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.
Overview
The Customs By-law No. 1028768 was enacted in 2010 to facilitate the implementation of the Customs Tariff Act 1995 and to align with Australia's commitments under the UNESCO Agreement on the Importation of Educational, Scientific and Cultural Materials, known as the Florence Agreement, and its Protocol. This by-law was introduced to address the need for specific guidelines on the exemption of customs duties for educational, scientific, and cultural materials as stipulated in these international agreements. The enacting body was the Chief Executive Officer of Customs and Border Protection, under the authority provided by Section 271 of the Customs Act 1901. The policy objective of this by-law is to streamline the importation process for scientific and educational institutions by ensuring they are aware of which goods can be imported duty-free in accordance with Australia's international obligations.
This by-law adds the Australian Astronomical Observatory to the list of organisations eligible to import goods under the "Free" customs duty rate, thereby enhancing the ability of Australian scientific institutions to acquire necessary equipment without incurring customs charges. By doing so, it supports the objectives of the Florence Agreement and Protocol by reducing tariff barriers and fostering educational and scientific collaboration. The by-law was deemed to have taken effect on 1 July 2010, and no specific consultation was undertaken as it directly implements Australia's international obligations.
Scope and Application
The Customs By-law No. 1028768, issued under section 271 of the Customs Act 1901, extends the application of the Customs Tariff to include the Australian Astronomical Observatory as an entity eligible for a "Free" rate of customs duty on goods specified under the UNESCO Agreement on the Importation of Educational, Scientific and Cultural Materials and its Protocol. This by-law applies to the importation of scientific instruments, apparatus, and related spare parts, components, and accessories exclusively for educational purposes or pure scientific research, provided that such items are not being manufactured in Australia. By adding the Australian Astronomical Observatory to the list of authorised organisations under the by-law, the legislation ensures compliance with Australia's international obligations under the Florence Agreement and the Protocol, thereby facilitating duty-free importation of these specified goods. The by-law is effective as of 1 July 2010, and no specific consultation was undertaken for its enactment as it aligns with existing international commitments.
Key Provisions
The main operative sections of Customs By-law No. 1028768, which are relevant under section 271 of the Customs Act 1901, pertain to the inclusion of the Australian Astronomical Observatory in the list of entities that can import scientific and educational materials at a "Free" rate of customs duty, as per item 1D in Schedule 4 to the Customs Tariff Act. This by-law is intended to facilitate the importation of educational, scientific, and cultural materials as per the United Nations Educational, Scientific and Cultural Organisation (UNESCO) Agreement on the Importation of Educational, Scientific and Cultural Materials (Florence Agreement) and its Protocol.
The obligations imposed by this Act include ensuring that the Australian Astronomical Observatory, along with other listed entities, adhere to the terms set out in the by-law when importing goods that are exempt from customs duties under the Florence Agreement and its Protocol. These entities must meet the criteria that the materials are intended exclusively for educational purposes or pure scientific research and are not being manufactured domestically. This by-law serves to implement Australia’s obligations under international agreements, ensuring compliance with the stipulations of the Florence Agreement and the Protocol.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the explanatory statement for breach of Customs By-law No. 1028768. However, any non-compliance with the provisions of the Customs Act 1901 or the Customs Tariff Act 1995 could lead to penalties under those Acts. These could include fines or other sanctions as prescribed by law for breaches of customs regulations. It is essential that entities such as the Australian Astronomical Observatory strictly adhere to the conditions to avoid any potential legal repercussions.