Customs Act 1965

Legislation au C1965A00029 Not in force Act

Legislation content

Customs

No. 29 of 1965

An Act to amend the Customs Act 1901-1963.

[Assented to 2 June, 1965]

BE it enacted by the Queen’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 1965.


(2.) The Customs Act 1901-1963 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 1901-1965.

Commencement.

2. This Act shall come into operation on the first day of July, One thousand nine hundred and sixty-five.

Parts.

3. Section 3 of the Principal Act is amended by omitting the word and figures “(Sections 131-153)” and inserting in their stead the word and figures “(Sections 131a—153)”.

Interpretation.

4. Section 4 of the Principal Act is amended by inserting in sub-section (1.), after the definition of “Comptroller”, the following definition:—

“‘Country’ includes territory or other place.”.

Exemption.

5. Section 131 of the Principal Act is repealed.

Repeal of sections 138, 39 and 140.

6. Sections 138, 139 and 140 of the Principal Act are repealed.

Proprietary medicines.

7. Section 144 of the Principal Act is repealed.

8. Sections 151, 151a and 151b of the Principal Act are repealed and the following sections inserted in their stead:—

When goods deemed to be the produce or manufacture of a country.

“151.—(1.) For the purposes of this Act and the Customs Tariff 1965 (other than section nineteen of the last-mentioned Act), goods shall be treated as the produce of a country if they are unmanufactured raw products of the country.

“(2.) For the purposes of this Act and the Customs Tariff 1965 (other than section nineteen of the last-mentioned Act), goods shall be treated as the manufacture of a country—

(a) if the goods were wholly manufactured in the country from materials of one or more of the following classes:—

(i) unmanufactured raw products;

(ii) materials wholly manufactured in the country or in Australia, or in the country and in Australia; and

(iii) imported materials that the Minister has, in relation to the country, determined, by notice published in the Gazette, to be manufactured raw materials; or


(b) if the goods were partly manufactured in the country, the process last performed in the manufacture of the goods was performed in the country and—

(i) not less than three-quarters, or, in a case where the country is New Zealand, one-half, of the factory or works cost of the goods is represented by the value of labour or materials, or of labour and materials, of the country or of the country and Australia;

(ii) in a case where the goods are goods of a class or kind not commercially manufactured in Australia, not less than one-quarter of the factory or works cost of the goods is represented by the value of labour or materials, or of labour and materials, of the country or of the country and Australia; or

(iii) in a case where the country is New Zealand, not less than three-quarters of the factory or works cost of the goods is represented by the value of labour or materials, or of labour and materials, of New Zealand and the United Kingdom or of New Zealand, Australia and the United Kingdom.

“(3.) For the purposes of the last preceding sub-section, the Minister may, by notice published in the Gazette—

(a) specify the manner in which the factory or works cost of goods is to be determined;

(b) specify the manner in which the value of labour, the value of materials or the value of labour and materials is to be determined;

(c) determine that goods specified in the notice, or goods included in a class of goods so specified, shall be deemed to be goods of a class or kind not commercially manufactured in Australia; or

(d) determine that the reference in sub-paragraph (ii) of paragraph (b) of the last preceding sub-section to one-quarter shall, in relation to goods specified in the notice, or goods included in a class of goods so specified, be read as a reference to one-half.

“(4.) For the purposes of sub-paragraph (iii) of paragraph (b) of sub-section (2.) of this section, material that, under the laws of New Zealand relating to duties of Customs, is treated as having been wholly produced or manufactured in the United Kingdom shall be deemed to be material of the United Kingdom.


“(5.) Notwithstanding anything contained in this section—

(a) the Minister may, subject to the next succeeding paragraph, direct that, for the purposes of this Act and the Customs Tariff 1965 (other than section nineteen of the last-mentioned Act), a cinematograph film that is, under the laws of the United Kingdom relating to the registration of cinematograph films, certified by the Board of Trade of the United Kingdom to be registered as a British film shall be treated as the manufacture of the United Kingdom; and

(b) a cinematograph film printed in the United Kingdom shall not, for the purposes of this Act or the Customs Tariff 1965 (other than section nineteen of the last-mentioned Act), be treated as the manufacture of the United Kingdom unless it was printed from a negative the manufacture of the United Kingdom.

“(6.) This section does not apply for the purposes of determining whether goods are the produce, or the manufacture, of Australia.

“(7.) In this section, ‘unmanufactured raw products’ means natural or primary products that have not been subjected to an industrial process, other than an ordinary process of primary production, and includes, without limiting the generality of the foregoing—

(a) animals, and parts of animals obtained by killing, including bones, hides and skins (raw or sun-dried);

(b) greasy wool;

(c) plants, and parts of plants, including raw cotton, bark, fruit, nuts, grain, seeds (in their natural state) and unwrought logs;

(d) minerals in their natural state and ores; and

(e) crude petroleum.

Direct shipment to Australia required for certain preferences.

“151 a.—(1.) For the purposes of this Act and the Customs Tariff 1965 (other than section nineteen of the last-mentioned Act), goods shall not be treated as the produce or manufacture of the United Kingdom, Canada, New Zealand, Ireland, Malawi, Southern Rhodesia, Zambia, the Territory of Papua or the Territory of New Guinea unless they have been shipped from that country to Australia and, except where the Collector is satisfied that the intended destination of the goods when originally shipped from that country was Australia, have not been transhipped.


“(2.) The last preceding sub-section does not apply—

(a) to goods the produce or manufacture of a country other than New Zealand that are imported into Australia from New Zealand; or

(b) to goods the produce or manufacture of a country other than the Territory of Papua or the Territory of New Guinea that are imported into Australia from the Territory of Papua or the Territory of New Guinea.

“(3.) For the purposes of sub-section (1.) of this section—

(a) goods may be treated as having been shipped from the Territory of Papua or the Territory of New Guinea if they have been shipped from either of those territories; and

(b) goods may be treated as having been shipped from Malawi, Southern Rhodesia or Zambia if they have been shipped from any of those countries or from Lourenco Marques or Beira in Mozambique.”.

9. Section 153a of the Principal Act is repealed and the following section inserted in its stead:—

Value for duty.

“153a. The value of any imported goods for the purposes of the Customs Tariff 1965 is, unless the contrary intention appears, the value for duty of the goods ascertained or determined in accordance with this Division.”.

Value for duty how ascertained.

10. Section 154 of the Principal Act is amended by omitting from sub-section (1.) the words—

“When any duty is imposed according to value, the value for duty shall be the sum of the following:—”

and inserting in their stead the words—

“The value for duty of any goods shall be the sum of the following:—”.

11. After section 154 of the Principal Act the following section is inserted:—

Inland freight charges on Canadian goods.

“155. In ascertaining the value for duty under the last preceding section of goods that are the produce or manufacture of Canada, the amount included in the value for duty in respect of inland freight charges incurred in Canada shall not be greater than the amount of freight charges that would have been incurred in Canada if the goods had been forwarded from the place of origin of the goods to the nearest point of exit in Canada.”.


Minister to determine value in some cases.

12. Section 160 of the Principal Act is amended by omitting the words “value of goods for duty” and inserting in their stead the words “value for duty of any goods”.

Minister may make by-laws.

13. Section 271 of the Principal Act is amended by omitting the words “departmental by-laws” (wherever occurring) and inserting in their stead the word “by-law”.

By-laws specifying goods.

14. Section 272 of the Principal Act is amended by omitting the words “departmental by-laws” and inserting in their stead the word “by-law”.

Determinations.

15. Section 273 of the Principal Act is amended by omitting from sub-section (1.) the words “departmental by-laws” and inserting in their stead the word “by-law”.

When duty chargeable under by-law items.

16. Section 273e of the Principal Act is repealed.

Interpretation.

17. Section 273f of the Principal Act is amended—

(a) by omitting the definition of “item”; and

(b) by adding at the end thereof the following sub-section:—

“(2.) Unless the contrary intention appears, a reference in this Part to an item of a Customs Tariff shall be read as including a reference to a sub-item of such an item, a paragraph of such a sub-item and a sub-paragraph of such a paragraph.”.

 

Overview

The Customs Act 1965 was enacted to amend the Customs Act 1901-1963 and address issues and gaps in the existing customs legislation. Enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, this Act updates and modernises the customs regulations to accommodate changing trade practices and international agreements. The Customs Act 1965 introduces changes to the definitions, exemptions, and the determination of the origin of goods, while also clarifying the valuation of imported goods for duty purposes. The policy objective is to ensure that the customs legislation remains effective and relevant in regulating and facilitating international trade. The Customs Act 1965 primarily focuses on updating the customs regulations to better reflect the current economic environment and international trade practices. By amending the Customs Act 1901-1963, this legislation aims to address the evolving needs of the Australian customs system and maintain its efficiency and effectiveness. Key changes include the redefinition of terms, the introduction of new rules for determining the origin of goods, and the clarification of the valuation of imported goods for duty purposes. These updates ensure that the customs legislation remains in line with international standards and practices, ultimately supporting Australia's trade relations and economic growth.

Scope and Application

The Customs Act 1965 amends the Customs Act 1901-1963, with its provisions coming into effect on 1 July 1965. The Act applies to goods imported into Australia and modifies the way in which the origin of goods is determined for customs purposes. It specifies that goods are considered the produce of a country if they are unmanufactured raw products of that country, and they are considered the manufacture of a country if they are wholly manufactured there from certain materials or if they are partly manufactured in the country with a significant proportion of the factory or works cost attributable to labour or materials from the country. The Act excludes Australia from these provisions, meaning Australian-made goods are not subject to the same rules. The Minister has the authority to make determinations and by-laws that further specify the application of these provisions, including how costs are calculated and which goods are considered non-commercially manufactured in Australia. The Act also provides for the ascertainment of the value of imported goods for duty purposes, with specific provisions for inland freight charges on Canadian goods. Notably, the Act does not apply to determine the value for duty of goods that are the produce or manufacture of Australia.

Key Provisions

The Customs Act 1965 introduces significant amendments to the Customs Act 1901-1963, which is now referred to as the Principal Act and is updated to the Customs Act 1901-1965 post these amendments. The Act came into effect on 1 July 1965. Key amendments include changes to the definitions, exemptions, and the criteria for determining the origin and value of imported goods. The Act modifies the definition of "country" under Section 4 of the Principal Act to include any territory or place, providing a broader scope for determining the origin of goods. Section 151 of the Act outlines the criteria for goods to be considered as the produce or manufacture of a particular country. For goods to be treated as the produce of a country, they must be unmanufactured raw products of that country. Goods are considered to be manufactured in a country if they are wholly manufactured in that country using specified materials, or if they are partly manufactured there and meet certain cost and value criteria. Additionally, the Minister has the authority to specify the method for determining factory or works costs and the value of labour and materials, among other things. Section 151a of the Act specifies that goods must be shipped directly from certain countries to Australia to be considered as their produce or manufacture, with some exceptions. This section also details the conditions under which goods shipped from specific territories or ports in Mozambique can be considered as coming from Malawi, Southern Rhodesia, or Zambia. The Act further revises the method for determining the value for duty of imported goods. Section 153a sets out the general principle that the value for duty is the value ascertained according to the provisions of the Act. It also specifies that for goods produced or manufactured in Canada, the inland freight charges included in the value for duty must not exceed what would have been incurred if the goods had been transported to the nearest exit point in Canada. The obligations imposed by the Act require entities to ensure that goods meet the specified criteria for being considered the produce or manufacture of a particular country and to comply with the rules for determining the value for duty. This includes adhering to the Minister's determinations regarding the value of labour and materials and the methods for calculating factory or works costs. Failure to comply with the provisions of the Act can result in civil and criminal consequences. The Act does not specify particular offences or penalties within the provided text; however, breaches of customs regulations typically result in fines, penalties, or legal action under the broader framework of Australian customs law. The exact penalties would depend on the nature and severity of the breach, and could potentially include substantial fines and, in some cases, imprisonment.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.