EXPLANATORY STATEMENT
Customs By-law No. 1303616
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. 1303616 replaces previous By-law No. 9840005.
Instrument
By-law No. 1303616 prescribes synthetic fur fabric classified under subheading 6001.10.00 in Schedule 3.
The prescribed fabric must weigh 700 grams per square metre or more and be used in the manufacture of plush toys.
Consultation
No consultation was undertaken in relation to By-law No. 1303616 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. 1303616 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. 1303616, enacted in 2013, is a regulatory instrument made under the authority granted by section 271 of the Customs Act 1901. This by-law was introduced to address the need for updated regulations in line with the Customs Tariff Amendment (Schedule 4) Act 2012, which revised the existing tariff schedule. The Customs Tariff Amendment Act repealed the previous Schedule 4 of the Customs Tariff Act, necessitating new by-laws for items previously prescribed by by-law. The specific purpose of By-law No. 1303616 is to prescribe synthetic fur fabric, used in the manufacture of plush toys, under the new tariff structure. This by-law comes into effect from 1 March 2013, the date the Customs Tariff Amendment (Schedule 4) Act 2012 commenced. The by-law does not engage or impact human rights, as confirmed by the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Customs By-law No. 1303616, under the Customs Act 1901, specifically applies to synthetic fur fabric that meets the criteria outlined in the by-law. This particular by-law pertains to fabric classified under subheading 6001.10.00 in Schedule 3, which must weigh 700 grams per square metre or more and is used in the manufacture of plush toys. This legislative instrument is applicable across Australia, reflecting the broad jurisdictional reach of the Customs Act. The by-law does not require consultation as it does not alter existing arrangements and has no impact on human rights as declared in the Human Rights (Parliamentary Scrutiny) Act 2011. It comes into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012. The by-law is a necessary adjustment to maintain consistency with the changes introduced by the new schedule, ensuring that the prescribed goods are appropriately dutiable as per the Customs Tariff.
Key Provisions
The primary operative sections of the Customs By-law No. 1303616 pertain to the classification and duty rates of specific goods under the Customs Tariff Act 1995, as amended by the Customs Tariff Amendment (Schedule 4) Act 2012. Specifically, Section 271 of the Customs Act 1901 allows the Chief Executive Officer of Customs to create by-laws that prescribe how certain tariff items apply to goods. The by-law in question, No. 1303616, replaces previous By-law No. 9840005 and prescribes that synthetic fur fabric, classified under subheading 6001.10.00 in Schedule 3, will be considered dutiable at the rate of "Free" if it meets certain criteria. Namely, the fabric must weigh 700 grams per square metre or more and be used in the manufacture of plush toys.
Under this by-law, entities and individuals involved in the import, export, or manufacture of the specified synthetic fur fabric must ensure that the fabric meets the prescribed weight and intended use criteria to qualify for the duty rate of "Free". This involves maintaining and providing documentation that confirms the fabric's weight and its intended application in the manufacture of plush toys. The by-law also imposes a requirement on importers and manufacturers to accurately classify and declare the goods when submitting customs documentation, ensuring that the correct duty rates are applied.
Failure to comply with the provisions of By-law No. 1303616 may result in civil or criminal penalties. The primary consequence of non-compliance is the imposition of incorrect duty rates, which can lead to financial penalties, fines, or the confiscation of the goods. In severe cases, where non-compliance is found to be deliberate or part of a pattern of fraudulent behaviour, criminal charges may be brought against the responsible parties. The maximum penalties for such offences can include substantial fines and imprisonment, as determined by the applicable laws governing customs and excise matters.