Customs By-law No. 1900564

Administered by Department of Home Affairs

Legislation au F2019L01152 ByLaws In force Legislative Instrument

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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The Consequential Amendments Act repealed and replicated Item 14 of Schedule 4 of the Customs Tariff Act.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

 

 

 

 

 

 

 

Overview

The Customs By-law No. 1900564, enacted under the Customs Act 1901, was introduced to address the need for updated customs regulations following the establishment of new maritime boundaries and resource management frameworks between Australia and Timor-Leste. This by-law was necessitated by the Timor Sea Maritime Boundaries Treaty Consequential Amendments Act 2019, which aimed to implement the Treaty Between Australia and the Democratic Republic of Timor-Leste Establishing Their Maritime Boundaries in the Timor Sea. The by-law replaces the previous By-law No. 1300532, updating the list of goods for use in petroleum activities within the newly defined areas, ensuring that these goods are appropriately dutiable. The by-law does not affect goods for personal or domestic use, food, beverages, tobacco, toiletries, and clothing, except for protective safety clothing used in petroleum activities. The policy objective is to ensure that the customs regulations are aligned with the new maritime boundaries and resource management frameworks, facilitating the joint management and development of resources in the Timor Sea region.

Scope and Application

The Customs By-law No. 1900564 applies to the goods prescribed by by-law under the Customs Tariff Act 1995 that are for use in petroleum activities within specific offshore areas as defined by the Timor Sea Maritime Boundaries Treaty between Australia and Timor-Leste. These areas include the Greater Sunrise special regime area, the Greater Sunrise pipeline international offshore area, the Bayu-Undan Gas Field, the Bayu-Undan pipeline international offshore area, and the Kitan Oil Field. This by-law applies to goods used in petroleum activities in these areas, excluding goods for personal or domestic use, food, beverages, tobacco, toiletries, and clothing unless it is protective safety clothing used for a petroleum activity. The by-law is part of the legislative measures necessitated by the Timor Sea Maritime Boundaries Treaty Consequential Amendments Act 2019, which is designed to implement the maritime boundary treaty. It revokes and replaces previous By-law No. 1300532 and comes into effect on the same day that the Treaty enters into force for Australia. The by-law is compatible with human rights as it does not engage, impact on, or limit the human rights and freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Customs By-law No. 1900564 (By-law) is a legislative instrument that prescribes certain goods to be used in petroleum activities within specific maritime areas under the Treaty Between Australia and the Democratic Republic of Timor-Leste Establishing Their Maritime Boundaries in the Timor Sea (the Treaty). This by-law is made under section 271 of the Customs Act 1901, which allows the Comptroller-General of Customs to make by-laws for items of the Customs Tariff, which in this case is defined in the Customs Tariff Act 1995. By-law No. 1900564 specifically prescribes goods that are for use in petroleum activities within the Greater Sunrise special regime area, the Greater Sunrise pipeline international offshore area, the Bayu-Undan Gas Field, the Bayu-Undan pipeline international offshore area, and the Kitan Oil Field. These areas are defined in various Acts, including the Seas and Submerged Lands Act 1973 and the Offshore Petroleum and Greenhouse Gas Storage Act 2006. It is important to note that goods for personal or domestic use, food, beverages, tobacco, toiletries, and clothing (other than protective safety clothing used for a petroleum activity) are not included in this by-law. The by-law imposes obligations on entities involved in importing or exporting goods that are prescribed by this by-law. Importers and exporters must ensure that the goods they are dealing with are correctly classified and subject to the appropriate duty rates. The by-law specifies that these goods are dutiable at the rate of "Free", meaning they are exempt from customs duty. Entities must comply with the Customs Act 1901 and any other relevant legislation to avoid non-compliance and potential penalties. Breach of the provisions of the Customs By-law No. 1900564 can result in civil or criminal consequences. Under the Customs Act 1901, any person who contravenes the provisions of the Act or a by-law made under it may be liable to a penalty. The maximum penalties for contravening the Customs Act 1901 can vary depending on the nature and extent of the offence. For example, for a corporation, the maximum penalty can be up to 10,000 penalty units (currently AUD 2.1 million) for serious offences. Individuals involved in the commission of an offence may also face significant fines and imprisonment. Additionally, any person who knowingly or recklessly makes a false statement or representation in relation to an import or export of goods can face penalties under the Act. It is crucial for entities to ensure compliance with the by-law to avoid these potential consequences.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.