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
Overview
The Customs By-law No. 1700334, introduced under the Customs Act 1901, aims to address the need for specific regulations concerning the importation of goods by or for the benefit of members of foreign visiting forces in Australia. Enacted by the Comptroller-General of Customs, this by-law provides a legislative framework for applying the concessional duty rate of 'Free' to certain personal effects, furniture, household goods, and motor vehicles associated with members of visiting forces under Status of Forces Agreements, in line with Australia's international obligations. This by-law, which came into effect the day after its registration, was developed in consultation with the Department of Defence and the Attorney General’s Department, ensuring alignment with both national interests and international commitments.
Scope and Application
Customs By-law No. 1700334 applies to the importation of personal effects, furniture, household goods, and motor vehicles of members of the French Republic Visiting Force, the civilian component of such a force, or their dependants, in accordance with the Status of Forces Agreement between Australia and France. This by-law sets out the conditions under which these goods may be imported duty-free, such as the timing of the import in relation to the arrival of the member or dependant in Australia, and the requirement that the goods remain in their possession without being transferred, sold, or otherwise disposed of without prior written approval from the Collector. This by-law is a subordinate instrument made under section 271 of the Customs Act 1901 and has a national reach within Australia. It is subject to the conditions outlined in the Status of Forces Agreement and does not apply to cigarettes, cigars, tobacco, or spirituous liquors. The by-law came into effect the day after it was registered, as per the delegate of the Comptroller-General of Customs.
Key Provisions
The Customs By-law No. 1700334 under the Customs Act 1901 outlines specific provisions for the importation of personal effects, furniture, household goods, and motor vehicles by members of a visiting force from the French Republic, their civilian components, and their dependants. These goods, as prescribed by the by-law, are dutiable at the rate of ‘Free’ under Item 11 in Schedule 4 of the Customs Tariff Act 1995 (section 271). This by-law specifies the conditions under which these items qualify for the duty-free treatment, such as the timing of importation relative to the arrival of the force member or dependant (sections 11(c)) and the requirement that the goods remain in the possession of the individual until they are permanently transferred out of Australia (section 11(d)).
The Act imposes certain obligations on the parties involved. Specifically, members of the French Republic Visiting Force, their civilian components, or their dependants must ensure that the imported goods meet the stipulated conditions to qualify for the duty-free treatment. This includes adhering to the time frames for importation and maintaining ownership and possession of the goods (section 11(c) and (d)). Additionally, any transfer, sale, trade, exchange, hire, donation, or other disposal of these goods within Australia must be approved in writing by the Collector, as outlined in section 11(e).
Failure to comply with the provisions of this by-law can result in serious consequences. Although the specific penalties are not detailed within the by-law itself, breaches of customs regulations generally attract penalties under the Customs Act 1901. These can include fines, imprisonment, or both, depending on the severity and nature of the breach. The maximum penalties for customs offences are significant, reflecting the seriousness with which the law treats non-compliance with customs regulations. It is therefore crucial for all parties involved to fully understand and adhere to the requirements set out in the by-law to avoid any legal repercussions.