{"id":"F2022L00955","name":"Export Finance and Insurance Corporation Act 1991 – Declaration of Approved Causes of Loss 2022","slug":"export-finance-and-insurance-corporation-act-1991-declaration-of-approved-causes-of-loss-2022","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102519,"registerId":"commonwealth-F2022L00955-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Declaration","content":"## Part 1 - Declaration\n\n#### 1 Name\n\n  This instrument is the Export Finance and Insurance Corporation Act 1991 – Declaration of Approved Causes of Loss 2022.\n\n#### 2 Commencement\n\n  This instrument commences on the day after registration.\n\n#### 3 Authority\n\n  This instrument is made under subsection 21(1) of the Export Finance and Insurance Corporation Act 1991.\n\n#### 4 Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in that Schedule, and any other item in that Schedule has effect according to its terms.\n\n#### 5 Definitions\n\n  In this instrument:\n\n> Act means the Export Finance and Insurance Corporation Act 1991.\n\n> EFIC means the Export Finance and Insurance Corporation.\n\n> war-like operation includes any operation in the course of war (including civil war), terrorism, riot, civil commotion, revolution, insurrection, rebellion or any similar uprising.\n\n#### 6 Approved causes of loss\n\n  EFIC declares the following causes of loss to be approved causes of loss for the purposes of Part 4 of the Act:\n  (a) expropriation, nationalisation or confiscation of property or any other right or benefit;\n  (b) prevention or restriction of, or imposing requirements on, constructing, operating or dealing with property;\n  (c) damage to, or loss of effective control over, property caused by a war-like operation;\n  (d) inability to transfer money to another country or convert money to another currency and currency depreciation;\n  (e) breach of contractual obligations;\n  (f) inability to perform a contract due to external causes;\n  (g) selective discrimination;\n  (h) amending or removing (without replacement) or failing to issue any licence, permission, approval, right or benefit;\n  (i) imposing requirements or impediments in relation to the acquisition or supply of goods and services (including tender processes), access to public resources or other business operations;\n  (j) preventing or hindering the ability to benefit from the decisions of any court, tribunal, government or regulatory bodies or other authorities; and\n  (k) a judicial or parliamentary act of taxation.\n\n## Schedule 1 – Repeal\n\n#### 1 Repeal of earlier Declaration\n\n  The Export Finance and Insurance Corporation Act 1991 – Declaration of Approved Causes of Loss 2021, dated 13 October 2021, is repealed.","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Export Finance and Insurance Corporation Act 1991 – Declaration of Approved Causes of Loss 2022.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This instrument commences on the day after registration.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under subsection 21(1) of the Export Finance and Insurance Corporation Act 1991.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Schedules","content":"#### 4 Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in that Schedule, and any other item in that Schedule has effect according to its terms.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Definitions","content":"#### 5 Definitions\n\n  In this instrument:\n\n> Act means the Export Finance and Insurance Corporation Act 1991.\n\n> EFIC means the Export Finance and Insurance Corporation.\n\n> war-like operation includes any operation in the course of war (including civil war), terrorism, riot, civil commotion, revolution, insurrection, rebellion or any similar uprising.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Approved causes of loss","content":"#### 6 Approved causes of loss\n\n  EFIC declares the following causes of loss to be approved causes of loss for the purposes of Part 4 of the Act:\n  (a) expropriation, nationalisation or confiscation of property or any other right or benefit;\n  (b) prevention or restriction of, or imposing requirements on, constructing, operating or dealing with property;\n  (c) damage to, or loss of effective control over, property caused by a war-like operation;\n  (d) inability to transfer money to another country or convert money to another currency and currency depreciation;\n  (e) breach of contractual obligations;\n  (f) inability to perform a contract due to external causes;\n  (g) selective discrimination;\n  (h) amending or removing (without replacement) or failing to issue any licence, permission, approval, right or benefit;\n  (i) imposing requirements or impediments in relation to the acquisition or supply of goods and services (including tender processes), access to public resources or other business operations;\n  (j) preventing or hindering the ability to benefit from the decisions of any court, tribunal, government or regulatory bodies or other authorities; and\n  (k) a judicial or parliamentary act of taxation.","sortOrder":6},{"sectionNumber":"Schedule 1","sectionType":"part","heading":"Repeal","content":"## Part 1 - Declaration\n\n#### 1 Name\n\n  This instrument is the Export Finance and Insurance Corporation Act 1991 – Declaration of Approved Causes of Loss 2022.\n\n#### 2 Commencement\n\n  This instrument commences on the day after registration.\n\n#### 3 Authority\n\n  This instrument is made under subsection 21(1) of the Export Finance and Insurance Corporation Act 1991.\n\n#### 4 Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in that Schedule, and any other item in that Schedule has effect according to its terms.\n\n#### 5 Definitions\n\n  In this instrument:\n\n> Act means the Export Finance and Insurance Corporation Act 1991.\n\n> EFIC means the Export Finance and Insurance Corporation.\n\n> war-like operation includes any operation in the course of war (including civil war), terrorism, riot, civil commotion, revolution, insurrection, rebellion or any similar uprising.\n\n#### 6 Approved causes of loss\n\n  EFIC declares the following causes of loss to be approved causes of loss for the purposes of Part 4 of the Act:\n  (a) expropriation, nationalisation or confiscation of property or any other right or benefit;\n  (b) prevention or restriction of, or imposing requirements on, constructing, operating or dealing with property;\n  (c) damage to, or loss of effective control over, property caused by a war-like operation;\n  (d) inability to transfer money to another country or convert money to another currency and currency depreciation;\n  (e) breach of contractual obligations;\n  (f) inability to perform a contract due to external causes;\n  (g) selective discrimination;\n  (h) amending or removing (without replacement) or failing to issue any licence, permission, approval, right or benefit;\n  (i) imposing requirements or impediments in relation to the acquisition or supply of goods and services (including tender processes), access to public resources or other business operations;\n  (j) preventing or hindering the ability to benefit from the decisions of any court, tribunal, government or regulatory bodies or other authorities; and\n  (k) a judicial or parliamentary act of taxation.\n\n## Schedule 1 – Repeal\n\n#### 1 Repeal of earlier Declaration\n\n  The Export Finance and Insurance Corporation Act 1991 – Declaration of Approved Causes of Loss 2021, dated 13 October 2021, is repealed.","sortOrder":7}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument maintains the same scope as its predecessor and the underlying statutory framework. It is a routine annual update that replaces the 2021 Declaration with substantively identical approved causes of loss. The scope remains tightly confined to defining insurable political and commercial risks under Part 4 of the EFIC Act."},"complexity_factors":["Only 3 defined terms in section 5","Single operative provision (section 6) with straightforward declaratory language","No nested exceptions or conditional logic — just a simple list of 11 approved causes","Minimal cross-referencing — only refers to 'Part 4 of the Act' and repeals one previous instrument","Highly standardised legislative instrument template with boilerplate commencement and authority provisions","No temporal limitations, geographical restrictions, or threshold conditions within the substantive provisions"],"plain_english_summary":"This instrument authorises EFIC to insure specific political and commercial risks for Australian exporters and investors by listing the approved causes of loss it may cover. It defines the boundaries of EFIC’s underwriting authority (replacing the 2021 list), giving businesses confidence to trade or invest in higher-risk markets where government action, political upheaval or currency and contractual failures might otherwise be uninsurable."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument replaces the 2021 Declaration (Schedule 1) and restates EFIC's approved causes of loss in s6. The instrument itself does not on its face expand or narrow the listed categories beyond their restatement; any substantive scope change would require a textual comparison with the 2021 instrument not supplied here."},"complexity_factors":["Clear primary function: a declaratory list of approved causes of loss (s6) reduces procedural complexity.","Broad, open-textured formulations (for example, 'selective discrimination', 'preventing or hindering the ability to benefit from decisions') create interpretive complexity for claims (s6(g), s6(j)).","Wide definition of 'war-like operation' (s5) may broaden coverage in ambiguous factual scenarios.","Cross-reference dependence on Part 4 of the Act requires users to consult primary Act provisions for procedural, eligibility and indemnity details (s6; authority in s3).","Repeal of the 2021 declaration (Schedule 1) raises transition and continuity questions for existing policies or claims.","Low administrative complexity in commencement and formality: immediate effect the day after registration (s2) and routine schedule mechanism (s4)."],"plain_english_summary":"This instrument, made under subsection 21(1) of the Export Finance and Insurance Corporation Act 1991 (see s3), declares which causes of loss EFIC treats as “approved” for the purposes of Part 4 of the Act (s6) and repeals the 2021 declaration (Schedule 1). It affects exporters, borrowers and counterparties seeking EFIC insurance or finance: those listed causes determine when EFIC may cover losses, who bears payment risk and the factual/legal showing required for a claim."}},"importantCases":[],"_links":{"self":"/api/acts/export-finance-and-insurance-corporation-act-1991-declaration-of-approved-causes-of-loss-2022","history":"/api/acts/export-finance-and-insurance-corporation-act-1991-declaration-of-approved-causes-of-loss-2022/history","analysis":"/api/acts/export-finance-and-insurance-corporation-act-1991-declaration-of-approved-causes-of-loss-2022/analysis","conflicts":"/api/acts/export-finance-and-insurance-corporation-act-1991-declaration-of-approved-causes-of-loss-2022/conflicts","importantCases":"/api/acts/export-finance-and-insurance-corporation-act-1991-declaration-of-approved-causes-of-loss-2022/important-cases","documents":"/api/acts/export-finance-and-insurance-corporation-act-1991-declaration-of-approved-causes-of-loss-2022/documents"}}