Commerce (Imports) Regulations (Amendment) 1998 No. 100
EXPLANATORY STATEMENT
STATUTORY RULES NO. 100
Issued by the Authority of the Minister for Customs and Consumer Affairs
Commerce (Trade Descriptions) Act 1905
Commerce (Imports) Regulations (Amendment)
Section 7 of the Commerce (Trade Descriptions) Act 1905 (the Act) provides in part that,
(1) The regulations may prohibit the importation or introduction into Australia of any goods unless there is applied to them a trade description of such character, relating to such matters, and applied in such manner, as is prescribed.
Furthermore, section 17 of the Act provides in part that,
[t]he Governor-General may make regulations not inconsistent with this Act prescribing all matters and things required or permitted by this Act to be prescribed or which are necessary and convenient to be prescribed for carrying out or giving effect to this Act...
The purpose of these regulations was to remove certain trade description requirements for articles of apparel and textile products, and to remove certain country of origin trade description requirements for cigars, cigarettes and manufactured tobacco.
The Commerce (Imports) Regulations (the Regulations) prohibit the importation of certain goods unless there is applied to them a trade description in accordance with the Regulations.
Regulation 15 prescribed different trade descriptions for various articles of apparel and textile products. For example, it prescribed circumstances where the words "Pure Wool" or "All Wool" had to, or could not, be included in the trade description.
The requirements under regulation 15 conflicted with the provisions of the current Standards Australia Standard AS/NZS 2622:1996, which has recently been made mandatory in NSW. Other states may also adopt the standard. The regulation was repealed in order to remove the inconsistency between import and domestic controls.
Regulation 4 omitted regulation 15 from the Regulations.
Regulation 6 omitted the Third Schedule from the Regulations. The Third Schedule listed a number of goods which were not subject to the requirements of regulation 15.
Regulation 5 omitted regulation 19A from the Regulations.
Regulation 19A required the following country of origin description to be placed in specified locations on the packaging of cigars, cigarettes and manufactured tobacco imported for sale by retail:
the name of the country in which the goods were made or produced ... in conspicuous characters not obscured by the colour of the background or dominated by other wording.
Regulation 19A conflicted with the provisions of the Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations concerning health warnings on tobacco products. Whereas the Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations require prominent health warnings to be placed on retail packages of tobacco, regulation 19A required that the country of origin description not be dominated by other wording. Regulation 19A also had potential to add unnecessary costs for business and may have posed difficulties for the Australian Customs Service to administer.
Regulation 3 retained the general trade description requirement in relation to country of origin for cigars, cigarettes and manufactured tobacco. Thereby, the general requirement in subparagraph 8(c)(i) of the Regulations - which requires the trade description to contain, in prominent and legible characters, the name of the country in which the goods were made or produced - still applies to cigars, cigarettes and manufactured tobacco.
The regulations commenced on gazettal.
Overview
The Commerce (Imports) Regulations (Amendment) 1998 No. 100, issued under the authority of the Minister for Customs and Consumer Affairs, was enacted to amend the Commerce (Trade Descriptions) Act 1905. This legislative amendment aimed to address inconsistencies between import regulations and domestic standards, as well as to reduce administrative burdens and potential costs for businesses. Specifically, the regulations sought to remove certain trade description requirements for articles of apparel and textile products, and to eliminate specific country of origin trade description requirements for cigars, cigarettes, and manufactured tobacco. This amendment was made to align with the mandatory adoption of the Standards Australia Standard AS/NZS 2622:1996 in New South Wales and to avoid conflicts with the Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations. The policy objective was to streamline import regulations, ensuring they do not conflict with existing domestic standards or impose unnecessary costs on businesses.
Scope and Application
The Commerce (Trade Descriptions) Act 1905 applies to the importation of goods into Australia, specifically focusing on trade descriptions that must be applied to these goods. The Act and its regulations are designed to ensure that any imported goods bear accurate and consistent trade descriptions, thereby protecting consumers and maintaining fair trade practices. The regulations under this Act can prohibit the importation of goods unless they comply with the specified trade descriptions, as outlined in the Commerce (Imports) Regulations. These regulations were amended in 1998 to address inconsistencies between import regulations and domestic standards, particularly for apparel, textile products, and tobacco products. The amendments removed specific trade description requirements for apparel and textile products to align with the mandatory Standards Australia Standard AS/NZS 2622:1996, and omitted certain country of origin trade description requirements for tobacco products to resolve conflicts with other regulations concerning health warnings on tobacco products. However, the general requirement to include the country of origin in the trade description for tobacco products remains in effect. The regulations have a national reach, impacting all states and territories within Australia.
Key Provisions
The Commerce (Imports) Regulations (Amendment) 1998 No. 100, issued under the authority of the Minister for Customs and Consumer Affairs, amends the Commerce (Trade Descriptions) Act 1905 by removing specific trade description requirements for certain goods. Specifically, regulation 4 repeals regulation 15, which previously detailed the use of terms such as "Pure Wool" or "All Wool" on articles of apparel and textile products. This repeal was necessary to eliminate inconsistencies between the import regulations and the Standards Australia Standard AS/NZS 2622:1996, which has been made mandatory in New South Wales and may be adopted by other states. Regulation 6 removes the Third Schedule, which previously listed goods exempt from regulation 15, and regulation 5 removes regulation 19A, which had detailed the mandatory country of origin description for cigars, cigarettes, and manufactured tobacco. Regulation 19A was repealed due to its conflict with the Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations, which require prominent health warnings on tobacco products. Regulation 3 maintains the general requirement for country of origin descriptions on cigars, cigarettes, and manufactured tobacco, ensuring that the name of the country of origin must still appear in prominent and legible characters on the packaging.
The amendments impose certain obligations on importers and businesses involved in the importation of the affected goods. For apparel and textile products, businesses are no longer required to adhere to the specific trade description requirements previously outlined in regulation 15. For cigars, cigarettes, and manufactured tobacco, businesses must still ensure that the country of origin is prominently displayed on the packaging, as per the retained general requirement in subparagraph 8(c)(i) of the Regulations. However, they are no longer required to place the country of origin description in a specific manner that avoids being dominated by other wording, as was previously required by regulation 19A. These changes aim to streamline the importation process and reduce unnecessary administrative burdens.
Failure to comply with the amended regulations could lead to legal consequences. Although the specific penalties for non-compliance are not detailed in the explanatory statement, breaches of the Commerce (Trade Descriptions) Act 1905 can result in civil or criminal penalties. Under section 33 of the Act, an offence is established for the importation of goods that do not comply with the prescribed trade descriptions. Civil penalties for such offences can include fines and, in some cases, criminal penalties may apply, depending on the severity and intent of the breach. The exact penalties would be determined in the context of a legal proceeding, but the potential for enforcement action underscores the importance of compliance with the amended regulations.