EXPLANATORY STATEMENT

By-law No. 0540002

Customs Act 1901

Background

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 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.  The Customs Tariff Act 1995 (the Customs Tariff Act) is a Customs Tariff for the purposes of the Act.

Item 15 of Schedule 4 to the Customs Tariff Act provides that the following goods are dutiable at the rate of ‘Free’:

Goods, as prescribed by by-law, being:

(a)  goods imported by passengers or members of the crew of ships or aircraft;

(b)  goods that:

(i)  at the time they are approved for delivery for home consumption, are the property of a person who has arrived in Australia on an international flight within the meaning of section 96B of the Customs Act 1901; and

(ii)  were purchased by that person in an inwards duty free shop within the meaning of that section;

(c)  goods, brought into, or sent to, Australia by such members of the Defence Force stationed outside Australia as are prescribed by by-law;

(d)  goods imported by members of the forces of Canada, New Zealand or the United Kingdom; or

(e)  passengers' personal effects, furniture or household goods

Before 1 February 2005, there were a number of by-laws made for the purpose of item 15.  These by-laws covered the following goods:

–          accompanied baggage of crew not ordinarily domiciled in Australia (by-law no. 9740006);

–          alcoholic liquors and tobacco products imported by crew (only available if not used in the past ten days) (by-law no. 9740017);

–          alcoholic beverages, tobacco productions, perfume concentrate and toilet waters (by-law no. 9840019); and

–          accompanied and unaccompanied goods of passengers and crew that are not commercial goods (by-law no. 0240009);

–          goods with combined duty, goods and services tax and wine equalisation tax that does not exceed $50 (by-law no. 0240010).

In particular, these by-laws allowed a passenger or crew member to import 1,125 ml of alcoholic beverages, 250 grams of tobacco products and in addition certain other goods with a purchase price that does not exceed $400 ($200 for children) duty free.  These concessions are increased to 2,250 ml of alcoholic beverages and goods with a value not exceeding $900 (for adult passengers).  The amount of the tobacco products concession remains the same.  Crew and children are able to import certain goods with a value not exceeding $450 duty free.  However, if the amount or value of the goods exceeds the limits of these concessions on alcoholic beverages, tobacco products or other goods, duty will be payable on the entire amount or value of the goods.  For example, if a passenger imports 3,000 ml of alcoholic beverages, 300 grams of tobacco products and $850 of other goods, he or she will have to pay duty in relation to the 3,000 ml of alcoholic beverages and 300 grams of tobacco.  This is different from the previous by-laws where duty was only payable on the amount or value in excess of the concession.

An open packet of cigarettes containing 25 or less cigarettes in the possession of an adult will also be able to be imported duty free.

The by-law that allows goods with combined duty, goods and services tax and wine equalisation tax that does not exceed $50 to be imported without the payment of duty is repealed. 

The previous by-laws are combined into two by-laws.  One will apply to personal goods, alcoholic beverages, tobacco products and other non-commercial goods that have a value not exceeding those set out above that are accompanied baggage.  The second will cover certain accompanied or unaccompanied:

–          clothing;

–          articles of personal hygiene or grooming;

–          caravans, trailers and boats;

–          aircraft;

–          machinery, plant and equipment, and

–          fur apparel, person effects. furniture and household goods.

Instrument

By-law no. 0540002 prescribes the second set of goods.  The descriptions of the goods and some of the definitions have been amened to make them clearer however the concessions have not been changed.

Consultation

Representatives of the National Tourism Alliance (NTA), consisting of 22 major tourism industry associations together with eight State and Territory Tourism Industry Councils acting as a single industry co-ordinating body, have been consulted at length during the process. 

Commencement

By-law no. 0540002 commences on 1 February 2005.