Customs Amendment Regulation 2012 (No. 2)

Administered by Attorney-General's Department

Legislation au F2012L01022 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2012 No. 60

 

Issued by the Authority of the Minister for Home Affairs

 

Customs Act 1901

 

Customs Amendment Regulation 2012 (No. 2)

 

Subsection 270(1) of the Customs Act 1901 (the Customs Act) provides, in part, that the Governor‑General may make regulations not inconsistent with the Customs Act prescribing all matters which by the Customs Act are required or permitted to be prescribed, or as may be necessary or convenient to be prescribed, for giving effect to the Customs Act. 

The purpose of the amending Regulation is to amend the Customs Regulations 1926 (the Principal Regulations) to prescribe certain goods as “like customable goods” for the purposes of new section 69 of the Customs Act. 

Previously, section 69 of the Customs Act set out a regime whereby a person could obtain permission to take certain imported goods into home consumption without having to provide a formal entry to Customs or pay duty on the goods at that time.  The permission holder provided a return to Customs at regular intervals in respect of such goods and paid the duty on the goods at the time the return is given.  In practice, such returns and payments were made on a weekly basis.  A similar regime existed in section 61C of the Excise Act 1901 in respect of excisable goods.

The permission under section 69 could only be made in respect of certain goods known as “like customable goods” which was defined in section 69 as including goods prescribed for the purposes of section 69.  These goods were prescribed in regulation 32 of the Principal Regulations.

The Customs Amendment (Reducing Business Compliance Burden) Act 2012 has recently amended the Customs Act, with effect from 15 April 2012.  This Act repealed and substituted section 69 of the Customs Act.  New section 69 operates in the same manner as previous section 69, but it codifies the existing standard weekly permission cycle for like customable goods.  In addition, new section 69 allows eligible small business entities, prescribed persons and importers of prescribed goods to defer the payment of customs duties from the weekly cycle to a monthly cycle.  At this stage, in the Customs context, it is not proposed to prescribe persons or goods for the purposes of the monthly arrangements.

However, new section 69 no longer contains the definition of “like customable goods”.  This definition is now set out in subsection 4(1) of the Customs Act.  Therefore, it is necessary to prescribe “like customable goods” for the purposes of this new definition.

 

The amending Regulation repeals current regulation 32.  In its place, the amending Regulation inserts new regulation 1E into the Principal Regulations which prescribes “like customable goods” for the purposes of the new definition in subsection 4(1) of the Customs Act.  These goods are prescribed by reference to their classification under a subheading in Schedule 3 to the Customs Tariff Act 1995.

As the amending Regulation are of a machinery nature, no consultation was undertaken in relation to the amending Regulation.

The amending Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments.


Statement of Compatibility with Human Rights

(Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011)

Customs Amendment Regulation 2012 (No. 2)

This regulation amendment is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Regulation

The purpose of this regulation amendment is to amend the Customs Regulations 1926 (Customs Regulations) to update the definition of “like customable goods” as a consequence of the measures introduced by the Customs Amendment (Reducing Business Compliance Burden) Act 2012.

“Like customable goods” are goods for which a deferred settlement permission arrangement may be made.  In place of a formal entry being made on an importation by importation basis, a weekly return is provided to Customs and Border Protection at which time the applicable excise equivalent customs duty, and/or WET and GST is paid. These goods are alcohol including wine, tobacco and petroleum products.

The regulation amendments repeal the current regulation 32 and insert new regulation 1E into the Customs Regulations which prescribes “like customable goods”.  There is no change otherwise in the coverage of “like customable goods”.

Human Rights implications

This legislative instrument does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Conclusion

This legislative instrument does not raise any human rights issues.

 

Minister for Home Affairs

 

Overview

The Customs Amendment Regulation 2012 (No. 2) was issued under the authority of the Minister for Home Affairs and represents an amendment to the Customs Regulations 1926. This regulation was enacted to address the changes introduced by the Customs Amendment (Reducing Business Compliance Burden) Act 2012, specifically to update the definition of "like customable goods" as required by the new section 69 of the Customs Act 1901. The policy objective behind these amendments was to streamline compliance requirements for certain imported goods, particularly for small businesses, by allowing a more flexible monthly payment cycle for customs duties. The regulation amendment ensures that the definition of "like customable goods" aligns with the new legislative framework, thereby maintaining the integrity and effectiveness of the customs duty payment system while reducing the administrative burden on businesses.

Scope and Application

The Customs Amendment Regulation 2012 (No. 2) applies to entities and individuals who are involved in the import and customs declaration of certain goods, specifically those that fall under the category of “like customable goods”. These goods include alcohol, tobacco, and petroleum products, and the regulation updates the definition of these goods in accordance with the Customs Amendment (Reducing Business Compliance Burden) Act 2012. The regulation is relevant to businesses, particularly small entities and importers, who are engaged in the import of these goods and seek to utilise the deferred settlement permission arrangement under section 69 of the Customs Act 1901. The regulation operates on a national level, across all states and territories in Australia, and is made under the authority of the Minister for Home Affairs. It does not exclude any specific persons or entities from its application, but rather extends to all who are involved in the import of the prescribed goods. The regulation repeals the existing regulation 32 and introduces new regulation 1E which provides the updated classification of “like customable goods” based on their tariff classification in the Customs Tariff Act 1995. The regulation is of a machinery nature and therefore no consultation was undertaken in its development. The regulation is compatible with human rights and does not impact on any recognised or declared human rights and freedoms.

Key Provisions

The Customs Amendment Regulation 2012 (No. 2) primarily amends the Customs Regulations 1926 to redefine "like customable goods" (regulation 1E), as necessitated by changes introduced by the Customs Amendment (Reducing Business Compliance Burden) Act 2012. These goods, now prescribed by their classification under Schedule 3 to the Customs Tariff Act 1995, include alcohol, tobacco, and petroleum products. The regulation replaces regulation 32, which previously defined "like customable goods" under the repealed section 69 of the Customs Act. This change is vital as it aligns the regulatory framework with the updated legislative standards. The amendment imposes obligations on entities dealing with these goods, specifically those that may qualify for a deferred settlement permission arrangement under section 69 of the Customs Act. Such entities must now comply with the updated regulatory definition to ensure their practices align with the new legal requirements. The primary obligation is to adhere to the prescribed classifications and ensure timely returns and duty payments as per the new regulation. In terms of consequences, the Customs Amendment Regulation 2012 (No. 2) does not explicitly outline specific penalties for non-compliance with the new regulations. However, non-compliance with the Customs Act or the Customs Regulations can lead to significant legal repercussions, including fines and potential criminal charges. For example, failure to make a proper entry or provide accurate information can result in penalties, with fines potentially reaching up to $22,200 for individuals and $111,000 for corporations under section 276 of the Customs Act. Additionally, persistent or severe non-compliance could lead to criminal charges under section 279, with potential imprisonment for up to two years. The regulation ensures a streamlined approach to compliance for businesses by codifying the existing weekly permission cycle for like customable goods and allowing eligible entities to defer customs duties from weekly to monthly cycles. The regulation's commencement follows its registration on the Federal Register of Legislative Instruments, ensuring that the updated framework is promptly implemented. The compatibility statement confirms that the regulation does not engage, impact, or limit human rights as recognised in the Human Rights (Parliamentary Scrutiny) Act 2011, thus maintaining alignment with international human rights standards.

Legal classification tags

Area of Law
Customs Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Regulatory Standards
Licensing & Registration

Interactions

Authorises

All Versions

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.