EXPLANATORY STATEMENT
Customs By-law No. 1022040
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 and Border Protection 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
The United Nations Educational, Scientific and Cultural Organisation (UNESCO) Agreement on the Importation of Educational, Scientific and Cultural Materials (the Florence Agreement) (Florence, 1950) and the Protocol to the Agreement (the Protocol) (Nairobi, 1976) were designed to reduce tariff and trade obstacles for educational, scientific and cultural materials. The Parties to the Florence Agreement agreed not to apply customs duties on materials listed in the five annexes to this Agreement. The Protocol further extended the duty free exemption to additional materials.
Australia acceded to the Florence Agreement in 1990 and the Protocol in 1992.
Generally, the Florence Agreement and the Protocol apply to scientific instruments or apparatus intended exclusively for approved public or private scientific or educational institutions for educational purposes or pure scientific research where instruments or apparatus of equivalent scientific value are not being manufactured in the country of importation. The Florence Agreement and the Protocol also apply to spare parts, components or accessories specifically matching such scientific instruments or apparatus, and tools to be used for the maintenance, checking, gauging or repair of such instruments and apparatus.
In implementing the Florence Agreement and the Protocol, Australia removed customs duties on a wide range of goods to which the Florence Agreement and the Protocol apply by enacting item 1D in Schedule 4 to the Customs Tariff Act, which provides for a “Free” rate of customs duty for such goods.
Currently, By-laws Nos. 9140015, 9540003, 9740003, 0040007 and 0240008, made for the purposes of item 1D, list those scientific or educational organisations that can import the goods to which the Florence Agreement and the Protocol apply at a “Free” rate of customs duty.
Instrument
New By-law No. 1022040 adds the National Measurement Institute to the organisations that can import the goods to which the Florence Agreement and the Protocol apply at a “Free” rate of customs duty.
Consultation
No consultation was undertaken specifically in relation to By-law No. 1022040 as it implements Australia’s international obligations under the Florence Agreement.
Commencement
Customs By-law No. 1022040 is deemed to have taken effect on 1 January 2010.
Overview
The Customs By-law No. 1022040 was enacted in 2010 to align Australia's customs duties with its international commitments under the United Nations Educational, Scientific and Cultural Organisation (UNESCO) Agreement on the Importation of Educational, Scientific and Cultural Materials (the Florence Agreement) and its Protocol. The Customs Act 1901 empowers the Chief Executive Officer of Customs and Border Protection to make by-laws for items specified in the Customs Tariff, which includes those listed under the Customs Tariff Act 1995. This by-law specifically updates the list of organisations that can import scientific and educational materials at a "Free" rate of customs duty, adding the National Measurement Institute to the existing list to facilitate the smooth importation of necessary materials without customs duties. The by-law was implemented to ensure Australia's adherence to its international obligations and to support the objectives of the Florence Agreement and Protocol, which aim to reduce trade barriers for educational, scientific, and cultural materials.
Scope and Application
Customs By-law No. 1022040 amends the existing framework under the Customs Act 1901 to implement Australia's commitments under the UNESCO Agreement on the Importation of Educational, Scientific and Cultural Materials and its Protocol. This by-law specifically applies to the National Measurement Institute, allowing it to import scientific instruments, apparatus, spare parts, components, accessories, and tools intended for educational or research purposes without incurring customs duties. This by-law extends the existing provisions listed in By-laws Nos. 9140015, 9540003, 9740003, 0040007, and 0240008, which already cover a range of scientific and educational institutions eligible for duty-free importation of the specified materials. The by-law reflects Australia's obligations under the international agreements and facilitates the importation of these materials to support scientific research and education. The by-law came into effect on 1 January 2010, aligning with Australia's international commitments and enhancing the ability of the National Measurement Institute to acquire necessary scientific and educational resources without customs duty barriers.
Key Provisions
The Customs By-law No. 1022040 amends the list of scientific or educational organisations eligible to import goods under the Florence Agreement and Protocol at a "Free" rate of customs duty. Specifically, section 271 of the Customs Act 1901 authorises the Chief Executive Officer of Customs and Border Protection to make by-laws for items in the Customs Tariff, including those relating to the "Free" rate for certain goods under the Florence Agreement and Protocol. By-law No. 1022040 adds the National Measurement Institute to the list of approved organisations in By-laws Nos. 9140015, 9540003, 9740003, 0040007 and 0240008, which can import specified goods duty-free.
This by-law imposes obligations on the National Measurement Institute and other listed organisations to ensure they meet the criteria for importing goods under the Florence Agreement and Protocol. These criteria generally include the importation of scientific instruments or apparatus for educational or scientific research purposes where equivalent instruments are not manufactured in the country of importation. The organisations must also ensure that the imported goods are used solely for approved educational or scientific purposes.
Breaches of the provisions in the Customs By-law No. 1022040 can lead to significant consequences. Under the Customs Act 1901, offences involving the importation of goods contrary to the by-law provisions can result in both civil and criminal penalties. Civil penalties may include fines up to the maximum prescribed by the Customs Act, while criminal penalties could lead to imprisonment, depending on the severity of the breach. The exact penalties depend on the specific provisions breached and the discretion of the court.