EXPLANATORY STATEMENT
Customs By-law No. 1303625
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 the 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. 1303625 replaces previous By-law No. 0140004.
Instrument
By-law No. 1303625 prescribes fusible interlining fabrics classified under headings 5210, 5211, 5212, 5903, 6002, 6003, 6004, 6005 or 6006.
The fabric is to be for use as shoulder or chest padding in the manufacture of coats or formal evening wear shirts.
Consultation
No consultation was undertaken in relation to By-law No. 1303625 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. 1303625 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. 1303625, enacted in 2013, is a legislative instrument made under the authority granted by the Customs Act 1901. This by-law was introduced to address the need for updated regulations concerning the prescription of specific goods for customs duties, following amendments to the Customs Tariff. Specifically, the by-law updates the list of goods subject to the "Free" duty rate for textiles, clothing, and footwear as prescribed in the Customs Tariff. The Customs Tariff Amendment (Schedule 4) Act 2012 necessitated the creation of this new by-law to align with the updated tariff schedule. The by-law prescribes fusible interlining fabrics used for shoulder or chest padding in the manufacture of coats or formal evening wear shirts. The policy objective of this by-law is to ensure that the updated tariff schedule is effectively implemented and enforced, thereby maintaining the integrity and efficiency of the customs duty system.
Scope and Application
The Customs By-law No. 1303625 applies to specific categories of goods under the Customs Tariff as outlined in the Customs Act 1901. This particular by-law prescribes the dutiable status of certain fusible interlining fabrics used as shoulder or chest padding in the manufacture of coats or formal evening wear shirts, specifically those classified under headings 5210, 5211, 5212, 5903, 6002, 6003, 6004, 6005, or 6006. The by-law is designed to align with the updated Customs Tariff, as amended by the Customs Tariff Amendment (Schedule 4) Act 2012, which repeals the previous Schedule 4 and introduces new tariff items. The geographic scope of this legislation is national, applying across Australia as it pertains to customs duties managed by the Chief Executive Officer of Customs. The by-law does not impose any exclusions or exemptions, and its application is direct and specific to the prescribed fabrics and their use in specified garments. Additionally, the by-law extends its reach through the subordinate Customs Tariff Act 1995, which governs the imposition of customs duties on goods.
Key Provisions
The Customs By-law No. 1303625, which comes under the Customs Act 1901, specifically addresses the tariff classification and duty rates for certain types of fusible interlining fabrics (sections 271 and 4 of the Act). This by-law replaces the previous By-law No. 0140004 and applies to fabrics classified under headings 5210, 5211, 5212, 5903, 6002, 6003, 6004, 6005, and 6006, intended for use as shoulder or chest padding in coats or formal evening wear shirts. This new by-law comes into effect from 1 March 2013, the same date as the Customs Tariff Amendment (Schedule 4) Act 2012.
In terms of obligations, the Act mandates that these specific fabrics are to be classified under the Customs Tariff as dutiable at a rate of "Free". This means that no customs duty is imposed on these items when they are imported into Australia. This classification is crucial for the smooth import and export processes of these fabrics, ensuring that they are not subjected to any additional costs that could affect the manufacturing and retail sectors.
Failure to comply with the provisions of this by-law could result in various civil or criminal consequences. Although the Explanatory Statement does not specify the exact penalties, breaches of customs regulations generally lead to financial penalties, which can be substantial. The severity of the penalty often depends on factors such as the intent behind the breach, the value of the goods involved, and whether it was a deliberate act or an oversight. Additionally, repeated or severe breaches could lead to more stringent legal actions, including possible prosecution under the Customs Act 1901. It is important for importers and manufacturers to adhere strictly to these regulations to avoid any legal repercussions.