Customs Amendment Act (No. 4) 1980
No. 171 of 1980
An Act to amend section 151 of the Customs Act 1901
[Assented to 17 December 1980]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the Customs Amendment Act (No. 4) 1980.
(2) The Customs Act 1901 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall come into operation on 1 January 1981.
When goods deemed to be the produce or manufacture of a country
3. Section 151 of the Principal Act is amended—
(a) by inserting in sub-section (2) “, or Part X,” after “Part IX”;
(b) by inserting after sub-section (3) the following sub-sections:
“(3a) For the purposes of Part X of Schedule 5 to the Customs Tariff Act 1966, goods shall be treated as the manufacture of a country if—
(a) the process last performed in the manufacture of the goods was performed in the country; and
(b) 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, in relation to the country, a lesser 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 the country or of the country and one or more of the following countries, that is to say, Australia and countries that, at the time the goods are entered for home consumption, are Forum Island Countries, other than a country that, by virtue of a direction under sub-section (2) of section 12 of the Customs Tariff Act 1966, is not to be treated as a Forum Island Country in relation to the class of goods in which the goods are included.
“(3b) The Minister may, for the purposes of paragraph (b) of subsection (3a), determine that, in the case of goods included in a specified class of goods, a specified portion is appropriate in relation to a specified Forum Island Country or in relation to all Forum Island Countries.”;
(c) by omitting from sub-section (4) “the last two preceding sub-sections” and substituting “sub-sections (2), (3) and (3a)”;
(d) by inserting in paragraphs (a) and (b) of sub-section (8) “, or Part X,” after “Part IX”; and
(e) by inserting after sub-section (9) the following sub-section:
“(9a) In this section, ‘Forum Island Country’ has the same meaning as in the Customs Tariff Act 1966.”.
Overview
The Customs Amendment Act (No. 4) 1980 was enacted to address a gap in the Customs Act 1901 by amending the definition of when goods are considered to be the produce or manufacture of a specific country, particularly in relation to Forum Island Countries. The Act was assented to on 17 December 1980 and came into operation on 1 January 1981. Enacted by the Queen and the Parliament of Australia, the policy objective of this amendment was to refine the criteria for determining the country of origin of goods, thereby impacting the application of customs duties and the eligibility for preferential tariff treatment under the Customs Tariff Act 1966. The Act specifically targets section 151 of the Principal Act, introducing new subsections to clarify the threshold for goods to be considered as manufactured in a country based on the proportion of factory or works cost contributed by labour or materials from that country or specified Forum Island Countries.
Scope and Application
The Customs Amendment Act (No. 4) 1980 applies to the Commonwealth of Australia, with its amendments extending to the Customs Act 1901, specifically altering the definition of goods considered to be the produce or manufacture of a particular country. The Act applies to all persons and entities involved in the importation of goods, particularly those subject to the provisions of Part X of Schedule 5 to the Customs Tariff Act 1966. It specifies that goods are to be treated as the manufacture of a country if the final manufacturing process was performed there and if a certain proportion of the factory or works cost is attributable to labour or materials from that country, or from the country and one or more designated Forum Island Countries. The Minister has the authority to determine the appropriate proportion for certain classes of goods. The Act’s provisions are effective from 1 January 1981, and it includes definitions and references necessary to integrate with existing customs legislation, ensuring clarity and consistency in application.
Key Provisions
The Customs Amendment Act (No. 4) 1980 amends section 151 of the Customs Act 1901 to refine the criteria under which goods are considered to be the manufacture of a country. Specifically, sub-section (2) now includes a reference to Part X, and sub-sections (3a) and (3b) have been added to clarify the conditions under which goods are treated as the manufacture of a country. Sub-section (3a) stipulates that goods will be considered the manufacture of a country if the final process in their production was performed there and if at least half of the factory or works cost is represented by the value of labour or materials from that country or Australia, or other specified countries that are Forum Island Countries at the time the goods are entered for home consumption. Sub-section (3b) empowers the Minister to determine a lesser portion for specific classes of goods if deemed appropriate. The reference to these new sub-sections has been incorporated into sub-section (4), and the references to Part X have been included in sub-sections (8) and (9a).
Under this Act, businesses and individuals must ensure that they adhere to the new criteria for determining the country of manufacture for goods entering Australia. This requires a detailed examination of the production processes and the costs associated with labour and materials. The Minister's ability to determine a lesser portion for specific classes of goods adds a layer of flexibility, allowing for tailored assessments based on the nature of the goods and the manufacturing processes involved. The definition of 'Forum Island Country' is sourced from the Customs Tariff Act 1966, ensuring consistency and clarity in the application of these provisions.
Failure to comply with the provisions of this Act can lead to significant consequences. Goods that do not meet the new criteria for country of manufacture may face customs duty issues, delays in clearance, or other penalties as stipulated by the Customs Act 1901. While the Act itself does not detail specific penalties, it operates under the broader framework of the Customs Act 1901, which includes provisions for fines and potential criminal charges for serious or repeated breaches. The exact penalties would depend on the nature and severity of the breach, as well as any additional guidance or regulations issued by the relevant authorities.