EXPLANATORY STATEMENT
Customs By-law No. 1303876
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. 1303876 replaces previous By-law No. 9440015.
Instrument
By-law No. 1303876 prescribes coated paper and coated paperboard classified under headings 4810 or 4811 in Schedule 3. The goods are to be for use in the production of magazines which, if imported, would be classified under subheading 4902.90.00 in
Schedule 3.
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. 1303876 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. 1303876 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. 1303876, enacted in 2013, was introduced to address the need for updated regulations following changes in the Customs Tariff as a result of the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law was issued under the authority of the Customs Act 1901, specifically Section 271, which empowers the Chief Executive Officer of Customs to create by-laws for prescribed items in the Customs Tariff. The Customs Tariff Act 1995, which itself is a Customs Tariff for the purposes of the Act, necessitated these new by-laws to align with the updated tariff schedule. The by-law itself aims to ensure the continued correct classification and duty application for specific goods, particularly coated paper and coated paperboard intended for magazine production, which would otherwise be subject to import duties if not appropriately classified. The enactment of this by-law is intended to maintain compliance and avoid any potential disruptions in the importation and production processes covered by these regulations.
Scope and Application
The Customs By-law No. 1303876 applies to goods classified under headings 4810 or 4811 in Schedule 3 of the Customs Tariff Act 1995, specifically coated paper and coated paperboard intended for use in the production of magazines, which, if imported, would be classified under subheading 4902.90.00 in Schedule 3. This by-law pertains to entities involved in the importation of these goods, ensuring they comply with the specified dutiable rate of “Free” as outlined in Item 48 of the new Schedule 4 to the Customs Tariff Act, which was implemented through the Customs Tariff Amendment (Schedule 4) Act 2012. The by-law extends its jurisdictional reach across the Commonwealth of Australia, necessitating compliance from all importers and relevant entities within Australia. A security must be lodged with the Australian Customs and Border Protection Service to ensure adherence to the by-law. The by-law does not exclude any specific groups or entities and applies universally to those importing the designated goods. No consultation was deemed necessary as the by-law maintains existing arrangements without introducing new restrictions or obligations.
Key Provisions
The primary sections of By-law No. 1303876 under the Customs Act 1901 (section 271) involve the regulation of goods classified under certain headings, specifically coated paper and coated paperboard classified under headings 4810 or 4811 in Schedule 3. These goods are designated for use in the production of magazines which, if imported, would fall under subheading 4902.90.00 in Schedule 3 (section 48). This by-law prescribes that these specified goods are dutiable at the rate of "Free", meaning they are exempt from customs duty.
Under the obligations imposed by this by-law, any party importing coated paper and coated paperboard for the specified purposes must ensure these goods comply with the classifications and conditions outlined. Importers must lodge a security with the Australian Customs and Border Protection Service to ensure compliance with the by-law. This security serves as a guarantee that the imported goods will be used strictly for their intended purpose and that all applicable regulations are adhered to.
Failure to comply with the by-law could lead to various consequences. While the explanatory statement does not detail specific penalties, breaches of customs regulations generally can result in civil and criminal penalties. Civil penalties might include fines, while criminal penalties could involve imprisonment, depending on the severity and intent of the breach. The exact penalties would be determined based on the specific nature of the breach and the provisions of the Customs Act 1901.
In conclusion, By-law No. 1303876 serves to clarify and regulate the importation of specific coated paper and coated paperboard, ensuring they are used appropriately and are exempt from customs duty. It places the responsibility on importers to ensure compliance, backed by the requirement to lodge a security. Any non-compliance with this by-law could lead to significant civil or criminal penalties, reinforcing the importance of adhering to the prescribed regulations.