EXPLANATORY STATEMENT
Customs By-law No. 1305011
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 26 in the new Schedule 4 replaces item 32A and 32B of the previous Schedule 4 to the Customs Tariff Act. Item 26 provides that goods, as prescribed by by-law, whose value is less than the amount prescribed by by-law, are dutiable at the rate of “Free”.
New By-law No. 1305011 replaces previous By-laws Nos. 0540003 and 0540004.
Instrument
By-law No. 1305011 prescribes goods whose customs value is less than AUD$1000.01. The by-law does not apply to:
(a) tobacco, tobacco products or alcoholic beverages;
(b) goods imported by a passenger or a member of the crew of a ship or aircraft arriving in Australia from a place outside Australia; or
(c) goods forming part of a bulk order.
Consultation
No consultation was undertaken in relation to By-law No. 1305011 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. 1305011 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. 1305011, enacted under section 271 of the Customs Act 1901, was introduced to address the need for updated by-laws following the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012 on 1 March 2013. This by-law was made by the Chief Executive Officer of Customs in accordance with the Customs Tariff Act 1995, which defines the Customs Tariff for the purposes of the Customs Act 1901. The policy objective of this by-law is to update and replace the previous by-laws that prescribed certain goods for duty purposes, specifically to account for the changes brought about by the new Schedule 4. The by-law outlines that goods with a customs value below AUD$1000.01 are dutiable at the rate of "Free", with specific exclusions for tobacco, tobacco products, alcoholic beverages, goods imported by passengers or crew, and goods forming part of a bulk order. The by-law does not impact human rights and was introduced without the need for consultation as it maintains existing arrangements.
Scope and Application
The Customs By-law No. 1305011 applies to goods whose customs value is less than AUD$1000.01, as prescribed by the by-law. This includes a broad range of goods except those specifically excluded, such as tobacco, tobacco products, alcoholic beverages, goods imported by passengers or crew members arriving from overseas, and goods that form part of a bulk order. The by-law operates within the jurisdictional reach of the Commonwealth, as it is an instrument made under the Customs Act 1901. The by-law aims to implement the provisions of the Customs Tariff Amendment (Schedule 4) Act 2012, which introduces a new schedule to the Customs Tariff Act 1995, effective from 1 March 2013. Notably, the by-law does not necessitate any consultation as it maintains existing arrangements without introducing new obligations or restrictions. Additionally, the by-law does not impact human rights and freedoms as recognised in the international instruments listed under the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The Customs By-law No. 1305011 under the Customs Act 1901 (section 271) provides specific rules regarding the customs duty on goods. This by-law, effective from 1 March 2013, prescribes that goods whose customs value is less than AUD$1000.01 will be dutiable at the rate of “Free.” However, it is essential to note that this exemption does not apply to tobacco, tobacco products, alcoholic beverages, goods imported by a passenger or crew member arriving from outside Australia, or goods that form part of a bulk order.
Under this by-law, the obligations for the parties involved primarily revolve around ensuring that the goods they import are accurately assessed for their customs value. Importers must be aware of the exemptions listed in the by-law and ensure that their goods do not fall into the categories that are not eligible for the “Free” duty rate. Additionally, they must keep records that can substantiate the value of their goods if required by customs officers.
Failure to comply with the provisions of this by-law may result in legal consequences. Although the specific penalties for breaches are not detailed in the explanatory statement, breaches of the Customs Act 1901 generally carry significant fines and potential criminal charges. For example, under section 276 of the Customs Act, penalties can include fines of up to $22,200 for individuals and $111,000 for corporations, in addition to potential imprisonment for serious breaches. Therefore, it is crucial for importers and other relevant parties to adhere strictly to the by-law to avoid any legal repercussions.