EXPLANATORY STATEMENT
Customs By-law No. 1300978
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 11 in the new Schedule 4 replaces item 8 of the previous Schedule 4 to the Customs Tariff Act. Item 11 provides that goods, as prescribed by by-law, that are for use by, or for sale to, persons the subject of a Status of Forces Agreement between the Government of Australia and the Government of another country are dutiable at the rate of “Free”.
New By-law No. 1300978 replaces previous By-law No. 9740009.
Instrument
By-law No. 1300978 prescribes the following goods for the purposes of the Status of Forces Agreement between the Government of Australia and the Government of Malaysia:
(a) personal effects, furniture and household goods (other than cigarettes, cigars, tobacco or spirituous liquors) of a member of a Malaysian Visiting Force, civilian component of such a force or a dependant.
(b) a motor vehicle imported by a member of a Malaysian Visiting Force or civilian component of such a force.
Consultation
No consultation was undertaken in relation to By-law No. 1300978 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. 1300978 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. 1300978, enacted in 2013, serves to address the need for updated regulations following the repeal and replacement of Schedule 4 in the Customs Tariff Act 1995. This by-law was introduced under the authority of Section 271 of the Customs Act 1901, which empowers the Chief Executive Officer of Customs to create by-laws for items specified in the Customs Tariff. The Customs Tariff Act 1995 defines a Customs Tariff as an act imposing duties of customs, and as such, the by-law is essential for ensuring the smooth application of duty rates specified in the updated schedule. The by-law was enacted by the relevant legislature, ensuring compliance with the new legislative framework established by the Customs Tariff Amendment (Schedule 4) Act 2012. The policy objective of this by-law is to maintain consistent and clear guidelines for the application of customs duties on goods related to Status of Forces Agreements, without altering existing arrangements or impacting human rights.
Scope and Application
Customs By-law No. 1300978 applies to goods that are imported for the use of, or sale to, individuals who are subject to a Status of Forces Agreement between the Australian Government and the Government of Malaysia. Specifically, this includes personal effects, furniture, household goods (excluding certain consumables such as cigarettes, cigars, tobacco, and spirituous liquors) of members of a Malaysian Visiting Force or its civilian component, as well as dependants of such members. Additionally, it applies to motor vehicles imported by members of a Malaysian Visiting Force or its civilian component. The by-law is enacted under Section 271 of the Customs Act 1901, which empowers the Chief Executive Officer of Customs to create such by-laws for goods specified in the Customs Tariff. By-law No. 1300978 replaces the previous By-law No. 9740009 and comes into effect from 1 March 2013, the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012. It does not impact human rights as recognised in the international instruments under the Human Rights (Parliamentary Scrutiny) Act 2011, and no consultation was necessary as it maintains the existing arrangements.
Key Provisions
The main operative sections of By-law No. 1300978 under the Customs Act 1901 (section 271) and the Customs Tariff Act 1995 establish the parameters for the application of duty on specific goods prescribed by this by-law. These goods are designated for use by, or for sale to, persons subject to a Status of Forces Agreement (SOFA) between the Government of Australia and the Government of Malaysia, and are subject to a duty rate of "Free". The by-law specifically prescribes personal effects, furniture, household goods (excluding cigarettes, cigars, tobacco, or spirituous liquors) of a member of a Malaysian Visiting Force, civilian component of such a force, or a dependant, and motor vehicles imported by such members or components.
The by-law imposes obligations on various parties, including the Chief Executive Officer of Customs who is responsible for enforcing the by-law and ensuring compliance with the duty rates prescribed. Importers, customs brokers, and other entities involved in the importation of the prescribed goods must adhere to the by-law’s stipulations. They must ensure that the goods are correctly classified and that the appropriate duty rates are applied or waived as per the by-law. Failure to comply with these requirements may result in the goods being subject to duty or other penalties.
There are no explicit offences or penalties outlined in the explanatory statement for breaches of By-law No. 1300978. However, non-compliance with the Customs Act 1901 or Customs Tariff Act 1995 generally may result in civil or criminal penalties. Under section 212 of the Customs Act 1901, the maximum penalty for knowingly or recklessly making a false statement in a customs document is $22,000 or imprisonment for up to two years, or both. Furthermore, failure to pay duties owed can lead to the imposition of a debt and additional interest, with potential legal action to recover the amount due. It is essential for all parties involved to ensure strict compliance with the by-law to avoid these potential consequences.