Customs Act 1901
Customs Tariff Act 1987
PART II OF SCHEDULE 4
BY-LAWS Nos. 8840053 AND 8840054
I, COLIN F. VASSAROTTI, delegate of the Comptroller-General of Customs for the purposes of section 271 of the Customs Act 1901, hereby make the by-laws set out in the Schedule hereto.
Unless the context otherwise requires, where a description of goods is specified in a by-law set out in the Schedule hereto, the goods that fall within that by-law by virtue of that description are such goods as would fall within that description if it were specified in the tariff classification in Schedule 3 to the Customs Tariff Act 1987 that applies to those goods.
Unless the context otherwise requires, any word or phrase used in a reference in a by-law set out in the Schedule hereto, has the same meaning as if it were used in the tariff classification in Schedule 3 to the Customs Tariff Act 1987 that applies to those goods to which that reference in that by-law applies.
THE SCHEDULE
BY-LAW NO. 8840053
1. This by-law may be cited as Customs By-law No. 8840053.
2. This by-law shall take effect on and from 1 January 1988.
3. Item 27 in Part II of Schedule 4 to the Customs Tariff Act 1987
applies to handicrafts that the Collector is satisfied:
(a) are made by one or more of the following processes,
and by no other process:
(i) by hand;
(ii) by tools held in the hand;
(iii) by machines powered by foot or hand; and
(b) are wholly or in chief part by weight of materials
traditionally used in the production of handicrafts;
and
(c) have attained, by reason of being hand-made, an artistic or
decorative character generally comparable with traditional
hand-made products of the country in which the goods were
made.
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4. For the purposes of the operation of paragraph 3 in relation to
goods, the incorporation or inclusion in the goods of materials
or components of a minor nature that are essential to the
assembly or normal operation of the goods, but do not contribute
to the decoration, artistry or character of the goods, shall be
disregarded.
5. This by-law does not apply to goods that:
(a) are included in a class of goods specified in column 1 of
the Table below; and
(b) are not included in the class of goods (if any) specified
in column 2 of that Table opposite the class of goods in
which those goods are included.
THE TABLE
Column 1 Column 2
Excluded Goods Included Goods
(1) Goods, as follows:
(a) fabrics and articles
made up from fabric
or yarn;
(b) clothing;
(c) footwear and parts
thereof
(2) Jewellery classified
under 7113, 7115 or
7116 of Schedule 3
(3) Imitation jewellery Handicrafts, being beads put
classified under 7117 up as necklaces, bracelets
of Schedule 3 or anklets
Handicrafts made up from
naturally occuring products
or materials, with or
without metal fittings
(4) Furniture and parts Handicrafts in which the
thereof, classified artistic or decorative
under 9401 or 9403 character is achieved by
of Schedule 3 inlaid work or by carved
designs carried out by hand.
6. For the purposes of this by-law, the "Customs Tariff Act 1987"
means the Customs Tariff Act 1987, as amended from time to time.
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BY-LAW NO. 8840054
1. This by-law may be cited as Customs By-law No. 8840054.
2. This by-law shall take effect on and from 1 January 19881998.
3. Item 27 in Part II of Schedule 4 to the Customs Tariff Act 1987
applies to handicrafts that are:
(a) fabric and articles made up from fabric or yarn, that are hand
crocheted, hand knitted, hand netted or hand woven and contain
not less than 90% by weight of natural fibres; or
(b) footwear and clothing not being goods made up from fabric or
yarn, that are wholly, or in chief part by weight, of natural
materials,
being goods that the Collector is satisfied are made by one or more
of the following processes, and by no other process:
(i) by hand;
(ii) by tools held in the hand;
(iii) by machines powered by foot or hand.
4. This by-law also applies to -
(a) fabrics printed or dyed according to the traditional Batik
method; or
(b) goods made up from fabrics printed or dyed according to the
traditional Batik method, being goods that the Collector is
satisfied are made by one or more of the following processes,
and by no other process:
(i) by hand;
(ii) by tools held in the hand;
(iii) by machines powered by foot or hand.
5. For the purposes of the operation of paragraph 3 or 4 in
relation to goods, the corporation or inclusion in the goods
of materials or components of a minor nature that are essential
to the assembly or normal operation of the goods shall be
disregarded.
6. This by-law does not apply to -
(a) footwear having outer soles and uppers of leather;
(b) parts of footwear classified under 6406 of Schedule 3;
(c) towelling classified under 6001.2 of Schedule 3;
(d) knitted or crocheted towels classified under 6302.60.90,
6302.91.30, 6302.93.00 or 6302.99.00 of Schedule 3; or
(e) handicrafts to which a subitem in Schedule 5 is expressed to
apply.
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7. For the purpose of this by-law, the Customs Tariff Act 1987,
as amended from time to time.
Dated this tenth day of December 1987
C.F. VASSAROTTI
Delegate of the
Comptroller-General
of Customs
Overview
The Customs Act 1901, enacted by the Parliament of Australia, provides the framework for the regulation and administration of customs and excise duties, as well as the control of goods entering and leaving the country. One of the key objectives of this Act is to ensure that imported goods are correctly classified and assessed to determine the applicable duties and taxes. In 1987, the Customs Tariff Act was introduced to further refine and specify the tariff classifications for various goods, including handicrafts. The Customs Tariff Act 1987 addresses the need for clear and specific guidelines for the classification of goods, particularly handicrafts, to ensure appropriate tariff application. The Customs By-laws Nos. 8840053 and 8840054, made under the authority of the Customs Act 1901, provide detailed specifications for the classification of certain handicrafts, ensuring that these goods are correctly identified and subject to the appropriate duties and taxes.
These by-laws, made by the delegate of the Comptroller-General of Customs, aim to address the problem of misclassification of handicrafts by providing specific criteria for their identification and classification. The policy objective is to ensure that handicrafts, which are often made by hand or using traditional methods, are correctly identified and subject to the appropriate tariff classifications, thus preventing potential underpayment of duties and taxes. By specifying the processes and materials that qualify as handicrafts, these by-laws aim to achieve a more accurate and fair application of customs duties and taxes on these goods.
Scope and Application
The Customs By-law No. 8840053 and No. 8840054, made under the Customs Act 1901 and Customs Tariff Act 1987, govern the classification of certain handicrafts for customs purposes. These by-laws apply to handicrafts made by hand, by tools held in the hand, or by machines powered by foot or hand, and that are predominantly made from traditionally used materials. They aim to ensure that such items are accurately classified according to their production method and material composition. However, these by-laws do not apply to certain classes of goods such as fabrics, yarns, clothing, footwear, and jewellery, unless specifically included in the by-laws. The by-laws also exclude handicrafts to which a subitem in Schedule 5 of the Customs Tariff Act 1987 applies. The by-laws have a Commonwealth reach, extending across Australia and applying to all entities involved in the importation of the specified handicrafts.
Key Provisions
The Customs By-law No. 8840053 (section 3) specifies that Item 27 in Part II of Schedule 4 to the Customs Tariff Act 1987 applies to handicrafts that meet certain criteria. These handicrafts must be made by hand, by tools held in the hand, or by machines powered by foot or hand (section 3(a)). They must also be predominantly made from materials traditionally used in the production of handicrafts and possess an artistic or decorative character comparable to traditional hand-made products from the country of origin (section 3(b) and (c)). The by-law also clarifies that minor materials essential for assembly or operation but not contributing to the artistic or decorative character can be disregarded (section 4). However, certain goods, such as fabrics, articles made from fabric or yarn, clothing, footwear, and jewellery, are excluded from this classification (section 5 and the accompanying Table).
Under this by-law, the Collector of Customs is required to ensure that handicrafts meet the specified criteria to be classified under Item 27 in Part II of Schedule 4 to the Customs Tariff Act 1987. This involves verifying the manufacturing process, the predominant use of traditional materials, and the artistic or decorative character of the goods. Additionally, the Collector must disregard minor materials that are essential for the goods' assembly or operation but do not contribute to their artistic or decorative character. The Collector also needs to ensure that specific excluded goods, such as certain fabrics, articles made from fabric or yarn, clothing, footwear, and jewellery, are not misclassified as handicrafts.
Breaches of the Customs By-law No. 8840053 may lead to various civil and criminal consequences. For instance, incorrect classification of goods as handicrafts could result in improper tariff application, leading to financial penalties or fines. If the misclassification is intentional, it may also result in criminal charges under the Customs Act 1901, potentially leading to prosecution and imprisonment. The exact penalties depend on the severity of the breach and are determined by the relevant courts.
Customs By-law No. 8840054 (section 3) specifies that Item 27 in Part II of Schedule 4 to the Customs Tariff Act 1987 applies to handicrafts that are fabric and articles made up from fabric or yarn, hand crocheted, hand knitted, hand netted, or hand woven and contain not less than 90% by weight of natural fibres. It also applies to footwear and clothing made up from natural materials that are made by hand, by tools held in the hand, or by machines powered by foot or hand (section 3(a) and (b)). Additionally, this by-law covers fabrics printed or dyed according to the traditional Batik method and goods made from such fabrics that are made by the same processes (section 4). The by-law clarifies that minor materials essential for assembly or operation but not contributing to the artistic or decorative character can be disregarded (section 5).
Under this by-law, the Collector of Customs is required to ensure that handicrafts meet the specified criteria to be classified under Item 27 in Part II of Schedule 4 to the Customs Tariff Act 1987. This involves verifying the manufacturing process, the predominant use of natural fibres or materials, and the artistic or decorative character of the goods. The Collector must also disregard minor materials that are essential for the goods' assembly or operation but do not contribute to their artistic or decorative character. The Collector needs to ensure that specific excluded goods, such as footwear with leather outer soles and uppers, certain parts of footwear, towelling, and knitted or crocheted towels, are not misclassified as handicrafts.
Breaches of the Customs By-law No. 8840054 may lead to various civil and criminal consequences. Incorrect classification of goods as handicrafts could result in improper tariff application, leading to financial penalties or fines. If the misclassification is intentional, it may also result in criminal charges under the Customs Act 1901, potentially leading to prosecution and imprisonment. The exact penalties depend on the severity of the breach and are determined by the relevant courts.