EXPLANATORY STATEMENT
By-law No. 1243872
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 13 in the new Schedule 4 replaces item 9 of the previous Schedule 4 to the Customs Tariff Act 1995. Item 13 provides that goods, as prescribed by by-law, covered by Article 16 of the Treaty between Australia and Papua New Guinea, completed at Sydney in 1978, (the Treaty) are dutiable at the rate of “Free”.
New By-law No. 1243872 replaces previous By-law No. 9640037.
Instrument
By-law No. 1243872 prescribes goods imported by the traditional inhabitants of the area covered by the Treaty, for the use by these inhabitants, in traditional activities within, or in the vicinity of, the Protected Zone. The Protected Zone means the zone established under Article 10 of the Treaty, being the area bounded by the line described in Annex 9 to the Treaty.
The terms “traditional inhabitants”, “traditional activities” and “in the vicinity of” are defined by the by-law, as set out in the Treaty.
Consultation
No consultation was undertaken in relation to By-law No. 1243872 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. 1243872 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 Act 1901, as amended by the Customs Tariff Amendment (Schedule 4) Act 2012, introduces a new by-law to address the need for updated regulations concerning the importation of goods by traditional inhabitants of the Protected Zone under the Treaty between Australia and Papua New Guinea, completed at Sydney in 1978. This legislative update ensures that the new by-law aligns with the revised Customs Tariff and maintains the preferential treatment for goods imported for traditional use by these inhabitants. The by-law, replacing the previous one, specifies that the traditional inhabitants can import goods for their traditional activities within or in the vicinity of the Protected Zone duty-free, in accordance with the Treaty.
The Customs Tariff Amendment (Schedule 4) Act 2012 was enacted by the Parliament of Australia to modernise the Customs Tariff and rectify any legislative gaps that may have arisen from changes in trade agreements and tariff structures. By-law No. 1243872, which took effect on 1 March 2013, was introduced by the Chief Executive Officer of Customs in accordance with section 271 of the Customs Act 1901, aiming to streamline the customs process and ensure compliance with the new tariff schedule. The by-law does not affect existing human rights provisions and did not require consultation as it maintains the status quo of preferential treatment for the specified goods.
Scope and Application
The Customs Act 1901, through Section 271, empowers the Chief Executive Officer of Customs to create by-laws governing the application of items within the Customs Tariff, which are defined as acts imposing duties of customs. Specifically, By-law No. 1243872 applies to goods imported by traditional inhabitants for use in traditional activities within or near the Protected Zone, as established under the Treaty between Australia and Papua New Guinea, completed at Sydney in 1978. This by-law replaces the previous By-law No. 9640037, aligning with the new Schedule 4 of the Customs Tariff Act 1995 introduced by the Customs Tariff Amendment (Schedule 4) Act 2012. The by-law does not affect existing arrangements and therefore did not require consultation. It is applicable to traditional inhabitants engaging in traditional activities within the defined Protected Zone and aims to ensure these goods are dutiable at the rate of "Free". This by-law is effective from 1 March 2013, the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
By-law No. 1243872, made under section 271 of the Customs Act 1901, specifies the types of goods imported by the traditional inhabitants of the area covered by the Treaty between Australia and Papua New Guinea, completed at Sydney in 1978, that are to be considered exempt from customs duties. This by-law replaces the previous By-law No. 9640037, in light of the Customs Tariff Amendment (Schedule 4) Act 2012 which updates the Customs Tariff Act 1995. Specifically, the by-law prescribes the goods that are to be considered for duty exemption, which are those imported by the traditional inhabitants for their use in traditional activities within or in the vicinity of the Protected Zone. The Protected Zone is defined as the area bounded by the line described in Annex 9 to the Treaty, established under Article 10 of the Treaty.
The by-law imposes obligations on those importing goods into the Protected Zone, requiring them to ensure that the goods are imported by the traditional inhabitants for use in traditional activities within or near the Protected Zone. This includes compliance with the definitions of terms such as “traditional inhabitants”, “traditional activities”, and “in the vicinity of” as set out in the by-law and the Treaty. Importers must verify that the goods meet these criteria to benefit from the duty exemption.
Failure to comply with the provisions of this by-law may result in the goods being liable for customs duties as if they were not covered by the by-law. The by-law does not specify any particular offences, penalties, or consequences for non-compliance, but it is implied that any imported goods not meeting the criteria set out in the by-law would not qualify for the duty exemption, and thus would be subject to applicable customs duties.