EXPLANATORY STATEMENT
INSTRUMENT OF REVOCATION NO. 1 (2008)
Customs Act 1901
Background
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 Chief Executive Officer 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 Tariff Act) is a Customs Tariff for the purposes of the Act.
Item 32B of Schedule 4 to the Tariff Act provides that the following goods are dutiable at the rate of “Free”:
Goods, as prescribed by by-law, which in the opinion of the Chief Executive Officer, the amount of duty that, but for this item, would be payable and the value are insubstantial.
One of the by-laws made for the purposes of item 32B is By-law No. 9740019. This by-law is known as the ‘gift concession’ and prescribes for item 32B certain goods as follows:
…….. unsolicited gifts of a non-recurring nature sent to an individual in Australia by or on behalf of an individual outside Australia, being goods, or part thereof, to a maximum value of $200 per consignment. For the purposes of this by-law, "goods" does not include:
(a) tobacco products, as follows;
(i) in excess of 250 cigarettes; OR
(ii) in excess of 250 grams of cigars or tobacco products, other than cigarettes;
(b) alcoholic liquor in excess of 1 litre;
(c) goods imported by a passenger arriving in Australia from overseas;
(d) goods imported by a member of the crew of a ship or aircraft arriving from overseas; OR
(e) goods forming part of a bulk order placed on the overseas supplier.
Since October 2005, usage of the gift concession has significantly decreased following the introduction of a uniform duty and tax free threshold for all imported goods (except for alcoholic beverages and tobacco products) up to a value of $1,000.
The gift concession also highlights an inconsistency in the tax treatment of imported alcoholic beverages and tobacco products. While such products are excluded from import concessions under the uniform import threshold for goods, they remain eligible for duty and tax exemptions under the gift concession.
To remove this inconsistency, Customs has revoked the gift concession (by-law number 9740019) with effect from 1 October 2008.
Instrument
CEO Instrument of Revocation No. 1 (2008) revokes By-law No. 9740019.
Consultation
No consultation was undertaken under section 17 of the Legislative Instruments Act 2003 before this instrument was made as it is of a minor or machinery nature and does not substantially alter existing arrangements.
Commencement
CEO Instrument of Revocation No. 1 (2008) commences on 1 October 2008.