EXPLANATORY STATEMENT
Customs By-law No. 1301120
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 45 in the new Schedule 4 replaces item 70 of the previous Schedule 4 to the Customs Tariff Act. Item 45 provides that split consignment goods, as prescribed by by-law, are dutiable at the rate of duty that would apply to the goods if they were the completed machine or equipment of which they are components.
New By-law No. 1301120 replaces previous By-law No. 0240007.
Instrument
By-law No. 1301120 prescribes goods that are the original components of a completed machine or equipment to which a single tariff classification applies, where:
a) the goods were sent to Australia as a single consignment but were accidentally separated for shipment;
b) the goods are of a size, shape or weight that transport necessities demand separate shipment; or
c) the nature of the goods is such that transport necessities require separate modes of shipment for some components.
Consultation
No consultation was undertaken in relation to By-law No. 1301120 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. 1301120 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. 1301120, enacted in 2013 under the Customs Act 1901, addresses the need for updated regulations concerning the dutiable status of split consignment goods. This by-law was introduced to align with the changes brought about by the Customs Tariff Amendment (Schedule 4) Act 2012, which necessitated new by-laws for items previously prescribed under the Customs Tariff Act 1995. Specifically, By-law No. 1301120 replaces the earlier By-law No. 0240007 and pertains to goods that are components of a completed machine or equipment, providing for their dutiable status under certain conditions such as accidental separation during shipment or necessity for separate shipment due to size, shape, weight, or mode of transport. This legislative instrument was enacted by the Australian Government and aims to ensure that the application of customs duties remains consistent and fair, without any impact on human rights as recognised by relevant international instruments.
Scope and Application
Customs By-law No. 1301120 applies to split consignment goods that are components of a completed machine or equipment, where the goods have been sent to Australia as a single consignment but were accidentally separated for shipment, are of a size, shape or weight that necessitates separate shipment due to transport necessities, or where the nature of the goods requires separate modes of shipment for some components. This by-law is applicable nationwide, as it is a Commonwealth regulation, and does not exclude any specific persons, entities, industries, conduct, or transactions within its scope. However, 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 takes effect from 1 March 2013, the date the Customs Tariff Amendment (Schedule 4) Act 2012 commences. It should be noted that this by-law does not alter existing arrangements and no consultation was undertaken in its creation.
Key Provisions
The operative sections of By-law No. 1301120 under the Customs Act 1901 (section 271) pertain to the dutiable rates for goods that are components of a completed machine or equipment, where these components are prescribed by by-law. Specifically, section 45 of the new Schedule 4 to the Customs Tariff Act 1995 outlines the duty rates applicable to split consignment goods. These goods are those that were intended to be sent to Australia as a single consignment but were accidentally separated for shipment, are of a size, shape, or weight necessitating separate shipment, or require different modes of transport due to their nature. The by-law provides that such goods are dutiable at the rate that would apply if they were the completed machine or equipment of which they are components.
The by-law imposes obligations on parties dealing with split consignment goods, ensuring that the correct duty rates are applied according to the prescribed conditions. This means that importers must correctly identify and declare components that meet the criteria set out in the by-law to ensure accurate duty calculations. The by-law also requires that where components are separated due to transport necessities, the customs authority must be notified, and the relevant duty rates must be applied as stipulated. Failure to comply with these obligations could result in incorrect duty payments, which may lead to further complications or legal repercussions.
In terms of consequences for breach, By-law No. 1301120 does not explicitly detail specific offences or penalties within the explanatory statement. However, under the broader Customs Act 1901, breaches of customs laws can result in both civil and criminal penalties. Civil penalties may include financial penalties and interest on unpaid duty, while criminal penalties can include fines and, in severe cases, imprisonment. The maximum penalties are determined by the severity of the breach and the intent behind it, with specific figures outlined in the Customs Act 1901. It is important for parties to adhere to the by-law to avoid these potential consequences.