Customs By-law No. 1339704

Overview

The Customs By-law No. 1339704, introduced under the Customs Act 1901, aims to address a specific gap in the application of duties on scientific instruments and related items imported for educational, scientific, and cultural purposes. Enacted by the Chief Executive Officer of Customs, the by-law seeks to ensure that scientific instruments, spare parts, components, accessories, and maintenance tools are appropriately categorised and subject to the correct tariff treatment as prescribed by Annex D of the Educational, Scientific and Cultural Materials Agreement or Protocol. This legislative instrument specifically includes the South Australian Health and Medical Research Institute (SAHMRI) in the list of organisations and institutions eligible for duty-free treatment on these items. The by-law was developed in consultation with the Department of Industry and does not impact human rights as recognised under the Human Rights (Parliamentary Scrutiny) Act 2011. The by-law came into effect on 10 December 2013.

Scope and Application

The Customs By-law No. 1339704 under the Customs Act 1901 applies to the importation of specific goods by designated organisations and institutions, including the newly added South Australian Health and Medical Research Institute (SAHMRI). The by-law pertains to scientific instruments or apparatus, their spare parts, components, accessories, and tools designed for maintenance, checking, gauging, or repair. This legislative instrument operates within the framework of the Customs Tariff Act 1995, which defines the scope of duties and exemptions on imported goods. The by-law's application is limited to the organisations and institutions listed within the instrument, providing them with duty-free status for the specified items. The by-law took effect on 10 December 2013, following consultation with the Department of Industry, and does not impact human rights as recognised in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of this by-law, Customs By-law No. 1339704, pertain to the Customs Act 1901 (section 271) and the Customs Tariff Act 1995, which together enable the Chief Executive Officer of Customs to establish by-laws for specific items in the Customs Tariff. This by-law specifically prescribes goods that are dutiable at a "Free" rate, including scientific instruments or apparatus and related items such as spare parts, components, accessories, and tools designed for maintenance or repair, when consigned to certain organisations and institutions (section 4). Notably, the by-law adds the South Australian Health and Medical Research Institute (SAHMRI) to the list of eligible entities (section 1, paragraph (a), (b) and (c)). The obligations and requirements imposed by this by-law primarily concern the duty-free status of specified goods when consigned to listed entities. The by-law ensures that scientific instruments and related items sent to the organisations and institutions specified in the by-law, including the newly added SAHMRI, are exempt from customs duties. The by-law aims to facilitate the importation of essential scientific equipment and tools necessary for research and medical purposes without incurring customs charges, thus supporting the operations of these entities. The by-law also outlines potential consequences for breaches. While the explanatory statement does not detail specific penalties, breaches of the Customs Act 1901 can generally result in criminal and civil penalties. For example, under section 245 of the Customs Act, a person who contravenes a provision of the Act can be guilty of an offence and may face a fine of up to 10,000 penalty units (currently AUD 1.7 million) or imprisonment for up to five years, or both. Additionally, section 283 of the Act provides for civil penalties for breaches of the Act, including fines of up to 11,000 penalty units. It is important to note that these penalties apply broadly to breaches of the Customs Act and not exclusively to this by-law, but they serve as a reminder of the seriousness of non-compliance with customs regulations. The by-law also emphasises that it does not engage, impact on, or limit human rights and freedoms recognised or declared in international instruments. This assurance aligns with the scrutiny processes under the Human Rights (Parliamentary Scrutiny) Act 2011, ensuring that the by-law respects and upholds human rights standards. The by-law is designed to support the operations of specified institutions without infringing on human rights, reflecting a careful consideration of the broader legal and ethical implications.