EXPLANATORY STATEMENT
By-law No. 0340004
Customs Act 1901
Section 271 of the Customs Act 1901 (the Act) provides, in part, that where an item of a Customs Tariff is expressed to apply to goods, or to a class or kind of goods, as prescribed by a by-law, the Chief Executive Officer of Customs may make by-laws for the purposes of that item. A Customs Tariff is defined in section 4 of the Act to mean an Act imposing duties of customs, that is the Customs Tariff Act 1995 (the Customs Tariff Act).
Background
Item 25A in Part II of Schedule 4 to the Customs Tariff Act sets out a duty rate of ‘Free’ for trophies, as prescribed by by-law, which are won outside Australia.
For item 25A in Part II of Schedule 4, By-law No. 0340004, which was signed by a delegate of the Chief Executive Officer of Customs on 13 June 2003, prescribed trophies won outside Australia in competition being ornamental or utilitarian machines, appliances or articles of a kind used in an office or the household, or for display on walls or on stands or similar mounts.
By-law No. 0340004 also provided that a certificate from the organisers of the competition stipulating the name of the winner, the event and the date of the competition and the scope of the competitor taking part in the competition or copies of daily news media in which the competition was reported and with which the importer can be identified as a winner, will be sufficient to establish eligibility.
On 1 October 2006 By-law No. 0340004 (as signed by the delegate of the Chief Executive Officer of Customs on 13 June 2003) ceased to be enforceable and was taken to have been repealed by the operation of section 32 of the Legislative Instruments Act 2003.
To preserve the duty rate of ‘Free’ for trophies that were covered by the repealed by-law, a new By-law 0340004 prescribing the same trophies as the repealed by-law has been made.
Instrument
New By-law No. 0340004, which has effect on and from 1 October 2006, prescribes for Item 25A in Part II of Schedule 4 to the Customs Tariff Act the same trophies and requirements to establish eligibility as the by-law (By-law No. 0340004) which was signed by the delegate of the Chief Executive Officer of Customs on 13 June 2003 and was subsequently repealed by the operation of section 32 of the Legislative Instruments Act 2003.
Consultation
No consultation was undertaken in relation to new By-law No. 0340004 as it is of a minor and machinery nature and does not alter existing arrangements.
Commencement
New By-law No. 0340004 takes effect on and from 1 October 2006. Paragraph 273B(1)(b)(i) of the Act provides that a by-law shall take effect, or be deemed to have taken effect, from the date of publication, or from a date (whether before or after the date of publication) specified by or under the by-law. As the by-law does not increase duty, section 273C of the Act does not prohibit the by-law taking effect from 1 October 2006.
Overview
The Customs Act 1901 was enacted to provide for the regulation of customs and excise duties, as well as the control of imports and exports in Australia. The Act, as amended, empowers the Chief Executive Officer of Customs to make by-laws for the purposes of items in the Customs Tariff. By-law No. 0340004, which was introduced to preserve the duty rate of 'Free' for trophies won outside Australia, was necessitated by the repeal of the original by-law under section 32 of the Legislative Instruments Act 2003. This new by-law, effective from 1 October 2006, maintains the same prescriptions and eligibility requirements as the repealed version, ensuring that the duty rate for such trophies remains unchanged. The by-law was not subject to consultation as it was considered minor and did not alter existing arrangements.
Scope and Application
By-law No. 0340004 under the Customs Act 1901 applies to trophies won outside Australia that fall within the category of ornamental or utilitarian machines, appliances or articles typically used in an office or household, or for display on walls or stands. This by-law specifically pertains to the duty rate for such trophies, which is set at 'Free' as prescribed by the Customs Tariff Act 1995. To establish the eligibility of the trophies for this duty rate, the by-law requires either a certificate from the competition organisers or copies of daily news media reporting the competition and identifying the importer as a winner. The by-law applies to all individuals and entities importing these trophies into Australia. The geographic scope of the by-law is effectively nationwide as it pertains to imports into Australia. The by-law does not introduce new exclusions, exemptions, or thresholds beyond those already outlined in the Customs Tariff Act 1995 and related legislation. It is important to note that the by-law does not extend or restrict its application beyond what is specified, and there are no subordinate instruments that modify its scope or application. The by-law came into effect on 1 October 2006, replacing a previous by-law that had been repealed, and it maintains the same criteria for establishing the eligibility of trophies for the 'Free' duty rate.
Key Provisions
Section 271 of the Customs Act 1901 allows the Chief Executive Officer of Customs to make by-laws for specific items in the Customs Tariff, which is defined in section 4 as the Customs Tariff Act 1995. Specifically, item 25A in Part II of Schedule 4 of the Customs Tariff Act pertains to trophies won outside Australia, which are exempt from duty. By-law No. 0340004, signed on 13 June 2003, initially prescribed these trophies as being ornamental or utilitarian machines, appliances, or articles used in an office or household, or for display on walls or stands. It also stipulated that eligibility could be proven through a certificate from the competition organisers or copies of news media reporting the competition.
The Act imposes obligations on parties importing trophies to ensure that these trophies meet the by-law's criteria. Importers must provide either a certificate from the competition organisers or copies of news media reporting the competition to establish their eligibility for the duty exemption. This documentation must clearly identify the importer as the winner of the competition and include specific details such as the name of the winner, the event, and the date of the competition. These requirements are essential to ensure compliance with the by-law and to maintain the duty exemption status for the trophies.
Failure to comply with the requirements set out in By-law No. 0340004 could result in the loss of the duty exemption, potentially leading to additional customs duties and penalties. Although the explanatory statement does not explicitly detail the penalties for non-compliance, under the Customs Act, breaches can lead to civil or criminal penalties. Civil penalties can include fines, while criminal penalties may include imprisonment, depending on the severity and intent of the breach. It is crucial for importers to adhere to these requirements to avoid any legal repercussions.