EXPLANATORY STATEMENT
By-law No. 0440002
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 22 in Part II of Schedule 4 to the Customs Tariff Act sets out a duty rate of ‘Free’ for goods, as prescribed by by-law, that are used in the exploration for oil or natural gas, or in the development of oil or natural gas wells.
For item 22 in Part II of Schedule 4, By-law No. 0440002, which was signed by a delegate of the Chief Executive Officer of Customs on 15 January 2004, prescribed goods that were the subject of a current Tariff Concession Order and were for the use directly in the exploration for oil or natural gas or in the development of oil or natural gas wells from the reservoir up to and including the christmas tree cap.
On 1 October 2006 By-law No. 0440002 (as signed by the delegate of the Chief Executive Officer of Customs on 15 January 2004) ceased to be enforceable and was taken to have been repealed by the operation of section 32 of the Legislative Instruments Act 2003.
To preserve the duty rate of ‘Free’ for goods that were covered by the repealed by-law, a new By-law 0440002 prescribing the same goods as the repealed by-law has been made.
Instrument
New By-law No. 0440002, which has effect on and from 1 October 2006, prescribes for item 22 in Part II of Schedule 4 to the Customs Tariff Act, goods that are subject of a current Tariff Concession Order and are for use directly in the exploration for oil or natural gas or in the development of oil or natural gas wells from the reservoir up to and including the christmas tree cap.
Consultation
No consultation was undertaken in relation to new By-law No. 0440002 as it is of a minor and machinery nature and does not alter existing arrangements.
Commencement
New By-law No. 0440002 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.