EXPLANATORY STATEMENT
By-law No. 0618799 (replacing BL 9640079)
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).
Background
On 4 November 2006, the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 (the HS 2007 Act) received the Royal Assent. This Act inserts a new subheading, from 1 January 2007, that applies to some of the goods classified to existing subheading 3907.9. Subheading 3907.9 is referred to in existing item 38 of Schedule 4 to the Customs Tariff Act and related By-law No. 9640079.
Item 38 sets out a ‘Free’ rate of duty for goods, as prescribed by by-law, classified to certain subheadings, including subheading 3907.9. For item 38, existing By‑law No. 9640079 prescribes goods classified to subheading 3907.9 and other subheadings that are uncompounded polyamides and polyesters for use in the manufacture of fibres or yarns. The HS 2007 Act inserts new tariff subheading 3907.70.00 and some of the goods classified to existing subheading 3907.9 are reclassified to subheading 3907.70.00, with effect from 1 January 2007.
The HS 2007 Act also amends item 38 to insert a reference to new subheading 3907.70.00 with effect from 1 January 2007.
Instrument
To take into account the changes under the HS 2007 Act, By-law No. 9640079 is revoked from 1 January 2007 by Instrument of Revocation No. 1 (2006) and replaced by new By-law No. 0618799. The new By-law inserts an additional reference to new subheading 3907.70.00 but is otherwise the same substantially as By-law No. 9640107.
Consultation
No consultation was undertaken in relation to By-law No. 0618799 as it is of a minor and machinery nature and does not substantially alter existing arrangements.
Commencement
By-law No. 0618799 takes effect from 1 January 2007.