EXPLANATORY STATEMENT
Customs By-law No. 1028768
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, 0240008 and 1022040, 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. 1028768 adds the Australian Astronomical Observatory 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. 1028768 as it implements Australia’s international obligations under the Florence Agreement.
Commencement
Customs By-law No. 1028768 is deemed to have taken effect on 1 July 2010.