EXPLANATORY STATEMENT
Customs By-law No. 1303612
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. 1303612 replaces previous By-law No. 9840004.
Instrument
By-law No. 1303612 prescribes fabrics classified under headings 5407, 5408, 5512, 5513, 5514, 5515 or 5516 in Schedule 3. The fabrics are to be used in the manufacture of brassieres, corsets, torsolettes, corselettes or pantie girdles.
For the purposes of the by-law, “fabric” does not include elastomeric fabrics weighing 510 grams per square metre or less.
Consultation
No consultation was undertaken in relation to By-law No. 1303612 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. 1303612 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. 1303612, introduced under the Customs Act 1901, was enacted to address the need for updated by-laws following the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law, issued by the Chief Executive Officer of Customs, replaces By-law No. 9840004 and prescribes certain fabrics used in the manufacture of specific undergarments, such as brassieres and corsets, to be dutiable at the rate of "Free." The purpose of this by-law is to align with the new schedule set out in the Customs Tariff Act 1995 and ensure that the classification of fabrics remains current. No consultation was deemed necessary as the by-law does not alter existing arrangements, and it has no impact on human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law came into effect on 1 March 2013, the date of commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Scope and Application
The Customs By-law No. 1303612, made under section 271 of the Customs Act 1901, applies to specific fabrics classified under certain headings in Schedule 3 that are used in the manufacture of brassieres, corsets, torsolettes, corselettes, or pantie girdles. This by-law specifically excludes elastomeric fabrics weighing 510 grams per square metre or less. The by-law operates nationally and aligns with the Customs Tariff Act 1995, which itself is a Customs Tariff for the purposes of the Customs Act 1901. The by-law’s implementation is tied to the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012, effective from 1 March 2013, and does not necessitate any consultation as it does not alter existing arrangements. Importantly, the by-law does not impact human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The main operative sections of By-law No. 1303612 under the Customs Act 1901 (section 271) pertain to the prescription of specific fabrics used in the manufacture of certain types of garments. This by-law, numbered 1303612, replaces the previous by-law numbered 9840004 and specifies that fabrics classified under headings 5407, 5408, 5512, 5513, 5514, 5515, and 5516 in Schedule 3 of the Customs Tariff Act 1995 are to be used in the production of brassieres, corsets, torsolettes, corselettes, and pantie girdles. Notably, elastomeric fabrics weighing 510 grams per square metre or less are excluded from the definition of "fabric" for the purposes of this by-law. This by-law comes into effect from 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
The by-law imposes specific obligations on parties or entities involved in the importation and manufacture of the specified garments. Importers and manufacturers must ensure that the fabrics used in the production of brassieres, corsets, torsolettes, corselettes, and pantie girdles comply with the classifications and exclusions outlined in By-law No. 1303612. This involves verifying the classification of the fabrics under the specified headings in Schedule 3 of the Customs Tariff Act 1995 and ensuring that elastomeric fabrics weighing 510 grams per square metre or less are not used. Compliance with these requirements is essential to avoid any customs duty implications and legal repercussions.
Any breach of By-law No. 1303612 could result in significant legal consequences. The Customs Act 1901 provides for penalties for non-compliance with customs by-laws, which may include fines and potential criminal charges. The specific penalties depend on the nature and severity of the breach but could include substantial fines for non-compliance. Additionally, persistent or egregious violations could lead to criminal charges, resulting in further penalties and potential imprisonment. Therefore, it is crucial for all parties involved to adhere strictly to the provisions of this by-law to avoid any adverse legal outcomes.