EXPLANATORY STATEMENT
By-law No. 1104437
Customs Act 1901
Section 271 of the Customs Act 1901 (the Act) provides, in part, that where an item of the 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 may make by-laws for the purposes of that item. Section 4 of the Act defines “Customs Tariff” to mean an Act imposing duties of customs, which is the Customs Tariff Act 1995 (the Customs Tariff Act).
Background
A series of natural disasters occurred across Australia in early January 2011, including floods in Queensland, Victoria and New South Wales, Cyclone Yasi in North Queensland and bushfires around Perth in Western Australia, which forced the evacuation of thousands of people from towns and cities. These disasters affected at least 70 towns and over 200,000 people in Queensland alone, with “three quarters of Queensland declared a disaster zone” (Queensland Government Official website 10 February 2011).
Item 23A in Part II of Schedule 4 to the Customs Tariff Act applies to goods, as prescribed by by-law, that have been donated or bequeathed by a person, company or organisation domiciled or established outside Australia to an organisation established in Australia for the purposes of performing work of a philanthropic nature.
In the absence of By-law No. 1104437, a person must apply and the CEO or delegate of the CEO make a determination under section 273 of the Act for each importation of goods donated for disaster relief.
By-law No. 1104437 is made for the purposes of item 23A and provides for duty and GST free importation of goods that are donated to an organisation established in Australia for philanthropic purposes for disaster relief. By-law No. 1104437 facilitates the delivery of donated goods for disaster relief now and in the future, by providing a mechanism for
self-assessed clearance of those goods.
Instrument
Customs By-law No. 1104437 provides that subject to certain conditions, item 23A of Schedule 4 to the Customs Tariff Act applies to goods donated by a person, company or organisation domiciled or established outside Australia to an organisation established in Australia for the purposes of performing work of a philanthropic nature and the donation was for disaster assistance.
Consultation
Customs and Border Protection did not consult on By-law No. 1104437 because it is minor and machinery in nature.
Commencement
By-law No. 1104437 is deemed to have taken effect on and from 1 January 2011.
Overview
The Customs By-law No. 1104437, enacted in 2011, was introduced in response to the series of natural disasters that occurred in early 2011, which significantly impacted numerous towns and over 200,000 people in Queensland alone. This by-law was formulated under Section 271 of the Customs Act 1901, empowering the Chief Executive Officer of Customs to create by-laws for items in the Customs Tariff, as defined in Section 4 of the Act. The policy objective of By-law No. 1104437 is to facilitate the duty and GST-free importation of goods donated by entities outside Australia to organisations within Australia for the purpose of disaster relief, thereby expediting the delivery of essential goods in times of crisis.
The enactment of By-law No. 1104437 was a measure to streamline the clearance process for donated goods intended for disaster relief, reducing the administrative burden on both the donors and the recipient organisations. By providing a mechanism for self-assessed clearance of these goods, the by-law aims to ensure that vital supplies reach affected communities more efficiently, ultimately supporting the broader efforts of disaster response and recovery.
Scope and Application
The Customs By-law No. 1104437 applies to goods donated or bequeathed by individuals, companies, or organisations domiciled or established outside Australia to an organisation established within Australia for the purpose of performing work of a philanthropic nature, specifically for disaster relief. The by-law is instrumental in facilitating the duty and GST free importation of these goods, thereby expediting the delivery of relief efforts following natural disasters. This is particularly relevant in the context of the significant natural disasters that occurred in early 2011 across various regions of Australia. The by-law simplifies the importation process by allowing self-assessed clearance of donated goods, which would otherwise require individual determinations under section 273 of the Customs Act 1901. While the by-law was not subject to consultation due to its minor and machinery nature, its implementation has been deemed effective from 1 January 2011, providing a streamlined mechanism for the timely arrival of essential goods in disaster-affected areas.
Key Provisions
Section 1 of By-law No. 1104437 specifies the application of item 23A of the Customs Tariff Act, which pertains to goods donated by entities outside Australia to organisations within Australia that perform work of a philanthropic nature for disaster relief. This provision aims to streamline the process of importing such goods without incurring customs duties or GST, thereby facilitating faster delivery of necessary aid. Section 2 outlines the conditions under which the by-law applies, ensuring that the donated goods are indeed intended for disaster relief purposes and are imported with the appropriate documentation and declarations.
The by-law imposes several obligations on the parties involved. For instance, the donor must ensure that the goods meet the criteria set out in the by-law and that they are being donated for disaster relief purposes. The recipient organisation must be established in Australia and must be engaged in work of a philanthropic nature. Additionally, the by-law requires that the goods are properly declared upon importation, and any required documentation must be provided to facilitate the self-assessed clearance of these goods. This ensures that the importation process is transparent and compliant with the regulations.
Breach of the conditions outlined in By-law No. 1104437 could result in various consequences. Firstly, if the goods do not meet the criteria for duty and GST exemption, the importers may be liable to pay applicable duties and taxes. Secondly, any misrepresentation of the purpose of the donation or failure to provide accurate documentation could lead to investigations by Customs and Border Protection. In severe cases, this could result in the imposition of fines or other penalties. The specific penalties are not detailed in the by-law but would generally follow the guidelines provided in the Customs Act 1901 and related legislation, which can include substantial fines and, in extreme cases, criminal charges.