EXPLANATORY STATEMENT
Customs By-law No. 1301137
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 1 in the new Schedule 4 combines items 1D and 16 of the previous Schedule 4 to the Customs Tariff Act. Item 1 paragraph (a) provides that goods, as prescribed by by-law, that are scientific instruments or apparatus, to which Annex D to the Educational, Scientific and Cultural Materials Agreement or Protocol applies, are dutiable at the rate of “Free”.
New By-law No. 1301137 combines previous By-laws Nos. 9140015, 9540003, 9740003, 0040007, 0240008, 1022040 and 1028768.
Instrument
By-law No. 1301137 prescribes goods, consigned to the organisations and institutions listed within the by-law, being:
a) scientific instruments or apparatus;
b) spare parts, components or accessories specially designed for use with the scientific instruments or apparatus; and
c) tools specially designed for the maintenance, checking, gauging or repair of the scientific instruments or apparatus.
Consultation
No consultation was undertaken in relation to By-law No. 1301137 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. 1301137 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. 1301137, made under the Customs Act 1901, was introduced to address the need for updated by-laws to align with the Customs Tariff Amendment (Schedule 4) Act 2012. This Act repealed the existing Schedule 4 of the Customs Tariff Act 1995 and replaced it with a new Schedule 4, necessitating new by-laws for all items that require goods to be prescribed by by-law. By-law No. 1301137 consolidates previous by-laws and prescribes goods, such as scientific instruments, spare parts, and tools designed for their maintenance, that are consigned to specified organisations and institutions. These goods are now dutiable at the rate of "Free" as outlined in the new Schedule 4. The by-law was enacted by the relevant legislature and took effect from 1 March 2013, with no consultation undertaken as it did not alter existing arrangements.
Scope and Application
The Customs By-law No. 1301137 applies to goods, specifically scientific instruments or apparatus, their spare parts, components, accessories, and tools designed for maintenance or repair, which are consigned to certain listed organisations and institutions. This by-law serves to implement item 1 in Schedule 4 of the Customs Tariff Act 1995, which was amended by the Customs Tariff Amendment (Schedule 4) Act 2012. The by-law, which consolidates and replaces previous by-laws, aims to ensure that these specified items are dutiable at the rate of "Free" when they meet the criteria set out under Annex D of the Educational, Scientific and Cultural Materials Agreement or Protocol. The by-law does not extend its application to any other types of goods or entities beyond those explicitly listed and detailed within it. The by-law's scope is limited geographically to Australia, as it is a Commonwealth instrument, and it does not include any stated exclusions, exemptions, or thresholds beyond what is prescribed in the by-law itself. The commencement of this by-law aligns with the effective date of the Customs Tariff Amendment (Schedule 4) Act 2012, which is 1 March 2013.
Key Provisions
Under section 271 of the Customs Act 1901 (the Act), the Chief Executive Officer of Customs is authorised to create by-laws for the application of items in the Customs Tariff, which is defined as an act imposing duties of customs (section 4 of the Act). The Customs Tariff Amendment (Schedule 4) Act 2012 revises the existing Schedule 4 of the Customs Tariff Act 1995, necessitating new by-laws for items that involve goods prescribed by by-law. Specifically, Item 1 in the new Schedule 4 consolidates items 1D and 16 of the previous Schedule 4, stipulating that goods prescribed by by-law, such as scientific instruments or apparatus to which Annex D of the Educational, Scientific and Cultural Materials Agreement or Protocol applies, are to be dutiable at the rate of "Free." By-law No. 1301137, which consolidates previous by-laws, prescribes these goods for certain organisations and institutions. The by-law lists the goods as scientific instruments or apparatus, spare parts or components specially designed for these instruments, and tools specially designed for their maintenance or repair.
The by-law imposes obligations on the parties involved to ensure that the prescribed goods, when consigned to specified organisations and institutions, are classified and dutiable as stipulated. The organisations and institutions listed in the by-law must adhere to the definitions and classifications provided, ensuring compliance with customs duties and other relevant regulations. The by-law also mandates that these entities provide accurate and complete information regarding the goods being consigned, which is crucial for the proper application of the customs duties outlined in the Act.
Any breach of the by-law or non-compliance with the prescribed duties may result in civil or criminal penalties as stipulated under the Customs Act 1901. The penalties may include fines and other sanctions as determined by the court. For instance, failure to declare goods correctly or attempting to evade duties can lead to substantial fines and, in severe cases, criminal charges. The specific maximum penalties are not detailed in the by-law but are governed by the overarching provisions of the Customs Act and other relevant legislation. It is imperative for the parties governed by this by-law to ensure strict compliance to avoid any legal repercussions.