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2008-2009-2010
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
TRADEX SCHEME AMENDMENT BILL 2010
EXPLANATORY MEMORANDUM
(Circulated by authority of the Senator the Hon Kim Carr, Minister for
Innovation, Industry, Science and Research)
TRADEX SCHEME AMENDMENT BILL 2010
OUTLINE
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 Tradex Scheme Amendment Bill 2010 (the Bill) would amend the Tradex
Scheme Act 1999 (the Act) to clarify the eligibility of partnerships and
remove redundant provisions.
Currently the Act requires 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 are not explicitly referenced in the legislation, they
were not, and are not, intended to be excluded from the Tradex Scheme. This
Bill seeks to clarify this position in law.
The Bill also contains a minor amendment aimed at removing redundant
provisions of the Act consistent with the Government's objective of
reducing the regulatory burden.
FINANCIAL IMPACT STATEMENT
The proposed amendments are expected to have no significant impact on
revenue. The changes would simply clarify the status of partnerships under
the Tradex Scheme and remove redundant provisions.
TRADEX SCHEME AMENDMENT BILL 2010
NOTES ON CLAUSES
Clause 1 - Short Title
This clause provides that the short title by which the Act may be
cited is the Tradex Scheme Amendment Act 2010.
Clause 2 - Commencement
Subclause (1) provides that the commencement date for sections 1, 2
and 3, and anything in this Act not elsewhere covered by the table, is
the day on which this Act receives Royal Assent. The date of
commencement for amendments to the Tradex Scheme Amendment Act 2010
contained in Schedule 1 of the Act is a single day fixed by
proclamation. However, if any of these provision(s) do not commence
within the period of 6 months beginning on the day this Act receives
the Royal Assent, they commence on the day after the end of that
period.
Clause 3 - Schedule(s)
Schedule 1
Part 1 - Partnerships Amendments to Tradex Scheme Act 1999
This Schedule clarifies the eligibility of partnerships for Tradex.
Item 1
This item would ensure that the ineligibility provisions with respect to
applying for, or holding a tradex order, which apply to a person who is
insolvent under administration or an externally administered body
corporate, would apply to partnerships as well. This would ensure
consistent treatment of partnerships and individuals or corporate bodies
with respect to ineligibility. The item provides that, if any of the
partners is an insolvent under administration, or an externally-
administered body corporate, the partnership is ineligible to apply for, or
to hold a tradex order.
Item 2
This item would make it clear that the definition of a person for the
purpose of the Tradex Scheme includes an individual, body corporate or
a partnership. This would ensure that partnerships are treated
consistently with other eligible entities under the Tradex Scheme.
Item 3
This item would ensure that disqualification provisions relating to
the provision of false or misleading information not only apply to
individuals and corporate bodies but also extend to partnerships. It
would apply to partnerships if any of the partners knew, or ought to
have known, about the false or misleading material.
Item 4
This item would clarify the continuity of partnerships for the purpose
of the Tradex Scheme. It would ensure that changes in the composition
of a partnership would not affect the continuity of the partnership
for the purposes of the Tradex Scheme. This would simplify the
regulatory burden on partnership members by not requiring them to
reapply every time there is a change in the make up of the
partnership.
Item 5
This item would ensure that, with respect to the making of a Tradex
Order, the requirement that the Secretary be satisfied that no
false or misleading material was provided knowingly in the
application by the applicant, extends to partnerships as well as
individuals and corporate bodies. With respect to partnerships,
the Secretary would need to be satisfied that none of the partners
provided false or misleading information.
Item 6
This item would ensure that the requirement for a statement to be
added to the Tradex Register when a tradex order holder has ceased
to exist applies equally to individuals, corporate bodies and
partnerships.
Item 7
This item outlines how partnerships would be treated for specific
purposes within the Act. Generally, a partnership would be treated
as if it were a person. However, this item sets out additional
provisions that would apply. It makes it clear that:
an obligation imposed by the Act may be discharged by any of the
partners;
if a notice or other document is given to any partner for the purposes
of the Act, it is taken to have been given to the partnership;
the partners are jointly and severally liable for any amount payable by
the partnership under the Act; and
any offence committed by the partnership is taken to have been
committed by each partner, except where the partner has no knowledge of
the circumstances of the offence, or knew of the circumstances, but
took all reasonable steps to correct the contravention. This would
ensure innocent partners would not be made guilty of an offence of
which they have no knowledge.
Item 8
This item outlines the proposed transition to the amended Act. It
provides that changes to the Act do not have an impact on
applications received or tradex orders made before those changes
have effect.
Part 2 - Repeal of spent provisions
Item 9
This item would repeal spent provisions that relate to the
transition arrangements between the Texco Scheme and the Tradex
Scheme when it was introduced in 2000. Texco was the forerunner to
and was superseded by the Tradex Scheme. This provision outlines
the process for converting Texco customers to Tradex Scheme
customers. No Texco customers currently exist and there is no
longer any need for this provision. Removing this transition
provision would be consistent with the Government's objective of
reducing regulation.