Customs Act (No. 2) 1974

Administered by Attorney-General's Department

Legislation au C2004A00176 Not in force Act

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CUSTOMS ACT (No. 2) 1974

 

No. 120 of 1974

 

An Act to amend the Customs Act 1901-1973, as amended by the Customs Act 1974.

 

BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—

Short title and citation.

1. (1) This Act may be cited as the Customs Act (No. 2) 1974.

(2) The Customs Act 1901-1973, as amended by the Customs Act 1974, is in this Act referred to as the Principal Act.

(3) Section 1 of the Customs Act 1974 is amended by omitting sub-section (3).

(4) The Principal Act, as amended by this Act, may be cited as the Customs Act 1901-1974.

Commencement.

2. Except as otherwise provided, this Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation.

3. (1) Section 4 of the Principal Act is amended—

(a) by inserting in sub-section (1), after the definition of “Days”, the following definition:—

“‘Developing country’ has the same meaning as in the Customs Tariff 1966-1974; and

(b) by omitting from sub-section (1) the definition of “Less developed country”.

(2) The amendments made by sub-section (1) shall be deemed to have come into operation on 1 July 1974.

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

4. (1) Section 151 of the Principal Act is amended—

(a) by omitting from sub-section (2) the words “(other than section 20, or a direction under section 33c, of the last-mentioned Act)” and substituting the words “(other than section 16a or 20 of, or Part IX of Schedule 5 to, the last-mentioned Act)”;

(b) by omitting paragraph (b) of sub-section (2) and substituting the following paragraph:—

“(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 the case of goods that are of a class or kind not commercially manufactured in Australia, 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

(ii) in the case where the country is New Zealand not less than one half, or, in the case of goods included in a class of goods in respect of which the Minister has determined, by notice published in the Gazette, that another portion is appropriate, that portion, 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 or of New Zealand and Australia.”;

(c) by omitting from sub-section (3) the words “a direction under section 33c of” and substituting the words “section 16a of, or Part IX of Schedule 5 to,”;

(d) by omitting from paragraph (b) of sub-section (3) the words “less developed countries and substituting the words “developing countries”

(e) by omitting from paragraph (b) of sub-section (3) the words “less developed country” and substituting the words “developing country”;

(f) by omitting from sub-sections (5) and (6) the figures “(ii)” and substituting the figure “(i)”;

(g) by omitting sub-section (7); and

(h) by omitting from sub-section (8) the words ‘‘(other than section 20 or a direction under section 33c, of the last-mentioned Act)” (wherever occurring) and substituting the words “(other than section 16a or 20 of, or Part IX of Schedule 5 to, the last-mentioned Act)”.

(2) The amendments made by paragraphs (1)(a), (c), (d), (e) and (h) shall be deemed to have come into operation on 1 July 1974.

(3) The amendments made by paragraphs (1)(b), (f) and (g) shall come into operation on a date to be fixed by Proclamation.

Direct shipment to Australia for certain preferences.

5. (1) Section 151a of the Principal Act is amended—

(a) by omitting from sub-section (1) the words “(other than section 20, or a direction under section 33c, of the last-mentioned Act) ” and substituting the words “(other than section 16a or 20 of, or Part IX of Schedule 5 to, the last-mentioned Act)”; and

(b) by omitting sub-section (3).

(2) The amendments made by sub-section (1) shall be deemed to have come into operation on 1 July 1974.

Value for duty, how ascertained.

6. (1) Section 154 of the Principal Act is amended—

(a) by inserting in sub-section (3), after the word “section”, the words “, but subject to sub-sections (4) and (5)”; and

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

“(4) Where, in the opinion of the Minister, the current domestic value of goods (including goods imported on or after 22 October 1974 and before the commencement of this sub-section) cannot, for any reason, be ascertained for the purposes of sub-section (1) in accordance with the definition of ‘Current domestic value’ in sub-section (3) and a determination under sub-section (5) does not apply to the goods, the Minister may declare that this sub-section shall apply in relation to the goods and where such a declaration is made, the current domestic value of the goods shall, for the purposes of sub-section (1), be such amount as the Minister determines to have been the value of the goods in the country of export at the date of exportation of the goods, and, in making the determination, the Minister shall have regard to such matters as he considers relevant, and (without limiting the generality of the foregoing) may have regard to—

(a) the price at which similar or comparable goods have been sold, or offered for sale, in the country of export by any person; and

(b) the cost of manufacturing, producing or purchasing the goods in the country of export.

“(5) The Minister may, after consultation with a person who imports, or proposes to import, goods of any class or kind and after taking into consideration such matters as the Minister thinks relevant (including any matters that the person requests the Minister to take into consideration), determine, by notice in writing given to the person, that, for the purposes of sub-section (1), the current domestic value of goods of that class or kind imported by the person after such date as is specified in the notice (which may be a date earlier than the notice but shall not be a date earlier than 22 October 1974) shall be an amount ascertained in such manner as is specified in the notice, and subject to sub-section (6), the determination has effect accordingly.

“(6) If a determination under sub-section (5) is revoked, the determination shall not have effect in respect of goods imported after the date of revocation or such later date as is specified in the instrument of revocation. ”.

(2) The amendments made by sub-section (1) shall be deemed to have come into operation on 22 October 1974.

Overview

The Customs Act (No. 2) 1974, enacted by the Parliament of Australia, serves to amend the Customs Act 1901-1973, as previously amended by the Customs Act 1974. This Act addresses the need to update the customs regulations to reflect changes in international trade practices and to accommodate new trade agreements, particularly those with developing countries. The Act's policy objective is to facilitate smoother trade operations by clarifying the rules around the determination of the origin of goods and the assessment of their value for duty purposes. By doing so, it aims to enhance the efficiency and accuracy of customs processes, thereby supporting Australia's economic engagement with other nations. The Customs Act (No. 2) 1974 introduces several amendments, including the redefinition of terms such as "developing country" and adjustments to the criteria for determining the origin of goods. It also modifies the procedures for ascertaining the value of goods for duty purposes, providing flexibility for the Minister to make determinations based on current market values and manufacturing costs. These changes are designed to better align Australian customs practices with global standards, ensuring that the country's trade policies remain effective and competitive in an evolving international trade environment.

Scope and Application

The Customs Act (No. 2) 1974 is an amendment to the Customs Act 1901-1973, and it applies to the importation of goods into Australia, affecting the process of determining the value for duty on such goods. It applies to individuals and entities involved in the importation of goods, including importers, customs brokers, and government officials overseeing customs procedures. The Act operates nationally across Australia, as it is a Commonwealth Act. The Act includes provisions for the Minister to make specific determinations about the value for duty of imported goods, particularly when the current domestic value cannot be ascertained under the usual procedures. There are no explicit exclusions or exemptions stated in the text provided, but the Act does allow for certain flexibility in the application of its provisions through the Minister's power to make specific determinations. Additionally, the Act may be extended or restricted in its application through subordinate instruments, such as regulations or notices, which can provide further detail or specific circumstances under which the Act's provisions apply.

Key Provisions

The Customs Act (No. 2) 1974 amends the Customs Act 1901-1973 to introduce several significant changes. Section 4 of the Principal Act is modified to include a definition for "Developing country" and remove the definition for "Less developed country" (Section 3(1)). The Act also amends Section 151 to redefine the criteria under which goods are considered to be the produce or manufacture of a country, adjusting the thresholds for the proportion of factory or works cost represented by the value of labour or materials (Section 4(1)(b)). Additionally, Section 151a is modified to align references and remove subsections (Section 5(1) and (2)). The Act introduces provisions for determining the value for duty when the current domestic value cannot be ascertained, allowing the Minister to set a value based on the export value of the goods or to make specific determinations for certain classes of goods (Section 6(4) and (5)). Under the Customs Act (No. 2) 1974, entities and individuals involved in the importation of goods must ensure compliance with the new provisions regarding the determination of the origin of goods and their value for duty. Importers must provide accurate information on the manufacture and origin of the goods, and the Minister has the authority to make determinations about the value for duty when the current domestic value cannot be ascertained. This involves considering factors such as the price of similar goods in the export country and the cost of manufacturing in that country (Section 6(4) and (5)). Importers must also adhere to any specific determinations made by the Minister regarding the value for duty of certain classes of goods. The Act sets out specific offences and penalties for breaches of its provisions. While the text does not explicitly state the maximum penalties for each breach, it is clear that non-compliance with the new requirements for determining the origin and value of imported goods can result in significant legal consequences. This may include fines, penalties, or other enforcement actions as deemed necessary by the authorities. The precise nature and extent of the penalties would depend on the specific breach and the discretion of the Minister or the courts in enforcing the Act.

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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.