7Holding stock—contractual rights

7 Holding stock—contractual rights

For the purposes of paragraph (b) of the definition of holding stock in subsection 5(1) of the Act, each of the following circumstances is prescribed in relation to holding a contractual right to take possession of a covered product: (a) both of the following subparagraphs apply: (i) the holder of the contractual right owns the covered product but, under the contract, it is kept in storage by another person, as mentioned in paragraph (a) of the definition of holding stock in subsection 5(1) of the Act, outside Australia; (ii) the contractual right is a right of the owner to take possession of the covered product by removing it from that storage; (b) the covered product is on water.