EXPLANATORY STATEMENT
Customs By-law No. 1244196
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 22 in the new Schedule 4 replaces item 34 of the previous Schedule 4 to the Customs Tariff Act. Item 22 provides that goods, as prescribed by by-law:
a) imported on or in containers, are dutiable at the rate that would apply to the goods if they were imported separately; and
b) the containers are dutiable at the rate of “Free” where they will be exported without being put to any other use.
New By-law No. 1244196 combines previous By-laws No. 8840062, 8840064 and 8940017.
Instrument
By-law No. 1244196 prescribes goods imported on or in reusable containers, provided the containers will be exported within 12 months of the date they are entered for home consumption, without being put to further use, other than for the transport, storage, display, exhibition or dispensing of the goods with which they are imported.
By-law No. 1244196 does not apply to reusable containers which are required to be classified with the goods with which they are imported, by application of rule 5(b) of the General Rules for the Interpretation of the Harmonized System.
The by-law requires that a security be lodged with the Australian Customs and Border Protection Service to ensure compliance.
Consultation
No consultation was undertaken in relation to By-law No. 1244196 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. 1244196 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. 1244196, enacted in 2013, is a legislative instrument under the Customs Act 1901, which governs the regulation of customs duties in Australia. This by-law was introduced to address the need for updated regulations to align with the Customs Tariff Amendment (Schedule 4) Act 2012, which replaced the existing schedule of the Customs Tariff Act 1995. By-law No. 1244196 specifically targets the dutiable rates of goods imported on or in reusable containers that are intended for export within a year without further use, other than for specific purposes such as transport, storage, display, exhibition, or dispensing of the imported goods. This by-law consolidates and replaces previous by-laws, ensuring that the regulations are current and comprehensive, while also requiring the lodging of a security to ensure compliance with the stipulated conditions. The enactment of this by-law was carried out by the Australian Customs and Border Protection Service, an executive body under the purview of the Parliament of Australia, to maintain efficient customs administration and enforcement.
Scope and Application
Customs By-law No. 1244196 applies to goods imported into Australia on or within reusable containers, provided these containers are intended for exportation within 12 months without any further use beyond the transportation, storage, display, exhibition, or dispensing of the goods they contain. This by-law is applicable to all individuals and entities involved in the import of such goods, including importers, customs brokers, and logistics providers. It operates under the authority of the Customs Act 1901 and is designed to align with the revised Schedule 4 of the Customs Tariff Act 1995, as amended by the Customs Tariff Amendment (Schedule 4) Act 2012. The by-law specifies that these containers are subject to a "Free" duty rate, while the goods themselves are dutiable at the rate that would apply if imported separately. Exceptions include reusable containers that must be classified with the imported goods according to rule 5(b) of the General Rules for the Interpretation of the Harmonized System. Compliance is ensured through the requirement to lodge a security with the Australian Customs and Border Protection Service. The by-law does not alter existing arrangements and therefore no consultation was deemed necessary. It is noteworthy that this legislation does not affect any human rights as recognised or declared in international instruments. The by-law came into effect on 1 March 2013, coinciding with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
Section 271 of the Customs Act 1901 enables the Chief Executive Officer of Customs to make by-laws that prescribe goods to which certain items of the Customs Tariff apply. This specific by-law, No. 1244196, applies to goods imported on or in reusable containers that will be exported within 12 months without further use, except for the transport, storage, display, exhibition, or dispensing of the goods with which they are imported. By-law No. 1244196 consolidates previous by-laws No. 8840062, 8840064, and 8940017, providing a streamlined regulatory framework for such goods.
The by-law imposes several obligations on the parties it governs. Firstly, importers must ensure that any reusable containers are exported within 12 months of being entered for home consumption, without being put to any use other than those specified. Secondly, a security must be lodged with the Australian Customs and Border Protection Service to ensure compliance with the by-law. This security guarantees that the containers will be exported as required and that the associated duties will be paid if the containers are not exported within the specified timeframe.
Failure to comply with the provisions of By-law No. 1244196 may result in civil or criminal consequences. Under section 271 of the Customs Act 1901, breaches of a Customs by-law are subject to penalties. While the maximum penalties are not explicitly stated in the by-law itself, the Act generally provides for penalties that can include fines and, in more severe cases, imprisonment. The specific penalty for a breach would depend on the nature and severity of the breach, as well as any applicable provisions within the broader Customs Act 1901.
Overall, By-law No. 1244196 serves to regulate the import and export of goods in reusable containers, ensuring that appropriate duties are paid and that the containers are exported within a specified timeframe. The by-law imposes clear obligations on importers and provides for potential penalties for non-compliance, thereby maintaining the integrity of Australia's customs regulations.