EXPLANATORY STATEMENT
By-law No. 0618808 (replacing BL 0604883)
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 By-law No. 0604883 refers.
Existing item 73 sets out concessional rates of duty for goods, as prescribed by by‑law, which are certain clothing and finished textiles that qualify under the Product Diversification Scheme. For item 73, existing Customs By-law No. 0604883 prescribes certain goods, including goods defined in the Product Diversification Scheme and classified to subheadings 6117.20.00 and 6303.11.10. The HS 2007 Act repeals subheadings 6117.20.00 and 6303.11.10 and goods classified to these subheadings are reclassified to new subheading 6117.80.10 and existing subheading 6303.19.10 respectively, with effect from 1 January 2007.
Instrument
To take into account the changes under the HS 2007 Act, By-law No. 0604833 is revoked from 1 January 2007 by Instrument of Revocation No. 1 (2006) and replaced by new By-law No. 0618808. The new By-law substitutes the references to subheadings 6117.20.00 and 6303.11.10 with references to subheadings 6117.80.10 and 6303.19.10 respectively but is otherwise the same substantially as By-law No. 0604833.
Consultation
No consultation was undertaken in relation to By-law No. 0618808 as it is of a minor and machinery nature and does not substantially alter existing arrangements.
Commencement
By-law No. 0618808 takes effect from 1 January 2007.
Overview
The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 was enacted to address the need for updating tariff subheadings in alignment with the international Harmonized System of 2007. This Act repeals several tariff subheadings and reclassifies goods to new subheadings effective from 1 January 2007. To accommodate these changes, the Customs (Concessional Rates of Duty) By-law No. 0618808 was introduced, replacing the previous By-law No. 0604883. This new by-law, which took effect from the same date, adjusts the references to the repealed subheadings to their new classifications while maintaining the substance of the original provisions. The enactment of this by-law ensures the continuity of concessional duty rates for certain clothing and finished textiles under the Product Diversification Scheme, aligning with the updated tariff classifications.
Scope and Application
The Customs Act 1901, as amended by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, pertains to the regulation of goods entering and exiting Australia, with specific application to items outlined in the Customs Tariff. Under section 271 of the Customs Act, the Chief Executive Officer of Customs is empowered to issue by-laws that specify the application of duty rates to certain goods, as detailed in the Customs Tariff Act 1995. The scope of By-law No. 0618808, which replaces By-law No. 0604883, is narrowly focused on adjusting the tariff subheadings for goods that qualify for concessional rates under the Product Diversification Scheme, such as certain clothing and finished textiles. This by-law applies nationally across Australia and takes effect from 1 January 2007, updating the classifications to align with the changes introduced by the HS 2007 Act. Although the by-law itself is minor and does not substantially alter existing arrangements, its precise application to the specified goods ensures compliance with the updated tariff classifications.
Key Provisions
The Customs Act 1901 (the Act) section 271 provides the authority for the Chief Executive Officer of Customs to make by-laws that prescribe certain goods for the application of tariff items, such as those outlined in the Customs Tariff Act 1995 (the Customs Tariff Act). Specifically, By-law No. 0618808, which replaces the previous By-law No. 0604883, prescribes goods for item 73 of the Customs Tariff, which pertains to certain clothing and finished textiles qualifying under the Product Diversification Scheme. This by-law is necessary to reflect changes in the Harmonised System (HS) 2007, which reclassified certain goods. The new by-law modifies references from the old subheadings 6117.20.00 and 6303.11.10 to the new subheadings 6117.80.10 and 6303.19.10 respectively.
By-law No. 0618808 imposes obligations on the parties and entities it governs by specifying which goods are eligible for the concessional rates of duty outlined in item 73. It requires these goods to be correctly classified under the new subheadings as per the HS 2007. This ensures that only the goods specified in the by-law qualify for the preferential tariff treatment, maintaining consistency and fairness in the application of the Customs Tariff Act. The by-law also mandates that any changes to the list of qualifying goods be updated in accordance with any future amendments to the Customs Tariff.
Failure to comply with the provisions of By-law No. 0618808 could result in legal consequences. Under the Customs Act, non-compliance could lead to the imposition of penalties, including fines and other civil or criminal penalties. The specific penalties depend on the nature and severity of the breach, and the maximum penalties are stipulated within the broader framework of the Customs Act. The by-law, being a regulatory measure, ensures that the prescribed goods are correctly classified and that the intended tariff concessions are accurately applied. This helps to prevent potential misuse of tariff benefits and ensures that the Customs Tariff Act is administered effectively.