Customs Amendment (Collecting Tobacco Duties at the Border) Act 2018

Administered by Department of Home Affairs

Legislation au C2018A00131 In force Act

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No. 131, 2018

An Act to amend the Customs Act 1901, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Part 1—Main amendments

Customs Act 1901

Part 2—Application and transitional provisions

Customs Amendment (Collecting Tobacco Duties at the Border) Act 2018

No. 131, 2018

An Act to amend the Customs Act 1901, and for related purposes

[Assented to 25 October 2018]

The Parliament of Australia enacts:

1 Short title

This Act is the Customs Amendment (Collecting Tobacco Duties at the Border) Act 2018.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.	25 October 2018
2. Schedule 1	The later of: (a) 1 July 2019; and (b) the day after this Act receives the Royal Assent.	1 July 2019 (paragraph (a) applies)

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Part 1—Main amendments

Customs Act 1901

1 Subsection 4(1)

Insert:

tobacco products means goods classified to heading 2401, 2402 or 2403 of Schedule 3 to the Customs Tariff Act 1995 (except goods classified to subheading 2402.90.00 or 2403.99.10 of that Schedule).

2 Subsection 68(2)

Omit “or for warehousing”, substitute “or, for goods other than tobacco products, enter the goods for warehousing”.

3 At the end of subsection 68(2)

Add:

Note: Tobacco products cannot be entered for warehousing (see section 71DG).

4 Subsection 68(3)

Omit all the words before paragraph (a), substitute:

(3) If the owner of goods to which this section applies does not enter the goods under subsection (2), the owner must enter the goods for home consumption or, for goods other than tobacco products, enter the goods for warehousing:

5 Subsection 68(3B)

After “An entry of goods”, insert “(other than tobacco products)”.

6 Before subsection 69(1)

Insert:

(1A) This section does not apply to tobacco products.

7 Before section 71DH

Insert:

71DG Subdivision does not apply to tobacco products

This Subdivision does not apply to tobacco products.

Note: Tobacco products cannot be warehoused (see subsections 68(2) and (3)).

8 Section 80

Before “An application for”, insert “(1)”.

9 At the end of section 80

Add:

(2) An application cannot be made under subsection (1) to use a place described in the application to warehouse tobacco products.

10 After subsection 82(1)

Insert:

(2) A warehouse licence is subject to the condition that no tobacco products will be warehoused in the warehouse.

11 Subsection 233BABAD(7)

Repeal the subsection.

Part 2—Application and transitional provisions

12 Application provision

(1) The amendments made by items 2, 3, 4, 5 and 7 of this Schedule apply in relation to:

(a) tobacco products imported into Australia on or after the commencement of this item; and

(b) tobacco products:

(i) imported into Australia before the commencement of this item; and

(ii) not entered for home consumption or warehousing before the commencement of this item.

(2) The amendments made by items 6, 8 and 9 of this Schedule apply in relation to applications:

(a) made on or after the commencement of this item; or

(b) pending at the commencement of this item.

(3) The amendments made by item 10 of this Schedule apply:

(a) in relation to a licence for a warehouse other than a warehouse mentioned in subitem (4)—on and after the day after the end of the period mentioned in subitem 13(2); or

(b) in relation to a licence for a warehouse mentioned in subitem (4)—on and after the day after the end of the 6 month period beginning the day this item commences;

regardless of whether the licence was granted before, on or after the commencement of this item.

(4) For the purposes of subitem (3), the warehouses are the following:

(a) an outwards duty free shop (within the meaning of section 96A of the Customs Act 1901);

(b) an inwards duty free shop (within the meaning of section 96B of that Act);

(i) ship’s stores (within the meaning of section 130C of that Act);

(ii) aircraft’s stores (within the meaning of section 130C of that Act).

13 Transitional provision—tobacco products warehoused at commencement

(1) This item applies in relation to tobacco products that are warehoused immediately before the commencement of this item, other than tobacco products that are warehoused in any of the following:

(a) an outwards duty free shop (within the meaning of section 96A of the Customs Act 1901);

(b) an inwards duty free shop (within the meaning of section 96B of that Act);

(i) ship’s stores (within the meaning of section 130C of that Act);

(ii) aircraft’s stores (within the meaning of section 130C of that Act).

(2) Section 72 of the Customs Act 1901 applies, on and after the commencement of this item, to the tobacco products as if:

(a) the requirement in paragraph 72(1)(a) of that Act was a requirement to enter the tobacco products for home consumption; and

(b) the period mentioned in paragraph 72(1)(b) of that Act was the period of 7 days beginning on the day this item commences; and

(c) the period for the purposes of paragraph 72(4)(b) of that Act was the period of 7 days beginning on the day this item commences.

14 Transitional provision—permissions under section 69 of the Customs Act 1901

(1) This item applies if:

(a) immediately before the commencement of this item, a permission under subsection 69(5) of the Customs Act 1901 is in force; and

(b) the permission permits a person to deliver into home consumption goods that are tobacco products, without entering them for that purpose.

(2) The permission has no effect, on and after the commencement of this item, to the extent that it permits the delivery into home consumption of tobacco products.

15 Transitional provision—movement permissions under section 71E of the Customs Act 1901

(1) This item applies if:

(a) immediately before the commencement of this item, a movement permission under section 71E of the Customs Act 1901 is in force; and

(b) the permission permits the movement of tobacco products.

(2) The permission has no effect, on and after the commencement of this item, to the extent that it permits the movement of tobacco products to or from a warehouse.

16 Transitional provision—warehouse licence renewals

(1) This item applies to a warehouse licence that is in force under section 83 of the Customs Act 1901 immediately before the commencement of this item.

(2) The Comptroller‑General of Customs must not renew the warehouse licence under section 84 of that Act if the only goods that are warehoused in the warehouse are tobacco products.

[Minister’s second reading speech made in—

House of Representatives on 19 September 2018

Senate on 17 October 2018]

(194/18)

Overview

The Customs Amendment (Collecting Tobacco Duties at the Border) Act 2018 is an Act of the Parliament of Australia designed to amend the Customs Act 1901, specifically targeting the collection of tobacco duties at the border. Enacted to address the issue of illicit tobacco trade and to ensure that tobacco duties are collected effectively, the Act introduces significant changes to the way tobacco products are handled under the Customs Act 1901. The primary policy objective is to prevent the warehousing of tobacco products, which was a loophole that facilitated the illicit trade of tobacco. The Act commenced on 25 October 2018, with specific amendments taking effect from 1 July 2019, ensuring a smooth transition for affected parties. The Act modifies the Customs Act 1901 by explicitly excluding tobacco products from warehousing provisions and by imposing strict conditions on warehouse licences, ensuring that no tobacco products can be stored in licensed warehouses. Additionally, the Act introduces specific transitional provisions to manage the impact of these changes on existing warehoused tobacco products and ongoing permissions related to tobacco products. This legislative intervention aims to bolster the integrity of tobacco duty collection and curb the illicit tobacco trade by tightening regulatory frameworks around the storage and movement of tobacco products.

Scope and Application

The Customs Amendment (Collecting Tobacco Duties at the Border) Act 2018 is an Act of the Parliament of Australia, enacted to amend the Customs Act 1901. The Act applies to tobacco products, defined as goods classified to headings 2401, 2402 or 2403 of Schedule 3 to the Customs Tariff Act 1995, excluding those classified under subheadings 2402.90.00 or 2403.99.10. The Act's primary purpose is to prevent the warehousing of tobacco products, effectively requiring that these goods are either entered for home consumption or paid duty at the border. The amendments apply to tobacco products imported into Australia on or after 1 July 2019, and also to those imported before this date that have not been entered for home consumption or warehousing by that date. The Act further modifies the application of certain sections and subsections of the Customs Act 1901, prohibiting the warehousing of tobacco products and the use of warehouses for tobacco products, except in specific circumstances such as outwards or inwards duty free shops, or warehouses designated for ship’s or aircraft stores. The Act also includes transitional provisions for tobacco products already warehoused at the time of its commencement. The Act's provisions are effective at the Commonwealth level across Australia.

Key Provisions

The Customs Amendment (Collecting Tobacco Duties at the Border) Act 2018 (C2018A00131) introduces significant changes to the Customs Act 1901, primarily targeting the importation and warehousing of tobacco products. The operative sections of the Act, including those in Schedule 1, make specific amendments to the Customs Act 1901 to prevent the warehousing of tobacco products and to ensure that tobacco duties are collected at the border. Section 1 of Schedule 1 amends the definition of "tobacco products" to include goods classified under headings 2401, 2402, or 2403 of the Customs Tariff Act 1995, excluding certain subheadings. Section 6 of Schedule 1 modifies subsection 68(2) of the Customs Act 1901, prohibiting the warehousing of tobacco products and clarifying that these products cannot be entered for warehousing (subsection 68(3)). Additionally, section 7 of Schedule 1 explicitly states that the Subdivision does not apply to tobacco products, reinforcing the prohibition on their warehousing. The Act imposes various obligations and requirements on the parties involved in the importation and warehousing of goods, particularly focusing on tobacco products. Owners of imported goods, including tobacco products, are required to either enter these goods for home consumption or, in the case of non-tobacco products, for warehousing (subsection 68(3)). Warehouse licences are also subject to conditions that explicitly prohibit the warehousing of tobacco products (subsection 80(2)). These obligations ensure that tobacco products are not stored in warehouses and that related duties are addressed upon importation. There are specific offences and penalties outlined in the Act for breaches of its provisions. While the Act does not explicitly state penalties, non-compliance with the requirements to enter tobacco products for home consumption or failure to adhere to the conditions of a warehouse licence could result in civil or criminal consequences under the existing provisions of the Customs Act 1901. For example, unauthorized warehousing of tobacco products could lead to fines or other penalties as stipulated in the broader customs legislation. Additionally, the Act includes transitional provisions to manage the implications of these changes for products already warehoused or permissions already granted before the Act's commencement, ensuring a smooth transition while maintaining the integrity of the new requirements.

Area of Law: Customs Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Transitional Provisions; Prohibited Conduct; Regulatory Standards

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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.

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