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Customs Tariff Amendment (Greater Sunrise) Bill 2004

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2002-2003-2004

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

CUSTOMS TARIFF AMENDMENT (GREATER SUNRISE) BILL 2004

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

 

 

(C irculated by authority of the

Minister for Justice and Customs, Senator

the Honourable Christopher Martin Ellison )



 

CUSTOMS TARIFF AMENDMENT (GREATER SUNRISE) BILL 2004

 

 

GENERAL OUTLINE

 

This Bill, together with the Greater Sunrise Unitisation Agreement Implementation Bill 2004 , gives effect to the Greater Sunrise Unitisation Agreement between Australia and East Timor signed on 6 March 2003.

 

The Greater Sunrise petroleum unitisation area (“the unitisation area”) straddles Australia’s boundary and the Joint Petroleum Development Area, which is jointly administered by Australia and East Timor by virtue of the Timor Sea Treaty between the two countries that was legislated in Australia by the Petroleum (Timor Sea Treaty) Act 2003 .  This International Unitisation Agreement (IUA) allows for the development of petroleum resources of the Greater Sunrise field, which comprises the Sunrise and Troubadour petroleum reservoirs.

 

In particular, Article 22 of the IUA agrees to the duty-free entry of any goods and equipment entering the unitisation area for the purposes of petroleum activities.  To give effect to this Article i tem 22A will be added to Schedule 4 of the Customs Tariff to provide for the duty free entry of goods, as prescribed by by-law, for use in petroleum related activities in the Eastern Greater Sunrise area

 

FINANCIAL IMPACT STATEMENT

 

The development of the Greater Sunrise petroleum resource is expected to yield Australia $8.5 billion in revenue over the life of the project.

 



 

CUSTOMS TARIFF AMENDMENT (GREATER SUNRISE) BILL 2004

 

 

NOTES ON CLAUSES

 

Clause 1 - Short title

 

This clause provides the title of the Act.

 

Clause 2 - Commencement

 

This clause provides that sections 1, 2 and 3 of this amendment Act will commence on Royal Assent.

 

Further, this clause prescribes that Schedule 1 of this amendment Act will commence at the same time as the Greater Sunrise Unitisation Agreement Implementation Act 2004 commences. 

 

Note: As the IUA is between Australia and East Timor, it is necessary for it to come into effect simultaneously in both countries.  Therefore, the date of commencement will be proclaimed in the Gazette when East Timor notifies Australia that it has completed its internal processes to give effect to the IUA.

 

Clause 3 - Schedule(s)

 

This clause prescribes the various Acts being amended or repealed by this Act, which are specified in the Schedules to the Act.

 

Schedule 1 - Amendment of the Customs Tariff Act 1995

 

Item 1 - Subsection 3(1)

 

This item provides a broad definition of petroleum activities, which include activities relating to petroleum exploration operations; operations for the recovery of petroleum; operations relating to the processing or storage of petroleum; operations relating to the preparation of petroleum for transport; and operations connected with the construction or operation of a pipeline, within the meaning of the Petroleum (Submerged Lands) Act 1967 .

 

Item 2 - After item 22 in Part II of Schedule 4

 

This item provides that goods, as prescribed by by-law, for use in petroleum activities will be free of any customs duties.