EXPLANATORY STATEMENT
Customs By-law No. 1243816
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 8 in new Schedule 4 replaces items 28A and 28B of the previous Schedule 4 to the Customs Tariff Act. Item 8 paragraph (b) provides that traditional costumes, as prescribed by by-law, are dutiable at the rate of “Free”.
There are currently no by-laws concerning traditional costumes.
Instrument
By-law No. 1243816 prescribes traditional costumes that are authentic in design, made from traditional materials in the country of the tradition’s origin, and are imported by groups established for the purpose of performing in those traditional costumes.
Consultation
No consultation was undertaken in relation to By-law No. 1243816 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. 1243816 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. 1243816, introduced under the authority of the Customs Act 1901, was enacted to address the need for updated regulations concerning the importation of traditional costumes as specified in the new Schedule 4 of the Customs Tariff Act 1995. This by-law was formulated following the enactment of the Customs Tariff Amendment (Schedule 4) Act 2012, which necessitated new by-laws for items previously covered under repealed sections. The by-law, which came into effect on 1 March 2013, specifies that traditional costumes authentic in design and material, imported by groups for performance purposes, are dutiable at the rate of “Free”. This legislative instrument was developed without the need for consultation as it does not alter existing arrangements and has no implications on human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Customs By-law No. 1243816, established under section 271 of the Customs Act 1901, pertains specifically to the customs duties applicable to traditional costumes as defined by the by-law. This by-law applies to entities or individuals who import traditional costumes that are authentic in design and made from traditional materials in the country of origin. These costumes must be imported by groups established for the purpose of performing in these traditional costumes. The by-law is intended to ensure that such items are subject to the specified rate of "Free" as outlined in Item 8 of the new Schedule 4 to the Customs Tariff Act 1995, which replaced the previous items 28A and 28B. The by-law operates within the jurisdiction of the Commonwealth of Australia and does not extend beyond this national scope. It is noteworthy that this by-law does not engage or impact human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011. Commencing on 1 March 2013, the by-law aligns with the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
The main operative sections of By-law No. 1243816, under the Customs Act 1901, pertain to the duty rates on traditional costumes as outlined in the new Schedule 4 of the Customs Tariff Act 1995. Specifically, section 271 of the Customs Act allows the Chief Executive Officer of Customs to create by-laws governing the application of tariff items, and in this instance, By-law No. 1243816 specifies the customs duty for traditional costumes (section 271(1)). According to the by-law, traditional costumes that are authentic in design and made from traditional materials in the country of the tradition’s origin, and are imported by groups established for the purpose of performing in those traditional costumes, will be dutiable at the rate of “Free” (Schedule 4, Item 8, paragraph (b)).
The Act imposes specific obligations and requirements on the parties involved. Importers of traditional costumes must ensure that the costumes meet the criteria set out in By-law No. 1243816, which includes authenticity in design, material origin, and the purpose of importation for performance by a group established for this purpose. Failure to meet these criteria could result in the application of different duty rates, which may not be advantageous for the importer. Additionally, customs officers and the Department of Home Affairs are required to enforce and interpret the by-law accurately to ensure compliance.
There are no specific offences outlined in the explanatory statement for breaches of By-law No. 1243816, but general provisions of the Customs Act 1901 apply. If an importer does not comply with the by-law, they could be liable for penalties under the Customs Act. These penalties can include fines, with the maximum penalty often being determined by the severity of the breach and the duty evaded. Civil and criminal consequences could also apply if there is wilful intent to evade duty, leading to more severe penalties, including imprisonment. The precise penalties are not detailed in the explanatory statement but would be in accordance with the general enforcement provisions of the Customs Act.