EXPLANATORY STATEMENT

 

Select Legislative Instrument 2008 No. 22

 

Issued by the Authority of the Minister for Foreign Affairs for the Minister for Home Affairs

Customs Act 1901

Customs (Prohibited Imports) Amendment Regulations 2008 (No. 1)

Customs (Prohibited Exports) Amendment Regulations 2008 (No. 1)

 

Section 270 of the Customs Act 1901 (the Act) provides, in part, that the Governor‑General may make regulations not inconsistent with the Act prescribing all matters by which the Act is required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to the Act.

Sections 50 and 112 of the Act provides, in part, that the Governor-General may, by regulation, prohibit the importation or exportation, respectively, of goods into or from Australia and that the powers may be exercised by prohibiting the importation or exportation of goods absolutely or by prohibiting the importation or exportation of goods unless specified conditions or restrictions are complied with.

The Regulations amend the Customs (Prohibited Imports) Regulations 1956 (the PI Regulations) and the Customs (Prohibited Exports) Regulations 1958 (the PE Regulations) to implement amendments to the Act made by the International Trade Integrity Act 2007 (the Integrity Act).

On 24 September 2007, the Integrity Act received Royal Assent. The Integrity Act will commence on 24 March 2008 and amends the Act to introduce new criminal offences for importing or exporting goods the subject of sanctions imposed by the United Nations (UN-sanctioned goods) without permission and to introduce a new criminal offence for providing information that is false or misleading in an application for a permission to import or export UN-sanctioned goods.

The amendments to the PI Regulations and PE Regulations amend regulations 4Y and 4Z of the PI Regulations and regulations 13CG, 13CH, 13CI, 13CK, 13CL, 13CM, 13CN, 13CO, 13CP and 13CQ of the PE Regulations. These regulations implement sanctions imposed by the United Nations. The amendments require a person seeking the permission of the Foreign Minister or an authorised person, as currently required, to import or export a good covered by those regulations, to apply for the permission on the approved form, provide information required by the approved form and sign the approved form as indicated.

The above regulations apply to:

—      the importation of rough diamonds from Cote d'Ivoire (regulation 4Y of the PI Regulations);

—      the importation of certain goods from Iran (regulation 4Z of the PI Regulations);

—      the exportation of paramilitary equipment to Sierra Leone (regulation 13CH of the PE Regulations);

—      the exportation of arms or related materiel to Afghanistan, Liberia, Democratic Republic of the Congo, Sudan, Cote d'Ivoire, Democratic People's Republic of Korea and Lebanon (regulations 13CI, 13CK, 13CL, 13CM, 13CN, 13CO and 13CP of the PE Regulations respectively); and

—       the exportation of certain goods to Iran and Rwanda (regulations 13CQ and 13CG of the PE Regulations respectively).

The amendments to the PE Regulations also update, in the definition of luxury goods list in subregulation 13CO(1) of the PE Regulations, the reference to the Charter of the United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2006 and substitute, in subregulation 13CQ(1) of the PE Regulations, the definition of listed goods. Both the Charter of the United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2006 and the Charter of the United Nations (Sanctions-Iran) Regulations 2007 contain a power to make a list of goods to which those regulations apply. The goods on those list are also controlled by regulations 13CO and 13CQ of the PE Regulations respectively.

The Charter of the United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2006 and the Charter of the United Nations (Sanctions - Iran) Regulations 2007 will be repealed and replaced respectively by the Charter of the United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2008 and the Charter of the United Nations (Sanctions-Iran) Regulations 2008. The Charter of the United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2008 contains a power for the Minister for Foreign Affairs to determine a luxury goods list and the Charter of the United Nations (Sanctions -Iran) Regulations 2008 contains a power for the Minister for Foreign Affairs to determine goods to be export sanctioned goods.

The amendments to subregulation 13CO(1) and 13CQ(1) of the PE Regulations update the reference to the provision under which the luxury goods list in the Charter of the United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2008 is made and the provision in the Charter of the United Nations (Sanctions-Iran) Regulations 2008 which determines goods to be export sanctioned goods.

Interdepartmental and public consultation were undertaken during the preparation of the Regulations. The Department of Foreign Affairs and Trade conducted briefing sessions on the Integrity Act, including the consequential amendments required for each of the regulations made under the Act, in each State and Territory capital between September and November 2007. The Department of Foreign Affairs and Trade has given industry-specific briefings to peak industry bodies assessed as most likely to be affected (the Australian Bankers Association, the Customs National Consultative Group and the Association of Minerals and Petroleum Lawyers). The Department of Foreign Affairs and Trade has also posted notices on the Department's website and on the business.gov.au consultation site inviting interested parties to provide written comments on the revised regulatory regime.

The Regulations commence on the commencement of Schedule 1 to the Integrity Act.

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