EXPLANATORY STATEMENT
Customs By-law No. 1301128
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 52 in the new Schedule 4 replaces item 72A of the previous Schedule 4 to the Customs Tariff Act. Item 52 provides that goods, as prescribed by by-law, that are classified under heading 2710, 3403, or 3811 of Schedule 3 to the Customs Tariff Act are dutiable at the rate of “Free”.
New By-law No. 1301128 replaces previous By-law No. 0240005.
Instrument
By-law No. 1301128 prescribes goods which are aromatic process oils classified under subheadings 2710.19.91, 2710.91.91 or 2710.99.91 of Schedule 3 to the Customs Tariff Act, provided that the oils meet all of the criteria set out in the by-law.
Consultation
No consultation was undertaken in relation to By-law No. 1301128 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. 1301128 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. 1301128, made under the Customs Act 1901, was enacted to update the legal framework for customs duties in Australia by replacing an existing by-law with new provisions that align with the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law, which came into effect on 1 March 2013, was issued by the Chief Executive Officer of Customs and addresses the need to prescribe new goods classifications in the Customs Tariff that are subject to specific customs duties. The by-law specifies that aromatic process oils, classified under certain subheadings of Schedule 3 to the Customs Tariff Act, will be dutiable at the rate of “Free” if they meet the criteria set out in the by-law. Importantly, this by-law does not involve any changes to existing arrangements and therefore did not require consultation. Additionally, it has been determined that the by-law does not impact upon any human rights as recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Customs By-law No. 1301128 applies to entities involved in the importation of goods that are aromatic process oils, specifically classified under subheadings 2710.19.91, 2710.91.91, or 2710.99.91 of Schedule 3 to the Customs Tariff Act. This legislation is enacted under the authority provided by section 271 of the Customs Act 1901, which allows the Chief Executive Officer of Customs to create by-laws to enforce specific items of a Customs Tariff. The by-law designates these particular oils as dutiable at the rate of "Free," provided they meet the criteria outlined within the by-law. The by-law is applicable nationally within Australia, operating under the overarching jurisdiction of the Commonwealth as per the Customs Act 1901 and the Customs Tariff Act 1995. It should be noted that this by-law does not introduce any new exemptions or exclusions; it primarily serves to update the regulatory framework to reflect changes brought about by the Customs Tariff Amendment (Schedule 4) Act 2012, effective from 1 March 2013.
Key Provisions
The Customs By-law No. 1301128 under the Customs Act 1901 (section 271) sets out specific provisions for the imposition of customs duties on certain goods. In particular, this by-law prescribes that aromatic process oils classified under subheadings 2710.19.91, 2710.91.91, or 2710.99.91 of Schedule 3 to the Customs Tariff Act are dutiable at the rate of “Free” (section 4). This means that these specific types of oils are exempt from customs duties, provided they meet all the criteria outlined in the by-law.
The by-law imposes certain obligations on the parties it governs, primarily those who are involved in the importation of aromatic process oils. These parties must ensure that the oils they import meet all the criteria set out in the by-law to be eligible for the duty-free status. This includes providing any necessary documentation or evidence to support their claim for duty exemption. Failure to comply with these obligations may result in the oils being subject to the applicable customs duties, which could significantly increase the cost of importation.
In terms of penalties and consequences for breach, while the explanatory statement does not explicitly detail the penalties, it is reasonable to infer that non-compliance with the provisions of the Customs By-law No. 1301128 could lead to a range of civil and criminal consequences under the Customs Act 1901. These could include fines, penalties, or even criminal charges for fraudulent activities related to the importation of goods. The exact penalties would depend on the nature and extent of the breach, but they could potentially include substantial financial penalties and, in severe cases, imprisonment.
Additionally, it is important to note that the by-law does not impact on any human rights as it does not alter existing arrangements or affect the human rights and freedoms recognised under the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law is designed to streamline the customs process for certain types of oils, ensuring that they are properly classified and exempt from duty where applicable.
Finally, the by-law comes into effect on 1 March 2013, which is the same date that the Customs Tariff Amendment (Schedule 4) Act 2012 commences. This ensures that the new provisions are applied consistently from the outset, providing clarity and predictability for all parties involved in the importation of aromatic process oils.