Customs By-law No. 1305755

Overview

The Customs By-law No. 1305755 was enacted in 2013 under the Customs Act 1901, which authorises the Chief Executive Officer of Customs to create by-laws to prescribe certain goods for duties of customs. This particular by-law was introduced in response to the Customs Tariff Amendment (Schedule 4) Act 2012, which necessitated new by-laws for items that prescribe goods by by-law. By-law No. 1305755 specifically addresses the formula for calculating the gross construction tonnage of vessels, which is crucial for applying the duty rate of "Free" to parts of vessels or materials used in the construction, modification or repair of vessels exceeding 150 gross construction tons. This by-law does not require consultation as it does not alter existing arrangements and has no impact on human rights. It commenced on 1 March 2013, aligning with the commencement of the Customs Tariff Amendment (Schedule 4) Act 2012.

Scope and Application

The Customs By-law No. 1305755, pursuant to the Customs Act 1901, applies to the calculation of the gross construction tonnage of vessels that are to be constructed, modified, or repaired, and which exceed 150 gross construction tons. This by-law is specifically targeted at the entities and persons involved in the construction, modification, or repair of such vessels, as well as the goods used in these processes. It operates within the jurisdiction of the Commonwealth, ensuring that customs duties are correctly applied according to the updated Customs Tariff. The by-law does not specify any exclusions or exemptions; however, it relies on the Customs Tariff Amendment (Schedule 4) Act 2012 for its authority and scope. The by-law itself does not engage with human rights considerations as it does not alter existing arrangements or impact human rights and freedoms. The commencement of this by-law aligns with the Customs Tariff Amendment (Schedule 4) Act 2012, taking effect from 1 March 2013, and it extends its application through subordinate instruments by detailing the formula for calculating vessel tonnage.

Key Provisions

The main operative sections of the Customs By-law No. 1305755 pertain to the calculation of the gross construction tonnage of vessels. Specifically, section 1 of the by-law provides the formula used to determine this tonnage. This is crucial as it directly impacts the dutiable status of parts of vessels or materials intended for the construction, modification, or repair of vessels that exceed 150 gross construction tons, which are subject to a “Free” duty rate under item 35 of Schedule 4 to the Customs Tariff Act 1995. This calculation is vital because it determines whether the goods in question will be exempt from customs duty, as outlined in the new schedule. The by-law imposes clear obligations on the entities it governs. Importers, customs brokers, and other relevant parties must use the formula specified in section 1 of By-law No. 1305755 to calculate the gross construction tonnage of vessels. This ensures consistency and accuracy in determining the dutiable status of goods related to vessel construction, modification, or repair. Furthermore, the by-law requires that these calculations be accurately documented and presented to Customs for verification. This meticulous documentation is essential to avoid any misclassification of goods that could lead to incorrect duty assessments or potential penalties. In terms of enforcement and penalties, while the by-law itself does not explicitly state specific offences or penalties for non-compliance, breaches of the Customs Act 1901 or the Customs Tariff Act 1995 can lead to severe consequences. Section 271 of the Customs Act provides the legal basis for making such by-laws, and any failure to comply with the provisions of these Acts could result in penalties. Under section 283 of the Customs Act, a person who contravenes a provision of the Act is liable to a penalty, which can be significant, particularly for commercial entities. The penalties can extend to fines up to $22,000 or imprisonment for up to five years, or both, for serious or repeated offences. Additionally, the importation of dutiable goods without the appropriate duty payment can result in civil consequences such as the seizure of goods and further financial liabilities. It is also important to note that the by-law does not engage with or impact human rights as defined under the Human Rights (Parliamentary Scrutiny) Act 2011. This means that the by-law’s provisions do not limit or affect the human rights and freedoms recognised in international human rights instruments. Finally, By-law No. 1305755 took effect on 1 March 2013, aligning with the commencement date of the Customs Tariff Amendment (Schedule 4) Act 2012. This ensures that the new regulatory framework is applied uniformly from the date of the legislative change.