EXPLANATORY STATEMENT
Customs By-law No. 1303866
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. 1303866 replaces previous By-law No. 9340022.
Instrument
By-law No. 1303866 prescribes fabrics, classified under headings 5208, 5210 or subheading 5212.2.
The fabrics must contain less than 20% by weight of man-made fibres and contain less
than 20% by weight of wool. The fabrics must have a raised nap on one or both sides and when tested on an Instron Tensile Testing Machine or similar apparatus, the fabrics must meet the specifications stated in the by-law.
Consultation
No consultation was undertaken in relation to By-law No. 1303866 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. 1303866 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. 1303866 was enacted under the Customs Act 1901 to address the need for updated regulations in the Customs Tariff, following the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law was created by the Chief Executive Officer of Customs to specify the criteria for certain fabrics to be exempt from customs duties, as per the new Schedule 4 of the Customs Tariff Act. This by-law replaces the previous By-law No. 9340022 and applies to fabrics classified under specific headings and subheadings that contain less than 20% by weight of man-made fibres and wool, and have a raised nap on one or both sides. The by-law came into effect on 1 March 2013, the same date the Customs Tariff Amendment (Schedule 4) Act 2012 commenced. Notably, no consultation was undertaken for this by-law as it did not alter existing arrangements, and it does not affect human rights as recognised by the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Customs By-law No. 1303866 applies to fabrics classified under specific headings and subheadings, namely 5208, 5210, and 5212.2, and regulates their dutiable status under the Customs Tariff. These fabrics must contain less than 20% by weight of man-made fibres and less than 20% by weight of wool, and must possess a raised nap on one or both sides. The by-law also stipulates that these fabrics must meet certain tensile strength specifications when tested on an Instron Tensile Testing Machine or similar apparatus. This by-law applies nationally across Australia, as it is an instrument made under the Customs Act 1901, which operates on a Commonwealth level. There are no stated exclusions or exemptions within the by-law itself, but the broader Customs Act and Tariff may provide for certain exceptions and thresholds that could apply depending on specific circumstances. The by-law comes into effect on 1 March 2013, concurrent with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
Section 271 of the Customs Act 1901 authorises the Chief Executive Officer of Customs to create by-laws to implement certain items in the Customs Tariff. This specific by-law, No. 1303866, pertains to textiles, clothing, and footwear that are subject to duty at a rate of “Free” as outlined in item 32 of Schedule 4 of the Customs Tariff Act 1995. This by-law replaces the previous By-law No. 9340022, which was superseded by the Customs Tariff Amendment (Schedule 4) Act 2012.
The by-law specifies the fabrics to which it applies, namely those classified under headings 5208, 5210, or subheading 5212.2. To be compliant, these fabrics must contain less than 20% by weight of man-made fibres and less than 20% by weight of wool. Additionally, they must have a raised nap on one or both sides and meet specified tensile strength criteria when tested on an Instron Tensile Testing Machine or a similar apparatus.
The obligations imposed by this by-law are primarily on importers and manufacturers of the specified fabrics. Importers must ensure that the fabrics they bring into Australia meet the prescribed conditions in terms of fibre composition, nap, and tensile strength. Manufacturers, on the other hand, need to produce these fabrics according to the specifications outlined in the by-law to avoid any customs duty implications.
Failure to comply with the provisions of By-law No. 1303866 may result in the fabrics being subject to customs duties. While the by-law itself does not specify penalties, non-compliance with the Customs Act 1901 could lead to fines and other enforcement actions. The exact penalties would depend on the specific breach and the relevant provisions of the Customs Act. Additionally, the importation of non-compliant goods could be refused entry into Australia, leading to potential logistical and financial repercussions for the importer.