Commonwealth Numbered Regulations - Explanatory Statements

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CUSTOMS (PROHIBITED IMPORTS) AMENDMENT REGULATION 2012 (NO. 1) (SLI NO 120 OF 2012)

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2012 No. 120

 

Issued by the Authority of the Minister for Home Affairs

 

Customs Act 1901

 

Customs (Prohibited Imports) Amendment Regulation 2012 (No. 1)

 

Subsection 270(1) 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 which by the Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to the Act or for the conduct of any business relating to Customs.

 

The purpose of the Regulation is to amend regulation 5K and Schedule 10 to the Customs (Prohibited Imports) Regulations 1956 (the Principal Regulations) to ensure they are consistent with the Government's Clean Energy Future Plan.

 

Australia is a party to the Montreal Protocol on Substances that Deplete the Ozone Layer which is an international treaty for the prevention of illegal trade in

ozone-depleting substances and products that contain ozone-depleting substances. As a result the Ozone Protection Act 1989 provides for the prohibition of the manufacture, import and export of ozone-depleting substances. This Act was amended in 2003, to become the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (OPSGGM Act).

 

To support the administration and enforcement of controls set out in the OPSGGM Act, subregulation 5K(1) of the Principal Regulations prohibits the importation of certain ozone-depleting substances and synthetic greenhouse gases unless one of the exceptions in regulation 5K applies. The main exception is where the importer has a licence to import such goods granted under section 16 of the OPSGGM Act. The prohibition in 5K relates to substances listed in Schedule 10 of the Principal Regulations and to goods that are defined as 'pre-charged equipment'. 'Pre-charged equipment' is defined as meaning air-conditioning equipment, or refrigeration equipment, (including equipment fitted to a motor vehicle) that contains a hydroflurocarbon (HFC) or hydrochloroflurocarbon HCFC.

 

On 10 July 2011, the Government released the Clean Energy Future Plan, including an equivalent Carbon Pricing Mechanism. As part of this, an equivalent carbon price will be imposed on synthetic greenhouse gases using the existing controls under the OPSGGM Act and the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995.

 

The Regulation amends regulation 5K to be consistent with the terminology of the Government's Clean Energy Future Plan, including the recently amended OPSGGM Act. This includes adding an additional synthetic gas to the existing import controls in regulation 5K and amending the definition of 'pre-charged equipment' in the Principal Regulations.

 

The Regulation adds the synthetic gas sulfur hexafluoride (SF6) to Schedule 10 to the Principal Regulations to ensure its importation is regulated.

 

The Regulation also replaces the definition of 'pre-charged equipment' contained in regulation 5K with two new definitions: 'ODS (Ozone Depleting Substance) equipment' and 'SGG(Synthetic Greenhouse Gas) equipment.'

 

ODS equipment is defined as air-conditioning equipment, or refrigeration equipment, that contains a substance that is an HCFC.

 

SGG equipment is defined as equipment, or a product, that contains a substance that is an HFC or a PFC: or equipment, or a product, that contains a substance that is sulfur hexafluoride.

 

These two new definitions cover the same equipment which is currently covered by the definition of pre-charged equipment as well as cover new equipment consistent with the Government's Clean Energy Future Plan.

 

In addition, the Regulation removes paragraph 5K(3)(a) which provides an exception to the prohibition on the importation of ozone-depleting substances and synthetic greenhouse gases where a prohibited substance is contained in goods (except pre-charged equipment) that will use the substance in the operation of the goods (for example, an aerosol spray device).  The previous Regulation was not intended to regulate the importation of 'products' that contain or use in their operation substances listed in Schedule 10.  The removal of this paragraph will enable the regulation of the new synthetic gas SF6, which may be found in aerosol and other devices.

 

The Regulation also removes paragraph 5K(5) which exempts SGG  imported for use as a cover gas in the manufacturing and casting of magnesium.  The removal of this paragraph also allows for regulation of SGGs used in manufacturing processes.

 

This Regulation forms part of the Clean Energy Future Plan. Industry consultation in relation to the Clean Energy Future Plan was conducted by the Department of Sustainability, Environment, Water, Populations and Communities.

 

The Regulation commences on 1 July 2012, the same date that the Clean Energy Future Plan commences.

 


 

Statement of Compatibility with Human Rights

 

(Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011)

 

Customs (Prohibited Imports) Amendment Regulation 2012 (No. 1)

 

This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Regulation

 

This Regulation amends the Customs (Prohibited Imports) Regulations 1956 (the Principal Regulations) to ensure they are consistent with the Government's Clean Energy Future Plan. This will include amending the Principal Regulations to allow for the regulation of sulfur hexafluoride. 

 

The Regulation commences on 1 July 2012.

 

 

Human Rights implications

 

This legislative instrument does not engage, impact on or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

 

Conclusion

 

This legislative instrument does not raise any human rights issues.

 

 

 

 

 

 

 

 

Minister for Home Affairs

 

 


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