Customs By-law No. 1301009

Overview

The Customs By-law No. 1301009 was enacted in 2013 to align with the Customs Tariff Amendment (Schedule 4) Act 2012, which introduced a new Schedule 4 to the Customs Tariff Act 1995. This by-law was necessitated to update the regulatory framework governing the dutiability of donated or bequeathed goods that are imported into Australia, particularly those intended for disaster relief purposes. The Customs Act 1901 empowers the Chief Executive Officer of Customs to make by-laws prescribing goods that are subject to the Customs Tariff, and this by-law specifically targets items donated or bequeathed from entities outside Australia to Australian organisations involved in disaster relief or those eligible for certain tax deductions. The objective of this by-law is to ensure that such donated goods are not subject to customs duty and are not used for commercial activities within Australia.

Scope and Application

The Customs By-law No. 1301009 applies to goods that are donated or bequeathed for purposes in connection with disaster relief, by a person, company or organisation that is resident or established outside Australia to an organisation established in Australia, which is a registered charity or a library, museum, gallery or institution that qualifies for certain tax deductions under the Income Tax Assessment Act 1997. The by-law specifies that the prescribed goods must not be sold, traded, exchanged, hired out or used for any commercial activities in Australia. A "disaster" is defined in the by-law to be an event or circumstance declared to be a disaster by, or with the approval of, a Minister of the Commonwealth, State or Territory. The by-law is made under section 271 of the Customs Act 1901 and replaces previous By-law No. 1104437. The by-law has a national jurisdictional reach as it applies to all entities and persons within Australia and those outside Australia who are donating or bequeathing goods for disaster relief purposes to organisations in Australia. The 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. The by-law commenced on 1 March 2013.

Key Provisions

The Customs By-law No. 1301009, which comes into effect on 1 March 2013, pertains to the dutiable status of goods donated or bequeathed from entities outside Australia to certain Australian organisations, specifically those involved in disaster relief (section 1). The by-law specifies that these goods are to be treated as “Free” in terms of duty, provided they are donated to either a registered charity or an institution eligible for tax deductions under specific sections of the Income Tax Assessment Act 1997 (section 2). A key requirement of this by-law is that the prescribed goods must not be sold, traded, exchanged, hired out, or used for any commercial activities within Australia (section 3). Organisations that receive these goods must comply with the stipulation that they are intended solely for use in disaster relief efforts and must not engage in any commercial activities with the donated items. This includes a prohibition on using the goods for any purpose that could generate revenue, which is clearly defined to prevent any form of commercial exploitation of the donated items. Furthermore, the by-law ensures that the goods are not resold or otherwise transferred within the Australian market, thereby maintaining the integrity of the donation as intended for humanitarian purposes. Breaching the provisions of By-law No. 1301009 can result in significant legal consequences. While the explanatory statement does not detail specific penalties, any misuse of the donated goods for commercial purposes could potentially lead to civil or criminal liability under the Customs Act 1901. Violators might face fines or other penalties as prescribed by the Act, reflecting the seriousness with which the law treats the misuse of goods intended for disaster relief. It is essential for the governed entities to adhere strictly to the conditions set out in the by-law to avoid any legal repercussions.