EXPLANATORY STATEMENT
Customs By-law No. 1303877
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. 1303877 replaces previous By-law No. 9440017.
Instrument
By-law No. 1303877 prescribes coated paper classified under headings 4810 or 4811 in Schedule 3. The goods are subject to the following conditions:
(a) the goods must have a weight not exceeding 67 grams per square metre;
(b) the goods are to contain more than 55% mechanical pulp; and
(c) the goods are to be for use in the production of newspapers, periodicals, posters and other printed matter of a kind which, if imported, would be classified in Chapter 49 in Schedule 3.
A security is required to be lodged with the Australian Customs and Border Protection Service to ensure compliance with the conditions.
Consultation
No consultation was undertaken in relation to By-law No. 1303877 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. 1303877 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. 1303877, enacted in 2013, serves as an amendment to the Customs Act 1901 and the Customs Tariff Act 1995, addressing the need to update the regulatory framework for dutiable goods as stipulated in Schedule 4 of the Customs Tariff Act. This by-law was introduced to ensure alignment with the Customs Tariff Amendment (Schedule 4) Act 2012, which replaced the existing Schedule 4 with a new one, necessitating new by-laws for goods prescribed by by-law. The enactment was overseen by the relevant authority within the Australian Customs and Border Protection Service and aims to streamline the regulatory processes for certain goods, particularly coated paper used in the production of newspapers and other printed materials, by clearly defining the conditions under which these goods are classified and subject to duty. The by-law specifies that coated paper, subject to certain weight and composition criteria, qualifies for duty-free status when used for specified printed materials.
Scope and Application
The Customs By-law No. 1303877 applies to coated paper classified under specific headings within Schedule 3, which includes certain chemicals, photographic film, plastics, and paper goods. This by-law is applicable to entities and individuals involved in the importation and use of such coated paper, provided that the paper meets the specified criteria: it must have a weight not exceeding 67 grams per square metre, contain more than 55% mechanical pulp, and be intended for use in the production of newspapers, periodicals, posters, and other printed matter that would be classified in Chapter 49 in Schedule 3. The by-law is effective across Australia, extending the jurisdictional reach of the Customs Act 1901. A security must be lodged with the Australian Customs and Border Protection Service to ensure compliance with the outlined conditions. This by-law does not introduce any new arrangements and thus did not require consultation. It became effective on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012, and it does not impact on human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The main operative sections of Customs By-law No. 1303877, under the Customs Act 1901, pertain to the classification and duty on coated paper that meets specific criteria. According to Section 271 of the Customs Act 1901, the Chief Executive Officer of Customs has the authority to make by-laws for the purposes of items in a Customs Tariff, which is defined in Section 4 as an act imposing duties of customs. This by-law, No. 1303877, replaces previous By-law No. 9440017 and specifically addresses coated paper under headings 4810 or 4811 in Schedule 3 of the Customs Tariff Act.
The by-law sets out certain conditions that the coated paper must meet to qualify for the duty rate of "Free". Firstly, the paper must have a weight not exceeding 67 grams per square metre (Condition (a)). Secondly, it must contain more than 55% mechanical pulp (Condition (b)). Lastly, the paper must be intended for use in the production of newspapers, periodicals, posters, and other printed matter that would be classified in Chapter 49 of Schedule 3 if imported (Condition (c)). A security is required to be lodged with the Australian Customs and Border Protection Service to ensure compliance with these conditions.
The obligations imposed by this by-law are primarily on importers and manufacturers of coated paper who must ensure that their products meet the specified criteria to qualify for the preferential duty rate. This includes verifying that the paper's weight, pulp content, and intended use comply with the conditions outlined in the by-law. Additionally, a security must be lodged with the Australian Customs and Border Protection Service to demonstrate compliance with the by-law's requirements. Failure to comply with these obligations could result in the paper being subject to higher duties or other penalties.
Breach of the conditions specified in Customs By-law No. 1303877 can lead to various civil and criminal consequences. While the specific penalties are not detailed within the explanatory statement, under the Customs Act 1901, breaches of customs regulations can result in substantial fines and, in severe cases, criminal charges. Importers and manufacturers who fail to comply with the by-law may face financial penalties, confiscation of non-compliant goods, and potential legal action. The exact penalties would depend on the nature and extent of the breach, as outlined in the broader provisions of the Customs Act 1901.