tradex Scheme, which, despite not being explicitly mentioned in the original legislation, were not intended to be excluded. Additionally, the Act seeks to streamline the regulatory framework by eliminating redundant provisions, aligning with the Government's broader objective of reducing the regulatory burden. The proclamation, which sets the commencement date for 13 May 2011, ensures that the changes take effect simultaneously with the registration of the Tradex Scheme Amendment Regulations 2011, thereby simplifying the administration of the amendments.
Scope and Application
The Tradex Scheme Amendment Act 2010 applies to entities and individuals involved in the importation of goods under the Tradex Scheme. Specifically, the Act amends the Tradex Scheme Act 1999 to clarify the eligibility of partnerships, ensuring that they can participate in the scheme without ambiguity, despite being unincorporated bodies. The geographic and jurisdictional reach of the Act is federal, impacting entities across Australia that are involved in the importation and exportation of goods. The Act operates within the Commonwealth jurisdiction, with its provisions applicable nationwide. Any provisions not commencing within six months of Royal Assent will take effect on the day following this period, ensuring a smooth transition. The Act excludes no specific entities or transactions from its purview, focusing instead on streamlining the eligibility criteria for partnerships within the Tradex Scheme. The Tradex Scheme Amendment Regulations 2011 further extend the application of the Act, providing additional administrative clarity and simplifying the registration process for those affected by the amendments.
Key Provisions
The Tradex Scheme Amendment Act 2010 primarily operates through the provisions outlined in Schedule 1, which includes changes to the Tradex Scheme Act 1999. Section 2(1) of the Act specifies that Schedule 1 will commence on a date fixed by Proclamation, set to be 13 May 2011, unless any provisions within Schedule 1 do not commence within six months of the Act receiving Royal Assent. The Royal Assent was granted on 18 November 2010, ensuring that any delayed provisions would take effect on 18 May 2011 at the latest. The primary objective of these amendments is to clarify the eligibility of partnerships under the Tradex Scheme and to remove redundant provisions from the existing legislation.
The Act imposes specific obligations and requirements on entities participating in the Tradex Scheme. The most notable amendment is the clarification of the eligibility criteria for applicants, ensuring that partnerships, which are unincorporated bodies, are explicitly included in the definition of eligible participants. This amendment aligns the Tradex Scheme with the broader legislative intent to include partnerships without excluding them inadvertently. Additionally, the Act mandates the removal of redundant provisions, reflecting the government's aim to streamline the regulatory framework and reduce the overall burden on businesses.
In terms of legal consequences, the Tradex Scheme Amendment Act 2010 does not explicitly outline new offences or penalties for breaches of the amended provisions. However, any failure to comply with the clarified eligibility requirements or the operational procedures of the Tradex Scheme could potentially lead to administrative actions under the Tradex Scheme Act 1999 or other relevant legislation. Although specific penalties are not detailed within the Tradex Scheme Amendment Act 2010, penalties for non-compliance with the Tradex Scheme would typically involve fines or other sanctions as stipulated in the Tradex Scheme Act 1999. These penalties could vary based on the nature and severity of the breach but are designed to enforce compliance and maintain the integrity of the scheme.