EXPLANATORY STATEMENT
Customs By-law No. 1300557
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 3 in the new Schedule 4 combines items 1A and 1C of the previous Schedule 4 to the Customs Tariff Act. Item 3 paragraphs (a) and (b) provides that goods, as prescribed by by-law, that are visual or auditory materials to which Annex C to the Educational, Scientific and Cultural Materials Agreement applies or Annex C.2 to the Educational, Scientific and Cultural Materials Protocol applies, are dutiable at the rate of “Free”.
New By-law No. 1300557 replaces previous By-laws Nos. 9140012 and 9140014.
Instrument
By-law No. 1300557 prescribes:
a) microforms;
b) patterns, models and wall charts that are for demonstration purposes; and
c) film.
For the purposes of this by-law, “microforms” is taken to mean an arrangement of images that are substantially reduced in size from the original form, such as microfilm, microfiche, microcards, or any other form of image reduction.
Consultation
No consultation was undertaken in relation to By-law No. 1300557 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. 1300557 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. 1300557, enacted in 2013, is a legislative instrument designed to amend and implement provisions of the Customs Act 1901. This by-law was introduced to address the need for updated regulations following the amendment of the Customs Tariff Act 1995. The Customs Tariff Amendment (Schedule 4) Act 2012 necessitated the creation of new by-laws to replace the repealed Schedule 4, ensuring that the updated tariff schedule aligns with the current legislative framework. By-law No. 1300557 specifically replaces previous by-laws and prescribes certain categories of goods, such as microforms, patterns, models, wall charts for demonstration purposes, and film, which are to be classified under the new tariff provisions. This by-law came into effect on 1 March 2013, the same date the Customs Tariff Amendment (Schedule 4) Act 2012 commenced, ensuring a smooth transition and compliance with the updated tariff regulations.
Scope and Application
The Customs By-law No. 1300557 applies to specific types of goods that are prescribed under the Customs Act 1901, specifically those items outlined in the new Schedule 4 of the Customs Tariff Act 1995. This includes microforms, patterns, models, wall charts for demonstration purposes, and film. These by-laws are intended to align with the new tariff schedule resulting from the Customs Tariff Amendment (Schedule 4) Act 2013, which became effective on 1 March 2013. The legislation applies to any person or entity importing these prescribed goods into Australia, thereby ensuring compliance with the applicable duties and regulations set out in the Customs Act. The by-law does not alter existing arrangements or affect human rights, as confirmed in the explanatory statement. As a federal instrument, it has a national jurisdictional reach, impacting all states and territories within Australia.
Key Provisions
Section 271 of the Customs Act 1901 enables the Chief Executive Officer of Customs to make by-laws to prescribe goods for the purposes of an item in the Customs Tariff. In line with this, By-law No. 1300557 specifies which goods are dutiable at the rate of "Free" under the new Item 3 in Schedule 4 of the Customs Tariff Act. This by-law replaces previous by-laws and prescribes three categories of goods: microforms, patterns, models and wall charts for demonstration purposes, and film. These goods are considered to be educational, scientific, and cultural materials to which Annex C or Annex C.2 of the Educational, Scientific and Cultural Materials Agreement or Protocol applies.
The by-law imposes obligations on the parties involved in the importation of these goods. Importers must ensure that the goods they are bringing into Australia meet the criteria set out in the by-law to qualify for the "Free" duty rate. Customs officers must apply the by-law in determining the duty payable on the imported goods. The by-law requires compliance with the conditions for the goods to be dutiable at the rate of "Free", and any non-compliance may result in the imposition of the applicable duty.
Failure to comply with the provisions of the by-law may result in various consequences. If goods are imported that do not meet the criteria set out in the by-law, the applicable duty may be imposed on those goods. Additionally, if an importer knowingly or recklessly imports goods that do not qualify for the "Free" duty rate, they may be subject to penalties under the Customs Act 1901. The maximum penalty for contravening the Act is generally a fine of up to 10,000 penalty units or imprisonment for up to five years, or both, for an individual, and up to 50,000 penalty units for a body corporate. The penalties serve as a deterrent against non-compliance with the by-law and ensure that the intended benefits of the "Free" duty rate are not abused.