EXPLANATORY STATEMENT
Customs By-law No. 1305014
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 27 in the new Schedule 4 replaces item 33B of the previous Schedule 4 to the Customs Tariff Act. Item 27 provides that samples, as prescribed by by-law, are dutiable at the rate of “Free”.
New By-law No. 1305014 replaces previous By-laws Nos. 9640095 and 9940008 and 9640102.
Instrument
By-law No. 1305014 prescribes samples subject to the conditions listed in the by-law.
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. 1305014 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. 1305014, enacted in 2013, is an instrument made under the authority granted by section 271 of the Customs Act 1901. This by-law was introduced to address the need for updated regulations governing the dutiable status of samples as necessitated by the Customs Tariff Amendment (Schedule 4) Act 2012, which came into effect on 1 March 2013. The by-law replaces previous instruments and aligns with the new provisions set out in Item 27 of Schedule 4 of the Customs Tariff Act 1995, which specifies that samples are dutiable at the rate of "Free" as prescribed by by-law. This legislative update ensures that the regulatory framework remains current and effective in managing the customs duties on samples.
Scope and Application
The Customs By-law No. 1305014, established under Section 271 of the Customs Act 1901, applies to samples of goods as prescribed by the by-law, providing a duty rate of "Free". This Act is relevant to any person or entity involved in the import or export of goods in Australia, and it extends to all samples that meet the criteria set out in the by-law. The by-law is intended to align with the new Schedule 4 of the Customs Tariff Act 1995, which will come into effect on 1 March 2013, replacing the previous Schedule 4. The by-law replaces earlier by-laws Nos. 9640095, 9940008, and 9640102, and it does not impact human rights as declared in international instruments. The application of this by-law is subject to the conditions outlined within it, and any further specifications or amendments may be introduced through subordinate instruments.
Key Provisions
The Customs By-law No. 1305014 operates under section 271 of the Customs Act 1901, which allows the Chief Executive Officer of Customs to create by-laws for items within the Customs Tariff that require such regulations. This by-law specifically pertains to item 27 of the new Schedule 4 of the Customs Tariff Act 1995, which was established following the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law supersedes earlier ones (Nos. 9640095, 9940008, and 9640102) and dictates the conditions under which samples are exempt from duty, classified as "Free".
Under this by-law, samples that meet the prescribed conditions are exempt from duty, allowing for their free importation. The by-law sets forth the specific conditions that must be met for samples to qualify for this exemption. These conditions are critical in determining the applicability of the duty exemption and ensuring that only eligible samples benefit from the "Free" classification.
The obligations imposed by this by-law on the parties involved, primarily importers and Customs, are clear and specific. Importers must ensure that their samples comply with the conditions outlined in the by-law to claim the duty exemption. Customs, on the other hand, must verify that these conditions are met before granting the exemption. This verification process is essential to prevent misuse of the duty exemption and to maintain the integrity of the customs duty system.
Breach of the conditions outlined in this by-law can lead to serious consequences. Importers found to be in violation may face penalties for non-compliance, including financial penalties and possible legal action. The precise penalties depend on the nature and extent of the breach but can be significant. Customs may also impose fines or other sanctions on importers who do not adhere to the by-law's conditions. These measures are in place to ensure compliance and to uphold the regulatory framework governing the importation of samples.