EXPLANATORY STATEMENT
Customs By-law No. 1301139
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 (b) provides that goods, as prescribed by by-law, which are of a scientific nature and covered by an agreement or arrangement on cooperation in science and technology, between the Australian Government and the government of another country, are dutiable at the rate of “Free”.
New By-law No. 1301139 combines previous By-laws Nos. 9640030 and 9640038.
Instrument
By-law No. 1301139 prescribes goods of a scientific nature that are covered by an agreement or arrangement to cooperate in the field of science and technology between the Australian Government and the Government of another country/countries.
One of the following conditions must be met:
a) the Collector must have approved in writing, the kinds and quantities of goods to be imported and the uses to which those goods will be put; or
b) in accordance with the agreement or arrangement, the goods are required to be allowed entry into Australia free of customs duty.
Consultation
No consultation was undertaken in relation to By-law No. 1301139 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. 1301139 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. 1301139, enacted in 2013, addresses the need to update and consolidate by-laws pertaining to the Customs Tariff, specifically in light of amendments to Schedule 4 of the Customs Tariff Act 1995. This by-law was introduced by the Customs Act 1901, administered by the Australian Government, and is intended to align with the Customs Tariff Amendment (Schedule 4) Act 2012. The primary policy objective of this by-law is to ensure that scientific goods, which are subject to bilateral or multilateral agreements or arrangements for cooperation in science and technology, are appropriately prescribed and dutiable according to the terms of these agreements. By doing so, the by-law facilitates the smooth import and export of such goods while maintaining regulatory oversight. The by-law took effect on 1 March 2013, the same date the amending act commenced, and does not affect existing human rights.
Scope and Application
The Customs By-law No. 1301139 applies to goods that are of a scientific nature and are covered by an agreement or arrangement for cooperation in science and technology between the Australian Government and the government of another country or countries. This by-law is made pursuant to section 271 of the Customs Act 1901 and specifically addresses the dutiable status of such scientific goods, allowing them to be imported free of customs duty if they meet certain conditions. The by-law applies nationally across Australia and extends to all entities or individuals importing these scientific goods under the specified agreements. It does not specify any exclusions or exemptions but requires either prior written approval from the Collector for the types and quantities of goods and their intended use, or compliance with the stipulations of the relevant science and technology cooperation agreement. The by-law came into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
The Customs By-law No. 1301139, established under Section 271 of the Customs Act 1901, outlines the conditions under which goods of a scientific nature, covered by agreements or arrangements on cooperation in science and technology between the Australian Government and the government of another country, may be imported into Australia free of duty. This by-law replaces previous by-laws and takes effect from the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2013, which is 1 March 2013. According to the by-law, these scientific goods will be dutiable at the rate of "Free" under certain conditions. One such condition is that the Collector must approve in writing the kinds and quantities of goods to be imported and the specific uses to which those goods will be put. Alternatively, the goods must be required to be allowed entry into Australia free of customs duty in accordance with the relevant agreement or arrangement.
The obligations imposed by this by-law primarily concern the Collector, who must ensure that any scientific goods imported under this provision are approved for entry in accordance with the specified conditions. The Collector must also ensure that the goods comply with the terms of the applicable agreement or arrangement. Importers of these scientific goods must submit the necessary documentation and approvals to the Collector to facilitate the duty-free entry of the goods. This may include providing detailed descriptions of the goods, their quantities, and their intended uses, along with evidence of the relevant international agreement or arrangement.
Failure to comply with the provisions of this by-law could result in the goods being subject to customs duty. There is no specific mention of offences or penalties in the explanatory statement, but generally, under the Customs Act 1901, non-compliance with customs regulations can result in significant penalties. These may include fines, the confiscation of goods, and potential criminal charges for wilful or negligent breaches. The exact penalties would depend on the specific circumstances of the breach and could be determined by a court or tribunal with jurisdiction over customs matters.