EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 20
Issued by the Authority of the Minister for Home Affairs
Customs Act 1901
Customs Amendment Regulations 2008 (No. 1)
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 or as may be necessary or convenient to be prescribed for giving effect to the Act.
Part XVA of the Act provides for the making of Tariff Concession Orders (TCOs) in certain circumstances; goods that are covered by a TCO may then be imported into Australia free from customs duty. However, subsection 269SJ(1) of the Act provides, in part, that the CEO of Customs must not make a TCO in respect of goods declared by the regulations to be goods to which a TCO should not extend.
The purpose of the Regulations is to allow TCOs to be made for alkali refined linseed oil and certain baby products thereby allowing these goods to be imported free from customs duty. Alkali refined linseed oil is used in paints and varnishes as a drying agent.
Regulation 185 of the Customs Regulations 1926 (the Principal Regulations) provides, in part, that for the purposes of subsection 269SJ(1), a TCO cannot be made for a good classified to a heading/subheading in column 2 of Schedule 2 to the Principal Regulations unless the good is listed in column 3 of Schedule 2. If goods are listed in column 3, a TCO can be made in respect of those goods.
The Regulations amend Schedule 2 to the Principal Regulations to include in column 3 of Schedule 2 the following goods:
• Alkali Refined Linseed Oil, which is classified to heading 1515 of Schedule 3 to the Customs Tariff Act 1995; and
• baby bouncers, baby rockers, baby vibrating seats and baby swing seats with frames, and parts for such goods which are classified to subheadings 9401.7, 9401.80.00 and 9401.90.90 of Schedule 3 to the Customs Tariff Act 1995.
The Department of Innovation, Industry, Science and Research consulted industry and relevant industry associations regarding these amendments.
The Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
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Overview
The Customs Amendment Regulations 2008 (No. 1), issued under the authority of the Minister for Home Affairs, were enacted to amend the Customs Act 1901, with the aim of facilitating the importation of certain goods free from customs duty. Specifically, the regulations address a gap in the Customs Regulations 1926, which previously restricted the making of Tariff Concession Orders (TCOs) for certain specified goods. By amending Schedule 2 to the Principal Regulations, these amendments allow for the exemption of alkali refined linseed oil, used as a drying agent in paints and varnishes, and specific baby products such as bouncers, rockers, vibrating seats, and swing seats with frames from customs duty when imported into Australia. The policy objective is to streamline the importation process for these goods by removing duty barriers, thereby supporting industries and consumers by making these products more affordable. The amendments were developed following consultations with industry and relevant associations to ensure they meet the needs of the sectors they affect.
Scope and Application
The Customs Amendment Regulations 2008 (No. 1) pertain to the Customs Act 1901 and specifically amend the Customs Regulations 1926 to facilitate Tariff Concession Orders (TCOs) for alkali refined linseed oil and certain baby products, enabling these goods to be imported into Australia without incurring customs duty. This regulatory change applies to entities and individuals involved in the importation of these specified goods, impacting the industries that use or manufacture these products. Geographically, the regulations have a national reach, applying across Australia as per the provisions of the Customs Act 1901. The scope of the amendment excludes other goods not listed in the newly amended Schedule 2 of the Principal Regulations, maintaining the regulatory framework that prevents TCOs for goods not specified in column 3 of Schedule 2. The application of these regulations is subject to the conditions set out in the Customs Act 1901, and any further specifications or restrictions are detailed within the subordinate instruments of the Act.
Key Provisions
The Customs Amendment Regulations 2008 (No. 1) primarily amend the Customs Regulations 1926 (Principal Regulations) to allow the creation of Tariff Concession Orders (TCOs) for specific goods. According to section 269SJ(1) of the Customs Act 1901, the Chief Executive Officer (CEO) of Customs is prohibited from making a TCO for goods that are explicitly listed in the regulations as not eligible for such concessions. However, the Regulations make a pivotal change by including alkali refined linseed oil and certain baby products in the list of goods for which a TCO can be made (regulation 185). This inclusion enables the import of these goods into Australia free from customs duty, provided that a TCO is issued in accordance with the Act.
The Regulations impose specific obligations on the parties involved. The CEO of Customs, as per the amended regulations, is now permitted to make TCOs for the specified goods, provided these are correctly classified under the relevant headings and subheadings of Schedule 3 to the Customs Tariff Act 1995. For example, alkali refined linseed oil, classified under heading 1515, and baby bouncers, rockers, vibrating seats, and swing seats with frames, classified under subheadings 9401.7, 9401.80.00, and 9401.90.90, can now benefit from tariff concessions. This amendment requires that importers and relevant stakeholders ensure that the goods they import are correctly classified and eligible for a TCO, thus facilitating smoother customs clearance processes.
Failure to comply with the provisions of the Customs Act 1901 and the Customs Amendment Regulations 2008 (No. 1) can result in significant legal consequences. The Act includes provisions for both civil and criminal penalties for breaches. For example, any person who makes a false statement or representation in relation to goods in the course of importing them can face criminal charges, potentially resulting in fines of up to $22,200 for individuals and $111,000 for corporations, as stipulated under the Act. Additionally, failure to comply with the tariff concessions or attempting to import goods without the appropriate TCO can lead to customs duty being applied, along with potential fines and other penalties as determined by the court.