EXPLANATORY STATEMENT
Customs By-law No. 1800146
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 an Act imposing duties of customs, and is therefore a Customs Tariff for the purposes of the Act.
Section 18 of the Customs Tariff Act provides for calculation of concessional duty.
Background
For the purposes of Item 1 paragraph (a) to Schedule 4 to the Customs Tariff Act, goods, as prescribed by by-law, that are scientific instruments or apparatus, to which Annex D to the Educational, Scientific and Cultural Materials Agreement or Annex D to the Educational, Scientific and Cultural Materials Protocol applies, are dutiable at the rate of “Free”.
Instrument
By-law No. 1800146 revokes and remakes previous by-law No. 1339704. By-law No. 1800146 prescribes goods, consigned to the organisations and institutions listed within the by-law, being:
a) scientific instruments or apparatus;
b) spare parts, components or accessories specially designed for use with the scientific instruments or apparatus; and
c) tools specially designed and intended to assist in the maintenance, checking, gauging or repair of the scientific instruments or apparatus.
By-law No. 1800146 removes the Australian Astronomical Observatory (AAO) from the listed institutions and organisations in Table A. The AAO was abolished from the Department of Industry, Innovation and Science by the Australian Astronomical Observatory (Transitional) Act 2018. By-Law No. 1800146 makes a consequential amendment to remove the abolished organisation from Table A.
By-law No. 1800146 updates the names of several of the organisations and institutions listed in Table A. These changes reflect changes to the names of these organisations and institutions that have occurred since the By-law was last updated.
By-law No. 1800146 also removes the reference to the States Grants (School Assistance) Act 1984, as it was repealed in 1999 and replaces that Act with a reference to the Australian Education Act 2013. By-law No. 1800146 for the purposes of paragraph (a) of Item 1 of Schedule 4 to the Customs Tariff Act prescribes scientific instruments or apparatus consigned to schools indirectly or directly funded under the Australian Education Act 2013.
Consultation
Consultation was undertaken with the Department of Industry, Innovation and Science in relation to the changes made to By-law No.1800146.
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. 1800146 commences from 20 July 2018.
Overview
The Customs By-law No. 1800146 was enacted in 2018 under the authority of the Customs Act 1901. This by-law was introduced to update and refine the list of institutions and organisations eligible for duty-free importation of scientific instruments and related items. The Customs Act 1901 empowers the Comptroller-General of Customs to make by-laws to implement the Customs Tariff, including prescribing goods that are exempt from duty. By-law No. 1800146 specifically addresses scientific instruments and apparatus, their spare parts, components, and associated tools that are subject to a duty-free regime when consigned to educational institutions and research entities. This legislative update is necessary to reflect changes in institutional names and the abolition of the Australian Astronomical Observatory, ensuring the by-law remains current and applicable. The policy objective is to facilitate the import of essential scientific and educational materials without the burden of customs duties, thereby supporting educational and research activities in Australia.
Scope and Application
The Customs By-law No. 1800146 applies to scientific instruments or apparatus, their spare parts, components, accessories, and maintenance tools consigned to specific educational institutions. These institutions include those directly or indirectly funded under the Australian Education Act 2013. The by-law prescribes the entities and types of goods eligible for duty-free treatment under the Customs Tariff Act 1995, specifically targeting those that align with the agreements under the Educational, Scientific and Cultural Materials Agreement or Protocol. The by-law revokes and remakes the previous by-law No. 1339704, updating the list of institutions and correcting any references to repealed legislation, such as the removal of the reference to the States Grants (School Assistance) Act 1984 and its replacement with the Australian Education Act 2013. Additionally, it removes the Australian Astronomical Observatory from the list due to its abolition by the Australian Astronomical Observatory (Transitional) Act 2018. The by-law applies nationally across Australia and came into effect on 20 July 2018.
Key Provisions
The Customs By-law No. 1800146, under the Customs Act 1901, serves to detail the conditions under which certain scientific instruments and apparatus are exempt from customs duty. Section 271 of the Act allows the Comptroller-General of Customs to create by-laws for the application of specific items in a Customs Tariff, which is defined in section 4 of the Act as an Act imposing duties of customs. The Customs Tariff Act 1995 is one such Act and therefore a Customs Tariff for the purposes of the Act. The by-law No. 1800146 specifically revokes and remakes the previous by-law No. 1339704 and provides that scientific instruments or apparatus, and related spare parts, components, accessories and tools, consigned to specified educational institutions and organisations, are to be considered as dutiable at the rate of “Free” under Item 1 of Schedule 4 of the Customs Tariff Act.
The obligations imposed by the by-law are that organisations and institutions listed in Table A of the by-law must ensure that the scientific instruments and apparatus, and associated items, consigned to them are for educational purposes and comply with the Customs Tariff Act. The by-law lists specific organisations and institutions that are eligible for the duty exemption. It is also the responsibility of these institutions to ensure they are listed in Table A and that any changes to their names or status are communicated to the relevant authorities to maintain their eligibility for the exemption.
Failure to comply with the provisions of the by-law may result in the imposition of customs duty on the consigned goods, in addition to any other applicable penalties under the Customs Act 1901. While the by-law does not specify a particular penalty, the general penalties under the Customs Act can include fines and imprisonment for serious breaches. The exact penalty will depend on the nature and severity of the breach, with maximum penalties potentially extending to substantial fines and imprisonment for officers found guilty of certain offences.
The by-law also removes the Australian Astronomical Observatory (AAO) from the list of eligible institutions due to its abolition under the Australian Astronomical Observatory (Transitional) Act 2018. Additionally, it updates the names of several organisations to reflect recent changes and replaces references to repealed Acts with references to the Australian Education Act 2013. These amendments ensure that the by-law remains current and accurately reflects the legislative landscape.