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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (CUSTARD APPLES) REGULATIONS 1994 NO. 373

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (CUSTARD APPLES) REGULATIONS 1994 NO. 373

EXPLANATORY STATEMENT

STATUTORY RULES 1994 No. 373

Issued by the Authority of the Minister 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 (CUSTARD APPLES) 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 Horticultural Levy Act 1987 (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 Horticultural Export Charge Act 1987 (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 (R&D) through the Horticultural Research and Development Corporation (HRDC).

These regulations impose levy and export charge on the custard apple industry, at the industry's request, for the purpose of R&D carried on through 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 rate on custard apples sold on the fresh and export markets of 14 cents per standard tray and 20 cents per standard box, or $20 per tonne for bulk custard apples not packed in a standard tray or box.

Subsection 13(2) of the Levy Act and section 13 of the Export Charge Act provide that regulations may exempt from levy and export charge subclasses of leviable or chargeable products. The Regulations target the fresh and export markets by exempting from levy and export charge custard apples destined for processing either by the grower or by a processor, or which a grower sells by retail sale. In addition, custard apples for which levy has previously been paid are exempt from export charge.

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 and exemptions to the Minister after consultation with the Australian Custard Apple Growers Association Incorporated (ACAGA) 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 A.

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 custard apples 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 custard apples, buying and selling agents who trade in custard apples and exporters and exporting agents who export custard apples. 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 provision of returns by persons who must lodge an annual return for custard apple levy or export charge and the keeping of records.

Details of the Regulations introducing the levy and export charge on custard apples, which will commence on 1 January 1995, are at Attachment B.

ATTACHMENT A

HORTICULTURAL RESEARCH & DEVELOPMENT CORPORATION

The Research Arm of the Australian Horticultural Industries

5 September 1994

The Hon. Senator R. Collins

Minister for Primary Industries and Energy

Parliament House

Canberra ACT 2600

Dear Senator Collins,

The Horticultural Research and Development Corporation has received a request from the Australian Custard Apple Growers Association (ACAGA) for a statutory levy to be introduced to support national research and development activities for this industry.

ACAGA is the only national organisation representing this industry and the Corporation is satisfied that the majority of growers within the national industry supports the introduction of a levy as proposed by ACAGA in the accompanying letter.

The Corporation has consulted with the ACAGA executive and members over the last two years and has participated in a strategic planning workshop at which the industry representatives established R&D priorities and objectives.

ACAGA has suggested the following rate of levy on domestic sale of custard apples:

•       14 cents per standard tray of custard apples (i.e. a single layer tray of the kind ordinarily used in the Australian horticultural industry for packing custard apples and when packed weighing approximately 7 kg).

•       20 cents per 10 kg bulk box (referred to as a T35) or $20 per tonne.

ACAGA has suggested the following export charge:

•       14 cents per standard tray

•       20 cents per 10 kg bulk box or $20 per tonne

Exemptions are to be:

•       farm gate sales

•       fruit sold for processing

There is to be no minimum number of trays to be exempt from a levy or charge.

Given the relatively small size of the Custard Apple industry and therefore the limited amount of levy funds likely to be raised, the Corporation will be encouraging the Rural Industries Research and Development Corporation (RIRDC) to continue its support. Past RIRDC support has assisted the industry, together with QDPI, to develop a Quality Assurance program which will be a vital part of the industry's export strategy.

Pursuant to sub-section 14(4) of the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987, the Corporation recommends that a levy and export charge be introduced to support Custard Apple research and development, and that this levy be collected at first point of sale. The Corporation recommends that the rate of levy in respect of sections 9 of each of the Horticultural Levy Act and the Horticultural Export Charge Act 1987 should be as described above.

I would be grateful if you could arrange for the necessary regulations to be put in place, and I am enclosing a copy of the relevant letter from ACAGA to the Corporation.

Yours sincerely

DAVID MINNIS

Chairman

Encl: As above.

Australian Custard Apple Growers Association Inc.

Victoria Park Rd,.

ALSTONVILLE NSW 2477

9th June, 1994

Dr. C. Rigney,

Executive Director,

Horticultural Research and Development Corporation,

7 Merriwa Street,

GORDON NSW 2072

Dear Dr Rigney,

The Australian Custard Apple Growers Association Inc. is the only grower's group representing custard apple growers nationally. After consultation and agreeance with industry our association asks the Horticultural Research and Development Corporation to recommend a levy on custard apple production to go towards research and development of custard apples.

The levy proposed on domestic sale of custard apples is:

•       14 cents per standard tray of custard apples (i.e. a single layer tray of the kind ordinarily used in the Australian horticultural industry for packing custard apples and when packed weighing approx. 7kgs)

•       20 cents per 10kg bulk box (referred to as a T35) or $20 tonne.

The export charge proposed is:

•       14 cents per standard tray

•       20 cents per 10kg bulk box or 520 tonne

Exemptions are to be:

•       farm gate sales (i.e. fruit sold on road side stalls by the producer)

•       fruit sold for processing

There is to be no minimum number of trays to be exempt from a levy or charge.

The levy is to be collected at the first point of sale and returns are to be annual. We understand from the Levies Management Unit that this levy will be collected alongside the avocado levy, and that the annual collection will be in February.

The industry has been notified of the above information via the three main media outlets that our association uses - the Queensland Fruit and Vegetable magazine, the Norther Farmer (Nth NSW weekly rural newspaper) and the ACAGA newsletter. A copy of the media release sent to all 3 is enclosed.

Hoping the above information will ensure the implementation of this levy.

Regards,

Patti Stacey

Secretary ACAGA

ATTACHMENT B

DETAILS OF THE PRIMARY INDUSTRIES LEVIES AM CHARGES COLLECTION (CUSTARD APPLES) REGULATIONS

Regulation 1 provides a reference name for the Regulations.

Regulation 2 provides that the Regulations commence, and the levy and export charge will be collected, from 1 January 1995.

Regulation 3 provides that the Primary Industries Levies and Charges Collection Regulations (Statutory Rules 1991 No. 196 as amended), 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 terms used in the Regulations.

Regulation 5 defines the levy year as each calendar year after 1994.

Regulation 6 prescribes custard apples as a product to which paragraph (b) of the definition of producer in subsection 4(1) of the Collection Act relates. That Paragraph defines the producer as the person who owns the custard apples. immediately after harvest. The producer is liable to pay the levy on the product under section 12 of the Levy and Export Charge Acts. 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 prescribes custard apples as horticultural products subject to levy under the Levy Act.

Regulation 8 prescribes custard apples as horticultural products subject to export charge under the Export Charge Act.

Regulation 9 provides that the rate of levy destined for the HRDC to apply to custard apples will be 14 cents per standard tray; 20 cents per standard box; and $20 per tonne for bulk custard apples.

Regulation 10 provides that the rate of export charge destined for the HRDC to apply to custard apples will be 14 cents per standard tray; 20 cents per standard box; and $20 per tonne for bulk custard apples.

Regulation 11 exempts custard apples used for processing either by the grower or by a processor, or custard apples which a grower sells by retail sale, from levy and export charge. It also exempts custard apples for which levy has already been paid from export charge.

Regulation 12 requires that levy and export charge be paid on the lodgement of the annual return under Regulation 15.

Regulation 13 prescribes the persons who must lodge an annual return for custard apple levy or export charge.

Regulation 14 prescribes details of the information which must be included in an annual return.

Regulation 15 prescribes details of when and where an annual return must be lodged. Returns must be lodged on or before 28 February after the end of each levy year.

Regulation 16 details the records that must be kept by persons who lodge an annual return for custard apple 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 17 prescribes the Australian Custard Apple Growers Association Incorporated as the industry body with which the HRDC must consult on the rate of levy and export charge, and on any exemptions to apply.

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