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Customs Tariff Amendment (Greater Sunrise) Bill 2007

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CUSTOMS TARIFF AMENDMENT (GREATER SUNRISE) BILL 2007

 

 

GENERAL OUTLINE

 

This Bill makes consequential amendments to the Customs Tariff Act 1995 necessary for Australia to meet its obligations arising under the Agreement between Australia and the Democratic Republic of Timor-Leste relating to the unitisation of the Greater Sunrise petroleum resource, when the Offshore Petroleum Act 2006 comes into force. The Agreement, known as the Greater Sunrise International Unitisation Agreement (IUA), was signed by Australia and Timor-Leste in Dili 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 Timor-Leste by virtue of the Timor Sea Treaty between the two countries that was legislated in Australia by the Petroleum (Timor Sea Treaty) Act 2003 .  The 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, the Customs Tariff Amendment (Greater Sunrise) Act 2004 added i tem 22A to Schedule 4 of the  Customs Tariff Act 1995 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 around $10 billion in upstream revenue over the life of the project.

 



CUSTOMS TARIFF AMENDMENT (GREATER SUNRISE) BILL 2007

 

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 Offshore Petroleum Amendment (Greater Sunrise) Act 2007 commences. 

 

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This clause prescribes the various Acts being amended or repealed by this Act, which are specified in the Schedules to the Act.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) (paragraph (e) of the definition of petroleum activity )

 

This item makes a consequential amendment to subsection 3(1); where the Petroleum (Submerged Lands) Act 1967 is mentioned, this is omitted and replaced with the Offshore Petroleum Act 2006 .

 

Item 2 - Schedule 4 (item 22A, the description of goods in column 2)

 

This item makes a consequential amendment to concessional item 22A of Schedule 4 to the Tariff.  Where the term “Eastern Greater Sunrise area, within the meaning Petroleum (Submerged Lands) Act 1967” is mentioned, this is omitted and replaced with “Eastern Greater Sunrise offshore area, within the meaning of the Offshore Petroleum Act 2006 ”.