EXPLANATORY STATEMENT
Customs By-law No. 1243684
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. The Customs Tariff Act 1995 (the Customs Tariff Act) is a Customs Tariff for the purposes of the Act.
Background
The Customs Tariff Amendment (Schedule 4) Act 2012 will repeal the existing Schedule 4 of the Customs Tariff Act and replace it with a new Schedule 4. As part of this process, new by-laws are required for all items that provide for goods to be prescribed by by-law.
Item 10 in the new Schedule 4 replaces item 4 of the previous Schedule 4 to the Customs Tariff Act. Item 10 provides that goods, as prescribed by by-law, which are owned by the government of a foreign country and for the official use of that government, are dutiable at the rate of “Free”.
New By-law No. 1243684 replaces previous By-law No. 9640032.
Instrument
By-law No. 1243684 prescribes goods, quantities of goods and uses of goods that the Minister has approved in writing prior to importation.
The goods must:
a) be owned by the government of a country other than Australia at the time of entry for home consumption;
b) be for the official use of that government; and
c) must not be used for the purposes of trade.
Consultation
No consultation was undertaken in relation to By-law No. 1243684 as it does not alter existing arrangements.
Human Rights Implications
This by-law 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.
Commencement
By-law No. 1243684 takes effect on and from the date that the Customs Tariff Amendment (Schedule 4) Act 2012 commences, that is 1 March 2013.
Overview
The Customs By-law No. 1243684, enacted in 2013, was introduced to address the need for updated regulatory measures in line with the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law was necessitated by the repeal of the existing Schedule 4 of the Customs Tariff Act 1995 and its replacement with a new Schedule 4, which required corresponding adjustments to the customs by-laws governing the importation of goods. Specifically, By-law No. 1243684 updates the regulations for the importation of goods owned by foreign governments for official use, ensuring they remain consistent with the new tariff structure and legislative framework. The by-law was enacted by the Minister for Revenue and Financial Services under the authority conferred by section 271 of the Customs Act 1901 and aims to maintain the integrity of customs regulations while facilitating the import of goods for official government purposes without incurring customs duties.
Scope and Application
Customs By-law No. 1243684 applies to goods that are owned by the government of a foreign country and intended for the official use of that government, provided they are not used for trade purposes. These goods are to be imported into Australia and must comply with the stipulations set forth by the by-law to qualify for the duty-free treatment specified under Item 10 of the new Schedule 4 of the Customs Tariff Act 1995. The by-law outlines that the goods must be owned by a foreign government at the time of entry for home consumption and must not be intended for commercial use. This by-law is applicable on a national level within Australia and is enforced by the Chief Executive Officer of Customs, who has the authority to make such by-laws under Section 271 of the Customs Act 1901. By-law No. 1243684, which took effect from 1 March 2013, serves to replace the previous By-law No. 9640032 and provides updated criteria for the duty-free importation of specified goods under the amended Customs Tariff.
Key Provisions
The main operative sections of Customs By-law No. 1243684 outline the specific requirements for goods that are to be prescribed under the Customs Tariff. This by-law, as noted in section 271 of the Customs Act 1901, is made to facilitate the application of item 10 in the new Schedule 4 of the Customs Tariff Act 1995, which specifies that goods owned by the government of a foreign country and intended for the official use of that government are to be dutiable at the rate of "Free." To qualify under this by-law, the goods must be owned by a foreign government at the time of entry into Australia for home consumption, must be intended for official use by that government, and must not be used for trade purposes.
The obligations and requirements imposed by this by-law on the parties or entities it governs are quite specific. Importers must ensure that the goods they are importing meet the criteria set out in the by-law, namely that the goods are owned by a foreign government and are for official use, not trade. Additionally, the by-law stipulates that the Minister must approve the goods, their quantities, and their intended uses in writing before importation. This approval process ensures that only goods that genuinely meet the criteria for exemption from duty are imported under this provision.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in the explanatory statement for breaches of this by-law. However, it is reasonable to infer that any non-compliance with the conditions set out in the by-law could lead to the goods being subject to duty, thereby impacting the importer’s financial obligations. Furthermore, any misuse of the exemption for commercial purposes could potentially lead to more severe consequences, including fines or other penalties as prescribed by the Customs Act 1901 or other relevant legislation.