Customs By-law No. 1134476

Overview

The Customs By-law No. 1134476 was enacted in 2011 to address a gap created by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. This Act amended the Customs Tariff Act 1995, leading to the reclassification of certain goods, specifically those under subheading 2903.49.10, to new subheadings such as 2903.71.00, 2903.72.00, 2903.73.00, 2903.74.00, 2903.75.00 and 2903.79.10, effective from 1 January 2012. In response to these changes, By-law No. 1134476 was introduced to replace the existing By-law No. 9940022, which was rendered obsolete by the reclassification. The new by-law maintains the same conditions for the application of duty rates but adjusts the subheading references to align with the updated tariff structure. Enacted under the authority of section 271 of the Customs Act 1901, the by-law was created to ensure that the customs regulations continue to accurately reflect the current tariff classifications.

Scope and Application

The Customs By-law No. 1134476, issued under the authority of Section 271 of the Customs Act 1901, applies specifically to chlorofluorinated derivatives of hydrocarbons that are classified under new subheadings 2903.72.00, 2903.73.00, 2903.74.00, 2903.75.00, and 2903.79.00 of the Customs Tariff. This by-law replaces the former By-law No. 9940022 which had applied to goods under subheading 2903.49.10 prior to the changes introduced by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. The by-law is applicable to these goods when they are used for degreasing or cleaning of radio, television, electronic or electrical apparatus, or parts thereof, and when used otherwise than in the degreasing or cleaning of metal surfaces. It does not apply to chlorodifluoromethane, which is separately classified under subheading 2903.71.00. This legislative instrument has a Commonwealth reach, and no consultation was undertaken due to its minor and machinery nature. The by-law came into effect from 1 January 2012, aligning with the changes mandated by the HS2012 Act.

Key Provisions

The main operative sections of this legislation, Customs By-law No. 1134476, are sections that address the application of duties to specific classes of goods, as prescribed by by-law, in accordance with section 271 of the Customs Act 1901 (section 271). This by-law, which replaces By-law No. 9940022, specifies the new subheadings under which chlorofluorinated derivatives of hydrocarbons, other than chlorodifluoromethane, will be classified for the purposes of applying a 'Free' rate of duty. These new subheadings are 2903.72.00, 2903.73.00, 2903.74.00, 2903.75.00, and 2903.79.00, which reflect the changes introduced by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011 (the HS2012 Act). The by-law imposes obligations on the parties or entities it governs by clearly defining the classes of goods that are eligible for the 'Free' rate of duty under the new subheadings. It also requires that these goods are used specifically for the degreasing or cleaning of radio, television, electronic or electrical apparatus, or parts thereof, or for uses other than the degreasing or cleaning of metal surfaces. These obligations ensure that the application of the 'Free' rate of duty is limited to the intended uses and classes of goods, maintaining the integrity of the tariff system. The by-law also introduces consequences for non-compliance. Although the explanatory statement does not detail specific offences or penalties, it is reasonable to infer that breaches of the by-law, such as the improper classification or use of the goods, could result in civil or criminal penalties under the Customs Act 1901. The maximum penalties for offences under the Customs Act can be substantial, including fines and imprisonment, depending on the severity and intent of the breach. Given the specific nature of the by-law, failure to comply with its provisions could lead to the imposition of duties on the affected goods, financial penalties, or other enforcement actions by the Chief Executive Officer of Customs.