EXPLANATORY STATEMENT
Customs By-law No. 1303868
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. 1303868 replaces previous By-law No. 9340033.
Instrument
By-law No. 1303868 prescribes fabrics classified under heading 5903 in Schedule 3. The fabric must be for use as fusing lining in the manufacture of collars or cuffs for shirts or blouses.
Consultation
No consultation was undertaken in relation to By-law No. 1303868 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. 1303868 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. 1303868, enacted in 2013, is a legislative instrument under the Customs Act 1901, which empowers the Chief Executive Officer of Customs to establish by-laws for the application of duties of customs as outlined in the Customs Tariff. This by-law was introduced to address the need for updated regulations following amendments to the Customs Tariff Act 1995, specifically concerning the dutiable rates for textiles, clothing, and footwear. The Customs Tariff Amendment (Schedule 4) Act 2012, enacted by the Australian Parliament, necessitated new by-laws to reflect the changes in the schedule. This particular by-law, which replaces the previous By-law No. 9340033, specifically prescribes fabrics classified under heading 5903 in Schedule 3 for use as fusing lining in the manufacture of collars or cuffs for shirts or blouses. Notably, the by-law did not require consultation as it did not alter existing arrangements and has no implications on human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law came into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Scope and Application
The Customs By-law No. 1303868 is established under the authority of 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. This by-law specifically applies to fabrics classified under heading 5903 in Schedule 3, which must be used as fusing lining in the manufacture of collars or cuffs for shirts or blouses. The legislation applies to entities and individuals involved in the importation or manufacture of such fabrics within Australia, ensuring compliance with the duty rates as prescribed. The scope of the by-law is confined to the specified fabrics used for certain apparel components, and it does not impact any other goods or industries. The by-law operates across the entire Commonwealth of Australia, ensuring uniform application of the prescribed duty rates. It is important to note that this by-law does not alter existing arrangements and thus did not require consultation. By-law No. 1303868 comes into effect on 1 March 2013, concurrent with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012, and does not engage with or impact human rights as defined under the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The main sections of By-law No. 1303868 pertain to the dutiable status of specific fabrics, classifying them under heading 5903 in Schedule 3 of the Customs Tariff Act. This by-law specifies that fabrics intended for use as fusing lining in the manufacture of collars or cuffs for shirts or blouses will be considered “Free” from customs duty (Section 271 of the Customs Act 1901). This essentially means that these particular fabrics will not incur any customs duties when imported into Australia. The by-law aims to streamline the process for importing these specific items by setting a clear and defined exemption.
The obligations imposed by By-law No. 1303868 require that any party importing or dealing in fabrics classified under heading 5903 must ensure that these fabrics are used solely for the manufacturing of collars or cuffs for shirts or blouses. Importers and manufacturers must comply with the by-law to take advantage of the duty-free status for these fabrics. Any deviation from the specified use could potentially negate the duty exemption, thereby subjecting the fabrics to applicable customs duties.
Failure to comply with By-law No. 1303868 could lead to several consequences. If fabrics classified under heading 5903 are used for purposes other than those specified, importers and manufacturers may be liable for applicable customs duties retroactively. Additionally, any intentional misdeclaration or fraudulent use of the by-law to avoid duties could result in civil or criminal penalties. While the by-law does not explicitly state the penalties, breaches of the Customs Act 1901 can lead to fines and potential imprisonment, depending on the severity and intent of the breach. The precise penalties would be determined by the courts based on the specific circumstances of the case.