Federal Register of Legislation - Australian Government

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Declarations/Other as made
This instrument declares the Democratic People’s Republic of Korea to be a country that is subject to trade sanctions, for section 44 of the Export Market Development Grants Act 1997.
Administered by: Foreign Affairs and Trade
Registered 11 Jul 2019
Tabling HistoryDate
Tabled HR22-Jul-2019
Tabled Senate22-Jul-2019

Explanatory Statement

 

Issued by the Authority of the Minister for Trade, Tourism and Investment

 

Export Market Development Grants Act 1997

 

Export Market Development Grants (Democratic People’s Republic of Korea Sanctions) Declaration 2019

 

 

The Export Market Development Grants Act 1997 (the Act) establishes a scheme of assistance grants to encourage Australian exporters in the creation, development and

expansion of export markets for Australian goods, services, intellectual property and

know-how. Section 44 of the Act provides that the expenses of an applicant are excluded if they were incurred in respect of an eligible promotional activity related to

trade with a country that the Minister declares, by legislative instrument, for the purposes of section 44, to be subject to trade sanctions.

 

This Instrument remakes the Export Market Development Grants (Democratic People’s Republic of Korea Sanctions) Declaration 2009 (the Previous Instrument), which is due to sunset in October 2019.

 

The United Nations Security Council (UNSC) adopted resolution 1718 (2006) on
14 October 2006 imposing sanctions on the Democratic People’s Republic of Korea (DPRK). The sanctions have been amended and extended by UNSC resolution 1874 (2009), resolution 2087 (2013), resolution 2094 (2013), resolution 2270 (2016), resolution 2321 (2016), resolution 2356 (2017), resolution 2371 (2017), resolution 2375 (2017) and resolution 2397 (2017).

 

Paragraph 20 of Resolution 1874 in particular calls upon Member States of UNSC not to provide public financial support for trade with the DPRK (including the granting of export credits, guarantees or insurance to their nationals or entities involved in such trade) where such financial support could contribute to the DPRK’s nuclear-related or ballistic missile-related or other weapons of mass destruction related programs or activities.

 

In light of the imposition by the UNSC of trade sanctions on the DPRK, and the UNSC’s call for vigilance in relation to public provided financial support for trade with the DPRK, the Minister for Trade, Tourism and Investment has declared, by this instrument, the DPRK to be subject to trade sanctions for the purposes of section 44 of the Act.

 

Consultation

A notification of the proposal to remake the Previous Instrument was published on the Australian Trade and Investment Commission’s webpage for the Export Market Development Grants Scheme in January 2019. No comments were received in relation to the notification.

 

The Office of Best Practice Regulation has confirmed that no Regulatory Impact Statement is required for this Instrument.

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights

(Parliamentary Scrutiny) Act 2011

 

Export Market Development Grants (Democratic People’s Republic of Korea Sanctions) Declaration 2019

 

The Export Market Development Grants (Democratic People’s Republic of Korea Sanctions) Declaration 2019 (the DPRK Instrument) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The DPRK Instrument declares, for the purposes of section 44 of the Export Market Development Grants Act 1997 (the Act), that the Democratic People’s Republic of Korea (the DPRK) is subject to trade sanctions. The Export Market Development Grants Scheme established by the Act is a financial assistance programme for small to medium aspiring and growing export-ready businesses. The effect of the DPRK Instrument is that expenses of an applicant are excluded if they were incurred in respect of an eligible promotional activity related to trade with DPRK.

 

The United Nations Security Council (UNSC) adopted resolution 1718 (2006) on 14 October 2006 imposing sanctions on the DPRK. The sanctions have been amended and extended by UNSC resolution 1874 (2009), resolution 2087 (2013), resolution 2094 (2013), resolution 2270 (2016), resolution 2321 (2016), resolution 2356 (2017), resolution 2371 (2017), resolution 2375 (2017) and resolution 2397 (2017).

 

Under Chapter VII of the Charter of the United Nations and Article 25 of the Charter, Australia is required to carry out any decision of the UNSC as a Member State of the United Nations.

 

The DPRK Instrument supports Australia’s international obligations by not providing any financial assistance to Australian businesses that may seek to develop an export market in DPRK.

 

Human rights implications

This DPRK Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

The DPRK Instrument is compatible with human rights as it does not raise any human rights issues.