Customs By-law No. 1303578

Overview

The Customs By-law No. 1303578, enacted in 2013, was introduced as part of the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law was necessary to address the need for updated regulations in light of the changes to Schedule 4 of the Customs Tariff Act 1995, which involved repealing and replacing the existing schedule with new provisions. The Customs Act 1901 empowers the Chief Executive Officer of Customs to make by-laws for items of a Customs Tariff that apply to goods as prescribed by by-law. By-law No. 1303578 specifically prescribes fabrics classified under certain headings in Schedule 3 that are for cutting up for the manufacture of hemmed or hemstiched table linen, replacing the previous By-law No. 9340028. No consultation was undertaken as the by-law does not substantially alter existing arrangements. The by-law ensures that the human rights and freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011 are not impacted, and it came into effect on 1 March 2013, the date the Customs Tariff Amendment (Schedule 4) Act 2012 commenced.

Scope and Application

The Customs By-law No. 1303578 pertains to the application of specific customs duties on goods as outlined in the Customs Tariff, which is detailed in the Customs Tariff Act 1995. This by-law applies to fabrics classified under particular headings, specifically those designated for cutting up to manufacture hemmed or hemstiched table linen. The application of this by-law is geographically limited to the jurisdiction of the Commonwealth of Australia, aligning with the overarching provisions of the Customs Act 1901. The by-law is a subordinate instrument that complements the Customs Act 1901 and Customs Tariff Act 1995, providing detailed regulations on the classification and duties of specific goods. Notably, the by-law exempts these particular fabrics from the duty, classifying them as “Free”. The by-law was enacted without consultation as it did not substantially alter existing arrangements and has no impact on human rights as recognised in the Human Rights (Parliamentary Scrutiny) Act 2011. It came into effect on 1 March 2013, in line with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.

Key Provisions

The Customs By-law No. 1303578, under the Customs Act 1901, specifies the conditions under which certain fabrics classified under headings 5407, 5408, 5512, 5513, 5514, 5515, and 5516 in Schedule 3 are exempt from duty. These fabrics, intended for cutting up to manufacture hemmed or hemstitched table linen, are prescribed to be dutiable at the rate of "Free" (Section 271). This legislative provision ensures that these specific types of fabrics entering Australia are not subject to customs duty, thus facilitating the importation of raw materials necessary for the domestic production of table linen. The obligations imposed by this by-law are straightforward. Importers and manufacturers of hemmed or hemstitched table linen must ensure that the fabrics they import fall under the prescribed classifications and are intended solely for the manufacture of table linen. This necessitates accurate classification and documentation to avoid any misapplication of duty. The by-law underscores the need for compliance with the prescribed classifications and intended use of the fabrics to qualify for the duty exemption. Failure to adhere to the requirements of this by-law may result in the imposition of customs duty on the fabrics, contrary to the intended exemption. The Customs Act 1901 provides mechanisms for enforcement, and breaches may lead to civil or criminal penalties. While the specific penalties are not detailed in the by-law itself, they could include fines or other penalties as prescribed by the Act. The seriousness of the breach, intent, and any previous violations could influence the severity of the penalty imposed. The by-law takes effect on 1 March 2013, the same date as the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012. This timing ensures that the new legislative framework is in place to manage the import of specified fabrics without incurring duty, aligning with the updated tariff schedule and facilitating smooth trade operations for the affected industries.