Document ID: chunk:federal_register_of_legislation:F2023C00357:reg:22:p1
Version: federal_register_of_legislation:F2023C00357
Segment Type: reg
Provision Reference: reg 22 (pt 1/2)
Character Range: 16674–19237

22  Designated quantity—loss of a major customer during trigger assessment period
 (1) If the Secretary is satisfied that both of the following apply in relation to an MSO product, the Secretary may reduce the designated quantity for the MSO product calculated under section 21 by no more than the amount calculated under subsections (3) and (4):
 (a) during the most recent completed trigger assessment period, the entity lost a major customer for the importation or refinement of the MSO product;
 (b) as a result of that loss, the amount of MSO product that the entity will need to import or refine for the period when the designated quantity will apply is reduced.
 (2) For the purposes of this section, an entity is taken to have lost a major customer in relation to an MSO product only if:
 (a) the entity ceased to have a contract with the customer for the importing or refining of the MSO product; and
 (b) the total amount of MSO product that the entity imported or refined for the customer during the period exceeded the lesser of the following:
             (i)    20% of the total amount of the MSO product that the entity imported or refined during the period;
 (ii) 100 megalitres.
Note: In determining whether an entity lost a major customer in relation to an MSO product, it is not relevant whether the entity continued to have a contract with that customer for the importing or refining of a different MSO product.
 (3) If the MSO is triggered for the activity of importing an MSO product (p), the amount is given by the following formula:
where:
Cp is the amount by which the designated quantity may be reduced for the MSO product p.
TDIp is the target number of days for importing the MSO product p declared under section 14 of the Act and applicable to the start of the period when the designated quantity will apply.
TIc is the total amount of MSO product p that the entity imported for the customer during the most recent completed trigger assessment period, in megalitres.
 (4) If the MSO is triggered for the activity of refining an MSO product p, the amount is given by the following formula:
where:
Cp is the amount by which the designated quantity may be reduced for the MSO product p.
TDRp is the target number of days for refining the MSO product p declared under section 14 of the Act and applicable to the start of the period when the designated quantity will apply.
TRc is the total amount of MSO product p that the entity refined for the customer during the most recent completed trigger assessment period, in megalitres.
 (5) If,