EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 225
Issued by the Authority of the Minister for Home Affairs
Customs Act 1901
Customs Amendment Regulations 2008 (No. 6)
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 amending Regulations is to allow TCOs to be made for marine saddles and parts for such saddles. Marine saddles are specialized seats used in high speed marine applications, for example sea rescue vessels and police response vessels. They are designed to absorb the lateral and vertical shocks and stresses resulting from high speed travel over water.
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 amending Regulations amend Schedule 2 to the Principal Regulations to include marine saddles in column 3 of item 45A and parts for such saddles in column 3 of item 47. These goods are classified to subheadings 9401.7 and 9401.90.90 respectively of Schedule 3 to the Customs Tariff Act 1995.
These two subheadings are included in the respective items of Column 2 of Schedule 2 so, prior to the amending Regulations, a TCO could not be made for these goods.
Consultation was undertaken with industry and industry groups. The making of TCOs in respect of these goods will not adversely affect Australian industry as these products are not part of the general types of furniture manufactured in Australia.
The amending 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. 6), issued under the authority of the Minister for Home Affairs, were enacted to address a specific gap in the application of Tariff Concession Orders (TCOs) to marine saddles and their parts. The Customs Act 1901, particularly Part XVA, allows for the importation of certain goods free from customs duty through the issuance of TCOs. However, section 269SJ(1) of the Act stipulates that the Chief Executive Officer of Customs must not make a TCO for goods declared by the regulations to be ineligible for such concessions. Prior to the amendments, marine saddles and their parts were not eligible for TCOs as they were not listed in the relevant schedule of the Customs Regulations 1926. The policy objective of these Regulations is to facilitate the importation of these specialized goods, which are critical for high-speed marine operations, without incurring customs duty. The changes were made after consultation with industry stakeholders, who confirmed that the concession would not negatively impact Australian manufacturing of general furniture.
Scope and Application
The Customs Amendment Regulations 2008 (No. 6) pertains to the Customs Act 1901 and specifically amends the Customs Regulations 1926 to facilitate Tariff Concession Orders (TCOs) for marine saddles and parts thereof. These regulations apply to goods classified under specific headings in the Customs Tariff Act 1995, namely subheadings 9401.7 and 9401.90.90 of Schedule 3. The scope of these regulations extends to allowing the import of these specialised marine saddles and their parts into Australia without the imposition of customs duty, provided a TCO is in effect. The changes are designed to benefit sectors such as maritime rescue and law enforcement that rely on high-speed marine vessels, ensuring that the necessary equipment is readily available without financial barriers. The regulations do not extend to other types of goods or industries, as the amendment is specifically targeted at marine saddles and their parts. The regulations are applicable nationwide, reflecting the Commonwealth's jurisdiction over customs duties and imports. No exclusions or exemptions are stated within the provided text, and the application of the regulations is not extended or restricted by subordinate instruments.
Key Provisions
The Customs Amendment Regulations 2008 (No. 6) amend the Customs Regulations 1926 to facilitate the making of Tariff Concession Orders (TCOs) for marine saddles and parts for such saddles, as outlined in sections 270 and 269SJ of the Customs Act 1901 (the Act). Specifically, the Regulations modify Schedule 2 of the Principal Regulations, enabling the Commissioner of Customs (the CEO) to issue TCOs for these specialised items. These marine saddles and their parts, classified under subheadings 9401.7 and 9401.90.90 of Schedule 3 to the Customs Tariff Act 1995, are intended for high-speed marine applications, such as sea rescue vessels and police response vessels, and are designed to absorb shocks and stresses from high-speed travel over water.
The Regulations impose specific obligations on the parties involved, primarily the CEO of Customs. Section 269SJ(1) of the Act prohibits the CEO from making a TCO for goods that are declared by the regulations to be goods to which a TCO should not extend. However, the amending Regulations now permit TCOs for marine saddles and parts for such saddles by listing these items in column 3 of Schedule 2 of the Principal Regulations, thereby overriding the previous prohibition. This amendment aligns with the broader objective of the Customs Act to facilitate the import of certain goods without incurring customs duty under specified conditions.
In terms of compliance and enforcement, the Customs Amendment Regulations 2008 (No. 6) do not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches. However, any failure to adhere to the stipulations of the Customs Act and the amended Customs Regulations 1926 could potentially lead to legal repercussions. For instance, making a TCO for goods not permitted by regulation could be considered non-compliance with the Act, potentially leading to penalties as outlined in the Customs Act. The penalties for breaches of the Customs Act can include fines and, in severe cases, imprisonment, depending on the nature and extent of the offence. The Regulations themselves are designed to ensure clarity and facilitate the smooth operation of the import process for these specialised marine saddles.