EXPLANATORY STATEMENT
Customs By-law No. 1303608
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. 1303608 replaces previous By-law No. 9340037.
Instrument
By-law No. 1303608 prescribes handkerchiefs classified under heading 6213 in Schedule 3.
The prescribed goods are subject to the following conditions:
(a) the handkerchiefs are to be imported in packs containing 60 or more handkerchiefs of one design and/or colour; and
(b) the handkerchiefs are not to be put up for retail sale.
Consultation
No consultation was undertaken in relation to By-law No. 1303608 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. 1303608 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. 1303608, enacted in 2013, is an instrument of the Customs Act 1901, designed to address the need for updated by-laws following the repeal of Schedule 4 of the Customs Tariff Act 1995 by the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law specifically targets the dutiable rate for certain imported goods, namely handkerchiefs classified under heading 6213, ensuring that they are subject to a "Free" rate when imported in packs of 60 or more of one design and/or colour, provided they are not intended for retail sale. The by-law was issued by the Chief Executive Officer of Customs under the authority conferred by section 271 of the Customs Act 1901. No consultation was undertaken as the by-law maintains existing arrangements, and it does not impact human rights as recognised by the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law came into effect on 1 March 2013, aligning with the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012.
Scope and Application
Customs By-law No. 1303608 applies specifically to handkerchiefs classified under heading 6213 in Schedule 3 of the Customs Tariff Act 1995. The by-law, which was necessitated by the Customs Tariff Amendment (Schedule 4) Act 2012, governs the importation of these goods by prescribing certain conditions. It applies to goods imported in packs containing 60 or more handkerchiefs of one design and/or colour, provided that these handkerchiefs are not intended for retail sale. The by-law is effective from 1 March 2013, the date on which the Customs Tariff Amendment (Schedule 4) Act 2013 commenced. Notably, this by-law does not require consultation as it does not alter existing arrangements, and it has no implications for human rights as defined under the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The Customs By-law No. 1303608, as referenced in section 271 of the Customs Act 1901, serves to prescribe specific conditions for the importation of handkerchiefs, which are classified under heading 6213 in Schedule 3 of the Customs Tariff Act 1995. This by-law, effective from 1 March 2013, stipulates that handkerchiefs can be imported under a duty rate of "Free" only if they are imported in packs containing a minimum of 60 handkerchiefs of the same design and/or colour, and they must not be intended for retail sale. This legislative measure is part of a broader update to the Customs Tariff, replacing the previous By-law No. 9340037 to align with the new Customs Tariff Amendment (Schedule 4) Act 2012.
In terms of compliance, the Act imposes clear requirements on entities importing handkerchiefs. They must ensure that the handkerchiefs are imported in the specified packs and are not packaged or labelled for retail sale. Failure to adhere to these conditions could potentially lead to the goods being subject to duty, which would undermine the purpose of the by-law. This requirement is intended to streamline the importation process for bulk purchases while preventing the circumvention of retail duty through bulk importation for subsequent retail sale.
The Act does not explicitly state penalties or consequences for non-compliance with By-law No. 1303608. However, in general, breaches of the Customs Act 1901 can lead to severe penalties, including fines and potential imprisonment. The specific consequences for breaching this by-law would be consistent with the broader penalties outlined in the Customs Act, which could include financial penalties for underpaid duties or other applicable fees, as well as possible seizure of the non-compliant goods. The exact penalties would depend on the nature and severity of the breach, as determined by the relevant authorities.