EXPLANATORY STATEMENT
By-law No. 0618807 (replacing BL 9940021)
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 repeals, from 1 January 2007, a number of tariff subheadings to which existing item 36 of Schedule 4 to the Customs Tariff Act 1995 and related By-law No. 9940021 refers.
Existing item 36 sets out a ‘Free’ rate of duty for goods, as prescribed by by-law, that are classified to certain subheadings, including subheadings 3702.32.00, 3702.39.00 and 3702.44.00. For item 36, existing By‑law No. 9940021 prescribes goods classified to subheadings 3702.32.00, 3702.39.00, 3702.44.00 and 3702.93.00 that are sensitised film, blue or orthochromatic, for certain technical uses. The HS 2007 Act repeals subheadings 3702.32.00, 3702.39.00 and 3702.44.00 and the goods classified to these subheadings are reclassified to new subheadings 3702.32.90, 3702.39.90 and 3702.44.90 respectively, with effect from 1 January 2007.
The HS 2007 Act also amends item 36 to substitute the references to subheadings 3702.32.00, 3702.39.00 and 3702.44.00 with references to new subheadings 3702.32.90, 3702.39.90 and 3702.44.90 respectively, with effect from 1 January 2007.
Instrument
To take into account the changes under the HS 2007 Act, By-law No. 9940021 is revoked from 1 January 2007 by Instrument of Revocation No. 1 (2006) and replaced by new By-law No. 0618807. The new By-law substitutes the references to subheadings 3702.32.00, 3702.39.00 and 3702.44.00 with references to new subheadings 3702.32.90, 3702.39.90 and 3702.44.90 respectively but is otherwise the same substantially as By-law No. 9940021.
Consultation
No consultation was undertaken in relation to By-law No. 0618807 as it is of a minor and machinery nature and does not substantially alter existing arrangements.
Commencement
By-law No. 0618807 takes effect from 1 January 2007.
Overview
The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 (HS 2007 Act) was enacted to address the need to update and align Australia's Customs Tariff with the changes in the Harmonized System (HS) 2007, which is an internationally recognised commodity nomenclature for the classification of goods. This Act, passed by the Australian Parliament, aims to ensure that the Australian Customs Tariff remains consistent with international trade standards and practices. Section 271 of the Customs Act 1901 empowers the Chief Executive Officer of Customs to make by-laws to implement the Customs Tariff. Consequently, By-law No. 0618807 was introduced to replace By-law No. 9940021, updating the tariff subheadings to reflect the changes mandated by the HS 2007 Act, while maintaining the same substantive provisions.
Scope and Application
The Customs Act 1901 applies to goods imported into or exported from Australia, as well as to related activities and transactions conducted by individuals and entities. Specifically, the Act governs the imposition of customs duties and other charges on imported goods, the regulation of the import and export of goods, and the administration of related compliance and enforcement measures. The Act applies to all persons and entities involved in the import or export of goods, including importers, exporters, carriers, and customs brokers, as well as to the goods themselves. The Act has a national reach, applying to all states and territories within Australia. However, certain exclusions and exemptions may apply, such as for goods that are exempt from duty under a free trade agreement or other arrangement. The Act may also be extended or restricted through subordinate instruments, such as by-laws made under section 271 of the Act. In this case, the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 amended the Customs Tariff Act 1995, which in turn affected the Customs Act 1901. By-law No. 0618807, which replaced By-law No. 9940021, was made to reflect these changes and took effect from 1 January 2007.
Key Provisions
The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 (HS 2007 Act) led to the replacement of existing By-law No. 9940021 with new By-law No. 0618807, effective from 1 January 2007. This change was necessitated by the HS 2007 Act, which repealed certain tariff subheadings and reclassified the affected goods to new subheadings. Under Section 271 of the Customs Act 1901, the Chief Executive Officer of Customs has the authority to create by-laws to apply to items of the Customs Tariff. The Customs Tariff Act 1995 (Customs Tariff Act) defines the Customs Tariff, which is an Act imposing duties of customs.
The primary operative sections of By-law No. 0618807 mirror the content of By-law No. 9940021 but update the references from the repealed subheadings (3702.32.00, 3702.39.00, and 3702.44.00) to the new subheadings (3702.32.90, 3702.39.90, and 3702.44.90) as specified in the HS 2007 Act. This by-law prescribes the application of a ‘Free’ rate of duty for sensitised film, blue or orthochromatic, for certain technical uses. The by-law applies to goods classified under these new subheadings, ensuring continuity in the duty regime for these specific goods as per the legislative changes.
The Act imposes several obligations on parties and entities involved in the importation and classification of the specified goods. Importers and customs brokers must ensure that the goods are correctly classified under the new subheadings as prescribed by the by-law. This classification is critical for determining the applicable duty rate, which remains 'Free' as per the by-law’s provisions. Failure to correctly classify the goods could result in incorrect duty payments, leading to potential financial liabilities or legal repercussions.
Additionally, the Act mandates that the Chief Executive Officer of Customs and relevant stakeholders are kept informed about the changes in the Customs Tariff and the corresponding updates in the by-law. This ensures that there is no ambiguity in the application of duties and that all parties are compliant with the current legislative requirements. The by-law itself does not outline specific penalties for non-compliance but any breaches of the Customs Act 1901, including incorrect classification or duty payments, can result in civil or criminal penalties. These may include fines and imprisonment, depending on the severity and intent behind the breach.