EXPLANATORY STATEMENT
Customs By-law No. 1301053
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 25 in the new Schedule 4 combines items 25A, 25B and 25C of the previous Schedule 4 to the Customs Tariff Act. Item 25 provides that goods, as prescribed by by-law, that are:
a) trophies won outside Australia; or
b) decorations, medallions or certificates awarded outside Australia; or
c) trophies or prizes sent by donors resident outside Australia for presentation or competition in Australia
are dutiable at the rate of “Free”.
New By-law No. 1301053 replaces previous By-law Nos 0340004, 9640060 and 9640061.
Instrument
By-law No. 1301053 prescribes:
a) trophies won outside Australia in competition, that are appliances or articles of a kind used in an office or household;
b) decorations, medallions or certificates awarded outside Australia;
c) trophies or prizes sent by donors resident abroad for presentation in competitions in Australia or for competitions in Australia organised or sponsored otherwise than in connection with commercial ventures. The trophies or prizes are to be suitable for display on the person, on the walls of dwellings or offices or on stands or similar mounts.
The goods prescribed above do not include goods which are of an advertising nature.
Consultation
No consultation was undertaken in relation to By-law No. 1301053 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. 1301053 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. 1301053, enacted in 2013, is a legislative instrument under the Customs Act 1901, designed to address the need for updated by-laws following amendments to the Customs Tariff Act 1995. This by-law was introduced by the Australian Government in response to the Customs Tariff Amendment (Schedule 4) Act 2012, which necessitated the replacement of existing by-laws that prescribed certain goods as dutiable at the rate of "Free." The Customs By-law No. 1301053 specifically prescribes trophies won outside Australia in competition, decorations, medallions or certificates awarded outside Australia, and trophies or prizes sent by donors resident abroad for presentation in competitions in Australia, excluding those of an advertising nature. The by-law came into effect on 1 March 2013 and does not impact human rights as declared in the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Customs By-law No. 1301053, issued under the Customs Act 1901, applies to specific categories of goods prescribed by the by-law, namely trophies won outside Australia, decorations, medallions, certificates awarded outside Australia, and trophies or prizes sent by donors resident outside Australia for presentation or competition in Australia. These goods, which fall under the new Item 25 in the Customs Tariff Schedule, are dutiable at the rate of "Free". The by-law is applicable to persons and entities involved in the importation of these goods and extends to all jurisdictions under Australian Commonwealth law. However, it excludes goods that are of an advertising nature. The by-law's scope is delineated by subordinate instruments, which provide further details on the types of trophies and prizes suitable for display, ensuring they are not purely for commercial advertising purposes. The by-law came into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012, and it does not engage with or limit any human rights as recognised under international instruments.
Key Provisions
The Customs By-law No. 1301053 (referred to as the By-law) provides specific guidelines under the Customs Act 1901 (section 271) and Customs Tariff Act 1995, detailing the types of goods that are dutiable at the rate of "Free". These include trophies won outside Australia in competition that are appliances or articles of a kind used in an office or household (section 1a), decorations, medallions or certificates awarded outside Australia (section 1b), and trophies or prizes sent by donors resident abroad for presentation in competitions in Australia or for competitions organised or sponsored otherwise than in connection with commercial ventures (section 1c). This by-law also specifies that the trophies or prizes must be suitable for display on the person, on the walls of dwellings or offices, or on stands or similar mounts. It is important to note that the by-law does not include goods which are of an advertising nature. The By-law comes into effect from 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
The obligations imposed by this by-law on the relevant parties or entities primarily revolve around ensuring compliance with the prescribed conditions for the dutiable items. Specifically, entities must ensure that the trophies, decorations, medallions, certificates, and trophies or prizes they import into Australia for the purposes outlined in the by-law meet the specified criteria. This includes verifying the origin of the items and ensuring they are not of an advertising nature. Additionally, businesses and individuals involved in the import or distribution of these items must adhere to the by-law to avoid any legal repercussions.
Breaches of the by-law may lead to various consequences, both civil and criminal, depending on the severity and intent of the violation. While the explanatory statement does not detail specific penalties, breaches of customs regulations generally can result in fines, seizures of goods, and potential legal action. The maximum penalties for breaches of the Customs Act 1901 can be significant, including substantial fines and imprisonment for serious or repeated offences. Therefore, it is crucial for all parties involved to fully understand and comply with the by-law to avoid any legal or financial repercussions.