Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2002-2003-2004
(Circulated
by authority of the
Minister for Justice and Customs,
Senator
the Honourable Christopher Martin Ellison)
CUSTOMS TARIFF AMENDMENT (GREATER SUNRISE) BILL
2004
GENERAL OUTLINE
This Bill, together with
the Greater Sunrise Unitisation Agreement Implementation Bill 2004, gives
effect to the Greater Sunrise Unitisation Agreement between Australia and East
Timor signed on 6 March 2003.
The Greater Sunrise petroleum
unitisation area (“the unitisation area”) straddles
Australia’s boundary and the Joint Petroleum Development Area, which is
jointly administered by Australia and East Timor by virtue of the Timor Sea
Treaty between the two countries that was legislated in Australia by the
Petroleum (Timor Sea Treaty) Act 2003. This International Unitisation
Agreement (IUA) allows for the development of petroleum resources of the Greater
Sunrise field, which comprises the Sunrise and Troubadour petroleum
reservoirs.
In particular, Article 22 of the IUA agrees to the duty-free
entry of any goods and equipment entering the unitisation area for the purposes
of petroleum activities. To give effect to this Article item 22A will be added
to Schedule 4 of the Customs Tariff to provide for the duty free entry of
goods, as prescribed by by-law, for use in petroleum related activities in the
Eastern Greater Sunrise area.
FINANCIAL IMPACT
STATEMENT
The development of the Greater Sunrise petroleum resource
is expected to yield Australia $8.5 billion in revenue over the life of the
project.
NOTES ON CLAUSES
Clause 1 - Short
title
This clause provides the title of the Act.
Clause 2 -
Commencement
This clause provides that sections 1, 2 and 3 of this
amendment Act will commence on Royal Assent.
Further, this clause
prescribes that Schedule 1 of this amendment Act will commence at the same time
as the Greater Sunrise Unitisation Agreement Implementation Act 2004
commences.
Note: As the IUA is between Australia and East Timor, it is
necessary for it to come into effect simultaneously in both countries.
Therefore, the date of commencement will be proclaimed in the Gazette
when East Timor notifies Australia that it has completed its internal processes
to give effect to the IUA.
Clause 3 - Schedule(s)
This
clause prescribes the various Acts being amended or repealed by this Act, which
are specified in the Schedules to the Act.
Schedule 1 –
Amendment of the Customs Tariff Act 1995
Item 1 - Subsection
3(1)
This item provides a broad definition of petroleum activities,
which include activities relating to petroleum exploration operations;
operations for the recovery of petroleum; operations relating to the processing
or storage of petroleum; operations relating to the preparation of petroleum for
transport; and operations connected with the construction or operation of a
pipeline, within the meaning of the Petroleum (Submerged Lands) Act
1967.
Item 2 - After item 22 in Part II of Schedule
4
This item provides that goods, as prescribed by by-law, for use in
petroleum activities will be free of any customs duties.