The purpose of this subpart is to—

The Crown owns the rights to secure the economic benefits deriving from the tariff quotas referred to in subsection (1).

Those rights in respect of designated markets described in Schedules 5 and 5A are or will be allocated as provided by this subpart.

This subpart does not prevent the Crown from engaging in international trade negotiations for the purpose of establishing, amending, or terminating tariff quotas.

Section 23 restricts exports to designated markets.

Sections 24 and 25 confer initial export licences on the Board.

Sections 26 to 42 contain provisions relating to further export licences, restrictions on dealing with export licences, transferring export licences, enforcement, cost recovery, Ministerial directions on international obligations, and other miscellaneous provisions.

A person must not export directly or indirectly to a designated market any dairy product that is described in Schedules 5 and 5A for that market unless he or she—

No export restrictions apply to a designated market listed in Schedule 5 after the expiry of the applicable initial and interim periods unless that designated market is listed in Schedule 5A.

The Board has the licences to export to each designated market until the end of the initial period.

The initial period is,—

The Board holds the interim licences to export to designated markets in the European Communities for the periods and the reduced amounts specified in subsection (2).

The reductions applying to the interim licences for designated markets in the European Communities must result in each licence being,—

The chief executive must record an export licence conferred on the Board by section 24 or 25 in the register of export licence holders in accordance with section 29B as soon as reasonably practicable after the commencement of the Dairy Industry Restructuring Amendment Act 2007.

The Board must supply all necessary information to the chief executive for the purpose of subsection (1).

The following are vested in or revert to the Crown:

Following the expiry of the initial and interim licences, export licences for the designated markets listed in Schedule 5A must be allocated or reallocated by, or on behalf of, the Crown.

The Minister must, in accordance with the rules set out in Schedule 5B, allocate export licences to multiple participants for the designated markets listed in Schedule 5A unless subsection (4) applies.

If the Minister is satisfied that an allocation under subsection (3) is not appropriate, having regard to the purpose in section 21(1), the Minister may recommend to the Governor-General that an Order in Council is made to allocate or reallocate export licences under subsection (7).

The Minister may allocate a general export licence for trade at the normal tariff (outside the terms of the quota), in respect of a designated market listed in Schedule 5A, that may be used by any person eligible to hold an export licence for any quantity of the product for which the licence applies.

Subsection (5) applies subject to section 29A.

The Governor-General may, by Order in Council made on the recommendation of the Minister, allocate or reallocate export licences in respect of designated markets listed in Schedule 5A.

Before making an allocation under subsection (5), the Minister must—

Subsection (1) does not limit the Minister’s power under subsection (3) or (5), or the Governor-General’s power under subsection (7), to allocate new licences in respect of those rights or quantities to the Board or new co-op.

An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

This section applies if, during the initial period, there is an increase in the Crown’s rights to secure the economic benefits that are obtained from designated markets that are not allocated in an existing export licence.

Any such increase vests automatically in the Board as part of the initial licences conferred on the Board under this subpart.

This section applies if, after the initial period, there is an increase or reduction in rights to secure economic benefits from designated markets that are not allocated in an existing export licence.

An increase in a right to export to a designated market during the course of an allocation period accrues on a pro rata basis to the registered holders of export licences at the time the increase first becomes available for use.

A reduction in a right to export to a designated market during the course of an allocation period applies on a pro rata basis to the registered holders of export licences for that designated market at the time the volumes reduce.

In the case of interim licences held by the Board, the allocation period for any licence for a specified quantity is the period for which the licence is valid for that quantity.

An accrual under subsection (2) and a reduction under subsection (3) applies only for the remainder of the allocation period.

An accrual or reduction referred to in subsection (5) must be recorded in the register of export licence holders that is kept in accordance with section 29B.

The Board may not transfer, sub-license, or otherwise dispose of an initial licence in respect of a designated market to any other person.

In order to comply with the restriction on transfer in subsection (1) and for the purposes of the Customs and Excise Act 2018, the Board must own any dairy products which it exports to designated markets.

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for the purpose of governing the transfer of export licences or parts of export licences.

Export licences may be transferred only in accordance with regulations made in accordance with subsection (1).

The chief executive is responsible for administering the transfer of export licences.

Subsection (1) applies subject to section 28.

Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

All of the initial licences of the Board are revoked in the case of—

An initial licence of the Board is revoked if the Board transfers, sub-licenses, or otherwise disposes of any rights conferred by it to another person.

The rights conferred by a licence that is revoked revert to the Crown.

The Governor-General may, by Order in Council made on the recommendation of the Minister, allocate new licences in respect of the rights that revert to the Crown under this section.

Before making a recommendation under subsection (4), the Minister must have regard to the purpose in section 21(1).

Subsection (1) does not limit the Governor-General’s power under subsection (4) to allocate new licences in respect of those rights to the Board or new co-op.

An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

This section applies to trade at the normal tariff (outside the terms of the quota) for the following markets:

For the markets listed in subsection (1), in any quota year, holders of export licences for trade at the normal tariff may not use those export licences until the quota for the market is filled in that quota year.

A quota is to be treated as filled when the competent authority has issued export certificates to all licence holders for at least 95% of each export licence holder’s quantity of export licences.

The competent authority must publicly notify the industry when a quota is filled in accordance with subsection (3).

When a quota is filled, the competent authority must, as soon as is reasonably practicable,—

An export licence holder may use the export licence for trade at the normal tariff only for the remainder of the quota year in which publication and notification are made in accordance with subsection (5).

The chief executive must—

The register must contain the following information:

If a person holds more than 1 export licence for a designated market for the same quota year, each export licence must be registered separately.

This section does not apply to general export licences allocated under section 26(5).

The chief executive may only authorise a person to exercise a power under sections 29E to 29H if that person has appropriate training, experience, or qualifications in the exercise of that power.

The chief executive, or a person authorised by the chief executive, may call on any person for assistance in the exercise of any or all of the powers under sections 29E to 29L.

For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may during business hours enter any place (other than a dwellinghouse or marae) without a search warrant.

Before entering any place under subsection (1), the chief executive or person authorised by the chief executive must—

A person who exercises any power under this section must produce his or her evidence of authorisation—

For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may, at any place entered in accordance with section 29E,—

For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may require an eligible participant or an employee or agent of an eligible participant to provide any relevant information or documents or answer any relevant questions.

Any information, documents, or answers required under subsection (1) must be provided within a reasonable time to a person or place as directed by the chief executive, or a person authorised by the chief executive.

An eligible participant or an employee or agent of an eligible participant may not refuse to answer a question under subsection (1) on the ground that the answer would be likely to incriminate the eligible participant.

An incriminating answer under this section—

For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may audit the milk collection data received from an eligible participant.

Participants must be notified of the possibility of an audit on a cost-recovery basis at the time of an application for an export licence.

Participants may be charged a fee for an audit carried out under subsection (1).

An issuing officer (within the meaning of section 3 of the Search and Surveillance Act 2012) may issue a search warrant in respect of any place if satisfied, on application made in the manner provided in subpart 3 of Part 4 of the Search and Surveillance Act 2012, that there are reasonable grounds for believing that there is at that place any thing—

Subject to section 29L and subsection (3), the provisions of Part 4 of the Search and Surveillance Act 2012 apply.

Despite subsection (2), sections 118 and 119 of the Search and Surveillance Act 2012 apply only in respect of a warrant issued to a named constable or to every constable.

Subpart 6 of Part 4 of the Search and Surveillance Act 2012 applies to any property seized by a constable under a search warrant and, with any necessary modifications, to property seized under a search warrant by the chief executive, or a person authorised by the chief executive, subject to the following provision:

All the provisions of the Customs and Excise Act 2018, and any regulations made under that Act, that apply to prohibited exports apply to the export of any dairy products in contravention of this Act as if the export of the dairy products were prohibited under subpart 4 of Part 3 of the Customs and Excise Act 2018.

The penalty for an offence against section 388(1)(b) of the Customs and Excise Act 2018 is a fine not exceeding $200,000 if the offence is in respect of the export of any dairy products in contravention of this Act.

Every person commits an offence against this Act and is liable on conviction to a fine not exceeding $200,000 who exports a dairy product contrary to section 23.

Every person commits an offence against this Act, and is liable on conviction to the following fines, who does not provide the information or document required under section 29G:

Every person commits an offence against this Act, and is liable for the following, who provides a false declaration in relation to milk collection data contrary to Schedule 5B:

In any proceedings for an offence under section 31, it is not necessary for the prosecution to prove that the defendant intended to commit the offence.

This section does not limit section 429(4) of the Customs and Excise Act 2018 if proceedings are taken for an offence under that Act.

It is a defence in any proceedings for an offence under section 31 if the defendant proves that—

A defendant is not, without leave of the court, entitled as part of a defence provided by this section to rely on any of the matters specified in subsection (1)(a) unless the defendant has, not later than 7 working days before the date on which the hearing of the proceedings commences, served on the prosecutor a notice in writing identifying the event or cause relied on by the defendant.

Any act or omission on behalf of a person other than a body corporate by—

is treated, for the purpose of this subpart, also as the act or omission of the first-mentioned person.

Any act or omission on behalf of a body corporate by—

is treated, for the purpose of this subpart, also as the act or omission of the body corporate.

However, if proceedings are brought under section 31 in respect of an act or omission under subsection (1) or subsection (2), it is a good defence if the defendant proves,—

For the purposes of this section,—

If a body corporate commits an offence under section 31, every director, and every person concerned in the management of the body corporate, also commits an offence under that section if it is proved that—

Every person to whom subsection (1) applies is liable on conviction to the fine specified in section 31.

A person may be convicted of the offence even though the body corporate has not been charged with that offence or a similar offence.

A return, record, transaction, form, application, or other information purporting to be completed, kept, or provided by, or on behalf of, any person is, for the purpose of this subpart, treated as having been completed, kept, or provided by that person unless the contrary is proved.

The Crown is not liable to any person for—

The export of dairy product to a designated market in breach of section 23 is actionable by the holder of an export licence in respect of the export of that product to that market.

No proceedings may be brought under subsection (1) in respect of the export of any dairy product unless the Customs administration or other authority responsible for the administration of the tariff quota in the market to which the specific product has been exported has treated, or has determined (whether provisionally or finally) to treat, that specific product as falling within the relevant designated market.

In proceedings under subsection (1), the court may award any relief by way of damages, injunctions, accounts, or otherwise that the court considers appropriate in the circumstances.

In proceedings under subsection (1), the court may give any directions it thinks just in respect of the joinder of any person having concurrent rights of action under subsection (1) in respect of the alleged breach.

If a person brings proceedings under section 38, a court may, on the application of any person against whom the proceedings are brought,—

A court must not grant relief under this section if the person who brought the proceedings proves that the acts in respect of which proceedings were brought constituted a breach of section 23.

Nothing in this section makes a barrister or solicitor of the High Court of New Zealand liable to any proceedings under this section in respect of any act done in his or her professional capacity on behalf of a client.

The Minister of the Crown who (under the authority of any warrant or with the authority of the Prime Minister) is in charge of international trade may at any time give to any exporter to a designated market a written notice specifying—

The exporter to whom the notice is given is under a legal duty to ensure that its performance or the exercise of the element is consistent with the obligation until the notice is revoked.

Any holder of an export licence must supply to the Minister any information relating to designated markets that the Minister considers is relevant to the purpose in section 21(1) and that the Minister from time to time requests in writing.

Subsection (1) applies only to information that is in the person’s possession or that the person can obtain without unreasonable difficulty or expense.

Every person commits an offence who fails, without reasonable excuse, to comply with a request under subsection (1) and is liable on conviction to a fine not exceeding $200,000 and, if the offence is a continuing one, to further fines not exceeding $10,000 for every day or part of a day during which the offence is continued.

The chief executive (or any officer of his or her Ministry authorised in that behalf) and the Comptroller of Customs (or any officer of Customs authorised in that behalf) may, for the purpose of the administration of this Act or the Dairy Industry Act 1952 or the Customs and Excise Act 2018, disclose to each other, on request, information on exporters of dairy products and dairy products exported or proposed to be exported.

Information obtained under subsection (1) must not be disclosed except—

No obligation as to secrecy or other restriction on the disclosure of information imposed by any enactment or otherwise prevents a disclosure under this section.

Section 43A states that the constitution of the manager of the core database must be read as requiring the manager to retain the core database.

Sections 48 to 52 contain provisions relating to the constitution and corporate form of LIC.

Sections 62 to 65D contain regulation-making powers relating to—

Sections 66 to 68 provide for information to be supplied to the chief executive, offences, and deeming herd testing regulations to be made under this Act.

The constitution of the manager of the core database must be read as requiring the manager to retain the core database.

Subsection (1) does not apply if—

The LIC board must ensure that the constitution in the restructuring plan requires that shares in LIC must be held only by persons who—

The LIC board must ensure that the constitution in the restructuring plan requires a shareholder who is not, or has ceased to be, a transacting shareholder of LIC to surrender all or any of the shareholder’s shares in LIC.

The provision in the constitution required by subsection (1) does not prevent—

The LIC board must ensure that the constitution in the restructuring plan provides that no person may exercise, or control the exercise of, more than 1% of the maximum number of votes that may be exercised at a meeting of LIC.

The LIC board must ensure that the constitution in the restructuring plan provides that the following are included in the calculation of a person’s number of votes:

The LIC board must ensure that the constitution in the restructuring plan provides for postal voting in accordance with clause 7 of Schedule 1 of the Companies Act 1993.

The provisions of the constitution of LIC referred to in sections 47 to 50 may not be amended or revoked without the written consent of the Minister.

The LIC board must ensure that, under the restructuring plan, LIC becomes a company registered under Part 2 of the Co-operative Companies Act 1996.

No application may be made under section 12 of the Co-operative Companies Act 1996 in relation to LIC without the written consent of the Minister.

Subsection (2) is additional to the requirements in section 12 of the Co-operative Companies Act 1996.

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

A levy order under subsection (1)(j) must specify the amount of the levy or the way the levy must be calculated.

The Minister must calculate the amount of the levy so as to ensure that the costs of the Access Panel (net of any application fees) are met fully from the levy.

The manager of the core database must pay any levy required by regulations made under this section.

The Minister must consult with the manager of the core database before making a recommendation under subsection (1)(j).

The Minister may—

The amount of unpaid levy is recoverable in a court of competent jurisdiction as a debt due to the Crown.

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations appointing an entity to manage the core database.

The Minister may make the recommendation only if—

The Minister must,—

An appointment under subsection (1) takes effect on a date specified in the regulations.

The appointment of an existing manager ends when an appointment under subsection (1) takes effect.

A failure to comply with subsection (3) does not affect the validity of regulations made under this section.

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations naming an entity as the intended manager of the core database.

The Minister may make the recommendation only on the written request of the entity.

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

This section applies if 1 or both of the following apply:

For the purposes of this section, the provisions referred to in subsection (3) apply as if the previous manager or intended manager were the manager of the core database.

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

If regulations are made, or to be made, under this section for the purpose described in section 63(1)(j), section 63(2) to (7) applies—

If regulations are made under this section for a purpose described in section 65, sections 66 and 67 apply—

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Regulations made under section 65C are revoked on the close of the fifth anniversary of their commencement unless—

If an Order in Council is made under subsection (1)(b), the regulations remain in force until they are revoked.

An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The manager of the core database must send a copy of the information that it is required to make publicly available by regulations under section 65 to the chief executive within 20 working days of making it publicly available.

The chief executive may request (in writing) information, statements, or reports from the manager of the core database to monitor the manager’s compliance with regulations made under section 65.

The manager of the core database must comply with a request made under subsection (2) within 20 working days of receiving the request or within any longer period allowed by the chief executive.

Information, statements, or reports supplied to the chief executive under this section must be verified by statutory declaration in the form and by the persons prescribed by regulations made under section 65(b).

Every person commits an offence against this section who—

Every person commits an offence against this section who makes a false declaration under section 66(4) in relation to any statement, forecast, report, agreement, particulars, or information supplied under section 66(1) or (3).

Every person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $200,000 and, if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued.

Every person who commits an offence against subsection (2) is liable on conviction to a fine not exceeding $20,000.

The management of the core database reverts to the Crown if—

The purpose of this subpart is to promote the efficient operation of dairy markets in New Zealand.

The intention of this subpart is to promote the following principles:

Sections 73 to 85 describe the obligation of new co-op to accept applications from new entrants and shareholding farmers to supply milk, as shareholding farmers.

Sections 86 to 93 describe circumstances when the commencement of supply of milk to new co-op may be deferred.