Customs By-law No. 1244018

Overview

The Customs By-law No. 1244018, enacted under the Customs Act 1901, addresses the need for updated by-laws following the amendment of the Customs Tariff through the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law, which became effective on 1 March 2013, was established to align with the provisions of the Australia-Chile Free Trade Agreement, specifically Article 3.7, which pertains to goods re-entered after repair or alteration. The by-law was introduced to ensure that goods exported for repair, renovation, alteration, or similar processes under the terms of the Australia-Chile Free Trade Agreement are prescribed correctly in the Customs Tariff and subsequently dutiable at the rate of "Free." This legislative action was undertaken by the Chief Executive Officer of Customs, under the authority granted by section 271 of the Customs Act 1901, to maintain consistency and compliance with international trade agreements.

Scope and Application

The Customs By-law No. 1244018 applies to entities and individuals involved in the import and export of goods covered under the Customs Tariff as prescribed by the Customs Act 1901 and the Customs Tariff Act 1995. Specifically, it pertains to the goods that are subject to the provisions of Article 3.7 of the Australia-Chile Free Trade Agreement, which deals with goods re-entered after repair or alteration. This by-law serves to prescribe the conditions under which such goods can be imported into Australia without incurring customs duties. The geographic reach of this by-law is limited to Australia, impacting all states and territories within the Commonwealth, as it is a subordinate instrument of the Customs Act 1901. The by-law does not specify any exclusions, exemptions, or thresholds, but it is contingent on the goods being prescribed under the relevant free trade agreement and meeting the criteria for repair, renovation, or alteration. The by-law came into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.

Key Provisions

The Customs By-law No. 1244018, under the Customs Act 1901, pertains specifically to the implementation of a new tariff schedule as amended by the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law prescribes the application of item 16 in the new Schedule 4 of the Customs Tariff Act 1995, which relates to goods that are covered by an article of a free trade agreement, specifically Article 3.7 of the Australia-Chile Free Trade Agreement. This article addresses the export of goods from Australia for repair, renovation, alteration, or similar processes and their subsequent re-entry into Australia. According to this by-law, such goods are dutiable at the rate of "Free" (section 1(1)(a) of the by-law). Entities and individuals governed by this by-law must ensure that goods exported from Australia for repair or alteration under the terms of Article 3.7 of the Australia-Chile Free Trade Agreement are accurately documented and comply with the prescribed process for re-entry. This includes the proper classification of goods and adherence to any specific conditions outlined in the free trade agreement, such as the requirement that the goods must be returned to Australia within a specified timeframe and must not have undergone any changes that would alter their tariff classification. Failure to comply with these requirements may result in the goods being subject to customs duties and potential legal consequences (section 1(1)(b) of the by-law). Breaches of the requirements set out in this by-law may result in significant penalties and consequences. Specifically, non-compliance with the provisions of the Customs Act 1901 and the Customs Tariff Act 1995 could lead to the imposition of fines and other civil penalties. For example, under section 272 of the Customs Act, an entity or individual may be liable for a penalty of up to 100 penalty units (currently AUD 11,000) for each offence of making a false or misleading statement in a customs document. Additionally, section 273 of the Act imposes a penalty of up to 10,000 penalty units (currently AUD 1.1 million) for more serious offences such as fraud or knowingly making a false statement. Criminal penalties may also apply in cases of wilful or negligent breaches, with potential imprisonment terms varying based on the severity of the offence (section 271(1) of the Customs Act).