EXPLANATORY STATEMENT
Customs By-law No. 1304161
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 commence on 1 March 2013. It 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 21 in the new Schedule 4 replaces item 21 of the previous Schedule 4 to the Customs Tariff Act. Item 21 provides that goods, as prescribed by by-law, which are imported for repair or alteration and are to be exported from Australia, are dutiable at the rate of “Free”.
New By-law No. 1304161 replaces previous By-law No. 9640119.
Instrument
By-law No. 1304161 prescribes goods that:
a) were made in Australia; and
b) are being returned to Australia for repair or alteration and are to be re-exported.
Consultation
No consultation was undertaken in relation to By-law No. 1304161 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. 1304161 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. 1304161, enacted in 2013, is a legislative instrument under the Customs Act 1901, aimed at updating the regulatory framework for the customs duties on goods imported for repair or alteration and subsequently re-exported. This by-law was introduced to address the need for new regulations following the amendment and replacement of Schedule 4 in the Customs Tariff Act 1995 by the Customs Tariff Amendment (Schedule 4) Act 2012. The by-law was made by the Chief Executive Officer of Customs in accordance with section 271 of the Customs Act 1901, ensuring that the updated customs duties align with the new tariff schedule. The policy objective is to maintain the duty-free status for Australian-made goods that are temporarily imported for repair or alteration and then re-exported, thereby supporting the competitiveness of Australian industries involved in such processes.
Scope and Application
The Customs By-law No. 1304161 applies to goods that are manufactured in Australia and are subsequently sent abroad for repair or alteration before being re-exported. This by-law, established under Section 271 of the Customs Act 1901, specifies that such goods are to be treated as "Free" in terms of customs duty, provided they meet the criteria outlined in the by-law. This legislative instrument has a national reach and applies to all entities and individuals engaged in the import and export of goods within Australia. There are no exclusions or exemptions mentioned in the explanatory statement, suggesting that all applicable goods must adhere to the by-law's stipulations. Furthermore, the by-law is effective from 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012, and does not impact human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The primary sections of By-law No. 1304161 under the Customs Act 1901 (section 271) pertain to the prescription of goods that can be imported for repair or alteration and subsequently re-exported without incurring customs duty. Specifically, the by-law (section a) identifies goods that were manufactured in Australia and (section b) outlines that these goods, when brought back into Australia for repair or alteration and intended for re-export, are subject to a duty rate of “Free”. This means that no customs duty is applied to such goods under the specified circumstances.
The Act imposes certain obligations on entities involved in the importation and subsequent re-exportation of goods. Importers and exporters must ensure that the goods meet the criteria set out in the by-law. This includes verifying that the goods were made in Australia and that they are being brought back for repair or alteration with the intention of being re-exported. Failure to comply with these conditions might result in the goods being subject to the applicable duty rates, which could lead to financial liabilities and potential delays in the customs clearance process.
In terms of penalties and consequences for breaches, the by-law does not explicitly outline specific sanctions or penalties within the explanatory statement provided. However, under the general provisions of the Customs Act 1901, unauthorised importation or exportation of goods can result in civil or criminal penalties. Civil penalties can include financial penalties, while criminal penalties may include fines and imprisonment, depending on the severity and intent behind the breach. The maximum penalties for serious offences can be substantial, reflecting the importance of compliance with customs regulations.
Given that the by-law does not alter existing arrangements and has no impact on human rights, it is crucial for importers and exporters to adhere strictly to the prescribed conditions to avoid any inadvertent breaches. Understanding and complying with the by-law is essential for ensuring smooth and lawful international trade operations involving the repair or alteration of Australian-made goods.