EXPLANATORY STATEMENT
Customs By-law No. 1303874
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 48 in the new Schedule 4 combines items 36, 38, 39A, 39B and 39C of the previous
Schedule 4 to the Customs Tariff Act. Item 48 provides that goods, as prescribed by by-law that are classified under certain headings applying to chemicals, photographic film, plastics and paper, are dutiable at the rate of “Free”.
New By-law No. 1303874 replaces previous By-law No. 0618799.
Instrument
By-law No. 1303874 prescribes uncompounded polyamides and polyesters classified under subheadings 3907.60.00, 3907.70.00, 3907.9 or heading 3908 in Schedule 3. The goods are to be for use in the manufacture of fibres or yarns.
A security is required to be lodged with the Australian Customs and Border Protection Service to ensure compliance.
Consultation
No consultation was undertaken in relation to By-law No. 1303874 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. 1303874 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. 1303874, introduced under section 271 of the Customs Act 1901, was enacted to align with the Customs Tariff Amendment (Schedule 4) Act 2012, which revised the existing tariff schedule. This by-law specifically replaces previous By-law No. 0618799 and pertains to the prescription of goods, namely uncompounded polyamides and polyesters classified under certain subheadings and headings, for duty-free treatment when intended for use in the manufacture of fibres or yarns. The by-law requires the lodging of a security with the Australian Customs and Border Protection Service to ensure compliance with the regulations. The enactment of this by-law aims to streamline the customs duties process, ensuring that the new tariff schedule is accurately implemented and enforced. By-law No. 1303874 commenced on 1 March 2013, the same date as the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012, reflecting the need for immediate application of the updated tariff regulations.
Scope and Application
The Customs By-law No. 1303874, established under Section 271 of the Customs Act 1901, applies to entities and persons involved in the importation of uncompounded polyamides and polyesters classified under specific subheadings and headings in Schedule 3. These goods, which must be intended for use in the manufacture of fibres or yarns, are prescribed by this by-law to be dutiable at the rate of "Free". The geographic scope of this legislation is nationwide, aligning with the overarching authority of the Commonwealth in regulating customs duties. This by-law specifically excludes other goods not classified under the specified subheadings and headings. Compliance with the by-law is mandatory and requires the lodging of a security with the Australian Customs and Border Protection Service. The by-law, which replaces the previous By-law No. 0618799, is set to take effect from 1 March 2013, the date the Customs Tariff Amendment (Schedule 4) Act 2012 comes into force. Notably, this by-law does not alter existing arrangements and does not impact human rights as recognised in international instruments.
Key Provisions
Section 271 of the Customs Act 1901 empowers the Chief Executive Officer of Customs to issue by-laws for the application of items in the Customs Tariff, and by-law No. 1303874 is an example of such a regulation. This particular by-law prescribes that uncompounded polyamides and polyesters, classified under certain subheadings and headings in Schedule 3, are dutiable at a rate of “Free” when intended for use in the manufacture of fibres or yarns. These classifications pertain to chemicals, photographic film, plastics, and paper. The by-law comes into effect on 1 March 2013, in line with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
The by-law imposes certain obligations on parties dealing with the specified goods. Primarily, it requires that a security be lodged with the Australian Customs and Border Protection Service to ensure compliance with the by-law's provisions. This security acts as an assurance that the goods will be used solely for the manufacture of fibres or yarns, as prescribed, and not for any other purposes that may attract different duties or regulations. Failure to comply with this requirement can lead to various consequences, including the inability to import the goods without the proper security.
There are potential civil and criminal consequences for breaches of the Customs Act 1901 and its by-laws. While specific penalties for breaches of by-law No. 1303874 are not detailed in the explanatory statement, the Act generally provides for significant penalties for non-compliance. For example, under section 238 of the Act, an individual can be fined up to 10,000 penalty units or imprisoned for up to five years, or both, for serious breaches. Additionally, corporations can be fined up to 50,000 penalty units for similar offences. These penalties underscore the importance of adhering to the by-law’s requirements to avoid severe repercussions.