EXPLANATORY STATEMENT
By-law No. 0619031 (replacing BL 9640107)
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 (Act No. 118, 2006). This Act repealswill amend, from 1 January 2007, a tariff heading to which existing Customs By-law No. 9640107 appliesrefers.
Item 21 of Schedule 4 to the Customs Tariff Act sets out a duty rate of ‘Free’ for applies to goods, as prescribed by by-law, that are imported for repair, alteration or industrial processing and are to be exported. For item 21, existing Customs By-law No. 9640107 applies prescribes goods that are to recorded magnetic tape or film classified to heading 8524 imported for industrial processing and to be exported upon completion export. The HS 2007 Act repeals heading to be amended is 8524 and goods classified to heading 8524 are reclassified to heading 8523, with effect from 1 January 2007.: This heading will be replaced by 8523.
Instrument
To take into account the changes under the HS 2007 Act, By-law No. 9640107 is being revoked from 1 January 2007 by Instrument of Revocation No. 1 (2006) and replaced by -issued asnew By-law No. 0619031. The new By-law substitutes the reference to heading 8524 with a reference to heading 8523 but is otherwise the same substantially as By-law No. 9640107. to include reference to the above heading.
The amended by-law will preserve the coverage of By-law No. 9640107.
Consultation
No consultation was undertaken in relation to By-law No. 0619031 as it is of a minor and machinery nature and does not substantially alter existing arrangements.
Commencement
By-law No. 0619031 will takes effect on and from 1 January 2007.
Overview
The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which received Royal Assent on 4 November 2006, amended the Customs Tariff Act 1995 to update the tariff headings for goods under the Harmonized System. To align with these changes, the Customs Act 1901 was updated to reflect the new tariff headings. As a result, Customs By-law No. 9640107, which previously applied to goods classified under heading 8524, was revoked and replaced by new By-law No. 0619031. This new by-law applies to goods classified under heading 8523, effectively maintaining the same coverage and provisions as the previous by-law while adapting to the updated tariff headings. The changes were enacted by the Commonwealth Parliament and aim to ensure that customs regulations remain current with international standards and practices.
Scope and Application
The Customs Tariff Amendment (2007 Harmonised System Changes) Act 2006 introduced changes to the Customs Tariff Act 1995, impacting the classification of goods under the Harmonised System, effective from 1 January 2007. Specifically, By-law No. 9640107, which previously prescribed the application of a 'Free' duty rate to recorded magnetic tapes or films classified under heading 8524 imported for repair, alteration, or industrial processing and subsequently exported, was revoked and replaced by By-law No. 0619031. This new by-law adjusts the reference from heading 8524 to heading 8523, aligning with the changes under the Customs Tariff Amendment (2007 Harmonised System Changes) Act 2006. The new by-law applies to the same types of goods as the previous one, ensuring continuity in the duty treatment of these imports and exports. The scope and application of By-law No. 0619031 remain consistent with that of its predecessor, preserving existing arrangements for the specified goods.
Key Provisions
The Customs Act 1901 (section 271) authorises the Chief Executive Officer of Customs to create by-laws that apply to items listed in the Customs Tariff. Section 4 of the Act defines a Customs Tariff as the Customs Tariff Act 1995. Under this authority, By-law No. 0619031 has been issued to replace By-law No. 9640107, effective from 1 January 2007. This new by-law aligns with the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which modifies the tariff headings applicable to certain goods. Specifically, By-law No. 0619031 pertains to goods classified under heading 8523, which replaces the previous heading 8524.
By-law No. 0619031 imposes obligations on importers and exporters of goods classified under heading 8523. These obligations include ensuring that the goods imported for repair, alteration, or industrial processing are appropriately documented and comply with the by-law’s conditions. The by-law applies to goods that are imported for specified purposes and are intended to be exported after the required processing. Importers and exporters must adhere to these regulations to avoid any potential legal complications.
Failure to comply with the provisions of By-law No. 0619031 may result in legal consequences. The Customs Act 1901 outlines various offences and penalties for breaches of its provisions. While specific penalties for this by-law are not detailed in the explanatory statement, breaches of customs regulations generally may result in fines, seizure of goods, and other enforcement actions. The maximum penalties can vary depending on the severity of the breach and the specific provisions of the Customs Act that are contravened.