EXPLANATORY STATEMENT
Customs By-law No. 1303584
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 32 in new Schedule 4 replaces item 40A of the previous Schedule 4 to the Customs Tariff Act. Item 32 provides that textiles, clothing and footwear, as prescribed by by-law are dutiable at the rate of “Free”.
New By-law No. 1303584 replaces previous By-law No. 9440030.
Instrument
By-law No. 1303584 prescribes fabrics, classified under headings 5407, 5408, 5512, 5513, 5514, 5515 or 5516 in Schedule 3.
The fabrics are to contain less than 20% by weight of wool and be multi-coloured woven, printed or imported in lengths not exceeding 76cm. The fabric must also be used in the manufacture of cummerbunds, neck ties or sets consisting of a neck tie and a decorative pocket handkerchief made from the same fabric.
For the purposes of the by-law “used” does not include use as an interlining.
Consultation
No consultation was undertaken in relation to By-law No. 1303584 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. 1303584 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. 1303584 was enacted in 2013 to address the need for updated regulations under the Customs Act 1901 following amendments to the Customs Tariff by the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law was introduced to ensure the continued application of the Customs Tariff to certain goods by prescribing specific conditions for fabrics used in the manufacture of cummerbunds, neck ties, and related sets. The by-law replaces an earlier version and aligns with the new tariff schedule, taking effect from 1 March 2013, the date the amending Act commenced. The by-law was enacted by the Chief Executive Officer of Customs as authorised under section 271 of the Customs Act 1901, with the objective of maintaining the integrity and effectiveness of the customs duty system as it applies to specified goods.
Scope and Application
The Customs By-law No. 1303584, as made under Section 271 of the Customs Act 1901, applies to specific fabrics classified under headings 5407, 5408, 5512, 5513, 5514, 5515, or 5516 in Schedule 3 of the Customs Tariff Act 1995. This legislation governs the customs duty treatment of textiles, clothing, and footwear, specifically targeting fabrics that contain less than 20% by weight of wool and are multi-coloured, woven, printed, or imported in lengths not exceeding 76cm. These fabrics must be used in the manufacture of cummerbunds, neck ties, or sets consisting of a neck tie and a decorative pocket handkerchief made from the same fabric. Notably, the term "used" in the context of this by-law does not include the use of fabrics as an interlining. The by-law extends its application across the Commonwealth of Australia, ensuring that these specific textiles and clothing items are subject to the prescribed customs duty rate of "Free" as stipulated in Item 32 of the new Schedule 4 of the Customs Tariff Act. This by-law does not engage with or impact human rights as recognised in the international instruments under the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The main operative sections of By-law No. 1303584 under the Customs Act 1901 (section 271) pertain to the dutiable status of certain fabrics used in the production of cummerbunds, neck ties, and sets consisting of a neck tie and a decorative pocket handkerchief. The by-law (section 3) specifies that fabrics classified under headings 5407, 5408, 5512, 5513, 5514, 5515, or 5516 in Schedule 3, which contain less than 20% by weight of wool and are multi-coloured woven, printed, or imported in lengths not exceeding 76cm, are to be considered "Free" in terms of duty. This means these specific fabrics will not incur any customs duty when imported or used in the manufacture of the specified items.
This by-law imposes certain obligations on the parties involved. Importers and manufacturers must ensure that the fabrics used in their products meet the specified criteria, particularly the wool content and the multi-coloured nature. This includes providing documentation that verifies the fabrics' compliance with the by-law, such as certificates of analysis or other proof of the wool content and fabric type. Furthermore, the by-law clearly states that the use of these fabrics must be for the manufacture of cummerbunds, neck ties, or sets of a neck tie and a decorative pocket handkerchief, and not as an interlining.
Failure to comply with the provisions of By-law No. 1303584 may result in civil and criminal consequences. Civilly, non-compliance could lead to penalties, fines, or other financial repercussions as prescribed under the Customs Act 1901. Criminally, persistent or deliberate non-compliance could result in prosecution, with potential penalties including imprisonment, depending on the severity of the breach. While the by-law does not specify exact penalties, the general provisions under the Customs Act 1901 may be applied, which can include fines of up to $22,200 for individuals and significantly higher amounts for corporations, along with potential imprisonment terms. The exact penalties would be determined based on the specific circumstances of the breach.