EXPLANATORY STATEMENT
Customs By-law No. 1303878
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. 1303878 replaces previous By-law No. 9440033.
Instrument
By-law No. 1303878 prescribes paper classified under headings 4801 or 4802 of Schedule 3. The paper is to be for use in the production of newspapers, periodicals, posters and other printed matter of a kind that, if imported, would be classified within Chapter 49 in
Schedule 3.
In addition, the paper must meet one of the following specifications:
(a) contain more than 55% mechanical pulp and have a weight less than 34 grams per square metre;
(b) contain more than 55% mechanical pulp, have a weight less
than 48 grams per square metre but more than 40 grams per square metre and have a water absorbency when tested by the one min Cobb method of not less than 45 grams per square metre;
(c) contain more than 25% mechanical pulp, contain no bleached chemical pulp and have a weight not exceeding 205 grams per square metre; or
(d) contain not less than 70% mechanical pulp, have a weight not exceeding 205 grams per square metre and have a water absorbency when tested by the one min Cobb method of not less than 45 grams per square metre.
These specifications do not apply to paper that has more than 55% mechanical pulp and has a weight in the range of 34 grams per square metre to 40 grams per square metre.
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. 1303878 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. 1303878 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. 1303878, enacted in 2013, addresses a legislative gap arising from the Customs Tariff Amendment (Schedule 4) Act 2012, which necessitated new by-laws to replace the repealed Schedule 4 of the Customs Tariff Act. This by-law, promulgated under the authority of section 271 of the Customs Act 1901, pertains to the classification and duty-free status of specific paper products used in the production of newspapers, periodicals, posters, and other printed matter. The objective of this by-law is to ensure that certain paper types, meeting specified criteria such as pulp content and weight, are exempt from customs duties when imported for these purposes. The by-law was enacted by the Australian Customs and Border Protection Service, aiming to streamline customs procedures and maintain compliance with the updated tariff schedule.
Scope and Application
The Customs By-law No. 1303878, made under Section 271 of the Customs Act 1901, applies specifically to paper that is classified under headings 4801 or 4802 of Schedule 3 and intended for use in the production of newspapers, periodicals, posters, and other printed matter that would be classified within Chapter 49 if imported. The by-law prescribes the conditions for such paper to be dutiable at the rate of "Free," which includes detailed specifications regarding the percentage of mechanical pulp, weight, and water absorbency. The by-law applies to entities and individuals importing this specific type of paper into Australia, ensuring they meet the outlined criteria to benefit from the duty-free status. The geographic and jurisdictional reach of this by-law is national, applying across Australia as it is an instrument of the Commonwealth. While no exclusions or exemptions are explicitly stated in the by-law, it is implied that paper not meeting the specified conditions will not qualify for the duty-free treatment. Additionally, the by-law does not impact human rights as recognised under the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law came into effect on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.
Key Provisions
The Customs By-law No. 1303878 outlines the specific provisions for the classification and duty-free treatment of certain paper goods under the Customs Tariff Act 1995, as prescribed in section 271 of the Customs Act 1901. Section 271 allows the Chief Executive Officer of Customs to create by-laws for items within the Customs Tariff. This by-law specifically applies to paper classified under headings 4801 or 4802 of Schedule 3 when it is intended for use in producing newspapers, periodicals, posters, and other printed matter that would fall under Chapter 49 if imported. The paper must meet certain specifications, such as containing specific percentages of mechanical pulp, weight limits, and water absorbency, unless it falls within a particular weight range that exempts it from these specifications.
The by-law imposes obligations on importers and manufacturers to ensure that the paper they import or produce meets the outlined specifications to qualify for the duty-free treatment. Importers must provide accurate declarations and ensure that the paper complies with the by-law's criteria. Manufacturers must adhere to the specifications to claim the duty-free status for their products. Additionally, a security must be lodged with the Australian Customs and Border Protection Service to guarantee compliance with the by-law's conditions.
Breach of the by-law's provisions can lead to various consequences. Importers and manufacturers who fail to comply with the specified requirements may face penalties under the Customs Act 1901, which could include fines or other administrative sanctions. Non-compliance might also result in the paper being subject to the applicable duty rates instead of the duty-free status, leading to additional costs. The by-law ensures that all parties involved in the importation and production of the specified paper adhere to the outlined regulations to maintain the integrity of the duty-free treatment.