EXPLANATORY STATEMENT
Customs By-law No. 1300536
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 17 in the new Schedule 4 replaces item 17 of the previous Schedule 4 to the Customs Tariff Act. Item 17 provides that goods, as prescribed by by-law, that have been exported from Australia and returned to Australia without having been subject to any treatment, repair, renovation, alteration or any other process since their export are dutiable at the rate of “Free”.
There are currently no by-laws attached to item 17.
Instrument
By-law No. 1300536 prescribes goods that have been exported from Australia on a temporary basis to the Australian Antarctic Territory, including Heard and McDonald islands.
Consultation
No consultation was undertaken in relation to By-law No. 1300536 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. 1300536 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. 1300536, enacted under the Customs Act 1901, was introduced to address the need for updated regulations following the amendment of the Customs Tariff through the Customs Tariff Amendment (Schedule 4) Act 2013. This by-law was enacted by the Chief Executive Officer of Customs, as authorised by section 271 of the Customs Act 1901, which permits the creation of by-laws for items in the Customs Tariff. The Customs Tariff Amendment (Schedule 4) Act 2012 necessitated new by-laws to replace the existing ones for all items that prescribe goods by by-law. Specifically, By-law No. 1300536 pertains to item 17 of the new Schedule 4, which allows for the exemption from duty of goods exported from Australia and subsequently returned without undergoing any alterations. This by-law aims to ensure that goods temporarily exported to the Australian Antarctic Territory, including Heard and McDonald Islands, are not subject to duty upon their return. Importantly, this by-law does not involve any human rights implications and was implemented on 1 March 2013, the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012.
Scope and Application
The Customs By-law No. 1300536 applies to goods that have been exported from Australia and subsequently returned without undergoing any treatment, repair, renovation, alteration, or other processes since their export, specifically to the Australian Antarctic Territory, including Heard and McDonald Islands. This by-law is made under the authority granted by section 271 of the Customs Act 1901, which allows the Chief Executive Officer of Customs to create by-laws for items of the Customs Tariff. The by-law exempts these particular goods from any customs duty when they are returned to Australia, as long as they have not been subjected to any processes since their initial export. The scope of the by-law is confined to the geographic area of the Australian Antarctic Territory and Heard and McDonald Islands, and it has a national jurisdictional reach, being implemented under the Commonwealth Customs Act 1901. There are no stated exclusions, exemptions, or thresholds in the by-law itself, though its application is inherently limited to the prescribed goods and the specified geographic area. 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. 1300536 under the Customs Act 1901 introduces specific provisions regarding the duty on goods that have been exported from Australia and subsequently returned without undergoing any treatment, repair, renovation, alteration, or other processes. According to Section 271 of the Act, the Chief Executive Officer of Customs is empowered to create by-laws that detail the application of items in the Customs Tariff. This particular by-law (Section 1300536) addresses Item 17 of the Customs Tariff Act 1995, which now includes a new Schedule 4 following the Customs Tariff Amendment (Schedule 4) Act 2012. It specifies that goods exported from Australia and returned without any modifications are subject to a "Free" duty rate, provided they meet the criteria set out in the by-law.
Under this by-law, the primary obligation for any party exporting goods from Australia on a temporary basis, such as to the Australian Antarctic Territory including Heard and McDonald islands, is to ensure that these goods are returned without having undergone any treatment, repair, renovation, alteration, or other processes. This is crucial as the by-law exempts such goods from duty charges, provided they comply with the stipulations. The by-law aims to streamline the process for goods that are temporarily exported and subsequently returned, ensuring that they do not incur additional costs if they meet the outlined criteria.
Failure to comply with the by-law's provisions may not explicitly outline specific penalties or consequences within the explanatory statement; however, general provisions under the Customs Act 1901 could apply. Breaches of customs regulations can result in a range of civil and criminal penalties. Civil penalties may include fines up to the maximum prescribed by the Act, which can be substantial. Criminal penalties could involve imprisonment, with the exact duration and fine amounts depending on the severity and nature of the breach. These penalties underscore the importance of adhering to the by-law’s requirements to avoid any legal repercussions.