EXPLANATORY STATEMENT
Customs By-law No. 1325719
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The Customs Tariff Amendment (Schedule 4) Act 2012 repealed and replaced Schedule 4 of the Customs Tariff Act. As part of this process, new by-laws are required for all items that provide for goods to be prescribed by by-law.
Item 48 combines previous items 36, 38, 39A, 39B and 39C of Schedule 4 to the Customs Tariff Act. Item 48 provides that goods, as prescribed by by-law, that are classified under certain headings applying to chemicals, photographic film, plastics and paper, are dutiable at the rate of “Free”.
Instrument
By-law No. 1325719 prescribes paper and paperboard classified under headings 4810 or 4811 of Schedule 3 of the Customs Tariff Act. The goods are to be for use in the manufacture of flip-top cigarette packaging.
A security is required to be lodged with the Australian Customs and Border Protection Service to ensure compliance.
Consultation
No consultation was undertaken in relation to By-law No. 1325719 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. 1325719 takes effect on 29 August 2013.
Overview
The Customs By-law No. 1325719, enacted in 2013, serves as an amendment to the Customs Act 1901, specifically addressing the need for new by-laws following the revision of Schedule 4 in the Customs Tariff Act 1995. This by-law was introduced to clarify and update the regulations pertaining to dutiable goods, particularly focusing on paper and paperboard classified under headings 4810 or 4811 of the Customs Tariff Act, intended for the manufacture of flip-top cigarette packaging. The enactment was authorised by the Parliament of Australia to ensure that the updated tariff schedules are effectively implemented, thereby maintaining compliance and regulatory oversight over specified goods. The policy objective here is to streamline and formalise the regulatory framework concerning the importation of these specific goods, ensuring that the duties and security requirements are clearly defined and enforced.
Scope and Application
The Customs By-law No. 1325719, made under section 271 of the Customs Act 1901, applies to entities involved in the importation of paper and paperboard classified under headings 4810 or 4811 of Schedule 3 of the Customs Tariff Act. These entities include importers, manufacturers, and traders of flip-top cigarette packaging, which utilise this specific type of paper and paperboard. The by-law extends across the Commonwealth of Australia, ensuring its jurisdictional reach is national. The by-law exempts these specified goods from customs duties when they are used in the manufacture of flip-top cigarette packaging, and requires a security to be lodged with the Australian Customs and Border Protection Service to ensure compliance. There are no stated exclusions or thresholds in this by-law, and no exemptions beyond the specific goods and their intended use. The by-law came into effect on 29 August 2013 and does not impact on human rights as recognised in international instruments.
Key Provisions
The main operative sections of the Customs By-law No. 1325719 pertain to the customs tariff and the classification of specific goods. Section 271 of the Customs Act 1901 authorises the Chief Executive Officer of Customs to make by-laws that prescribe the application of items in the Customs Tariff. Under this authority, By-law No. 1325719 prescribes paper and paperboard classified under headings 4810 or 4811 of Schedule 3 of the Customs Tariff Act, specifying that these goods are for use in the manufacture of flip-top cigarette packaging and are dutiable at the rate of "Free." This means that these specific goods will not incur customs duties when imported.
The obligations and requirements imposed by the Act on parties and entities governed by it include ensuring that the specified paper and paperboard are used solely for the manufacture of flip-top cigarette packaging. Furthermore, there is a requirement to lodge a security with the Australian Customs and Border Protection Service to ensure compliance with the by-law. This security is intended to guarantee that the goods will be used as prescribed and that the appropriate customs duties will not be evaded.
Should there be a breach of this by-law, there are potential civil and criminal consequences. The Act does not explicitly state the penalties for non-compliance; however, given the nature of customs regulations, breaches could result in severe penalties, including fines and potential criminal charges. The exact penalties would be determined by the specific circumstances of the breach and the discretion of the courts. It is essential for importers and manufacturers to adhere strictly to the requirements of the by-law to avoid any legal repercussions.