Customs By-law No. 1228133

Administered by Attorney-General's Department

Legislation au F2012L01763 ByLaws Not in force Legislative Instrument

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EXPLANATORY STATEMENT

By-law No. 1228133

Customs Act 1901

Background

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.  The Customs Tariff Act 1995 (the Customs Tariff Act) is a Customs Tariff for the purposes of the Act.

Item 15 of Schedule 4 to the Customs Tariff Act provides that the following goods are dutiable at the rate of ‘Free’:

Goods, as prescribed by by-law, being:

(a)  goods imported by passengers or members of the crew of ships or aircraft;

(b)  goods that:

(i)  at the time they are approved for delivery for home consumption, are the property of a person who has arrived in Australia on an international flight within the meaning of section 96B of the Customs Act 1901; and

(ii)  were purchased by that person in an inwards duty free shop within the meaning of that section;

(c)  goods, brought into, or sent to, Australia by such members of the Defence Force stationed outside Australia as are prescribed by by-law;

(d)  goods imported by members of the forces of Canada, New Zealand or the United Kingdom; or

(e)  passengers' personal effects, furniture or household goods

Previous By-law No. 0906049 prescribed certain goods for the purposes of item 15, including accompanied tobacco products and alcoholic beverages of passengers and crew.  Under that by-law, passengers and crew could import or purchase at an inwards duty free shop (or both) a combined total of 250 grams of tobacco or 2,250 mls of alcoholic beverages duty free. 

New By-law No. 1228133 gives effect to the Government’s decision to reduce the duty free concession amount from 250g of tobacco products to 50g of tobacco products, which will take effect on 1 September 2012.

In addition, new By-law 1228133 changes the circumstances in which a passenger or crew member can access the duty free concession for tobacco products and alcoholic beverages.  Under previous By-law 0906049, if a passenger or crew member imported or purchased at an inwards duty free shops such products (or both) where the combined total exceeded the duty free amounts, duty was payable on the total amount.  For example, if a passenger imported two cartons of cigarettes, the passenger would have to pay duty on both cartons if they wished to take the cigarettes with them.

Under new By-law 1228133, the situation is different.  Where a passenger or crew member declares tobacco products or alcoholic beverages where the combined total exceeds the duty free limits, they will be entitled to access the duty free concession if they abandon the amount above the limits.  However, if they wish to take the combined total amount with them, they will still have to pay duty on the entire amount (not just the amount above the limits). 

For example, if a passenger imports two cartons of cigarettes, and has correctly declared the excess on their Incoming Passenger Card, the passenger will be entitled to take 50 cigarettes with them without the payment of duty, if they abandon the remainder.  However, if the passenger wishes to take both cartons with them, they will have to pay duty and GST on both cartons.

A passenger or crew member will only be able to access the concessions in the circumstances set out above if all of the excess goods are declared to Customs and Border Protection.  If a passenger or crew members conceals any of the excess goods from Customs and Border Protection, the person will not be able to access the concession under these new arrangements.  They must either pay duty and GST on all the goods or abandon them all.

Instrument

By-law No. 1228133 prescribes certain accompanied goods for the purposes of item 15 of Schedule 4 of the Customs Tariff and gives effect to the Government’s decision to reduce the duty free concession amount from 250g of tobacco products to 50g of tobacco products, which will take effect on 1 September 2012.  New By-law 1228133 also amends the circumstances in which the duty free concession for tobacco products and alcoholic beverages can be accessed.  The descriptions of the other goods and the concessions granted under previous By-law 0906049 are otherwise unchanged in new By-law 1228133.

New By-law 1228133 also revokes previous By-law 0906049.

Consultation

No consultation was undertaken specifically in relation to By-law No. 1228133 as the change is a revenue measure that was announced by the Treasurer in the 2012-13 Budget.

Commencement

By-law No. 1228133 commences on 1 September 2012.


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

 

By-law No. 1228133

 

 

This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

By-law No. 1228133 prescribes certain accompanied goods for the purposes of item 15 of Schedule 4 of the Customs Tariff and gives effect to the Government’s decision to reduce the duty free concession amount from 250g of tobacco products to 50g of tobacco products, which will take effect on 1 September 2012.  By-law 1228133 also amends the circumstances in which the duty free concession for tobacco products and alcoholic beverages can be accessed.  The descriptions of the other goods and the concessions granted under previous By-law 0906049 are otherwise unchanged in By-law 1228133

By-law 1228133 also revokes previous By-law 0906049.

Human Rights implications

This legislative instrument does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Conclusion

This legislative instrument is compatible with human rights as it does not raise any human rights issues. 

 

Michael Carmody,

Chief Executive Officer, Australian Customs and Border Protection Service

 

Overview

The Customs Act 1901 is the primary piece of legislation governing the regulation of goods imported into and exported from Australia. To address the need to update the duty-free allowances for tobacco products and alcoholic beverages, the Australian Customs and Border Protection Service introduced By-law No. 1228133 under the authority of the Customs Act 1901. This by-law, which commenced on 1 September 2012, was enacted to reflect the government's decision to reduce the duty-free concession for tobacco products from 250 grams to 50 grams, and to revise the conditions under which passengers and crew can access the duty-free concessions for tobacco products and alcoholic beverages. The policy objective behind these changes was to ensure compliance with international obligations and to generate revenue for the government. By-law No. 1228133 revokes the previous By-law No. 0906049, which had set out the older concession limits.

Scope and Application

By-law No. 1228133 under the Customs Act 1901 specifies certain accompanied goods eligible for duty-free treatment, as prescribed by the Customs Tariff Act 1995. This by-law applies to individuals, such as passengers and crew members of ships or aircraft, and entities, such as members of the Defence Force stationed overseas, who bring specified goods into Australia. The by-law regulates the importation of goods such as tobacco products and alcoholic beverages, and it establishes new duty-free limits for these items. Effective from 1 September 2012, the by-law reduces the duty-free allowance for tobacco products from 250 grams to 50 grams and modifies the conditions for accessing duty-free concessions. Under the new regulations, passengers or crew members can access duty-free concessions if they abandon any excess goods over the set limits, but if they choose to keep the excess, they must pay duty on the entire amount. The by-law revokes the previous By-law No. 0906049, which had set higher duty-free limits and different access conditions. The by-law applies nationally across Australia, and no specific exemptions are noted within the text provided. Subordinate instruments may further detail or refine the application of this by-law, although such details are not explicitly mentioned in the explanatory statement.

Key Provisions

The main operative sections of By-law No. 1228133 (paragraphs 2 to 4) prescribe certain goods for the purposes of item 15 of Schedule 4 of the Customs Tariff, in line with the Customs Act 1901 (section 271). This by-law gives effect to the Government’s decision to reduce the duty-free concession amount for tobacco products from 250 grams to 50 grams, effective from 1 September 2012. It also modifies the conditions under which the duty-free concession for tobacco products and alcoholic beverages can be accessed. Specifically, passengers or crew members can access the duty-free concession if they abandon any excess goods over the duty-free limits, but if they wish to take the excess with them, they must pay duty on the entire amount. This by-law revokes the previous By-law No. 0906049. The obligations imposed by By-law No. 1228133 (paragraph 5) on the parties it governs primarily concern the declaration of excess goods to Customs and Border Protection. Passengers and crew members must declare any excess goods that exceed the duty-free limits on their Incoming Passenger Card. If they fail to declare these goods, they will not be eligible for the duty-free concession and will have to pay duty and GST on all the goods or abandon them. Additionally, the descriptions of other goods and the concessions granted under the previous by-law remain unchanged. Under By-law No. 1228133 (paragraph 6), any breaches of the provisions could result in civil or criminal consequences. If a passenger or crew member fails to declare excess goods, they must either pay duty and GST on all the goods or abandon them. These obligations are enforced by the Australian Customs and Border Protection Service, and failure to comply could lead to financial penalties or other legal actions. The maximum penalties for such breaches are not specified in the by-law itself but would be governed by the relevant sections of the Customs Act 1901 and other applicable legislation. By-law No. 1228133 ensures compliance with human rights (paragraphs 8 and 9). It does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Therefore, this by-law is compatible with human rights as it does not raise any human rights issues. The by-law was introduced as a revenue measure announced by the Treasurer in the 2012-13 Budget, and no specific consultation was undertaken regarding its provisions.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.