EXPLANATORY STATEMENT
Customs By-law No. 1303865
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. 1303865 replaces previous By-law No. 9340021.
Instrument
By-law No. 1303865 prescribes fabrics, classified under headings 5208, 5210 or subheading 5212.1 in Schedule 3. The fabric must contain less than 20% by weight of man-made fibres and contain less than 20% by weight of wool.
The prescribed goods are not to be used in the making up of bed linen.
Consultation
No consultation was undertaken in relation to By-law No. 1303865 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. 1303865 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. 1303865, enacted in 2013, was introduced to address the need for updated regulations in line with the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law, made under the authority of section 271 of the Customs Act 1901, serves to prescribe specific fabrics for duty purposes, replacing the previous By-law No. 9340021. The objective of this by-law is to ensure that certain fabrics, classified under headings 5208, 5210, or subheading 5212.1 in Schedule 3, which contain less than 20% by weight of man-made fibres and less than 20% by weight of wool, are dutiable at the rate of “Free,” provided they are not used in the making up of bed linen. This legislative update aligns with the broader policy objective of refining the customs duties to reflect current economic and trade considerations.
Scope and Application
The Customs By-law No. 1303865 applies to specific fabrics classified under headings 5208, 5210, or subheading 5212.1 in Schedule 3 of the Customs Tariff Act 1995. The by-law is concerned with textiles, clothing, and footwear which are dutiable at the rate of “Free” as prescribed by the by-law, provided that the fabrics contain less than 20% by weight of man-made fibres and less than 20% by weight of wool, and are not intended for use in the production of bed linen. This legislation operates under the authority granted by section 271 of the Customs Act 1901, which allows the Chief Executive Officer of Customs to make by-laws for the purposes of items in the Customs Tariff. The by-law's jurisdiction and application are within the Commonwealth of Australia, aligning with the broader scope of the Customs Act 1901. By-law No. 1303865 came into effect on 1 March 2013, following the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012. It is important to note that this by-law does not involve any consultation process as it does not alter existing arrangements, and it has no implications for human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The Customs By-law No. 1303865, made under section 271 of the Customs Act 1901, establishes specific provisions regarding the duty on textiles, clothing, and footwear. It prescribes certain fabrics classified under headings 5208, 5210, or subheading 5212.1 in Schedule 3 of the Customs Tariff Act 1995 as dutiable at the rate of “Free,” provided they contain less than 20% by weight of man-made fibres and less than 20% by weight of wool (By-law No. 1303865, item 32). Furthermore, these fabrics must not be used in the making up of bed linen (By-law No. 1303865, item 32).
This by-law imposes obligations on importers, exporters, and manufacturers to ensure that the fabrics they deal with meet the specified criteria. Importers and exporters must declare the correct tariff classification for the fabrics, while manufacturers must verify that the fabrics used in their products adhere to the weight percentages of man-made fibres and wool as stipulated in the by-law (Customs Act 1901, section 271). The by-law also mandates that these fabrics should not be used for making bed linen, which requires compliance checks by relevant authorities.
Failure to comply with the provisions of By-law No. 1303865 may result in various civil and criminal consequences. Importers and exporters found to have misdeclared the tariff classification of the fabrics may face penalties under the Customs Act 1901. The maximum penalty for such offences includes fines up to $22,000 for individuals and up to $110,000 for corporations, as well as potential imprisonment terms. Manufacturers who use non-compliant fabrics in their products may also face similar penalties, including fines and imprisonment, if found guilty of non-compliance (Customs Act 1901, section 189).
Additionally, the by-law does not impact human rights and freedoms as recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law comes into effect on 1 March 2013, the same date the Customs Tariff Amendment (Schedule 4) Act 2012 commences. This ensures that the new by-law aligns with the updated tariff schedule and the legislative changes introduced by the 2012 Amendment Act.