EXPLANATORY STATEMENT
Customs By-law No. 1134478 (replacing Customs By-law 9840006)
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 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, which is the Customs Tariff Act 1995 (the Customs Tariff Act).
Background
On 26 July 2011, the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011 (the HS2012 Act) received the Royal Assent. This Act repeals, from 1 January 2012, a tariff subheading 6505.90.90 to which By-law 9840006 refers. This by-law is made for the purposes of item 40A of Schedule 4 to the Customs Tariff Act, textiles, clothing and footwear, as prescribed by the by-law.
Item 40A provides a ‘Free’ rate of duty for the above goods. For item 40A, existing By‑law No. 9840006 prescribes fabrics, weighing less than 125 grams per square metre, for use in the manufacture of headwear classified to subheading 6505.90.90. The HS2012 Act repeals subheading 6505.90.90 and the goods in this subheading are reclassified to a new subheading 6505.00.90, with effect from 1 January 2012.
Instrument
To take into account the changes under the HS2012 Act, By-law No. 9840006 is revoked from 1 January 2012 by Instrument of Revocation No. 1 (2011) and replaced by new By-law No. 1134478. The new by-law substitutes the reference to subheading 6505.90.90 with reference to new subheading 6505.00.90, but is otherwise the same as By-law No. 9840006.
Consultation
No consultation was undertaken in relation to By-law No. 1134478 as it is of a minor and machinery nature and does not alter existing arrangements.
Commencement
By-law No. 1134478 takes effect from 1 January 2012.
Overview
The Customs By-law No. 1134478, enacted in 2011, was introduced to address the changes necessitated by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which received Royal Assent on 26 July 2011. This legislative instrument was created to replace By-law No. 9840006, which had been rendered obsolete by the repeal of tariff subheading 6505.90.90, and to accommodate the reclassification of the relevant goods under the new subheading 6505.00.90, effective from 1 January 2012. The enactment body responsible for this by-law was the Chief Executive Officer of Customs, pursuant to section 271 of the Customs Act 1901. The policy objective behind this by-law is to ensure that the regulations governing customs duties remain up-to-date and aligned with the most recent amendments in the Customs Tariff, thereby facilitating smooth and compliant trade operations.
Scope and Application
The Customs By-law No. 1134478, which supersedes By-law No. 9840006, applies to goods classified under the Customs Tariff as textiles, clothing, and footwear, specifically to fabrics used in the manufacture of headwear that weigh less than 125 grams per square metre. This by-law is made under Section 271 of the Customs Act 1901 and relates to the Customs Tariff Act 1995, impacting the duties and tariffs on these goods. The by-law is operative nationally and applies to all entities importing these specified goods into Australia, thereby affecting industries involved in the importation and manufacturing of headwear fabrics. By-law No. 1134478 was enacted to reflect the changes made by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which reclassified certain goods from subheading 6505.90.90 to 6505.00.90 from 1 January 2012. This by-law does not specify any exclusions or exemptions but ensures that the application of the 'Free' rate of duty continues for the reclassified goods as per the Customs Tariff Act.
Key Provisions
Section 271 of the Customs Act 1901 empowers the Chief Executive Officer of Customs to create by-laws to implement specific tariff items as prescribed by the Customs Tariff Act 1995. The Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011 (HS2012 Act) resulted in the repeal of tariff subheading 6505.90.90, previously referenced in By-law No. 9840006. Consequently, Instrument of Revocation No. 1 (2011) revoked By-law No. 9840006, which was subsequently replaced by By-law No. 1134478, effective from 1 January 2012. This new by-law applies to fabrics weighing less than 125 grams per square metre, intended for use in the manufacture of headwear, but now references the new subheading 6505.00.90 instead of the repealed subheading 6505.90.90.
By-law No. 1134478 mandates that the revised tariff subheading 6505.00.90 applies to fabrics intended for headwear manufacture, aligning with the changes introduced by the HS2012 Act. This by-law ensures that the duty rates and classifications for these fabrics are accurately reflected under the updated tariff system. It is imperative that importers, manufacturers, and other relevant parties ensure their goods comply with the new classification to avoid any duty misclassification or non-compliance issues. The by-law requires adherence to the new subheading for accurate tariff application and duty assessment.
Non-compliance with the provisions of By-law No. 1134478 may result in penalties. The Customs Act 1901 outlines various penalties for breaches, including fines and potential criminal charges for deliberate non-compliance. The maximum penalties can vary based on the severity of the breach, but they may include substantial fines and imprisonment for serious offences. Importers and manufacturers must ensure their goods meet the criteria specified in the by-law to avoid these consequences. Accurate classification and adherence to the updated tariff subheading are crucial to prevent penalties and maintain compliance with Australian customs regulations.