EXPLANATORY STATEMENT
Customs By-law No. 2100084
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
Item 39A of Schedule 4 to the Customs Tariff Act provides that goods, as prescribed by by-law, that are for use in testing, quality control, manufacturing, evaluation or engineering development of motor vehicles designed or engineered, or in the process of being designed or engineered, in Australia by a person who was registered as an automotive service provider under the Automotive Transformation Scheme (within the meaning of the Automotive Transformation Scheme Act 2009) on 30 March 2021, or components for inclusion in such motor vehicles, are dutiable at the rate of ‘Free’.
Item 39A is a temporary measure covering imported goods where the time for working out the rate of duty on the goods is in the period beginning on 1 April 2021 and ending at the end of 30 June 2025.
Instrument
This by-law prescribes the goods for the purpose of item 39A and requires that a security (within the meaning of section 42 of the Act) must be lodged with the Department of Home Affairs to ensure compliance with conditions.
Paragraph 2 of the by-law sets out the goods prescribed, being the motor vehicles and components for motor vehicles used in use in testing, quality control, manufacturing, evaluation or engineering development of motor vehicles designed or engineered, or in the process of being designed or engineered, in Australia by a person who was registered as an automotive service provider under the Automotive Transformation Scheme (within the meaning of the Automotive Transformation Scheme Act 2009) on 30 March 2021, and under security.
Paragraph 3 of the by-law sets out a condition to which the application of item 39A to the goods set out in paragraph 2 is subject. The application of item 39A is subject to the goods being exported, destroyed or disposed of in a manner approved in writing by a Collector within a period of twelve months from the date of entry for home consumption or within such further period as the Collector may approve in writing.
Consultation
The Department of Industry, Science, Energy and Resources undertook targeted consultation with Automotive Service Providers regarding the need to continue to support research and development activities.
Commencement
This by-law commences on 1 April 2021.