EXPLANATORY STATEMENT
Customs By-law No. 1700334
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. Section 18 of the Customs Tariff Act provides for calculation of concessional duty.
Background
Schedule 4 of the Customs Tariff Act was amended by the Customs Tariff Amendment (Schedule 4) Act 2012. The amendment of item 11 in Schedule 4 provides that goods, as prescribed by by-law, that are for use by, or for sale to, persons the subject of a Status of Forces Agreement between the Government of Australia and the government of another country or other countries, are dutiable at the rate of ‘Free’.
Consistent with Australia’s obligations under various Status of Forces Agreements and Status of Visiting Forces Agreements, goods which are personal effects, furniture and household goods are imported under Item 11 in Schedule 4 of the Customs Tariff Act. This provides for a concessional duty rate of ‘Free’.
Status of Forces Agreements and Status of Visiting Forces Agreements are arrangements between two or more countries that address issues arising out of the presence of one country’s visiting defence forces in the territory of the host country. Australia has a number of such agreements with foreign governments including the United States of America,
New Zealand and Papua New Guinea, which allow for visiting defence forces to enter Australian territory.
Instrument
By-law No. 1700334 prescribes the following goods for the purposes of the Status of Forces Agreement between the Government of Australia and the Government of the French Republic:
a) the personal effects, furniture and household goods (other than cigarettes, cigars, tobacco or spirituous liquors) of a member of a French Republic Visiting Force, the civilian component of such a force, or a dependant of such a person; and
b) a motor vehicle imported by a member of a French Republic Visiting Force or civilian component of such a force.
The application of item 11 to the personal effects, furniture and household goods (other than cigarettes, cigars, tobacco or spirituous liquors) is subject to the following conditions:
c) the goods are imported at the time of first arrival of the Member or Civilian component to take up service in Australia or within six months thereafter or, in the case of a Dependant to join the Member at the time of first arrival of the Dependant, or within six months thereafter;
d) the goods remain in the use, ownership and possession of that Member or Dependant; and
e) the goods will not be transferred to another person, sold, traded, exchanged, hired out, donated or otherwise disposed of in Australia unless prior written approval has been obtained from the Collector.
The application of item 11 to motor vehicles is also subject to the conditions that the goods will not be transferred to another person, sold, traded, exchanged, hired out, donated or otherwise disposed of in Australia unless prior written approval has been obtained from the Collector.
Consultation
Consultation on this by-law was undertaken with the Department of Defence and the Attorney General’s Department.
Commencement
By-law No. 1700334 takes effect the day after it is registered.
Delegate of the Comptroller-General of Customs