Commonwealth Numbered Regulations - Explanatory Statements

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QUARANTINE CHARGES (IMPOSITION--CUSTOMS) REGULATION 2014 (SLI NO 69 OF 2014)

EXPLANATORY STATEMENT

Select Legislative Instrument No. 69, 2014

Issued by Authority of the Minister for Agriculture

Quarantine Charges (Imposition-Customs) Act 2014

Quarantine Charges (Imposition-Customs) Regulation 2014

Legislative Authority

The Quarantine Charges (Imposition-Customs) Act 2014 (the Act) provides that the Governor-General may make regulations prescribing charges for activities that provide benefits to users of the biosecurity system - particularly the recovery of costs for indirect biosecurity services, such as scientific analysis, intelligence gathering and surveillance where a charge is considered a duty of customs as defined by section 55 of the Constitution.

Subsection 7(1) of the Act provides that a regulation may be made that prescribes a charge in relation to a prescribed matter connected with the administration of the Quarantine Act 1908. Where a charge is prescribed under subsection 7(1), subsection 8(2) of the Act ensures that,  the Minister must be satisfied that the amount of the charge is set at a level that is designed to recover no more than the Commonwealth's likely costs in connection with the matter.

Section 9 of the Act provides that a regulation may prescribe one or more persons who are liable to pay a specified charge prescribed under sub-section 7(1) of the Act while Section 10 provides that a regulation may be made to provide exemptions from a charge prescribed under sub-section 7(1) of the Act.

Purpose

The Quarantine Charges (Imposition-Customs) Regulation 2014 (the Regulation) prescribes charges that may be imposed for the provision of indirect biosecurity services. The Regulation sets out the amount of charge and who is liable to pay the charge under the Regulation and what persons or classes of persons are exempt from the charges. The Regulation sets out the amount of charge for the provision of indirect biosecurity services before 1 July 2014 and for the provisions of indirect biosecurity services on or after 1 July 2014.

The Regulation replaces three fees under the Quarantine Service Fees Determination 2005 (the Determination) and ensures that the recovery of costs for the provision of indirect biosecurity services occurs within the proper legislative framework. In particular, the Regulation replaces the fees currently prescribed under fee items 2, 3 and 5 of Schedule 1, Part 1, Division 1 of the Determination, which relate to cargo risk profiling, surveillance, inspection and the management of other biosecurity activities.

Background

Biosecurity is currently managed under the Quarantine Act 1908 and related delegated legislation. Biosecurity refers to the management of the risk of pests and diseases entering Australian territory and causing harm to animal, plant and human health, the environment and the economy. Shifting global demands, growing passenger and trade volumes, increasing imports from a growing number of countries and population expansion all contribute to the complexity of the modern biosecurity environment.

Historically, the Department of Agriculture's approach to biosecurity management--under the Quarantine Act--has relied on mandatory border intervention targets for specific imports. This approach did not take into account the varying levels of risk posed by different passengers, goods, import businesses or incursions, or where intervention would be most effective (offshore, onshore or at the border).

In recent years, the department has shifted to a risk-based approach to biosecurity management, informed by scientific analysis, intelligence and surveillance that enables higher risk goods, passengers and mail to be targeted for intervention. This has allowed the department to develop world's best biosecurity practice and better manage the increasing volumes of trade and passengers across the Australian border. The risk-based approach, allows the department to more effectively target its regulatory efforts without compromising biosecurity risk outcomes. It reduces the cost of delivering frontline services and saves time and money for importing businesses with flow-on benefits to the broader economy.

The department currently recovers the costs of key biosecurity services (for example, scientific analysis, intelligence and surveillance, which are key elements of the risk-based approach) through three fee items (2, 3 and 5) of the Quarantine Service Fees Determination 2005, made under section 86E of the Quarantine Act.

The Quarantine Charges (Imposition-Customs) Act 2014 creates a more appropriate legal structure for the recovery of costs associated with the indirect biosecurity services undertaken by the department, for the benefit of importers, and aligns cost-recovery arrangement with current departmental practices. Together with the Quarantine Charges (Imposition-Customs) Act 2014, the Quarantine Charges (Imposition-Customs) Regulation 2014 creates a more appropriate legal framework for the recovery of costs associated with the indirect biosecurity services undertaken by the department and aligns cost-recovery arrangements with current departmental practices.

Impact and Effect

The Regulation imposes charges for the provision of indirect biosecurity services to users of the biosecurity system. The Regulation ensures that the recovery of these costs occurs within the appropriate legal framework and replaces fee items 2, 3 and 5 of the Quarantine Service Fees Determination 2005. The quantum of charges, services that the charges will relate to and who will be liable to pay charges will be the same under the Regulation as provided for under the Determination.

Consultation

The Office of Best Practice Regulation has been consulted and considers that the legislation will have minor impact (ID 16131).

Details of the Quarantine Charges (Imposition-Customs) Regulation 2014

Section 1 - Name of Regulation

This section provides that the name of the Regulation is the Quarantine Charges (Imposition-Customs) Regulation 2014.

Section 2 - Commencement

This section provides for the Regulation to commence on the day after it is registered.

Section 3 - Authority

This section provides for the Regulation to be made under the Quarantine Charges (Imposition-Customs) Act 2014.

Section 4 - Definitions

This section provides definitions of terms used in the Regulation. Notes are provided on each definition below:

Act

This definition provides that 'Act' means the Quarantine Charges (Imposition-Customs) Act 2014.

Consignee
This definition provides that, in relation to goods brought into Australia from outside Australia, 'consignee' means the person who is the ultimate recipient of the goods, whether or not the person ordered or paid for the goods,

Customs

This definition provides that 'customs' has the meaning given by section 4AA of the Customs Administration Act 1985.

Director of Quarantine

This definition provides that the 'Director of Quarantine' has the same meaning as in the Quarantine Act 1908.

Disability assistance dog

This definition provides that a 'disability assistance dog' means a dog that has been professionally trained to assist a person with a disability and is accompanying a person with such a disability. This definition also provides that a person with a disability who is accompanied by a disability assistance dog must have certificate from a medical specialist practitioner in a speciality relevant to the disability, which specifies that the person requires the assistance of such a dog.

Full import declaration

This definition provides that 'full import declaration', in relation to goods, means an entry lodged on the Integrated Cargo System that contains the information required by regulation 50 of the Quarantine Regulations 2000 in relation to the goods.

Integrated Cargo System

This definition provides that 'integrated cargo system' means the system of that name administered by Customs.

Quarantine matter

This definition provides that 'quarantine matter' has the same meaning as a matter connected with the administration of the Quarantine Act 1908.

Vessel

This definition provides that 'vessel' has the same meaning as in the Quarantine Act 1908.

Section 5 - Charges--quarantine matters performed before 1 July 2014

This section provides the amount of charges payable in relation to prescribed matters connected with the administration of the Quarantine Act 1908, if the prescribed matter was performed on or after the commencement of the proposed Regulation and before 1 July 2014. The prescribed matters that attract a charge under the Regulation include risk profiling, surveillance and arrangements entered into by entities to perform quarantine functions on behalf of the Commonwealth in relation to goods covered by a full import declaration brought into Australia by air and by sea.

Other matters to attract a charge under this section include the clearance and inspection of goods covered by one or more full import declarations that are in a shipping container and imported into Australia in a single consignment (or in two or more consignments) to the same consignee (or to 2 or more consignees).

For charges prescribed under this section, the Minister must be satisfied that the amount of the charge is set at a level that is designed to recover no more than the Commonwealth's likely costs in connection with the matter.

Section 6 - Charges--quarantine matters performed on or after 1 July 2014

This section provides the amount of charges payable in relation to prescribed matters connected with the administration of the Quarantine Act 1908, if the prescribed matter was performed on or after 1 July 2014. The prescribed matters that attract a charge under the Regulation include risk profiling, surveillance and arrangements entered into by entities to perform quarantine functions on behalf of the Commonwealth in relation to goods covered by a full import declaration brought into Australia by air and by sea.

Other matters to attract a charge under this section include the clearance and inspection of goods covered by one or more full import declarations that are in a shipping container and imported into Australia in a single consignment (or in 2 or more consignments) to the same consignee (or to 2 or more consignees).

For charges prescribed under this section, the Minister must be satisfied that the amount of the charge is set at a level that is designed to recover no more than the Commonwealth's likely costs in connection with the matter.

Section 7 - Person liable to pay charge

This section prescribes who is liable to pay a charge that is imposed under the Quarantine Charges (Imposition-Customs) Act 2014 in relation to a quarantine matter. If the goods to which the quarantine matter relates are owned by the same person then the owner of those goods will be liable to pay the charge. If the goods to which the quarantine matter relate are owned by different people, then the owners of the goods will be joint and severally liable for the payment of the charge.

By specifying who is liable to pay a charge imposed under the Quarantine Charges (Imposition-Customs) Act 2014 only those persons who have received an indirect biosecurity service will be liable to pay a charge.

Section 8 - Exemptions from charges

This section provides for certain persons or activities to be exempt from a charge or charges imposed by the Quarantine Charges (Imposition-Customs) Act 2014.

This section prescribes that quarantine charges will not be payable if the quarantine matter relates to the importation of goods for the official use of a diplomatic mission in Australia. This includes quarantine matters that relate to the importation of goods for the personal use of a diplomatic agent of the mission or for the personal use of a member of the diplomatic agent's family or if the person forms part of the diplomatic agent's household and is not an Australian citizen.

If charges for a quarantine matter relate to the importation of goods for the personal use of a member of the administrative or technical staff of a diplomatic mission at the time of first installation then those matters will also be exempt from quarantine charges, if the staff member is neither an Australian citizen nor permanently resident in Australia. In addition, the importation of goods for the personal use of a member of the staff member's family at the time of first installation will also be exempt from quarantine charges, if the person forms part of the staff member's household and is neither an Australian citizen nor permanently resident in Australia

This section also prescribes that vessels or equipment used by the defence force of a foreign country that is engaged in a combined military activity if the Australian Defence Force has informed a Director of Quarantine will also be exempt from charges under the Quarantine Charges (Imposition-Customs) Act 2014.

In addition, the importation into Australia of a disability assistance dog or the examination of personal luggage that is brought into Australia on the same vessel as the owner or importer of the luggage or the screening or inspection of international postal items that arrive in Australia, will also be exempt from charges under the Quarantine Charges (Imposition-Customs) Act 2014.

These exemptions from liability to pay charges ensure that charges are only imposed when it is appropriate to do so.

                                                                                                                ATTACHMENT

Statement of Compatibility with Human Rights

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

Quarantine Charges (Imposition-Customs) Regulation 2014

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

Overview of the Legislative Instrument

The Quarantine Charges (Imposition-Customs) Regulation 2014 sets the amount of charges, who is liable to pay and any exemptions that may apply in relation to those charges for the provision of indirect biosecurity services. The Regulation replaces and replicates fee items 2, 3 and 5 of the Quarantine Service Fees Determination 2005.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

The Hon. Barnaby Joyce MP

Minister for Agriculture

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