Customs By-law No. 1303871

Overview

The Customs By-law No. 1303871, enacted in 2013, serves to address the need for updated regulatory measures under the Customs Act 1901 following amendments to the Customs Tariff. This by-law, made by the Chief Executive Officer of Customs, prescribes isopropyl myristate for use in cosmetics, ensuring that these goods, classified under subheading 2915.90.00 in Schedule 3, are dutiable at the rate of “Free”. The introduction of this by-law follows the Customs Tariff Amendment (Schedule 4) Act 2012, which necessitated the replacement of the existing Schedule 4 with a new one, thereby requiring new by-laws for goods prescribed by by-law. This by-law does not alter existing arrangements and thus did not require consultation. It is effective from 1 March 2013 and does not impact human rights as recognised in relevant international instruments.

Scope and Application

The Customs By-law No. 1303871, issued under Section 271 of the Customs Act 1901, pertains to the classification and duty imposition on certain goods as outlined in the Customs Tariff. This by-law applies specifically to goods such as isopropyl myristate used in the formulation of cosmetics, which are classified under subheading 2915.90.00 in Schedule 3 of the Customs Tariff Act 1995. The by-law serves to replace the previous By-law No. 9640067 and prescribes that these particular chemicals are dutiable at a rate of "Free". This legislative instrument is intended to ensure compliance through the requirement of a security to be lodged with the Australian Customs and Border Protection Service. The by-law applies nationally across Australia and takes effect from 1 March 2013, the date the Customs Tariff Amendment (Schedule 4) Act 2012 commenced. It is important to note that this by-law does not introduce any changes to existing arrangements and has no implications for human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Customs By-law No. 1303871 made under section 271 of the Customs Act 1901 (the Act) prescribes isopropyl myristate, a chemical classified under subheading 2915.90.00 in Schedule 3, for use in the formulation of cosmetics. This by-law replaces the previous By-law No. 9640067, reflecting changes introduced by the Customs Tariff Amendment (Schedule 4) Act 2012. This amendment updates the Customs Tariff Act 1995 (the Customs Tariff Act) to incorporate new tariff provisions, including the consolidation of several previous items into a single item, namely item 48, which pertains to goods classified under specific headings related to chemicals, photographic film, plastics, and paper. The by-law imposes specific obligations on parties dealing with the prescribed goods. Firstly, any entity importing isopropyl myristate for use in cosmetics must comply with the new by-law's stipulations, which include the classification of the goods and the applicable duty rate of "Free." To ensure compliance, a security must be lodged with the Australian Customs and Border Protection Service. This requirement underscores the importance of maintaining accurate records and adhering to the regulations governing the import and use of such chemicals. Failure to comply with the provisions of the by-law may result in civil and criminal consequences. Although specific offences and penalties are not detailed within the explanatory statement, breaches of customs regulations generally attract severe penalties under the Customs Act 1901. For instance, knowingly or recklessly making a false statement in a customs document can result in fines up to $22,000 or imprisonment for up to two years, or both. Additionally, non-compliance with the security requirements could lead to penalties under the Customs Act, including fines and potential criminal charges for more egregious violations. Therefore, adherence to the by-law's requirements is crucial to avoid these potential repercussions.