Commonwealth Numbered Regulations - Explanatory Statements

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CUSTOMS (PROHIBITED EXPORTS) AMENDMENT REGULATIONS 1999 (NO. 7) 1999 NO. 331

EXPLANATORY STATEMENT

STATUTORY RULES 1999 No. 331

Issued by the Authority of the Minister for Justice and Customs

Customs Act 1901

Customs (Prohibited Exports) Amendment Regulations 1999 (No. 7)

Section 112 of the Customs Act 1901 ("the Act") provides in part that:

"(1)       The Governor-General may, by regulation, prohibit the exportation of goods from

       Australia.

(2)       The power conferred by subsection 1 may be exercised - (c) by prohibiting the

       exportation of goods unless specified conditions or restrictions are complied

       with.

The Customs (Prohibited Exports) Regulations 1958 ("the Regulations") control the exportation of the goods specified in the various regulations or the Schedules to the Regulations, by prohibiting exportation absolutely, or making exportation subject to the permission of a Minister or an authorised person.

Under the provisions of Regulation 5(2) and Schedule 3) of the Regulations, the export of wheat from Australia is prohibited without the approval of the Minister for Agriculture, Fisheries and Forestry or an authorised officer.

The purpose of the Regulations is to amend regulation 5 so that it will not apply to wheat exported by AWB (International) Ltd (proposed item 2). This company holds the export monopoly under the Wheat Marketing Act 1989 ("WMA") and has been designated as nominated company B within the meaning of the WMA. The Regulations also correct references in Regulation 5 to the Minister for Agriculture. Fisheries and Forestry.

In the past, wheat export monopoly and control arrangements were given to the former Australian Wheat Board (AWB) by the Wheat Marketing Act 1989 (the WMA).

On 1 July 1999 statutory wheat marketing under the WMA ceased and the arrangements were privatised through a grower owned and controlled company, AWB Ltd, and its wholly owned subsidiaries.

At the same time. export monopoly rights for wheat were given to AWB (International) Ltd, the subsidiary of AWB Ltd with responsibility for pool marketing of wheat. These export arrangements are now oversighted by a Wheat Export Authority (WEA) which can also issue consents to other persons applying to export wheat. The WEA is a statutory body operating under the WMA, independent from AWB (International) Ltd.

The restriction under the Regulations on the export of wheat was originally put in place to support the wheat export monopoly and related control arrangements by the former AAT. The continued inclusion of wheat in the regulations provides a back-up mechanism to prevent wheat being exported where a consent from the WEA has not been issued.

However, because AWB (International) Ltd does not need the approval of the WEA to export wheat, since it holds the export monopoly under the WMA, there is no reason why the company should be subject to the regulations in respect of its wheat exports.

The regulations are explained in greater detail in the Attachment.

The regulations commenced on gazettal

ATTACHMENT

Customs (Prohibited Exports) Amendment Regulations 1999 (No. 7)

Regulation 1 - Name of Regulations

Regulation 1 provides for the regulations to be named the Customs (Prohibited Exports) Amendment Regulations 1999 (No. 7)

Regulation 2 - Commencement

Regulation 2 provides for the regulations to commence on gazettal.

Regulation 3 - Amendment of Customs (Prohibited Exports) Regulations 1958

Regulation 3 provides for the Regulation to be amended as set out in Schedule 1.

Schedule 1 - Amendment

Item 2 of Schedule 1 - amendment of regulation 5, exportation of goods specified in Schedule 3.

Item 2 of Schedule 1 amends regulation 5 so that it does not apply to the export of wheat by the company that is nominated company B within the meaning of the Wheat Marketing Act 1989.

Nominated company B is AWB (International) Ltd.

In the past, wheat export monopoly and control arrangements were given to the former Australian Wheat Board (AWB) by the neat Marketing Act 1989 (the WMA).

On 1 July 1999 statutory wheat marketing under the WMA ceased and the arrangements were privatised through a grower owned and controlled company, XWB Ltd, and its wholly owned subsidiaries.

At the same time. export monopoly rights for wheat were given to AWB (International) Ltd, the subsidiary of AWB Ltd with responsibility for pool marketing of wheat. These export arrangements are now oversighted by a Wheat Export Authority (WEA) which can also issue consents to other persons applying to export wheat. The WEA is a statutory body operating under the WMA, independent from AWB (International) Ltd.

The restriction under the Regulations on the export of wheat was originally put in place to support the wheat export monopoly and related control arrangements by the former AWB. The continued inclusion of wheat in the regulations provides a back-up mechanism to prevent wheat being exported where a consent from the WEA has not been issued.

However, because AWB (International) Ltd does not need the approval of the WEA to export wheat, since it holds the export monopoly under the WMA, there is no reason why the company should be subject to the regulations in respect of its wheat exports.

Items 1 and 3 of Schedule 1 - Various amendments of terminology used in regulation 5, exportation of goods specified in Schedule 3.

Item 1 Schedule 1 is a technical amendment to correct the references to the Minister for Agriculture, Fisheries and Forestry.

Item 3 Schedule 1 is a technical amendment to update the terms of reference of the regulation.


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