EXPLANATORY STATEMENT
Customs By-law No. 1301131
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. 1301131 replaces previous By-law No. 0240004.
Instrument
By-law No. 1301131 prescribes food grade white mineral oil, classified under subheading 2710.19.91 of Schedule 3 to the Customs Tariff Act.
The application of the by-law is dependent on compliance with sec. 21 CFR 172.878 of Title 21, Volume 1 of the United States Code of Federal Regulations and sec. 21 CFR 178.3620(a) of Title 21, Volume 1 of the United States Code of Federal Regulations.
The United States Code of Federal Regulations is a code of regulations made by the Food and Drug Administration of the United States.
Consultation
No consultation was undertaken in relation to By-law No. 1301131 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. 1301131 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. 1301131, introduced in 2013, addresses the need to update the regulations governing the classification and duty rates for certain goods as outlined in the Customs Tariff. This by-law was enacted under the authority of the Customs Act 1901 and the Customs Tariff Act 1995, by the Chief Executive Officer of Customs, to implement the changes necessitated by the Customs Tariff Amendment (Schedule 4) Act 2012. The primary objective of this by-law is to ensure that the prescribed goods, specifically food grade white mineral oil classified under subheading 2710.19.91 of Schedule 3 to the Customs Tariff Act, are dutiable at the rate of "Free," in compliance with specific United States regulations. This update is intended to align Australian customs practices with international standards and ensure consistency in the application of duty rates.
Scope and Application
Customs By-law No. 1301131, under the Customs Act 1901, pertains specifically to the dutiable status of goods classified under headings 2710, 3403, or 3811 of Schedule 3 to the Customs Tariff Act 1995. The by-law identifies food grade white mineral oil, classified under subheading 2710.19.91, as being dutiable at the rate of "Free", provided it meets certain conditions outlined in sections 21 CFR 172.878 and 21 CFR 178.3620(a) of the United States Code of Federal Regulations. This by-law applies to any entity importing goods that fall within the specified classifications and subheadings, ensuring compliance with the Australian Customs Tariff as amended by the Customs Tariff Amendment (Schedule 4) Act 2012, which commenced on 1 March 2013. Notably, this by-law does not affect human rights as declared in relevant international instruments and has no stated exclusions or exemptions beyond its compliance requirements.
Key Provisions
The primary sections of By-law No. 1301131 pertain to the classification and duty application of specific goods under the Customs Tariff. Section 271 of the Customs Act 1901 allows the Chief Executive Officer of Customs to create by-laws that prescribe how certain items in the Customs Tariff are to be applied to goods. In this context, By-law No. 1301131 specifically addresses the duty-free status of goods classified under headings 2710, 3403, or 3811 of Schedule 3 to the Customs Tariff Act, provided they meet the criteria set out in the by-law. This includes the classification of food grade white mineral oil under subheading 2710.19.91, subject to compliance with specific United States Code of Federal Regulations.
The obligations imposed by By-law No. 1301131 require that any party importing goods classified under the specified headings must ensure that the goods comply with the conditions set forth in sec. 21 CFR 172.878 and sec. 21 CFR 178.3620(a) of the United States Code of Federal Regulations. These regulations, enforced by the Food and Drug Administration of the United States, outline the standards and requirements for food grade white mineral oil to be considered for duty-free status under Australian customs law. Importers must verify that their goods meet these standards to benefit from the duty-free classification.
Failure to comply with the conditions set out in By-law No. 1301131 may result in the goods being subject to applicable duties and taxes. There are no specific offences outlined in the by-law itself, but breaches of the Customs Act 1901 can lead to various civil and criminal penalties. For example, knowingly importing goods that do not comply with customs regulations can result in fines and, in severe cases, imprisonment. The specific penalties will depend on the nature and extent of the breach, as well as other relevant laws and regulations.