Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (VEGETABLE) REGULATIONS1996 NO. 18

STATUTORY RULES 1996 No. 18

Issued by the Authority of the Minister for Primary Industries and Energy

Primary Industries Levies and Charges Collection Act 1991

Horticultural Levy Act 1987

Horticultural Export Charge Act 1987

Primary Industries Levies and Charges Collection (Vegetable) Regulations

The Governor-General may make regulations to impose levies and export charges on classes of horticultural products under subsections 14(1) of the Horticultural Levy Act 1987 (the Levy Act) and 14 (1) of the Horticultural Export Charge Act 1987 (the Export Charge Act). The Governor-General may also make regulations to provide for the collection of levy and export charge under subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act)

Section 6 of the Levy Act imposes levy on leviable horticultural products which are produced in Australia and sold or used in the production of other goods. Section 6 of the Export Charge Act imposes export charge on chargeable horticultural products which are produced in Australia and exported. Levies and export charges imposed under the arrangements fund domestic and export market promotion through the Australian Horticultural Corporation and joint industry/government funded research and development through the Horticultural Research and Development Corporation (HRDC).

These regulations impose levy and export-charge on the vegetable industry, at the industry's request, for the purpose of participating in the HRDC only.

Sections 9 of the Levy and Export Charge Acts provide that regulations may fix a rate of levy and export charge in respect of the HRDC. The Regulations set a levy rate on certain vegetables of 0.5% of the value of the produce as presented at the first point of sale or an export charge of 0.5% calculated on the "free-on-board" value of the produce prior to export.

Subsections 14(4) and 14(5) of the Levy and Export Charge Acts require the Governor-General to take into account any recommendation to the Minister from the HRDC before making regulations to fix a rate of levy and export charge, or to exempt subclasses of horticultural product or classes of producers from levy and export charge. Subsection 14 (7) of the Levy and Export Charge Acts require the HRDC to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of, and exemptions from, levy and export charge to the Minister.

The HRDC recommended the rates to the Minister after consultation with the Australian Vegetable and Potato Growers' Federation - Vegetable Group which is the eligible industry body prescribed in the regulations. The Regulations give effect to the recommendations of the HRDC, which are consistent with the industry request. A copy of the recommendation and a statement from the industry in support of the levy and export charge are at Attachment B.

Subsections 7(1), (2), and (3) of the Collection Act provide that intermediaries are liable to pay any levy and export charge that remains unpaid by the producer. The regulations prescribe vegetables as a product for the purposes of the definition of producer in subsection 4(1) of the Collection Act. This will allow collection of levy and export charge by intermediaries such as first purchasers who purchase vegetables, buying and selling agents who trade in vegetables and exporters and exporting agents who export vegetables. Section 8 of the Collection Act allows the intermediaries to deduct amounts paid from proceeds due to the producer.

The Regulations also provide for the manner of payment of levy and export charge, the lodgement of returns and the keeping of records.

Details of the Regulations introducing the levy and export charge on vegetables, which will commence on 1 March 1996, are at Attachment A.

ATTACHMENT A

DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND COLLECTION (VEGETABLE) REGULATIONS

Regulation 1 provides a reference name for the Regulations.

Regulation 2 gives the commencement date of the Regulations as 1 March 1996.

Regulation 3 defines terms used in the Regulations. This Regulation also provides that the Primary industries Levies and Charges Collection Regulations, which provide regulations on matters common to all levies and export charges collected under the Collection Act, must be read as one with these Regulations.

Regulation 4 defines the levy year as beginning on 1 March 1996 and ending at the end of 30 June 1996 and thereafter each financial year after 30 June 1996.

Regulation 5 prescribes vegetables as a horticultural product subject to levy under the Levy Act. It also prescribes vegetables as a product to which paragraph (b) of the definition of producer in subsection 4 (1) of the Collection Act relates. Paragraph (b) defines the producer as the person who owns the vegetables immediately after harvest. The producer is liable to pay the levy on the product under section 12 of the Levy Act.

Regulation 6 prescribes vegetables as a horticultural product subject to charge under the Export Charge Act. It also prescribes vegetables as a product to which paragraph (g) of the definition of producer in subsection 4(1) of the Collection Act relates. Paragraph (g) defines the producer as the person who exports the product from Australia. The producer is liable to pay the charge on the product under section 12 of the Export Charge Act. It should be noted that section 13 of the Export Charge Act provides that where levy has already been paid, export charge is not payable.

Regulation 7 provides that the rate of levy destined for the HRDC to apply to vegetables will be 0.5% of the value of the produce as presented at the first point of sale.

Regulation 8 provides that the rate of export charge destined for the HRDC to apply to vegetables will be 0.5% calculated on the "free-on-board" value of the produce prior to export.

Regulation 9 requires that levy and export charge is due for payment on the last day for lodgement of the return for the vegetables.

Regulation 10 prescribes the persons who must lodge a quarterly return for vegetables levy or export charge. The regulation lists such persons as a first purchaser, including a retailer or a processor, a buying agent, a selling agent, an exporter or an exporting agent. This regulation also specifies those persons who, subject to later regulations, are exempt from lodging quarterly returns.

Regulation 11 prescribes that a quarterly return for vegetables must be lodged before the end of 28 days after the end of the quarter to which the return relates.

Regulation 12 prescribes the persons who may apply for an exemption from lodging quarterly returns and sets out the details of what an application for exemption must include.

Regulation 13 requires that, when considering applications for an exemption, the Secretary must take certain factors into account. The Regulation also requires the Secretary to consider the application for exemption and give written advice to the applicant within 21 days of lodgement of the application.

Regulation 14 requires that once a person has been granted an exemption from submitting quarterly returns the Secretary must decide whether to continue the exemption for the next levy year. This regulation also prescribes the factors which must be taken into consideration when deciding whether to continue an exemption. The decision of whether to continue an exemption must be made and conveyed to the person concerned within 21 days of the lodgement of the annual return.

Regulation 15 prescribes when a person must lodge a quarterly return if an exemption from lodging is refused or discontinued.

Regulation 16 prescribes who must lodge an annual return.

Regulation 17 prescribes that an annual return must be lodged on or before 28 August.

Regulation 18 prescribes details of the information which must be included in an annual return.

Regulation 19 details the records that must be kept by persons who lodge an annual return for vegetable levy or export charge. The regulation also requires that records be kept for at least 5 years after the last day for lodging the return.

Regulation 20 provides for applications to the Administrative Appeals Tribunal for the review of decisions by the Secretary refusing to grant exemptions from lodging quarterly returns.

Regulation 21 prescribes the Australian Vegetable and Potato Growers, Federation - Vegetable Group as the industry body with which the HRDC must consult on the rate of levy and export charge, and on any exemptions to apply.

HORTICULTURAL RESEARCH & DEVELOPMENT CORPORATION

The Research Arm of the Australian Horticultural Industries

29 September 1995

Senator the Hon Bob Collins
Minister for Primary Industries & Energy
Parliament House
CANBERRA ACT 2600

Dear Senator Collins

The Australian Vegetable & Potato Growers Federation (Ausveg) has informed the Corporation that the vegetable industry wishes to introduce a levy and export charge under the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987 to provide funds for research and development.

The proposed R&D levy under the Horticultural Levy Act 1987 (Levy Act) is to be at an operative rate of 0.5 percent of the value of the produce as presented at the first point of sale.

The proposed R&D charge under the Horticultural Export Charge Act 1987 (Charge Act) is to be at an operative rate of 0.5 percent of the value of the produce calculated on the 'free on board' value of the produce prior to shipment.

The levy is to apply to all vegetables with the exclusion of potatoes, mushrooms, fresh and processing tomatoes, onions, garlic, melons, ginger and asparagus. The potato, mushroom, processing tomato and ginger industries already have statutory or voluntary levies in place. The national associations representing the onion, garlic and melon industries have indicated their desire to pursue their own levy arrangements. The fresh tomato and asparagus industries, through organisations representing the major production areas, have also indicated that they do not wish to be involved at this stage.

The Corporation is satisfied that Ausveg has consulted widely with industry in each State and that, overall, there is support for the introduction of a national levy and export charge to support research and development programs for the industry. The Corporation has assisted the vegetable industry in developing its research priorities by holding a planning workshop it 1992.

Consequently, pursuant to subsection 14 (4) of the Levy Act and the Charge Act, the Corporation recommends the introduction of a levy and an export charge to support research and development. The Corporation recommends a levy under section 9 of the Levy Act of 0.5 per cent of the value collected at the first point of sale for those vegetables listed in the Attachment. In addition, the Corporation recommends an export charge under section 9 of the Charge Act of 0.5 per cent of the FOB value of the produce for the same listed vegetables.

The industry, as represented by Ausveg, and officers of the Corporation have already met with relevant officers of your Department to progress the details of the levy and charge. I anticipate these consultations will be ongoing.

I would appreciate it if you could arrange for the necessary regulations to be made for the introduction of this levy and export charge.

Yours sincerely

Dr Chris Rigney

Executive Director

Attachment

VEGETABLE LIST

Family: Alliaceae

chives (fresh, culinary)       Allium schoenoprasum

Chinese chives       Alflum ruberosum

leek       Allium porrum

spring onions, bunching onions       Allium cepa

Welsh onion, Japanese bunching, spring onion       Allium fistulosum

Family: Amaranthaceae

In choi, Chinese spinach       Arwranthus gangericus

Family: Apiaceae

caraway (fresh, culinary)       Carum carvi

carrot       Daucus carota

celeriac       Apium graveolens var rapaceum

celery       Aplum graveolens var dulce

chervil (fresh, culinary)       Anthdscus cerefolium

coriander (fresh, culinary)       Coriandrum sativum

dill (fresh, culinary)       Anethum graveolens

fennel       Foeniculum vulgare var a.Toricum

mitsuba       Cryptotaenia japonica

parsley       Petroselinum crispum

parsnip       Pastinaca sativa

Family: Araceae

taro       Colocwia esculenta

Family: Asteraceae

burdock, gobo       A rtium lappa

chicory, witloof       Cichorium inn.bus

endive, radicchio       Cichorium en~iva

garland chrysanthemum, tong ho       Chrysanthemum coronarium var. spatiosum

globe artichokes       Cynara cardunculus

lettuce       Lactuca sativa

celtuce       Lactuca sativa var augustana

Jerusalem artichokes       Helianthus tuberosus

salsify       Tragopogon porrifolius

scorzonera       Scorzonera hispanica

tarragon (fresh.culinary)       Anemisia dracunculus

Family: Brassicacae

Chinese mustard, kai tsoi       Brassica juncea

swede       Brassica napus

kale, borecole       Brassica oleracea varacephala

broccoli       Brassica oleracea var italica

Brussels sprouts       Brassica oleracea var gemmifera

cabbage       Brassica oleracea var capitata

cauliflower, brocciflower       Brassica oleracea var botrytis

kohl rabi       Brassica oleracea var gongylodes

Chinese broccoli, gai lum       Brassica oleracea var alboglabra

choi sum, flowering cabbage       Brassica parachinenies

turnip       Brassica rapa

bok choy, Chinese cabbage       Brassica rapa spp pekinensis

pak choi, Chinese ' white cabbage       Brassica rapa spp chinensis

choi sum, Chinese flowering cabbage       Brassica rapa spp chinensis var parachinensis

tat soi, Chinese flat cabbage       Brassica rapa spp chinensis var rosuldris

mizuna, mibuna greens       Brassica rapa spp nipponsinica

cress, cress sprouts       Lepidium sativum

horse radish       Armoracia rusticana

mustard, mustard sprouts       Sinapis alba .

radish, diakon       Raphanus sativus

rocket       Eruca sativa

watercress       Nasturtium officinale

upland cress       Barbarea vulgaris

wasabi       Wasabi japonica

Family: Chenopodlaceae

beetroot       Beta vulgaris

silver beet, swiss chard

spinach       Spinachia oleracea

Family: Convolvulaceae

sweet potato       lpomoea bataras

ohng choi, water spinach       Ipomoea aquatica

Family: Curcurbitaccae

bitter gourd, bitter melon       Momordica charantia

wax gourd, tung kwa       Benincasa hispida

smooth luffa       Luffa aegyptiaca

angled luffa       Luffa acutangula

choko, chayote       Sechium edule

cucumber       Cucumis sativus

gherkin       Cumumis anguria

gramma, butternut       Cucumis moschata

pumpkin       Cucumis nwxinta

marrow, zucchini, button squash       Cucurbita Pepo

Family: Cyperaceae

Chinese water chestnut       Eleochads dulcis

Family: Dioscoreaceae

yam       Dioscorea alata

Family: Euphorbiaceae

cassava       Manihot esculenta

Family: Fabaceae

beans, butter beans,       Phaseolus vulgaris

broad beans       Vicia faba

peas, snow peas       Pisum sativunz

runner beans       Phaseolus coccineus

snake beans, yardlong beans       Vigna sinensis spp sesquipedalis

vegetable soybean       Glycine max

Family: Lamiaceae

(fresh, culinary):

balm       Melissa officinalis

basil       Ocimum basilicum

borage       Borago officinalis

perilla, shiso       Perilla frutescens

peppermint       Mentha piperita

majoram       Origanum madorama

oregano       Odganum vulgare

rosemary       Rosmarimus officinalis

sage       Salvia officinalis

savory       Satureja hortensis

spearmint       Mentha spicata

tarragon       Artemesia dracunculus

thyme       lhymus vulgaris, T. citriodorus

Family: Lauraceae

bay (leaves as fresh, culinary))       Laurus nobilis

Family: Malvaceae

okra       Hibiscus esculentus

rosella       Hibiscus sabdariffa

Family: Poaceae

sweet corn       Zea mays

bamboo shoots       Phyllostachys sp

lemon grass       Cymbopogon citratus

Family: Polygonaceae

rhubarb       Rheum rhabarbarum

sorrel       Rumex acetosa

Family: Solanaceae

capsicum       Capsicum annuum

chilli       Capsicum frutescens

cape gooseberry       Physalis pruinosa

eggplant       Solanum melongena

Family: Trapaceae

water chestnut       Trapa natans

VEGETABLE & POTATO GROWERS FEDERATION

23 October 1995

Senator the Hon Bob Collins
Minister for Primary Industries & Energy
Parliament House
CANBERRA ACT 2600

Dear Senator Collins

Further to correspondence dated 29 September 1995 to you from Dr Chris Rigney, Executive Director of the Horticultural Research and Development Corporation, 1 am pleased to submit, for your information, our final submission seeking the introduction of a levy and export charge under the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987 to provide the industry with funds to invest in research and development.

We seek you support for the implementation of this levy which we believe will have significant positive results for the industry in its efforts to improve its competitive position on both the domestic and export markets.

The industry is grateful for the support it has received from officers of your Department during the development of this proposal and the extensive period of industry consultation. We look forward to a continuing involvement with the Levy Management Unit of the Department in order to ensure the smooth introduction an operation of the levy.

Thank you for your assistance in implementing this levy as soon as practical.

Yours sincerely

Brian Newman

Executive Director