Customs By-law No. 0817449
Item 22A of Schedule 4 to the Customs Tariff Act 1995
Explanatory Statement
Section 271 of the Customs Act 1901 provides that the Chief Executive Officer of Customs may make by-laws for the purposes of an item of the Customs Tariff that is expressed to apply to goods, or to a class or kind of goods, as prescribed by by-law.
Background
The Eastern Greater Sunrise offshore area straddles Australia's boundary and the Joint Petroleum Development area, which is jointly administered by Australia and Timor-Leste by virtue of the Timor Sea Treaty signed on 20 May 2002 between the two countries.
The Eastern Greater Sunrise offshore area is the area described in Schedule 7 of the Offshore Petroleum Act 2006.
Following extensive negotiations between the Governments of Australia and Timor-Leste, the Unitisation of the Sunrise and Troubadour Fields Agreement (the IUA) was signed on 6 March 2003, with entry into force on 23 February 2007. This agreement allows for the development of the petroleum resources of the Greater Sunrise field, which comprises the Sunrise and Troubadour petroleum reservoirs. In particular, Article 22(3) of the Agreement between the Government of Australia and the Government of the Democratic Republic of Timor-Leste relating to the IUA provides for goods and equipment entering the Eastern Greater Sunrise area for purposes related to petroleum activities to be free of customs duty.
The Customs Tariff Amendment (Greater Sunrise) Act 2004 is the domestic legislation that gives effect to Article 22(3) of the IUA. This Act inserted item 22A into Schedule 4 to the Customs Tariff Act 1995 (the Customs Tariff) and provides for the duty free entry of goods, as prescribed by by-law, for use in petroleum activities in the Eastern Greater Sunrise offshore area. The commencement of this by-law gives effect to Australia’s commitment under Article 22(3) of the IUA.
Instrument
By-law No. 0817449 prescribes the goods (being goods for use in a petroleum activity in the Eastern Greater Sunrise offshore area, in accordance with the definition of “petroleum activity” in the Customs Tariff) for the purposes of item 22A of Schedule 4 to the Customs Tariff. The Eastern Greater Sunrise offshore area has the same meaning as it has in the Offshore Petroleum Act 2006.
It should be noted that this by-law does not cover goods used for personal domestic purposes, and users of the by-law will be ineligible for fuel tax credits on fuel entering the Eastern Greater Sunrise offshore area.
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Consultation
No consultation was undertaken in relation to new By-law No. 0817449 as it is of a minor and machinery nature.
Commencement
Customs By-law No. 0817449 takes effect from 1 August 2008.