Part 3 EU quota entitlement

Division 1 Overview of Part

6 What this Part does

This Part sets out how EU quota entitlement is allocated and how an exporter's EU quota entitlement for 2009-2010 is calculated.

^{Note 1 Section 27 of the Australian Meat and Live-stock Industry Act 1997 allows an order made under section 17 of that Act to provide for the establishment and administration of a system of quotas.}

^{Note 2 An exporter may also obtain EU quota entitlement by transfer from another eligible exporter under section 11.}

Division 2 Allocation of EU quota entitlement

7 Standard EU quota entitlement

(1) This section sets out how the Secretary allocates to an exporter standard EU quota entitlement.

(2) The exporter must, before the end of 30 April 2009, apply in writing ot the QA Unit in a form approved by the Secretary.

(3) The Secretary must allocate to the exporter, as the exporter's standard EU quota entitlement for 2009-2010 an amount determined using the following formula:

(AA - 500 tonnes) x ERS/TRS

where:

AA means the access amount.

ERS means the exporter's recorded shipments of high quality beef to the EU for 2008-2009.

TRS means the total of all exporters' recorded shipments of high quality beef to the EU for 2008-2009.

(4) However, if the amount worked out for an exporter under subsection (3) is less than 1 tonne, the amount to be allocated is nil.

(5) If the Secretary allocates standard EU quota entitlement to an exporter under this section, the Secretary must give the exporter a notice that states the shipped weight of quota meat that the exporter is entitled to export under the quota entitlement.

8 Amount of non-standard EU quota entitlement to be allocated

The Secretary may allocate no more than a total of 500 tonnes of non-standard EU quota entitlements.

9 Non-standard EU quota entitlement

(1) This section sets out how the Secretary allocates to an exporter non-standard EU quota entitlement.

(2) The exporter must, before the end of 30 April 2009, apply in writing to the QA Unit in a form approved by the Secretary.

(3) An exporter is not eligible for an allocation if:

(a) the exporter has received standard EU quota entitlement in any of the last 5 quota years, or during 2009-2010, of 150 tonnes or more; or

(b) the exporter:

(i) was allocated standard or non-standard EU quota entitlement on or after 1 July 2002; and

(ii) being a body corporate, was a related entity of an eligible exporter (that was also a body corporate) at the time of the allocation.

(4) For paragraph (3) (b), the question whether a body corporate is related to another body corporate is to be determined in the same manner as that question is determined for the purposes of the Corporations Act 2001.

(5) The entitlement for exporters is worked out using the following steps:

Step 1. Divide the total non-standard EU quota entitlement by the number of applicants, giving the provisional entitlement.

Step 2. Determine whether distributing the amount of provisional entitlement to each applicant would lead ot any applicant being approved to export:

(a) an amount greater than the applicant applied for; or

(b) more than 150 tonnes;

(that is, being an excess-quota applicant).

Step 3. If, after Step 2, there are no excess-quota applicants, each applicant receives an entitlement that is equal to the provisional amount. The total of the provisional amounts is subtracted from the total amount of non-standard EU quota entitlement.

Step 4. If, after Step 2, there are 1 or more excess-quota applicants:

(a) each excess-quota applicant receives an entitlement that is the lesser of the following:

(i) the amount applied for;

(ii) 150 tonnes; and

(b) the total of the amounts mentioned in paragraph (a) is taken to be subtracted from the total amount of non-standard EU quota entitlement.

Step 5. If an amount of entitlement is remaining after Step 4 and there is a particular applicant or applicants whose provisional allocation is less than the amount applied for, divide the amount of entitlement equally between those particular applicants.

Step 6. However, after applying Step 5 and this Step, each applicant must only receive an amount that is the lesser of the following:

(a) the amount applied for;

(b) 150 tonnes.

Step 7. A number worked out under these Steps is to be rounded up to the nearet whole number. If, in rounding a number, the rounded number results in an amount that is greater than the total amount of non-standard EU quota entitlement the number is to be rounded down.

Step 8. Any non-standard EU quota entitlement not allocated under these Steps is allocated to eligible exporters to whom more than 150 tonnnes of standard EU quota entitlement are allocated in 2009-2010, in proportion to that allocation.

(6) The Secretary must:

(a) allocate to an exporter the amount of non-standard EU quota for which the exporter is eligible; and

(b) give the exporter a written notice that states the shipped weight of quota meat that the exporter is entitled to export under the non-standard EU quota entitlement.

Division 3 Cessation and transfer of EU quota entitlement

10 When unused EU quota entitlement ceases to have effect

(1) If all, or a part, of an eligible exporter's quota entitlement has not been approved for export by 5.00 pm on 5 March 2010, the quota entitlement (or the part of the quota entitlement) ceases to have effect in respect of the exporter.

(2) The Secretary must cancel the eligible exporter's quota entitlement (or that part of the quota entitlement) that ceases to have effect under subsection (1).

^{Note 1 Under section 28 of the Act, the Secretary may cancel a quota or part of a quota in accordance with this order.}

^{Note 2 Under section 30 of the Act, the exporter has a right of review to the Administrative Appeals Tribunal in respect of the Secretary's decision.}

^{Note 3 Any exporter may apply for approval to export against EU quota entitlement that has ceased to have effect under this section - see section 14.}

11 Transfer of standard EU quota entitlement

(1) An eligible exporter (transferor) may transfer all or part of the exporter's standard EU quota entitlement to another exporter (transferee) if, before completing the transfer, the transferor tells the Department's QA Unit in writing:

(a) the name of the transferor; and

(b) the name of the transferee; and

(c) the shipped weight, in kilograms, of EU quota entitlement to be transferred.

(2) Non-standard EU quota entitlement, or EU quota entitlement that has ceased to have effect under section 10, is not transferable.

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