Customs Amendment Regulations 2001 (No. 4) 2001 No. 119
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 119
Issued by the Authority of the Minister for Justice and Customs
Customs Act 1901
Customs Amendment Regulations 2001 (No. 4)
Section 270 of the Customs Act 1901 (the Act) provides in part that the Governor-General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed for giving effect to the Customs Act.
The purpose of the amending Regulations is to amend the Customs Regulations 1926 (the Regulations) to specify a circumstance in which, goods temporarily imported into Australia without the payment of duty and/or taxes are not required to be exported from Australia and to repeal two redundant forms.
Section 162 of the Act provides that where certain goods are imported and the importer intends to export those goods, the Collector may grant to the importer permission to take delivery of those goods upon giving a security or an undertaking for the payment of duty, goods and services tax (GST) and/or luxury car tax (LCT) payable on those goods.
Similarly, subsection 162A of the Act provides that the regulations may provide that certain goods may be brought into Australia on a temporary basis without the payment of duty, GST or LCT.
Prior to the commencement of the Taxation Laws Amendment Act (No. 8) 2000 (the Amendment Act) duty was not payable in respect of temporarily imported goods if they were not dealt with in contravention of the regulations and the goods were exported within the relevant time (usually 12 months after the date on which the goods were imported). Under those provisions, duty and/or taxes were payable in respect of temporarily imported goods that were not exported from Australia even if those goods had been destroyed or substantially damaged in Australia. In those circumstances, even though the goods would not be entering the commerce of Australia, the importer was required to pay the duty and/or taxes in respect of the goods.
The Amendment Act amended sections 162 and 162A of the Act, section 171-5 of the A New Tax System (Goods and Services Tax) Act 1999 and section 13-25 of the A New Tax System (Luxury Car Tax) Act 1999 so that goods temporarily imported without the payment of duty and/or taxes did not have to be exported if one or more of the circumstances or conditions specified in the regulations apply in relation to the goods (subparagraph 162(3)(b)(ii) and paragraph 162A(5)(b) of the Act refer).
Items 1 and 2 of Schedule 1 to the amending Regulations specify a circumstance in which duty, GST and LCT will not be payable on temporarily imported goods even though they have not been exported from Australia within the relevant time. New regulation 124A specifies the circumstance for the purposes of subparagraph 162(3)(b)(ii) of the Act and new regulation 125A specifies the circumstance for the purposes of paragraph 162A(5)(b) of the Act. That circumstance is where the goods have no value because they have been accidentally damaged or destroyed or, if the goods are an animal, it has died, or has been destroyed, because of an accident or illness.
Item 2 of Schedule 1 to the amending Regulations replaces current regulation 125A of the Regulations which related to the temporary importation of goods for the purposes of Sydney 2000 Olympic Games and associated events. This regulation is no longer required.
Item 3 of Schedule 1 to the amending Regulations omits redundant forms 58 and 59 from Schedule 1 to the Regulations. These forms were made for the purposes of section 196 of the Act and regulations 167 and 168 of the Regulations. Section 196 of the Act and regulations 167 and 168 were repealed in 1991. New regulations 167 and 168 were inserted into the Regulations in 1999 but these provisions are unrelated to the forms.
The amending Regulations commenced on gazettal.
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Overview
The Customs Amendment Regulations 2001 (No. 4), issued under the authority of the Minister for Justice and Customs, amend the Customs Regulations 1926 to address a specific gap in the Customs Act 1901. These regulations were enacted to refine the circumstances under which goods temporarily imported into Australia without the payment of duty and/or taxes are not required to be exported. This change responds to the previous requirement for duty and/or taxes to be paid even if temporarily imported goods were destroyed or substantially damaged in Australia, which was inconsistent with the practical realities of trade and commerce. The regulations provide clarity by specifying that goods which have no value due to accidental damage, destruction, or death of an animal, do not need to be exported to be exempt from duty, goods and services tax (GST), and luxury car tax (LCT). Additionally, the regulations repeal two redundant forms that were no longer relevant since the relevant sections of the Act and previous regulations were repealed in 1991. These amendments ensure the Customs Regulations remain aligned with current legislative intent and operational efficiency.
Scope and Application
The Customs Amendment Regulations 2001 (No. 4) are made under the authority of the Customs Act 1901 and apply to all entities and persons involved in the import and temporary importation of goods into Australia. These Regulations are designed to update and refine the Customs Regulations 1926 by clarifying the circumstances under which goods temporarily imported into Australia may remain in the country without incurring duty and taxes, even if they are not exported within the usual timeframe. Specifically, the Regulations introduce exceptions where goods have no value due to accidental damage, destruction, or the death of an animal. The Regulations also repeal outdated forms and remove redundant provisions that were rendered unnecessary by legislative changes. These amendments are intended to streamline customs procedures and ensure they align with current legislative intent and practical application. The Regulations apply across Australia and are effective immediately upon gazettal, though they may be further refined or extended through additional subordinate instruments.
Key Provisions
The Customs Amendment Regulations 2001 (No. 4) (the Regulations) amend the Customs Regulations 1926 (the Regulations) to specify a circumstance where goods temporarily imported into Australia without the payment of duty and/or taxes are not required to be exported from Australia. This is achieved through the insertion of new regulations 124A and 125A, which detail the conditions under which duty, goods and services tax (GST) and luxury car tax (LCT) will not be payable on temporarily imported goods that remain in Australia (reg. 1 and 2, Schedule 1). These regulations complement sections 162 and 162A of the Customs Act 1901 (the Act), which permit the temporary importation of goods without the payment of duty, GST or LCT under certain conditions. Additionally, the Regulations repeal two redundant forms (reg. 3, Schedule 1), which were no longer applicable following the repeal of certain sections of the Act and the Regulations in 1991 and 1999.
The Regulations impose obligations on importers of goods into Australia, requiring them to comply with the conditions specified in the Regulations regarding the temporary importation of goods without duty, GST or LCT. Specifically, importers must ensure that if the goods are accidentally damaged or destroyed, or if the goods are an animal that has died or been destroyed due to accident or illness, they are not required to pay duty, GST or LCT even if the goods are not exported from Australia (reg. 1 and 2, Schedule 1). Furthermore, the Regulations impose an obligation on importers to adhere to the specific conditions outlined in the new regulations for the temporary importation of goods.
Breach of the Regulations may lead to civil or criminal consequences, including fines and imprisonment. The penalties for non-compliance with the Customs Act and the Regulations can be severe and depend on the nature and extent of the breach. Under the Customs Act, penalties for offences can include substantial fines and imprisonment, with the exact penalties depending on the seriousness of the offence. For example, section 233 of the Act provides that a person who knowingly or recklessly contravenes a provision of the Act is liable to a penalty of up to 5,000 penalty units or imprisonment for up to five years, or both, for each offence. In addition, the Excise Act 1901 may also impose penalties for breaches related to GST and LCT, with penalties varying according to the specific provisions breached.