EXPLANATORY STATEMENT
Customs By-law No. 1305091
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 37 in the new Schedule 4 replaces item 59 of the previous Schedule 4 to the Customs Tariff Act. Item 37 provides that used or second-hand passenger motor vehicles, as prescribed by by-law, are dutiable at the rate of “Free”.
New By-law No. 1305091 replaces previous By-law No. 9740014.
Instrument
By-law No. 1305091 prescribes used or second-hand passenger motor vehicles classified under heading 8703 of Schedule 3. The importation must be approved in accordance with section 17A of the Motor Vehicle Standards Act 1989, by the Minister administering the Motor Vehicle Standards Act 1989 or by an officer of the Department who is authorised in writing by the Minister to give approvals under that section.
Consultation
No consultation was undertaken in relation to By-law No. 1305091 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. 1305091 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. 1305091 was enacted in 2013 under the authority of the Customs Act 1901. This by-law was introduced to address the need for updated regulations concerning the importation of used or second-hand passenger motor vehicles as required by the Customs Tariff Amendment (Schedule 4) Act 2012. The Customs Tariff Amendment Act repealed the existing Schedule 4 of the Customs Tariff Act 1995 and introduced a new Schedule 4, necessitating new by-laws for the items it contains. Specifically, By-law No. 1305091 replaces the previous By-law No. 9740014 to align with the new provisions under item 37 of the updated Schedule 4, which sets the duty on used or second-hand passenger motor vehicles at "Free". This by-law was made without any consultation as it did not alter existing arrangements. It is important to note that this by-law does not affect human rights as recognised in the Human Rights (Parliamentary Scrutiny) Act 2011, and it came into effect on 1 March 2013.
Scope and Application
The Customs By-law No. 1305091 pertains to the application of the Customs Act 1901 as it relates to the importation of used or second-hand passenger motor vehicles, which are specified under heading 8703 of Schedule 3. This by-law applies to entities and individuals involved in the importation of these vehicles, requiring that such importations are approved by the Minister administering the Motor Vehicle Standards Act 1989 or by an authorised officer of the Department. The by-law mandates compliance with section 17A of the Motor Vehicle Standards Act 1989, ensuring that vehicles meet the necessary standards before being imported into Australia. The by-law's jurisdictional reach is national, operating under the Commonwealth's legislative authority. Importantly, this by-law does not introduce any new obligations or limitations regarding human rights as defined under the Human Rights (Parliamentary Scrutiny) Act 2011. By-law No. 1305091 commenced on 1 March 2013, aligning with the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012, thereby updating the regulatory framework for the dutiable status of specified vehicles.
Key Provisions
Section 271 of the Customs Act 1901 allows the Chief Executive Officer of Customs to create by-laws for certain items in the Customs Tariff, which is the schedule that imposes duties of customs. By-law No. 1305091, therefore, serves to implement the provisions of item 37 in Schedule 4 of the Customs Tariff Act 1995, which was amended by the Customs Tariff Amendment (Schedule 4) Act 2012. This by-law specifically relates to the duty-free importation of used or second-hand passenger motor vehicles classified under heading 8703 of Schedule 3 of the Customs Tariff. This duty-free status is contingent upon the importation being approved under section 17A of the Motor Vehicle Standards Act 1989, either by the Minister responsible for the Act or by an authorised officer of the Department.
Entities or individuals wishing to import used or second-hand passenger motor vehicles under this by-law must ensure that their importation is approved in accordance with the Motor Vehicle Standards Act 1989. This means that the vehicles must meet the standards set forth in that Act, and the approval process must be correctly followed. This involves either the Minister administering the Motor Vehicle Standards Act 1989 or an authorised officer of the Department giving written approval. Failure to obtain the necessary approval could result in the vehicles being subject to the applicable duties and not being considered duty-free.
The by-law does not introduce any new offences or penalties beyond those already provided for under the Customs Act 1901 and the Motor Vehicle Standards Act 1989. However, any breach of the conditions set out in this by-law could lead to the vehicles being liable for duty, and potential civil or criminal penalties under the existing Acts. These penalties could include fines and other sanctions, depending on the nature and severity of the breach. The specific maximum penalties would be determined by the relevant provisions of the Customs Act and the Motor Vehicle Standards Act.
By-law No. 1305091 took effect on 1 March 2013, which is the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012. Any importation of used or second-hand passenger motor vehicles under this by-law must comply with the by-law's requirements from this date onwards. Given that no consultation was undertaken in relation to this by-law as it does not alter existing arrangements, it is crucial for entities and individuals to ensure their compliance with the by-law and the relevant Acts.