EXPLANATORY STATEMENT
Customs By-law No. 1700052
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 Comptroller-General 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
Item 48 of Schedule 4 to the Customs Tariff Act provides for certain inputs into manufacture, as prescribed by by-law, that are classified under certain tariff headings and subheadings applying to chemicals, photographic film, plastics and paper, are dutiable at a rate of ‘Free’.
The Customs Tariff Amendment (2017 Harmonized System Changes) Act 2016 amended the Customs Tariff Act to repeal tariff subheading 3907.60.00 and in its place insert two new tariff subheadings, 3907.61.00 and 3907.69.00, under tariff subheading 3907.6. As a result of these amendments all of the goods previously classified to tariff subheading 3907.60.00 have been reclassified to either 3907.61.00 or 3907.69.00. The amendments commenced on 1 January 2017.
As a consequence of the amendments outlined above, the tariff headings and subheadings referenced in Item 48 of Schedule 4 were also amended to remove the reference to repealed tariff subheading 3907.60.00 and replace it with tariff subheading 3907.6.
New By-law No. 1700052 replaces previous By-law No. 1303874.
Instrument
By-law No. 1700052 prescribes uncompounded polyamides and polyesters classified under subheadings 3907.6, 3907.70.00, 3907.9 or heading 3908 in Schedule 3. The goods are to be for use in the manufacture of fibres or yarns.
A security must be lodged with the Department of Immigration and Border Protection to ensure compliance with the conditions set out in the by-law.
Consultation
No consultation was undertaken in relation to By-law No. 1700052 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. 1700052 takes effect on and from the date that the Customs Tariff Amendment (2017 Harmonized System Changes) Act 2017 commences, that is 1 January 2017.
Overview
The Customs Tariff Amendment (2017 Harmonized System Changes) Act 2016 sought to update the Australian Customs Tariff to align with the changes introduced by the 2017 Harmonized System, necessitating the amendment of certain tariff subheadings. In response, the Customs Tariff Amendment (2017 Harmonized System Changes) Act 2017 was enacted to facilitate these amendments. By-law No. 1700052, made under section 271 of the Customs Act 1901, was introduced to prescribe the specific goods affected by these changes, particularly those classified under the new tariff subheadings 3907.61.00 and 3907.69.00, which replaced the repealed subheading 3907.60.00. This by-law aims to ensure that the classification of these goods aligns with the updated tariff structure, thereby maintaining compliance with the Customs Tariff Act 1995. The by-law, which took effect on 1 January 2017, requires a security to be lodged with the Department of Immigration and Border Protection to enforce compliance with its conditions.
Scope and Application
The Customs By-law No. 1700052 applies to the specific classification and duties of certain chemicals, photographic film, plastics, and paper used in the manufacture of fibres or yarns. This legislation pertains to goods classified under the amended tariff subheadings 3907.6, 3907.61.00, 3907.69.00, 3907.70.00, 3907.9, and heading 3908 as specified in Schedule 3 of the Customs Tariff Act 1995. The by-law is applicable to entities and individuals involved in the importation of these goods, ensuring compliance with the stipulated conditions. It operates under the jurisdiction of the Commonwealth of Australia and its enforcement is overseen by the Department of Immigration and Border Protection. By-law No. 1700052 does not introduce any new exemptions or thresholds but rather aligns with the amendments to the Customs Tariff, which took effect on 1 January 2017. Subordinate instruments may extend or further define the application of this by-law, ensuring precise regulation of the designated goods.
Key Provisions
The Customs By-law No. 1700052, which comes into effect on 1 January 2017, provides specific rules and classifications for the importation of certain chemicals, photographic film, plastics, and paper under the Customs Tariff Act 1995. Section 271 of the Customs Act 1901 authorises the Comptroller-General of Customs to make by-laws to regulate the application of the Customs Tariff. This particular by-law replaces By-law No. 1303874 and applies to uncompounded polyamides and polyesters classified under subheadings 3907.6, 3907.70.00, 3907.9, or heading 3908 in Schedule 3, when these materials are intended for use in the manufacture of fibres or yarns.
The by-law imposes several obligations on importers and manufacturers who deal with these specific types of goods. Firstly, a security must be lodged with the Department of Immigration and Border Protection to ensure compliance with the conditions set out in the by-law. Importers must ensure that these materials are correctly classified and that any relevant duties or taxes are paid in accordance with the by-law provisions. Additionally, manufacturers must use these materials solely for the purposes of producing fibres or yarns, as specified in the by-law.
Failure to comply with the provisions of this by-law may result in penalties. The specific penalties are not detailed in the explanatory statement but generally, breaches of customs regulations can lead to fines and, in severe cases, criminal charges. The maximum penalties can vary depending on the nature and severity of the breach but can include substantial fines and potential imprisonment for more serious offences. Importers and manufacturers must adhere to the by-law to avoid these consequences and ensure smooth processing of their goods through customs.