EXPLANATORY STATEMENT
Customs By-law No. 1303598
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. 1303598 replaces previous By-law No. 9840001.
Instrument
By-law No. 1303598 prescribes fabrics classified under headings 5007, 5208, 5210, 5212, 5407, 5408, 5512, 5513, 5515 or 5516 in Schedule 3.
The prescribed goods are subject to the following conditions:
(a) the fabrics must weigh less than 125 grams per square metre;
(b) the fabrics must be imported for the purpose of impregnating, coating, covering or laminating the fabrics with a permanent plastic addition of 30 grams per square metre or more by the importer who entered the goods for home consumption; and
(c) when the fabric is coated, it must be sold in that form or made up into finished products, other than curtains, by the importer.
Consultation
No consultation was undertaken in relation to By-law No. 1303598 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. 1303598 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. 1303598, enacted under the authority of the Customs Act 1901, was introduced to address the need for updated regulations regarding the importation of certain fabrics that meet specific conditions, following amendments to the Customs Tariff Act 1995. This by-law was necessitated by the Customs Tariff Amendment (Schedule 4) Act 2012, which required the replacement of outdated by-laws to align with the new tariff schedule. The policy objective is to ensure that the importation of specific fabrics for particular uses, such as those subject to certain weight and treatment conditions, are correctly classified and taxed. The by-law was formulated by the Chief Executive Officer of Customs and does not involve any human rights implications, as confirmed in the explanatory statement. It commenced 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. 1303598, enacted under section 271 of the Customs Act 1901, applies to specific fabrics classified under headings 5007, 5208, 5210, 5212, 5407, 5408, 5512, 5513, 5516, and 5515 in Schedule 3. This legislation mandates that these fabrics, when imported, must meet certain conditions to be considered dutiable at the "Free" rate. These conditions include the fabrics weighing less than 125 grams per square metre, being imported for the purpose of impregnating, coating, covering, or laminating them with a permanent plastic addition of at least 30 grams per square metre, and once coated, being either sold in that form or made into finished products, excluding curtains, by the importer. The by-law extends its jurisdictional reach across the Commonwealth of Australia and applies to all entities and persons involved in the importation of these specified fabrics. Importantly, the by-law does not alter existing arrangements and thus did not require consultation. It also does not impact human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law came into effect on 1 March 2013, coinciding with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
Section 271 of the Customs Act 1901 enables the Chief Executive Officer of Customs to create by-laws for items of a Customs Tariff, which are prescribed by by-law, to specify the application of these items to particular goods or classes of goods. This provision allows for detailed regulation of customs duties on specific goods. The Customs Tariff Act 1995 defines the Customs Tariff, which includes the list of goods subject to customs duties, and the Customs Tariff Amendment (Schedule 4) Act 2012 modifies the existing Schedule 4 by replacing it with a new one. Consequently, By-law No. 1303598 has been enacted to align with the new Schedule 4, particularly concerning textiles, clothing, and footwear.
The obligations imposed by By-law No. 1303598 are specific to fabrics classified under certain headings in Schedule 3 of the Customs Tariff Act. These fabrics, which must weigh less than 125 grams per square metre, are subject to customs duties if they are imported for the purpose of impregnating, coating, covering, or laminating them with a permanent plastic addition of at least 30 grams per square metre by the importer. Furthermore, when these fabrics are coated, they must be either sold in their coated form or made into finished products, excluding curtains, by the importer. This by-law ensures that the specified fabrics are taxed appropriately according to their use and form upon importation.
Breaching the conditions outlined in By-law No. 1303598 may result in various penalties. The Customs Act 1901 outlines the legal consequences for non-compliance, which can include both civil and criminal penalties. Civil penalties may involve financial fines, whereas criminal penalties could result in imprisonment, depending on the severity and intent of the breach. The maximum penalties are determined by the specific nature of the offence and the relevant provisions of the Customs Act 1901, which provide a framework for enforcing compliance with the by-law.