Regulation Impact Statement – Department of Agriculture and Water Resources
On 18 September 2018, the Department of Agriculture and Water Resources (the Department) announced the completion of a Regulation Impact Statement (RIS) on reforms to streamline the administration of export tariff rate quotas (TRQs).
The RIS examined the effectiveness and efficiency of the existing tariff rate quota administration and identified ways to improve the management of all quotas. The RIS considered four options: remaining with the status quo, a non-regulatory approach, an option that proposes to streamline processes, and an industry-tailored, tiered management approach. The RIS concluded option 4 is likely to have the greatest net benefit. Option 4 offers three primary mechanisms (revised from option 3), generally applicable for low, medium and high use quotas:
- For low quota utilisation markets, there would be no allocation. Quota would be made available in response to applications on a First Come-First Served (FCFS) basis;
- For medium quota utilisation markets, there would be no allocation unless a trigger threshold is reached on or before a set date (known as FCFS with high-fill trigger);
- For high quota utilisation markets, quota would be allocated under a rationalised administrative model.
Additionally, option 4 includes two additional mechanisms to cater for TRQs that would not benefit by being managed under one of the three mechanisms above. These are the FCFS Quarterly whereby the quota volume is split into quarters to ensure year-round access, and the EU sheepmeat and goatmeat allocation mechanism.
The RIS prepared by the Department was assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR).
The Department estimates the average annual regulatory cost saving at $3000. The OBPR has agreed with this estimate.