EXPLANATORY STATEMENT
Customs By-law No. 1301133
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 53 in the new Schedule 4 replaces item 72B of the previous Schedule 4 to the Customs Tariff Act. Item 53 provides that goods, as prescribed by by-law, that are classified under heading 3819.00.00 of Schedule 3 to the Customs Tariff Act, to which no Tariff Concession Order applies, are dutiable at the rate of “Free”.
New By-law No. 1301133 replaces previous By-law No. 0240006.
Instrument
By-law No. 1301133 prescribes polyglycol brake fluids under heading 3819.00.00 of Schedule 3, that meet the requirements of Australian Standard AS 1960.1-2005 Motor vehicle brake fluids - Non-petroleum type.
Consultation
No consultation was undertaken in relation to By-law No. 1301133 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. 1301133 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. 1301133, made under section 271 of the Customs Act 1901, was enacted to address the need for updated regulations following the replacement of the existing Schedule 4 of the Customs Tariff Act 1995 with a new Schedule 4. This new by-law specifically prescribes polyglycol brake fluids under heading 3819.00.00 of Schedule 3 to the Customs Tariff Act, which must meet the requirements of Australian Standard AS 1960.1-2005 Motor vehicle brake fluids - Non-petroleum type, thereby ensuring compliance with Australian standards. The by-law, which comes into effect on 1 March 2013, aligns with the Customs Tariff Amendment (Schedule 4) Act 2012, and does not alter existing arrangements or impact human rights as recognised by the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Customs By-law No. 1301133, made under Section 271 of the Customs Act 1901, applies to goods classified under heading 3819.00.00 of Schedule 3 to the Customs Tariff Act, specifically polyglycol brake fluids that meet the requirements of Australian Standard AS 1960.1-2005. This by-law was implemented to update the regulations following the Customs Tariff Amendment (Schedule 4) Act 2012, which introduced a new Schedule 4 to the Customs Tariff Act, replacing the previous one. The by-law is applicable to goods imported into Australia, and its jurisdiction extends across the Commonwealth, governed by federal law. The by-law specifies that these goods are dutiable at the rate of "Free," meaning no customs duty is applicable, provided no Tariff Concession Order applies to them. Notably, this by-law does not engage with human rights considerations as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law came into effect on 1 March 2013, aligning with the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
The Customs By-law No. 1301133 outlines the regulatory framework for the application of duty to polyglycol brake fluids, as classified under heading 3819.00.00 of Schedule 3 of the Customs Tariff Act 1995. This by-law, which takes effect on 1 March 2013, specifies that these fluids, which must meet the requirements of Australian Standard AS 1960.1-2005, will be dutiable at the rate of “Free” if no Tariff Concession Order applies to them (Section 271). This means that such brake fluids will not incur customs duty when imported into Australia, provided they comply with the stipulated standards.
The primary obligation under this by-law is for importers and relevant entities to ensure that any polyglycol brake fluids imported are classified correctly and meet the standards outlined in AS 1960.1-2005. Importers must verify the compliance of these fluids with Australian standards to ensure they are not liable for any customs duty. Additionally, the by-law requires that any documentation accompanying the importation of these goods clearly states their classification and compliance with the standards.
Failure to comply with the provisions of this by-law may result in significant legal consequences. The Customs Act 1901 imposes penalties for non-compliance with its provisions. For instance, importing goods that do not meet the prescribed standards could lead to fines or other penalties as determined by the Act. Additionally, if an importer is found to have deliberately misrepresented the classification or compliance of goods, they could face more severe penalties, including potential prosecution under criminal law, depending on the severity of the breach. The specific penalties are not detailed in the explanatory statement but typically include fines that can be substantial, reflecting the seriousness of evading customs duties or misrepresenting goods.