EXPLANATORY STATEMENT
Customs By-law No. 1900564
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 or proposed 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
The Timor Sea Maritime Boundaries Treaty Consequential Amendments Act 2019 (the Consequential Amendments Act) is part of a suite of legislative amendments required to implement the Treaty Between Australia and the Democratic Republic of Timor‑Leste Establishing Their Maritime Boundaries in the Timor Sea (the Treaty).
The Treaty delimits permanent maritime boundaries, both continental shelf and Exclusive Economic Zone (EEZ), and establishes a framework for the Greater Sunrise Special Regime Area, to jointly manage and develop the Greater Sunrise resources and to share revenue for the benefit of Australia and Timor-Leste.
Goods prescribed by by-law under previous Item 14 of Schedule 4 to the Customs Tariff Act, that were for use in a petroleum activity (as defined in the Customs Tariff Act) in the Eastern Greater Sunrise offshore area (within the meaning in the Offshore Petroleum and Greenhouse Gas Storage Act 2006) were dutiable at the rate of “Free”.
New item 14 of Schedule 4 to the Customs Tariff Act replicates previous Item 14 and inserts areas in addition to the Eastern Greater Sunrise offshore area, which enables goods to be prescribed by by-law that are for use in a Petroleum Activity within the meaning of the Treaty and which takes place in any of new prescribed areas for the purpose of Item 14.
The Consequential Amendments Act repealed and replicated Item 14 of Schedule 4 of the Customs Tariff Act. As part of this process, a new by-law is required to provide for goods to be prescribed by by-law.
New By-law No.1900564 revokes and replaces previous By-law No. 1300532.
Instrument
By-law No. 1900564 prescribes goods that are for use in an activity that is one of the Petroleum Activities, within the meaning of the Treaty and takes place in:
(a) the Greater Sunrise special regime area within the meaning of the Seas and Submerged Lands Act 1973; or
(b) the Greater Sunrise pipeline international offshore area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006; or
(c) the area in or above the Bayu-Undan Gas Field within the meaning of the Timor Sea Maritime Boundaries Treaty; or
(d) the Bayu-Undan pipeline international offshore area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006; or
(e) the area in or above the Kitan Oil Field within the meaning of the Timor Sea Maritime Boundaries Treaty
The goods prescribed by this by-law do not include goods for personal or domestic use, food, beverages, tobacco, toiletries and clothing (other than protective safety clothing used for a Petroleum Activity).
Consultation
No consultation was undertaken in relation to By-law No. 1900564 as it does not substantially alter existing arrangements.
Government departments conducted extensive public and targeted stakeholder consultations during the negotiations of the Treaty. The consultation process encompassed all matters set out in the Consequential Amendments Act. Details of these consultations were set out in the National Interest Analysis of the Treaty.
Commencement
By-law No. 1900564 commences on the day that the Timor Sea Maritime Boundaries Treaty Consequential Amendments Act 2019 commences, that is the day the Treaty between Australia and the Democratic Republic of Timor Leste Establishing their Maritime Boundaries in the Timor Sea (the Treaty) done at New York on 6 March 2018 enters into force for Australia.
The Minister must announce, by notifiable instrument, the day the Treaty enters into force. The notifiable instrument is available to the public on the Federal Register of Legislation.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Customs By-law No. 1900564
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Timor Sea Maritime Boundaries Treaty Consequential Amendments Act 2019 (the Consequential Amendments Act) is part of a suite of legislative amendments required to implement the Treaty Between Australia and the Democratic Republic of Timor‑Leste Establishing Their Maritime Boundaries in the Timor Sea (the Treaty).
The Treaty delimits a permanent seabed boundary and establishes a framework for the Greater Sunrise Special Regime Area, to jointly manage and develop the Greater Sunrise Resources and to share revenue for the benefit of Australia and Timor-Leste.
Previously, goods prescribed by by-law under Item 14 of Schedule 4 to the Customs Tariff Act, that were for use in a petroleum activity (as defined in the Customs Tariff Act) in the Eastern Greater Sunrise offshore area (within the meaning in the Offshore Petroleum and Greenhouse Gas Storage Act 2006) were dutiable at the rate of “Free”.
New item 14 of Schedule 4 to the Customs Tariff Act replicates previous Item 14 and inserts areas other than the Easter Greater Sunrise offshore area, which enables goods to be prescribed by by-law that are for use in an activity, that is a Petroleum Activity within the meaning of the Treaty and which takes place in any of new prescribed areas for the purpose if Item 14.
The Consequential Amendments Act repealed and replicated Item 14 of Schedule 4 of the Customs Tariff Act. As part of this process, a new by-law is required to provide for goods to be prescribed by by-law.
New By-law No.1900564 revokes and replaces previous By-law No. 1300532.
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.
Conclusion
This Legislative Instrument Amendment is compatible with human rights. To the extent that the Rule limits human rights, it is a permissible limitation that is considered proportionate to the legitimate aims of protection against corruption and unethical conduct in law enforcement and of workplace safety.
Alison Neil, Delegate of the Chief Executive Officer