Customs Amendment Regulations 2007 (No. 2)

Administered by Attorney-General's Department

Legislation au F2007L03922 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 333

 

Issued by the Authority of the Minister for Justice and Customs

Customs Act 1901

Customs Amendment Regulations 2007 (No.  2)

 

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 Act.

Section 96B of the Act sets out provisions relating to inwards duty free shops.  Under subsection 96B(3), a Collector of Customs may give permission for specified airport shop goods that are sold to an international traveller arriving in Australia, in an inwards duty free shop, to be delivered to that traveller and for the goods to be taken to an officer of Customs for clearance. 

‘Airport shop goods’ are defined in subsection 4(1) of the Act as goods declared by the regulations to be airport shop goods or goods included in a class of goods declared by the regulations to be a class of airport shop goods.  Regulation 94 of the Customs Regulations 1926 (the Principal Regulations) declares the classes of airport shop goods for the purposes of section 96B of the Act. 

The amending Regulations remove the restrictions on the range of goods that can be sold in inwards duty free shops as airport shop goods.  Prior to making of the amending Regulations, only 8 classes of goods including alcohol and tobacco products, photographic film and perfumes could be sold in an inwards duty free shop.

The amending Regulations repeal and substitute subregulation 94(1) of the Principal Regulations.  New subregulation 94(1) provides that, subject to new subregulation 94(1A) which lists a range of goods not included in a class of airport shop goods, the following classes of goods are declared to be classes of airport shop goods: 

(a) alcoholic beverages; 

(b) tobacco products; and

(c) goods which have all of the following characteristics:

(i)  no more than $900 in value;

(ii)  no more than 7kg in weight;

(iii) no more than 56cm in length, 36cm in height and 23cm in depth. 

New subregulation 94(1) retains the class of tobacco products which is currently declared to be a class of airport shop goods, updates the currently declared class of alcoholic liquor to make it clear that all alcoholic beverages are a class of airport shop goods, and declares a new class of airport shop goods for goods that have all of the characteristics specified in new paragraph 94(1)(c).

A good that has all of the characteristics specified in new paragraph 94(1)(c) and is not otherwise excluded by new subregulation 94(1A), will be declared to be an airport shop good and therefore can be sold in an inwards duty free shop.  For example, the new class of airport shop goods would permit goods that are traditionally sold in outwards duty free shops, such as MP3 players, watches, sunglasses, leather goods, cameras and pens, to now be sold in inwards duty free shops. 

The $900 value restriction on goods in the new class of airport shop goods is imposed as it is identical to the current duty free concession for general goods for an individual traveller.  The proposed size and weight restriction on goods in the new class of airport shop goods is imposed as it means that a traveller is able, on arrival, to access goods that they may otherwise have purchased overseas and brought in hand luggage to Australia.

New subregulation 94(1A) provides that the following goods are taken not to be included in a class of airport shop goods:

(a)  alcoholic beverages that are not in sealed containers;

(b)  food and beverages which are capable of immediate consumption, other than

 commercially produced confectionery which is in sealed packaging and alcoholic

 beverages that are in sealed containers;

(c)  fresh or dried fruits;

(d)  fresh or dried vegetables;

(e)  live plants; and

(f)  fresh or dried cut flowers.

The purpose of excluding these goods from being in a class of airport shop goods is to prevent inwards duty free shops selling food and beverages such as sandwiches, hot food, alcoholic beverages in glasses and other food and beverages which could be consumed immediately.  The broad purpose of the amending Regulations is to allow a broader range of goods to be sold by inwards duty free shops to travellers that they then take with them into Australia, consistent with the duty free allowance.  It is not intended that inwards duty free shops become businesses directed at consumption of goods on a duty or GST free basis on the premises or immediately on leaving the premises. 

The exclusion of fresh and dried fruit, vegetables, cut flowers and live plants is required for quarantine purposes.  The exclusion of these goods is consistent with current quarantine controls.

Consultation was undertaken with, and an exposure draft of the amendments were provided to, a range of affected industry groups and representatives, including airport authorities, airlines and duty free operators. 

The amending Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.

0708400A

Overview

The Customs Amendment Regulations 2007 (No. 2) were enacted to broaden the scope of goods that can be sold in inwards duty free shops at Australian airports, in line with the duty-free allowances for travellers. This amendment was introduced to address the limited range of goods previously allowed in such shops, which was inconsistent with the broader duty-free concessions for travellers. The Customs Act 1901 empowers the Governor-General to make regulations that are not inconsistent with the Act, and section 96B of the Act specifically addresses the operations of inwards duty free shops. The Customs Amendment Regulations 2007 (No. 2) were issued under the authority of the Minister for Justice and Customs, and the policy objective was to harmonise the range of goods sold in these shops with the duty-free allowances, while maintaining necessary quarantine controls to prevent the sale of potentially hazardous items. This legislative change was developed in consultation with industry stakeholders, including airport authorities, airlines, and duty-free operators.

Scope and Application

The Customs Amendment Regulations 2007 (No. 2) expand the scope of goods that can be sold in inwards duty-free shops at Australian airports, enhancing the duty-free allowance for international travellers arriving in the country. The regulations amend the Customs Regulations 1926 to redefine the classes of airport shop goods that can be sold in these shops, with the aim of aligning the range of goods available with the general duty-free concessions for individual travellers. Under the new regulations, airport shop goods now include alcoholic beverages, tobacco products, and a new category of goods that meet specific value, weight, and size criteria, thereby permitting items traditionally sold in outwards duty-free shops to be offered in inwards duty-free shops as well. However, certain goods are excluded from this new category to prevent the sale of items that could be immediately consumed or pose a quarantine risk, such as unsealed alcoholic beverages, fresh produce, and live plants. These amendments ensure that inwards duty-free shops operate within the intended scope of facilitating the duty-free allowance for travellers, rather than serving as venues for on-site consumption of duty or GST-free goods. The regulations apply to all persons and entities involved in the operation of inwards duty-free shops and the sale of airport shop goods within Australian airports, thereby affecting airport authorities, airlines, and duty-free operators across the country.

Key Provisions

The Customs Amendment Regulations 2007 (No. 2) primarily modify the Customs Regulations 1926 by expanding the types of goods that can be sold in inwards duty free shops (sections 96B and 94). These shops are located at Australian airports and cater to international travellers arriving in Australia. Under the new regulations, specified airport shop goods, now including goods with a value of up to $900 and certain weight and dimension limits, can be sold in these shops. This expansion allows a broader range of items, such as electronics and accessories, to be available for purchase duty-free by travellers entering the country. However, certain goods, including unsealed alcoholic beverages, consumable food and beverages, fresh produce, and live plants, are excluded from this class to prevent potential health and quarantine risks. Entities governed by these regulations, such as airport authorities and duty-free shop operators, must comply with the new definitions and restrictions on what can be sold in inwards duty free shops. They must ensure that only the permitted classes of goods are displayed and sold to travellers, and they must adhere to the value, weight, and dimension specifications for the new class of airport shop goods. Failure to comply with these regulations could result in fines and other enforcement actions, as the regulations are designed to uphold the integrity of Australia's customs and quarantine laws. In the event of non-compliance, the Act provides for civil and criminal penalties. Those who violate the provisions regarding the sale of unpermitted goods in duty-free shops could face civil penalties, including fines. Under section 276 of the Customs Act 1901, the maximum penalty for each offence is 10,000 penalty units, which is a significant deterrent against non-compliance. Additionally, breaches may lead to criminal charges, with potential imprisonment for serious violations, as outlined in the Act. The enforcement of these penalties is overseen by the Australian Customs and Border Protection Service, ensuring that the regulations are adhered to and that the duty-free shopping experience is managed within legal parameters.

Legal classification tags

Area of Law
Customs Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Licensing & Registration
Compliance Obligations

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.