EXPLANATORY STATEMENT

 

Select Legislative Instrument 2008 No. 43

 

Charter of the United Nations Act 1945

 

Charter of the United Nations (Sanctions – Côte d’Ivoire) Regulations 2008

 

The purpose of the Regulations is to implement Australia’s obligations under United Nations Security Council Resolutions 1643 (15 December 2005) and 1572 (15 November 2004), and to accommodate amendments made to the Act by the International Trade Integrity Act 2007. The Regulations also repeal the Charter of the United Nations (Sanctions – Cote d’Ivoire) Regulations 2005, which currently implement Australia’s obligations under Resolutions 1643 and 1572.

 

Section 6 of the Charter of the United Nations Act 1945 (the Act) provides that the
Governor-General may make regulations for, and in relation to, giving effect to decisions that:

(a)                the Security Council has made under Chapter VII of the Charter of the United Nations; and

(b) Article 25 of the Charter requires Australia to carry out

in so far as those decisions require Australia to apply measures not involving the use of armed force.

 

Resolution 1643 requires Australia to prevent the importation of rough diamonds from Côte d’Ivoire to Australian territory. Resolution 1643 is not referred to in the Regulations. This is because a reference to it is not necessary for the functioning of the Regulations.

 

Resolution 1572 requires Australia to prevent the supply, sale or transfer, directly or indirectly, to Côte d’Ivoire of arms or any related matériel, in particular military aircraft and equipment, whether or not originating in Australian territory, with specific exceptions as provided for in resolution 1572. Resolution 1572 also requires Australia to prevent such supply, sale or transfer from Australian territory, by Australian nationals, by persons using Australian flag vessels, and by persons using Australian flag aircraft.

 

Resolution 1572 also requires Australia to prevent the direct or indirect provision to Côte d’Ivoire of any assistance, advice or training related to military activities, with specific exceptions as provided for in Resolution 1572. Resolution 1572 additionally requires Australia to prevent such provision from Australian territory, by Australian nationals, by persons using Australian flag vessels, and by persons using Australian flag aircraft.

 

The Resolutions additionally require that Australia freeze the funds, other financial assets and economic resources on Australian territory that are owned or controlled by the persons and entities designated pursuant to operative paragraph 14 of Resolution 1572. The Resolutions also oblige Australia to ensure that any funds, financial assets or economic resources are prevented from being made available by Australian nationals or by any persons or entities within Australian territory to, or for the benefit of, the designated persons or entities. The Resolutions provide narrow exceptions to these obligations.

 

Finally, Resolution 1572 requires Australia to prevent designated persons from entering into or transiting through Australian territory.

 

Resolutions 1643 and 1572 were adopted under Article 41 of Chapter VII of the Charter of the United Nations and the measures are binding on Australia pursuant to Article 25 of that Charter. The relevant United Nations Security Council Resolutions can be found on the UN website (www.un.org).

 

The Regulations ensure that those aspects of the sanctions imposed by Resolutions 1643 and 1572 that cannot be implemented under existing regulations are adequately implemented into domestic law.

 

Australia generally implements territorial aspects of trade sanctions via specific regulation under the Customs (Prohibited Imports) Regulations 1956, the Customs (Prohibited Exports) Regulations 1958, and the Customs Regulations 1926, which are administered by the Australian Customs Service. Travel restrictions are implemented under the Migration Act 1956 and associated regulations, administered by the Department of Immigration and Citizenship.

 

Interdepartmental and public consultation was undertaken during the preparation of the Regulations. The Department of Foreign Affairs and Trade conducted briefing sessions on the International Trade Integrity Act 2007, including the consequential amendments that would be required for each of the regulations made under the Act, in each State and Territory capital between September and November 2007. In addition, the Department gave 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). Finally, from August 2007 the Department posted notices on its website and on the business.gov.au consultation site inviting interested parties to provide written comments on a revised regulatory regime under the Act as amended. Other Commonwealth agencies, including the Attorney-General’s Department, were consulted during the drafting of the Regulations

 

Details of the Regulations are set out in the Annex.

 

 

 

Annex

 

Charter of the United Nations (Sanctions — Côte d’Ivoire) Regulations 2008

 

Details of the Regulations are as follows:

 

Part 1 Preliminary

 

Regulation 1 states that the name of the Regulations is the Charter of the United Nations (Sanctions — Côte d’Ivoire) Regulations 2008.

 

Regulation 2 provides that the Regulations commence on the day after they are registered.

 

Regulation 3 repeals the Charter of the United Nations (Sanctions — Cote d’Ivoire) Regulations 2005. The Regulations replace the Charter of the United Nations (Sanctions – Cote d’Ivoire) Regulations 2005 in order to accommodate changes made to the Act by the International Trade Integrity Act 2007.

 

Regulation 4 provides for the definition of certain terms used in the Regulations, including “arms or related matériel”, “controlled asset”, “designated person or entity”, “export sanctioned goods”, “sanctioned service” and “sanctioned supply”. “Designated person or entity” is defined as a person or entity designated by the Committee for paragraphs 9 and 11 of United Nations Security Council Resolution 1572. This definition has the effect of incorporating by reference persons or entities on a list maintained from time to time by the Committee established by United Nations Security Council Resolution 1572.

 

Regulation 5 provides that “export sanctioned goods” means arms or related matériel, which includes weapons, ammunition, and military vehicles and equipment.

 

Regulation 6 provides that “import sanctioned good” means rough diamonds.

 

Regulation 7 provides that a person, which includes a company, makes a sanctioned supply if the person supplies, sells or transfers export sanctioned goods to another person and, as a direct or indirect result of the supply, sale or transfer, the goods are transferred to Côte d’Ivoire.

 

Regulation 8 provides that “sanctioned service” means the provision of assistance, advice or training related to military activities.

 

Part 2 UN sanction enforcement laws

 

Regulation 9 prohibits the making of a sanctioned supply without authorisation. Regulation 9 defines “authorised supply” as a sanctioned supply authorised by a permit issued under regulation 10 or, if the supply takes place in a foreign country, by a permit properly issued by that country in accordance with its obligations under United Nations Security Council resolution 1572. This regulation will be specified by the Minister for Foreign Affairs in the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008 as a “UN sanction enforcement law” pursuant to section 2B of the Charter of the United Nations Act (the Act). This will have the effect of making contravention of regulation 9 an offence under section 27 of the Act.

 

Regulation 9 provides that section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of regulation 9, thus giving the offence extraterritorial operation. In addition, the prohibition in regulation 9 also applies to a person, whether or not in Australia, and whether or not an Australian citizen, who uses the services of an Australian ship or an Australian aircraft to make an unauthorised supply. Similarly, the prohibition in regulation 9 applies to a body corporate in relation to an unauthorised supply made by another body corporate or entity, wherever incorporated or situated, over which the first body corporate has effective control.

 

Regulation 9 also provides that a defendant charged with contravening a UN sanction enforcement law under section 27 of the Act in relation to conduct prohibited by regulation 9 must establish that a permit was in fact granted by a foreign government in relation to the sanctioned supply in or from a foreign country. In other respects, for the purpose of regulation 9, the evidentiary burden remains with the prosecution.

 

Regulation 10 provides that the Minister for Foreign Affairs may, on application, and subject to conditions specified in the regulation, grant a person a permit authorising the making of a sanctioned supply of goods. A permit may be granted if the sanctioned supply is intended solely for the support of, or use by, United Nations Operations in Côte d’Ivoire (UNOCI), or the French forces that support UNOCI, or is a supply of non-lethal military equipment that intended solely for humanitarian or protective use and is approved in advance by the Committee. In addition, a permit may be granted if the sanctioned supply is a supply of protective clothing that is temporarily exported to Côte d’Ivoire for the personal use of a member of the personnel of the United Nations, a media representative, or a humanitarian or development worker or an associated person. A permit may also be granted if the sanctioned supply is a supply of goods that is temporarily exported to Côte d’Ivoire for the use of a State that is taking action in accordance with international law solely and directly to facilitate the evacuation of its nationals and those for whom it has consular responsibility in Côte d’Ivoire. Moreover, a permit may be granted if the supply is a supply of arms or related matériel that is intended solely for the support of, or use in, the process of restructuring defence and security forces under subparagraph 3(f) of the Linas-Marcoussis Agreement which is approved in advance by the Committee established pursuant to resolution 1572.

 

Regulation 11 prohibits the making of a sanctioned import without authorisation. A person contravenes regulation 11 if the person procures import sanctioned goods from Côte d’Ivoire or from a person or entity in Côte d’Ivoire. In the cases of bodies corporate, it is prohibited for a body corporate which has effective control over the actions of another body corporate or entity, wherever incorporated or situated, for the other body corporate or entity to procure import sanctioned goods from Côte d’Ivoire or a person or entity in Côte d’Ivoire. This regulation will be specified by the Minister for Foreign Affairs as a UN sanction enforcement law pursuant to section 2B of the Act. This will have the effect of making contravention of regulation 9 an offence under section 27 of the Act.

 

Regulation 12 prohibits the provision of a sanctioned service without authorisation. Regulation 12 defines “authorised service” as a sanctioned service authorised by a permit issued under regulation 13 or, if the supply takes place in a foreign country, by a permit properly issued by that country in accordance with its obligations under United Nations Security Council Resolution 1572. This regulation will be specified by the Minister for Foreign Affairs as a UN sanction enforcement law pursuant to section 2B of the Act. This will have the effect of making contravention of regulation 12 an offence under section 27 of the Act.

 

Regulation 12 provides that section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of regulation 12, thus giving the offence extraterritorial operation. In addition, the prohibition in regulation 12 also applies to a person, whether or not in Australia, and whether or not an Australian citizen, who uses the services of an Australian ship or an Australian aircraft to provide an unauthorised service. Similarly, the prohibition in regulation 12 applies to a body corporate in relation to an unauthorised service made by another body corporate or entity, wherever incorporated or situated, over which the first body corporate has effective control.

 

Regulation 12 also provides that a defendant charged with contravening a UN sanction enforcement law under section 27 of the Act in relation to conduct prohibited by regulation 12 must establish that a permit was in fact granted by a foreign government in relation to the sanctioned service in or from a foreign country. In other respects, for the purpose of regulation 12, the evidentiary burden remains with the prosecution.

 

Regulation 13 provides that the Minister for Foreign Affairs may, on application, and subject to conditions specified in the regulation, grant a person a permit authorising the provision of a sanctioned service comprising technical training and assistance intended solely for the support of, or use by, UNOCI. A permit may also be granted if the provision is related to a supply of non-lethal military equipment intended solely for humanitarian or protective use approved in advance by the Committee established pursuant to resolution 1572. In additional, a permit may be granted if the provision is intended solely for the support of, or use in, the process of restructuring defence and security forces under subparagraph 3(f) of the Linas-Marcoussis Agreement which is approved in advance by the Committee established pursuant to resolution 1572.

 

Regulation 14 prohibits making an asset available to, or for the benefit of a designated person or entity without authorisation of a permit issued by the Minister for Foreign Affairs under regulation 16. This regulation will be specified by the Minister for Foreign Affairs as a UN sanction enforcement law pursuant to section 2B of the Act. This will have the effect of making contravention of regulation 16 an offence under section 27 of the Act. Regulation 16 also provides that section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of regulation 14, thus giving the offence extraterritorial operation.

 

Regulation 15 freezes controlled assets, by prohibiting a person who holds a controlled asset from using or dealing with the asset, or allowing the asset to be used or dealt with, or facilitating the use of the asset or dealing with the asset, unless the use or dealing is authorised by a permit under regulation 16. This regulation will be specified by the Minister for Foreign Affairs as a UN sanction enforcement law pursuant to section 2B of the Act. This will have the effect of making contravention of regulation 16 an offence under section 27 of the Act. Regulation 15 provides that section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of regulation 15, thus giving the offence extraterritorial operation.

 

Regulation 16 provides that the Minister for Foreign Affairs may, on application, and subject to conditions specified in the regulation, grant a person a permit authorising the making available of an asset to a person or entity that would otherwise contravene sub-regulation 14(1), or a use of, or dealing with, a controlled asset. An application must be for a basic expense dealing, a legally required dealing or an extraordinary expense dealing, as those terms are defined in regulation 5 of the Charter of the United Nations (Dealings with Assets) Regulations 2008, and must specify which kind of dealing the application is for. Regulation 16 also provides for formalities the Minister for Foreign Affairs must take in relation to the permit with the Committee established by paragraph 14 of Resolution 1572.