Commonwealth of Australia Explanatory Memoranda

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CUSTOMS AMENDMENT (MILITARY END-USE) BILL 2011






                               2010-2011-2012








               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





                                   SENATE













               CUSTOMS AMENDMENT (MILITARY END-USE) BILL 2011










                    SUPPLEMENTARY EXPLANATORY MEMORANDUM


            (Amendments to be moved on behalf of the Government)














         (Circulated by authority of the Minister for Home Affairs,
                       the Honourable Jason Clare MP)





CUSTOMS AMENDMENT (MILITARY END-USE) BILL 2011


OUTLINE


The purpose of these amendments is to address an issue raised by the Senate
Standing Committee for the Scrutiny of Bills (the Committee).


The purpose of this Bill is to amend the Customs Act 1901 (the Customs Act)
to include a power to prohibit the export of "non-regulated" goods that may
contribute to a military end-use that may prejudice Australia's security,
defence or international relations.  This power may only be exercised in
relation to goods that are not prohibited exports under section 112 of the
Customs Act.


The power, to be included in new section 112BA of the Customs Act, will
enable the Defence Minister to prohibit the export of specified non-
regulated goods to a particular place or person. In exercising this power,
the Defence Minister must suspect that the goods would or may be for a
military end-use that would prejudice Australia's security, defence or
international relations.  Where the Minister forms such a suspicion, the
Minister may issue a prohibition notice preventing the export.


The Committee has requested that the Bill be amended to require the Defence
Minister to report annually to Parliament on the use of his or her power.


It is proposed to amend the Bill to require the Defence Minister to cause
to be tabled in each House of the Parliament a statement about the exercise
of the power during each financial year (whether or not the statement is
part of an annual report).


It is also proposed to make a technical amendment to the Bill.


FINANCIAL IMPACT STATEMENT


These amendments have no financial impact.



CUSTOMS AMENDMENT (MILITARY END-USE) BILL 2011


NOTES ON AMENDMENTS


Amendment (1)


Amendment 1 inserts new section 112BC into Schedule 1, at the end of new
Division 1AA of Part VI of the Customs Act 1901 (the Customs Act).


New section 112BC will provide that, as soon as practicable after the end
of each financial year, the Defence Minister must cause a statement to be
tabled in each House of the Parliament about the exercise of the Defence
Minister's powers under this Division during that year.


This statement could be included as part of the Department of Defence's
Annual Report, or could be presented separately to Parliament.


Amendment (2)


Amendment (2) will make a technical amendment to item 2 of Schedule 1 to
the Bill.  Item 2 of Schedule 1 to the Bill will add a new category of
goods to the definition of 'special forfeited goods, in subsection 183UA(1)
of the Customs Act.  This definition has been amended since the Bill was
introduced into the Parliament and this technical amendment will ensure
that the amendment to this definition by this Bill is correctly described
and is, therefore, effective.

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