EXPLANATORY STATEMENT
Customs By-law No. 1919366
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 paragraph (a) of item 1 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. 1919366 revokes and remakes previous by-law No. 1800146. By-law No. 1919366 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. 1919366 adds the Children’s Cancer Institute to the institutions listed in paragraph 2. Paragraph 2 sets out the organisations to which the prescribed goods must be consigned for the purpose of paragraph (a) of the item.
By-law No. 1919366 amends paragraph 3(d) of the By-law, to update the title of the Minister for Industry, Science and Technology. Previous By-law No. 1800146 referred to the Minister for Industry, Innovation, Science, Research and Tertiary Education, which is no longer the relevant Ministerial title.
New paragraph 3(d) also provides that the approval of additional educational, medical research or scientific institution, or organisations must also be approved by the Minister responsible for administering the institution or organisation. In the previous By-law, the Minister for Industry, Science and Technology and the Minister for School Education were required to approve these additional bodies.
By-Law No. 1919366 maintains this requirement and adds a reference to an additional Minister. The requirement now specifies the Minister for Industry and, where applicable, the relevant Minister must approve a scientific, medical research (the Minister for Health) or education (the Minister for Education) institution or organisation. This amendment makes it clear that the Minister with policy responsibility for the subject matter must be involved in the approval of an institution or organisation.
Consultation
The Department of Industry, Innovation and Science was consulted in relation to By-law No.1919366.
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. 1919366 commences on the day after registration.
Overview
The Customs By-law No. 1919366 was enacted in 2019 under the Customs Act 1901 to address the need for updating the list of institutions eligible for duty-free importation of scientific instruments, spare parts, components, accessories, and tools. This by-law was created to streamline and clarify the administrative process for approving additional institutions involved in scientific, medical research, or educational activities. The policy objective behind this legislation is to ensure that essential scientific equipment and tools can be imported without incurring customs duties, thereby facilitating research and educational activities. The by-law was developed in consultation with the Department of Industry, Innovation and Science and ensures that the relevant Ministers are involved in approving additional institutions. It also reflects the current ministerial titles and responsibilities. The by-law does not affect any human rights as recognised or declared in the international instruments under the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
Customs By-law No. 1919366 under the Customs Act 1901 applies to the prescription of goods that are scientific instruments or apparatus, spare parts, components, accessories, and tools specially designed for their use, which are consigned to specific educational, medical research, or scientific institutions. The by-law specifically identifies these institutions and requires their inclusion to be approved by relevant Ministers. The by-law also updates the title of the Minister for Industry, Science and Technology and clarifies the ministerial approval process for additional institutions. This by-law applies on a national level within Australia, governing the duty-free treatment of prescribed goods for listed organisations, with the aim of facilitating the import of scientific and educational materials without incurring customs duties. The by-law revokes and replaces By-law No. 1800146, aligning with current ministerial titles and approval processes, and it does not engage with human rights issues as defined in the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The Customs By-law No. 1919366, under the Customs Act 1901, specifically modifies the application of concessional duty to certain scientific instruments and related items. Section 271 of the Customs Act 1901 empowers the Comptroller-General of Customs to establish by-laws that prescribe the application of tariff items. The Customs Tariff Act 1995, which is a Customs Tariff, is defined in section 4 of the Customs Act 1901. This by-law revokes and replaces the previous by-law No. 1800146, and it specifies that scientific instruments or apparatus, spare parts, components, accessories, and tools designed for these items, when consigned to listed organisations and institutions, will be dutiable at the rate of “Free” as per item 1 of Schedule 4 to the Customs Tariff Act 1995.
The by-law No. 1919366 mandates that these prescribed goods must be consigned to specific organisations and institutions. The by-law lists scientific instruments or apparatus, spare parts, components, accessories specially designed for these items, and tools specifically intended for maintenance, checking, gauging, or repair. Additionally, it includes the Children’s Cancer Institute among the institutions eligible for these concessions. It also requires the approval of any additional educational, medical research, or scientific institutions by the relevant Minister responsible for the institution or organisation, such as the Minister for Industry, the Minister for Health, or the Minister for Education.
The by-law imposes obligations on parties and entities involved in the importation of these specified goods. These obligations include ensuring that the goods are consigned to the approved institutions and organisations as listed in the by-law. It also mandates that any additional institutions or organisations must receive approval from the appropriate Minister before they can benefit from the concessional duty rates. The by-law requires compliance with the updated titles and responsibilities of the Ministers involved in the approval process.
Failure to comply with the provisions of this by-law may result in legal consequences. The specific offences, penalties, or civil/criminal consequences for breach are not explicitly stated in the by-law itself. However, given that it operates under the Customs Act 1901, non-compliance could potentially lead to enforcement actions, fines, or other penalties as prescribed by the Act. The precise penalties would depend on the nature and extent of the breach, and could be subject to the discretion of the relevant authorities in administering the Act.