EXPLANATORY STATEMENT
Customs By-law No. 1303352
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 54 in the new Schedule 4 replaces item 27 of the previous Schedule 4 to the Customs Tariff Act. Item 54 provides that handicrafts, as prescribed by by-law, are dutiable at the rate of “Free”.
New By-law No. 1303352 replaces previous By-laws Nos. 8840053 and 9840020.
Instrument
By-law No. 1303352 prescribes, subject to conditions, a number of handicrafts and specifies the production processes for these handicrafts. The goods prescribed include:
a) imitation jewellery, classified to heading 7117 of Schedule 3, being beads put up as necklaces, bracelets or anklets;
b) imitation jewellery, classified to heading 7117 of Schedule 3, made up from naturally occurring products or materials with or without metal fittings;
c) furniture and parts therefor (classified to heading 9401 or 9403 of Schedule 3) in which the artistic or decorative character is achieved by inlaid work or by carved designs carried out by hand;
d) handicrafts other than clothing, footwear, fabrics, yarn, articles made up from fabric and yarn and jewellery classified to heading 7113, 7115 or 7116;
e) fabrics containing not less than 90% by weight of natural fibres;
f) textile fabric that is printed or dyed by the methods specified within the by-law, goods made from this fabric and garments that are printed or dyed by the specified methods after being made up;
g) goods containing not less than 90% by weight of natural fibres, made up from fabric or yarn, that are hand crocheted, hand knitted, hand netted or hand woven;
h) footwear (not incorporating wedges or platforms) which is the produce or manufacture of a developing country and classified under subheading 6403.59.00 in Schedule 3 to the Customs Tariff Act.
This by-law does not apply to towels, towelling and towelling products or to curtains classified under heading 6303 in Schedule 3 to the Customs Tariff Act.
Consultation
No consultation was undertaken in relation to By-law No. 1303352 as it does not substantially alter 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. 1303352 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. 1303352, enacted in 2013, serves to update the regulatory framework governing the duty-free status of certain handicrafts under the Customs Act 1901. This by-law was introduced by the Chief Executive Officer of Customs in response to the Customs Tariff Amendment (Schedule 4) Act 2012, which necessitated the replacement of outdated by-laws with new ones to align with the updated Customs Tariff. The policy objective of this by-law is to streamline the process for determining the duty status of specified handicrafts by clearly defining which items qualify for duty-free treatment, thereby facilitating more efficient customs operations. The by-law specifies a range of handicrafts that are eligible for duty-free entry, including imitation jewellery, certain furniture, and hand-made goods, while excluding items such as towels and curtains. The by-law came into effect on 1 March 2013, the same date as the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Scope and Application
The Customs By-law No. 1303352, enacted under Section 271 of the Customs Act 1901, delineates the scope and application of the revised Customs Tariff, specifically addressing the duty on various handicrafts and textiles. This by-law applies to entities and individuals involved in the import or export of specified goods, particularly those in the handicraft and textile industries, as detailed in the new Schedule 4 of the Customs Tariff Act. It encompasses goods such as imitation jewellery, furniture with artistic or decorative handwork, textiles printed or dyed by specified methods, and hand-made goods from natural fibres, among others. The by-law does not apply to towels, towelling products, or curtains, as explicitly excluded. This legislative instrument extends across the Commonwealth of Australia, ensuring a uniform application of duties across all states and territories. 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 main operative sections of By-law No. 1303352 pertain to the types of handicrafts that are subject to customs duties, as outlined in section 271 of the Customs Act 1901 (the Act). This by-law, established under the authority granted by the Customs Tariff Amendment (Schedule 4) Act 2012, prescribes specific categories of handicrafts that will be dutiable at the rate of "Free" as per the new item 54 in Schedule 4 of the Customs Tariff Act 1995 (the Customs Tariff Act). These categories include imitation jewellery, furniture with artistic or decorative handwork, certain fabrics and goods containing at least 90% natural fibres, and specific types of footwear from developing countries. The by-law is designed to replace previous regulations (By-laws Nos. 8840053 and 9840020) and provides detailed specifications on the production processes for these goods.
The by-law imposes specific obligations on the parties involved, such as importers, exporters, and manufacturers of the prescribed handicrafts. It requires them to ensure that the handicrafts they deal with comply with the conditions set out in the by-law. This includes verifying that the goods meet the specified criteria, such as the percentage of natural fibres, the production methods, and the country of origin for certain types of footwear. The onus is on these parties to provide accurate information and documentation to comply with the by-law, which is crucial for customs clearance and avoiding potential penalties.
Failure to comply with the provisions of By-law No. 1303352 can result in various consequences. While the by-law itself does not specify particular offences, penalties, or civil/criminal consequences, breaches of customs regulations under the Customs Act 1901 can lead to significant penalties. For instance, knowingly or recklessly making a false statement or representation in a document required by the Act can result in a fine of up to 10,000 penalty units or imprisonment for up to five years, or both. Additionally, the importation of goods that do not comply with the by-law can result in the goods being refused entry, seized, or subject to fines and penalties under the Customs Act 1901. The precise penalties will depend on the nature and extent of the breach and the value of the goods involved.