EXPLANATORY STATEMENT
By-law No. 0540005
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 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).
On 8 November 2005, item 64 of Schedule 4 to the Customs Tariff Act was repealed and replaced. New item 64 provides that the following goods are dutiable at the rate of ‘Free’:
Goods, as prescribed by by-law, that are:
(a) imported on or after 1 January 2006 and before 1 July 2006 by, or on behalf of, non-Australian Commonwealth Games Family members, as defined by by-law, for use in, or for purposes related to, the Melbourne 2006 Commonwealth Games; and
(b) entered for home consumption on or after 1 January 2006 and before 1 July 2006
New By-law 0540005 prescribes for the purposes of new item 64 non-commercial goods imported into Australia, by non-Australian Commonwealth Games Family members other than:-
a) alcoholic beverages and tobacco products;
b) motor vehicles and motor vehicle parts;
c) transmission apparatus and systems for radio-broadcasting or television and parts thereof, including outside broadcasting units and studio equipment;
d) television cameras for television studios or for reporting; and
e) television and radio broadcasting mixing and editing equipment.
Such goods will also be exempt from the payment of goods and services tax as their importation is a non-taxable importation in accordance with the A New Tax System (Goods and Services Tax) Act 1999.
By-law 0540005 also defines non-Australian Commonwealth Games Family members for the purposes of item 64. A non-Australian Commonwealth Games Family member is a person who is not an Australian citizen who is a participant in, an official of, or an accredited member of a delegation to, the 2006 Melbourne Commonwealth Games.
The by-law takes effect on and from 1 January 2006 and ceases to have effect on 1 July 2006.
A similar concession was provided for the Sydney 2000 Olympic and Paralympic Games.
By-law 0540005 is of a minor or machinery nature and does not substantially alter existing arrangements. The Victorian Government was consulted in relation to the by-law and the State and Territory Treasurers agreed to the concession.
Overview
The Customs Act 1901 was amended to include By-law No. 0540005, which was enacted to address the need for duty-free importation of certain goods for the Melbourne 2006 Commonwealth Games. This by-law was introduced by the Australian Government through the Customs Tariff Act 1995, which defines the Customs Tariff and allows for the imposition of duties on goods. The objective of this legislation is to facilitate the smooth running of the Games by exempting specific non-commercial goods from customs duties and GST, provided they are imported by non-Australian Commonwealth Games Family members for use during the event. This policy mirrors the concessions made for the Sydney 2000 Olympic and Paralympic Games, ensuring a consistent approach to major sporting events held in Australia. The by-law explicitly excludes certain items such as alcoholic beverages, tobacco products, and broadcasting equipment to maintain regulatory standards and prevent potential misuse.
Scope and Application
By-law No. 0540005 under the Customs Act 1901 provides specific exemptions for non-commercial goods imported into Australia by non-Australian Commonwealth Games Family members for use in or related to the Melbourne 2006 Commonwealth Games. This by-law applies to non-Australian citizens who are participants, officials, or accredited members of a delegation to the Games. The by-law, which took effect from 1 January 2006 and ceased on 1 July 2006, exempts certain non-commercial goods from duty and GST, with exclusions including alcoholic beverages, tobacco products, motor vehicles, and broadcasting equipment. This legislative measure aligns with the minor or machinery nature of the by-law, reflecting a continuation of similar concessions provided for previous major events such as the Sydney 2000 Olympic and Paralympic Games. The by-law was developed in consultation with the Victorian Government and received agreement from the State and Territory Treasurers.
Key Provisions
The operative sections of By-law 0540005, made under section 271 of the Customs Act 1901, establish that specific non-commercial goods imported into Australia by non-Australian Commonwealth Games Family members for use in or related to the Melbourne 2006 Commonwealth Games will be dutiable at the rate of ‘Free’ from 1 January 2006 to 1 July 2006. This concession applies to items such as sports equipment, personal effects, and other non-commercial goods, except those listed as exclusions such as alcoholic beverages, tobacco products, motor vehicles, broadcasting equipment, and other specified items. Additionally, these goods will be exempt from goods and services tax (GST) under the A New Tax System (Goods and Services Tax) Act 1999. The by-law also defines who qualifies as a non-Australian Commonwealth Games Family member, which includes participants, officials, or accredited delegation members of the 2006 Melbourne Commonwealth Games who are not Australian citizens.
The obligations imposed by this by-law primarily concern the classification and documentation of imported goods. Importers must ensure that the goods they bring into Australia fall within the defined categories and are properly declared as non-commercial items for the Commonwealth Games. They must also provide evidence that the items are for personal use or related to their involvement in the Games. Failure to comply with these requirements could result in the goods being subject to standard duty rates and GST, negating the intended tax concessions.
Breaches of the conditions set out in By-law 0540005 can lead to civil and criminal consequences. Importers who fail to correctly classify and declare their goods may be subject to fines and other penalties under the Customs Act 1901. The specific penalties for incorrect classification can vary, but they may include financial penalties and, in some cases, prosecution. Accurate documentation and adherence to the by-law's provisions are essential to avoid these consequences. The by-law is designed to facilitate the smooth importation of goods for the Commonwealth Games while ensuring compliance with customs regulations.