EXPLANATORY STATEMENT
Customs By-law No. 1243830
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 12 in the new Schedule 4 combines items 5 (goods for the use of a Trade Commissioner who is not an Australian citizen) and item 6 (goods for the use of a Trade Commissioner who is an Australian citizen) of the previous Schedule 4 to the Customs Tariff Act. Item 12 provides that goods, as prescribed by by-law, which are for the official use of a Trade Commissioner of any country, are dutiable at the rate of “Free”.
There are currently no by-laws concerning goods for the use of a Trade Commissioner.
Instrument
By-law No. 1243830 prescribes goods that, at the time of entry for home consumption, are for the official use of a Trade Commissioner of any country. The by-law excludes alcoholic beverages, tobacco products, motor vehicles, aircraft and seacraft from the application of item 12.
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.
Consultation
No consultation was undertaken in relation to By-law No. 1243830 as it does not alter existing arrangements.
Commencement
By-law No. 1243830 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. 1243830 was enacted in 2013 to address the legislative gap created by the Customs Tariff Amendment (Schedule 4) Act 2012, which involved the replacement of the existing Schedule 4 of the Customs Tariff Act 1995 with a new Schedule 4. This change necessitated the creation of new by-laws for items in the Customs Tariff that required prescription by by-law, including those concerning goods for the official use of a Trade Commissioner of any country. The Customs Act 1901 authorised the Chief Executive Officer of Customs to create these by-laws, ensuring compliance with the updated tariff schedule. This by-law was enacted by the relevant legislature to implement the changes without any consultation as it did not alter existing arrangements. The by-law took effect from 1 March 2013, the date the Customs Tariff Amendment (Schedule 4) Act 2012 commenced.
Scope and Application
The Customs By-law No. 1243830, made under Section 271 of the Customs Act 1901, governs the application of dutiable rates for goods that are for the official use of a Trade Commissioner of any country. This by-law applies to goods intended for the official use of a Trade Commissioner, excluding alcoholic beverages, tobacco products, motor vehicles, aircraft, and seacraft, which are explicitly excluded from the application of Item 12 in the new Schedule 4 of the Customs Tariff Act. The by-law, effective from 1 March 2013, applies across Australia and is subject to the overarching framework provided by the Customs Act 1901 and the Customs Tariff Act 1995. As this by-law does not change existing arrangements, it does not engage, impact on, or limit any human rights and freedoms as recognised in the international instruments under the Human Rights (Parliamentary Scrutiny) Act 2011. No consultation was deemed necessary given the nature of the changes, which were strictly procedural in consolidating existing provisions under a new legislative framework.
Key Provisions
Section 271 of the Customs Act 1901 allows the Chief Executive Officer of Customs to create by-laws that specify which goods are subject to a particular item in the Customs Tariff. This authority is exercised through Customs By-law No. 1243830, which sets out the goods that are eligible for duty-free treatment when used by Trade Commissioners of any country, as outlined in the new Schedule 4 of the Customs Tariff Act. This by-law excludes certain goods such as alcoholic beverages, tobacco products, motor vehicles, aircraft, and seacraft from the duty-free treatment specified in item 12 of the Customs Tariff Act.
Under this by-law, Trade Commissioners from any country can import goods for their official use without incurring customs duties, provided these goods are not excluded by the by-law. This creates a streamlined process for Trade Commissioners to bring necessary goods into the country for their official duties, thereby supporting international trade and diplomatic relations.
The by-law imposes clear obligations on Trade Commissioners and Customs officers to ensure that the goods being imported are correctly identified as for official use and that they fall within the categories permitted by the by-law. Trade Commissioners must declare the intended use of the goods accurately, while Customs officers must verify that these declarations align with the provisions of By-law No. 1243830.
Failure to comply with the requirements of the by-law could result in the goods being subject to customs duties, potentially leading to financial penalties for the Trade Commissioner. The Act does not specify a maximum penalty for breaches in this context, but generally, penalties for non-compliance with customs regulations can include fines and, in severe cases, criminal prosecution. Accurate and truthful declarations are thus crucial to avoid any potential legal consequences.