CUSTOMS.
No. 22 of 1925.
An Act to amend the Customs Act 1901-1923.
[Assented to 26th September, 1925.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Customs Act 1925.
(2.) The Customs Act 1901-1923 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Customs Act 1901-1925.
2. After section one hundred and fifty-one of the Principal Act, the following section is inserted:—
Conditions relating to application of Preferential Tariff.
“151a.—(1.) Where in or under any Customs Tariff, whether passed before or after the commencement of this section, duties of Customs are imposed upon goods the produce or manufacture of the United Kingdom, the following goods shall, subject to this section, be deemed to be the produce or manufacture of that country:—
(a) Goods which are wholly produced or wholly manufactured in the United Kingdom:
Provided that goods shall not be deemed to be wholly manufactured in the United Kingdom if, in the raw material used or in the finished goods, any manufacturing process has been performed in any country outside the United Kingdom (other than Australia) which is being commercially performed in the United Kingdom;
(b) Goods which are not in accordance with the last preceding paragraph wholly produced or manufactured in the United Kingdom, in the manufacture or production of which not less than seventy-five per centum of their factory or works cost consists of United Kingdom labour or material;
(c) Goods to which neither of the last two preceding paragraphs applies, which are of a class or kind not commercially manufactured in Australia and in the manufacture of which not less than twenty-five per centum of their factory or works cost consists of United Kingdom labour or material.
“(2.) No goods shall be deemed to be the produce or manufacture of the United Kingdom, unless the final process of their production or manufacture was performed in the United Kingdom.
“(3.) The provisions of this section shall apply mutatis mutandis in relation to goods imported from any country with which the Commonwealth has a preferential Tariff Agreement in like manner as they apply in relation to goods imported from the United Kingdom.
“(4.) For the purposes of the last three preceding sub-sections the Minister may, from time to time, determine—
(a) what shall be deemed to be raw materials and in any such determination may include materials partially manufactured in Australia;
(b) the method of determining factory and works cost and the value of labour and material; and
(c) whether any manufacturing process is being commercially performed in the United Kingdom and whether any goods are of a class or kind not commercially manufactured in Australia.
“(5.) Any determination of the Minister in pursuance of the last preceding sub-section shall be notified in the Gazette.
“(6.) Statutory Rules 1925, No. 29, shall be deemed to have been valid and effectual from the time of their making to the commencement of this section.”.
Overview
The Customs Act 1925 was enacted to amend the Customs Act 1901-1923 and address issues related to the application of preferential tariffs on imported goods from specific countries. The Act was passed by the Commonwealth Parliament and received royal assent on 26th September 1925. The main objective of this legislation was to provide clearer guidelines and criteria for determining the origin of goods and their eligibility for preferential tariff treatment based on the percentage of labour and material costs incurred in the United Kingdom or other countries with which Australia had preferential tariff agreements. This Act introduced conditions for the application of preferential tariffs, ensuring that only goods meeting specific criteria were considered as originating from the United Kingdom or other countries with preferential tariff agreements. The Act also granted the Minister the authority to make determinations regarding raw materials, factory and works costs, and the commercial performance of manufacturing processes in the United Kingdom.
Scope and Application
The Customs Act 1925 applies to goods imported into Australia and amends the Customs Act 1901-1923, referred to as the Principal Act. This Act focuses on determining the origin of goods for the purposes of applying preferential tariffs, particularly for goods produced or manufactured in the United Kingdom and countries with which the Commonwealth has preferential tariff agreements. The Act stipulates conditions under which goods can be deemed to be the produce or manufacture of the United Kingdom, including criteria based on the location of the final production process, the proportion of factory or works cost attributable to UK labour or materials, and the commercial performance of manufacturing processes in the UK. The Act also grants the Minister the authority to determine definitions and methods for assessing the origin of goods, with such determinations to be published in the Gazette. The provisions of this Act are applicable nationally across Australia, and the scope can be extended or restricted through subordinate instruments issued by the Minister.
Key Provisions
The Customs Act 1925, as amended, introduces new provisions concerning the application of the Preferential Tariff, specifically in relation to goods from the United Kingdom and other countries with preferential agreements. Section 151a outlines the conditions under which goods are deemed to be the produce or manufacture of the United Kingdom, with criteria that include the location of production and the proportion of factory or works cost attributable to UK labour or material. This section also extends similar criteria to goods from other countries with preferential tariff agreements. The Minister is empowered to determine the classification of raw materials, methods for calculating factory and works costs, and the commercial performance of manufacturing processes in the UK and Australia, with such determinations to be published in the Gazette.
The obligations imposed by this Act require entities involved in the importation of goods to ensure compliance with the specified conditions for preferential tariff treatment. Importers must provide accurate information regarding the origin and manufacturing processes of the goods they seek to import. This includes demonstrating that the final process of production or manufacture was performed in the country of origin or in Australia if certain thresholds are met. Importers must also adhere to the Minister's determinations regarding raw materials, cost calculations, and manufacturing processes, ensuring that their goods meet the criteria for preferential tariff treatment.
Failure to comply with the provisions of the Customs Act 1925 can result in significant consequences. The Act does not explicitly outline specific offences or penalties, but breaches of customs regulations generally attract penalties under the broader framework of the Customs Act 1901-1925 and other related legislation. Typically, penalties for non-compliance can include fines, seizures of goods, and potential criminal charges for serious or repeated violations. The exact penalties depend on the nature and severity of the breach, with potential maximum penalties being determined by relevant authorities in accordance with applicable laws.