EXPLANATORY STATEMENT
Customs By-law No. 1303869
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. 1303869 replaces previous By-law No. 9340038.
Instrument
By-law No. 1303869 prescribes tufted carpets and other textile floor coverings classified under heading 5703 in Schedule 3. The carpets and other textile floor coverings must be made by non-powered tufting machines held in the hand.
Consultation
No consultation was undertaken in relation to By-law No. 1303869 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. 1303869 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. 1303869 was enacted in 2013 under the authority of the Customs Act 1901. This legislation was introduced to address the need for updated by-laws following the amendment of Schedule 4 in the Customs Tariff Act 1995, as necessitated by the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law specifically prescribes tufted carpets and other textile floor coverings classified under heading 5703 in Schedule 3, which must be made by non-powered tufting machines held in the hand. The by-law ensures that these items are subject to the prescribed duty rate of "Free" as per the new customs tariff. The enactment of this by-law is authorised by the Parliament of Australia, aiming to maintain and update the regulatory framework governing customs duties and classifications in alignment with legislative changes. No consultation was deemed necessary for this by-law as it does not alter existing arrangements, and it does not impact human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Customs By-law No. 1303869, established under Section 271 of the Customs Act 1901, applies specifically to tufted carpets and other textile floor coverings classified under heading 5703 in Schedule 3, which must be made by non-powered tufting machines held in the hand. This legislation operates within the Commonwealth jurisdiction and extends its reach to all entities involved in the importation of these goods, including businesses, importers, and customs brokers. The by-law effectively designates these particular textile floor coverings as being dutiable at a "Free" rate, as outlined in the newly amended Schedule 4 of the Customs Tariff Act 1995. Notably, this by-law does not engage with, impact, or limit human rights as recognised by the international instruments under the Human Rights (Parliamentary Scrutiny) Act 2011. It commenced on 1 March 2013, aligning with the effective date of the Customs Tariff Amendment (Schedule 4) Act 2012. No consultation was necessary for this by-law as it does not modify existing customs arrangements.
Key Provisions
The primary sections of Customs By-law No. 1303869 (paragraphs 1-2) establish that it applies to tufted carpets and other textile floor coverings, classified under heading 5703 in Schedule 3, that are made by non-powered tufting machines held in the hand. This by-law replaces the previous By-law No. 9340038 and comes into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2013 (section 1). The by-law prescribes specific goods, namely tufted carpets and other textile floor coverings, under the new Schedule 4 item 32, which provides for these goods to be dutiable at the rate of "Free" (section 3).
The obligations and requirements imposed by this by-law are primarily concerned with the manufacturing process of the prescribed goods. Importers and manufacturers must ensure that the tufted carpets and other textile floor coverings are made using non-powered tufting machines held in the hand to comply with the by-law. This stipulation ensures consistency in the application of the "Free" duty rate for these goods and maintains the integrity of the customs tariff system (section 3).
Failure to comply with the requirements set out in By-law No. 1303869 may result in legal consequences. While the explanatory statement does not explicitly detail the penalties for breach, it is implied that non-compliance could lead to legal action under the Customs Act 1901. The Customs Act provides for various civil and criminal penalties, including fines and imprisonment, for breaches related to customs duties and regulations. The specific penalties would depend on the nature and severity of the breach, but they could include significant financial penalties for individuals and entities found to be in violation of the by-law (section 271).