EXPLANATORY STATEMENT
Customs By-law No. 0904400
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 a 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
Item 20C was inserted into Part II of Schedule 4 to the Customs Tariff Act by the Customs Tariff Amendment (Australia-Chile Free Trade Agreement Implementation) Act 2008 (Act No. 128 of 2008). Item 20C sets out a duty rate of ‘Free’ for goods that are covered by an article of a free trade agreement between Australia and a foreign country relating to the export of goods from Australia for one or more of the following:
a) repair;
b) renovation;
c) alteration;
d) other similar processes.
Both the relevant article, and the free trade agreement between Australia and a foreign country are required to be prescribed by by-law.
Article 3.7 of the Australia-Chile Free Trade Agreement (the Agreement), done at Canberra on 30 July 2008 provides, in part, that:
Neither Party may apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory.
In this context, Australia and Chile are Parties.
Item 20C gives effect to Article 3.7 of the Agreement.
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Instrument
New By-law No. 0904400, which has effect on and from the date that Schedule 1 to the Customs Amendment (Australia-Chile Free Trade Agreement Implementation) Act 2008 commences, prescribes for the purposes of item 20C in Part II of Schedule 4 to the Customs Tariff Act, Article 3.7 of the Australia-Chile Free Trade Agreement.
Consultation
No consultation was undertaken specifically in relation to the amendments as they implement Australia’s international obligations under the Agreement.
Commencement
New By-law No. 0904400 takes effect on and from the date that Schedule 1 to the Customs Amendment (Australia-Chile Free Trade Agreement Implementation) Act 2008 commences, that is 6 March 2009.