32 Initial calculations of tariff rate quota entitlement
Initial entitlement calculation using eligible past exports
(1) Subject to subsection (2), an applicant’s initial individual entitlement for a quota type and a quota year is the amount worked out using the following formula:
Start formula Standard access amount times start fraction Applicant's eligible past exports over All eligible past exports end fraction end formula
where:
all eligible past exports is the total weight of all eligible past exports by all applicants for the quota type and quota year.
applicant’s eligible past exports is the total weight of the applicant’s eligible past exports for the quota type and quota year.
standard access amount is the standard access amount for the quota type and quota year.
(2) If the amount worked out under subsection (1) for an applicant is more than the amount of tariff rate quota entitlement the applicant applied for, the amount of the applicant’s initial individual entitlement is the amount of tariff rate quota entitlement the applicant applied for.
Redistribution of excess allocations
(3) The amount of an applicant’s adjusted individual entitlement for a quota type and a quota year is:
(a) if the amount of the applicant’s initial individual entitlement for the quota type and quota year is equal to the amount of tariff rate quota entitlement the applicant applied for—that amount; and
(b) if the amount of the applicant’s initial individual entitlement for the quota type and quota year is less than the amount of tariff rate quota entitlement the applicant applied for—the amount worked out using the formula in subsection (4), subject to subsections (5) and (6).
(4) For the purposes of paragraph (3)(b), the formula is:
Start formula RIE plus open bracket start fraction Applicant's eligible past exports over Non-excess eligible past exports end fraction times open bracket Standard access minus All entitlements close bracket close bracket end formula
where:
all entitlements is the total of the initial individual entitlements of all applicants for the quota type and quota year.
applicant’s eligible past exports is the total weight of the applicant’s eligible past exports for the quota type and quota year.
IIE is the applicant’s initial individual entitlement.
non‑excess eligible past exports is the total weight of all eligible past exports, for the quota type and quota year, by all applicants to whose entitlement paragraph (3)(b) applies.
Section 32 - Export Control (Tariff Rate Quotas—General) Rules 2021 - Initial calculations of tariff rate quota entitlement | Zoe
standard access is the standard access amount for the quota type and quota year.
(5) If the amount worked out under subsection (4) for any applicant (a quota‑filled applicant) is more than the amount of tariff rate quota entitlement the applicant applied for, then:
(a) the adjusted individual entitlement of each quota‑filled applicant is equal to the amount of tariff rate quota entitlement that applicant applied for; and
(b) the adjusted individual entitlement of each applicant to whose entitlement paragraph (3)(b) applies who is not a quota‑filled applicant must be recalculated under subsection (4); and
(c) for the purposes of the recalculation, each quota‑filled applicant’s initial individual entitlement is taken to have been equal to the amount of tariff rate quota entitlement that applicant applied for.
(6) The recalculation mentioned in subsection (5) must be repeated until subsection (5) no longer applies in relation to any applicant.
Application and redistribution of penalties
(7) The amount of an applicant’s redistributed individual entitlement for a quota type and a quota year is:
(a) if the applicant has an allocation penalty for the quota type and quota year—the amount of the applicant’s adjusted individual entitlement for the quota type and quota year, less the amount of the allocation penalty, subject to subsections (11) to (14); and
(b) if paragraph (a) does not apply and the applicant’s adjusted individual entitlement for the quota type and quota year is equal to the amount of tariff rate quota entitlement the applicant applied for—that amount; and
(c) if neither paragraph (a) nor (b) applies—the amount worked out using the formula in subsection (8), subject to subsections (9) and (10).
Note: See section 33 for determination of whether a person has an allocation penalty and the amount of the penalty.
(8) For the purposes of paragraph (7)(c), the formula is:
Start formula AIE plus open bracket start fraction Applicant's eligible past exports over Non-penalised eligible past exports end fraction times Penalties close bracket end formula
where:
AIE is the applicant’s adjusted individual entitlement.
applicant’s eligible past exports is the total weight of the applicant’s eligible past exports for the quota type and quota year.
non‑penalised eligible past exports is the total weight of all eligible past exports, for the quota type and quota year, by all applicants to whose entitlement paragraph (7)(c) applies.
penalties is the total of the amount of the allocation penalties of applicants for the quota type and quota year.
(9) If the amount worked out under subsection (8) for any applicant (a quota‑filled applicant) is more than the amount of tariff rate quota entitlement the applicant applied for, then:
(a) the redistributed individual entitlement of each quota‑filled applicant is equal to the amount of tariff rate quota entitlement that applicant applied for; and
(b) the redistributed individual entitlement of each applicant to whose entitlement paragraph (7)(c) applies who is not a quota‑filled applicant must be recalculated under subsection (8); and
(c) for the purposes of the recalculation, each quota‑filled applicant’s adjusted individual entitlement is taken to have been equal to the amount of tariff rate quota entitlement that applicant applied for.
(10) The recalculation mentioned in subsection (9) must be repeated until subsection (9) no longer applies in relation to any applicant.
Partial return of penalties
(11) Subsection (12) applies if, after the recalculation mentioned in subsection (9) has been repeated as many times as required for applicants to whose entitlement paragraph (7)(c) applies, the total of the redistributed individual entitlements of all applicants is less than the standard access amount for the quota type and quota year.
(12) If this subsection applies, the redistributed individual entitlement of an applicant who has an allocation penalty for the quota type and quota year is the amount worked out using the following formula, subject to subsections (13) and (14):
Start formula AIE minus Penalty plus open bracket start fraction Applicant's eligible past exports over Penalised eligible past exports end fraction times Quota for redistribution close bracket end formula
where:
AIE is the applicant’s adjusted individual entitlement.
applicant’s eligible past exports is the total weight of the applicant’s eligible past exports for the quota type and quota year.
penalised eligible past exports is the total weight of all eligible past exports, for the quota type and quota year, by all applicants who have an allocation penalty for the quota type and quota year.
penalty is the amount of the applicant’s allocation penalty for the quota type and quota year.
quota for redistribution is the difference between:
(a) the standard access amount for the quota type and quota year; and
(b) the total of the redistributed individual entitlements of all applicants after the recalculation mentioned in subsection (6) has been repeated as many times as required.
(13) If the amount worked out under subsection (12) for any applicant (a quota‑filled applicant) is more than the amount of tariff rate quota entitlement the applicant applied for, then:
(a) the redistributed individual entitlement of each quota‑filled applicant is equal to the amount of tariff rate quota entitlement that applicant applied for; and
(b) the redistributed individual entitlement of each applicant with an allocation penalty for the quota type and quota year who is not a quota‑filled applicant must be recalculated under subsection (12); and
(c) for the purposes of the recalculation:
(i) each quota‑filled applicant is taken to not have an allocation penalty for the quota type and quota year; and
(ii) the quota available for redistribution is taken to be reduced by the difference, for each quota‑filled applicant, between the amount of tariff rate quota entitlement that applicant applied for and the amount of that applicant’s redistributed individual entitlement as it was worked out under paragraph (7)(a).
(14) The recalculation mentioned in subsection (13) must be repeated until subsection (13) no longer applies in relation to any applicant.