EXPLANATORY STATEMENT
Customs By-law No. 1303621
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. 1303621 replaces previous By-law No. 9840003.
Instrument
By-law No. 1303621 prescribes fabrics classified under headings 5407 or 5408 in Schedule 3.
The fabric is to be used for the manufacture of surgical or adhesive plaster.
For the purposes of this by-law “fabrics” do not include elastomeric fabrics weighing 510 grams per square metre or less.
Consultation
No consultation was undertaken in relation to By-law No. 1303621 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. 1303621 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. 1303621, enacted in 2013, amends the Customs Act 1901 by updating the by-laws to align with the new Customs Tariff introduced by the Customs Tariff Amendment (Schedule 4) Act 2012. This legislation addresses the need to revise the legal framework governing the duties on certain goods, specifically replacing the previous by-law No. 9840003 with a new one to reflect updated tariff schedules. The Customs Tariff Amendment (Schedule 4) Act 2012, enacted by the Parliament, aims to streamline and modernise the customs duty system by replacing the existing Schedule 4 with a new one. By-law No. 1303621 specifies the fabrics classified under headings 5407 or 5408 in Schedule 3 that are to be used for the manufacture of surgical or adhesive plaster, excluding elastomeric fabrics weighing 510 grams per square metre or less. This by-law, which does not require consultation as it does not alter existing arrangements, ensures compliance with the updated tariff and maintains the integrity of the customs duty system.
Scope and Application
The Customs By-law No. 1303621 applies to the importation of fabrics classified under headings 5407 or 5408 in Schedule 3 of the Customs Tariff Act 1995, specifically those intended for the manufacture of surgical or adhesive plaster. This by-law is applicable to individuals, businesses, and entities involved in the importation of these fabrics into Australia, ensuring they are subject to the prescribed customs duty rates. The by-law specifically excludes elastomeric fabrics weighing 510 grams per square metre or less, thereby differentiating the duty treatment based on the fabric type and weight. This by-law is enacted under the authority granted by section 271 of the Customs Act 1901 and applies across the Commonwealth of Australia, ensuring uniformity in the application of the duty rates for these specified fabrics. There are no stated exemptions or exclusions beyond those mentioned, and the by-law comes into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
The primary operative sections of By-law No. 1303621 pertain to the dutiable status of certain fabrics used in the manufacture of surgical or adhesive plaster, as defined under headings 5407 or 5408 in Schedule 3 of the Customs Tariff Act 1995. Specifically, section 1 of the by-law prescribes that fabrics used in the production of these medical items are to be considered "Free" from customs duties. This means that no customs duty will be applied to these specific fabrics, provided they meet the criteria outlined in the by-law (section 1). This legislative change is designed to streamline the importation process for materials essential in the medical sector.
Entities and individuals involved in the importation or manufacture of surgical or adhesive plaster are subject to the requirements of By-law No. 1303621. They must ensure that the fabrics they import or use for manufacturing are classified under the specified headings in Schedule 3 and do not include elastomeric fabrics weighing 510 grams per square metre or less. This obligation ensures compliance with the new duty-free status for these specific fabrics, thereby avoiding unnecessary customs charges (section 1). The onus is on the importer or manufacturer to verify that the fabrics meet the criteria set out in the by-law to benefit from the duty-free status.
Failure to comply with the provisions of By-law No. 1303621 could result in civil or criminal consequences. Importers or manufacturers who do not adhere to the by-law's stipulations regarding the classification and weight of the fabrics may face penalties. Although the specific penalties are not detailed in the by-law itself, under the broader Customs Act 1901, breaches can lead to fines or other sanctions as prescribed by law. It is imperative for all parties to understand and comply with the by-law to avoid any legal repercussions (section 271). The absence of consultation in the creation of this by-law suggests that it is a continuation of existing practices with no significant alterations to existing obligations, but the importance of precise compliance remains.