EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS (PROHIBITED IMPORTS) REGULATIONS (AMENDMENT) STATUTORY RULES 1987 NO. 321
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE AND SMALL BUSINESS
These regulations serve three purposes, as follows:
(i) they make consequential drafting changes to the Customs (Prohibited Imports) Regulations to accord with the new harmonized tariff structure in the Customs Tariff Act 1987;
(ii) they make drafting changes to some Ministerial references to reflect the new Ministerial structure; and
(iii) they effect the extension of the South African sanctions by including goods of Namibian origin.
Background:
(i) Changes in tariff terminology
The reorganisation of the Tariff Classification System in order to harmonize it with international requirements will be accomplished with the commencement of the Customs Tariff Act 1987. This Act received the Royal Assent on 5 June 1987 and has been proclaimed to commence on 1 January 1988.
As a result of the new tariff, references to items in the old 1982 tariff regime require changing. The amendments effect those required changes.
(ii) Changes to reflect the new Ministerial structure
References to the “Minister of State for Foreign Affairs” have been amended to read the “Minister of State for Foreign Affairs and Trade” in accordance with the new Administrative Arrangements of 24 July 1987.
(iii) Extension of sanctions against South Africa to goods of Namibian origin
The Regulations seek to effect a minor drafting change to existing Regulation 4Q which will give effect to the Government’s desired extension of its sanctions against South Africa to include Namibian goods, including goods of Namibian origin.
Details of the Regulations are as follows:
Regulation 1 is a machinery provision which provides that these Regulations are to come into operation on 1 January 1988, the proposed date for the Proclamation of the Customs Tariff Act 1987 which introduces the Harmonized Tariff System;
Regulation 2 is a machinery provision which provides that the Customs (Prohibited Imports) Regulations are referred to as the “Principal Regulations” in these Statutory Rules;
Regulation 3 amends Regulation 4Q of the Customs (Prohibited Imports) Regulations by:
- replacing references to the “Minister of State for Foreign Affairs” with references to the “Minister of State for Foreign Affairs and Trade” in accordance with the new Ministerial structure introduced in the Administrative Arrangements of 24 July 1987;
- omitting subregulation (2) and substituting a new subregulation (2) to put beyond doubt that the Government’s sanctions against goods from South Africa and Namibia extends to goods of South African or Namibian origin;
- restricting the power of authorized persons by introducing a new subregulation (2A) which provides that where an authorized person has formed an opinion that the permission to import certain goods should not be granted, the matter must be referred to the Minister of State for Foreign Affairs and Trade. In addition, a new subregulation (2B) is inserted which provides that that Minister may then grant or refuse to grant, the permission. This restriction on the power of authorized persons is consistent with the undertaking given to the Senate Standing Committee on Regulations and Ordinances by the Minister of State for Industry, Technology and Commerce in relation to the powers of authorized persons under the Customs (Prohibited Exports) Regulations;
- replacing references to the Customs Tariff Act 1982 and the terminology used therein with references to the Customs Tariff Act 1987 and its new structure and terminology as a result of the introduction of the Harmonized System;
Regulation 4 amends Schedule 7A to the Customs (Prohibited Imports) Regulations by:
- replacing the heading of Schedule 7A with a new heading to reflect that the Government’s sanctions position against South Africa extends equally to Namibian goods, including goods of either South African or Namibian origin;
replacing references to the Customs Tariff Act 1982 and the terminology used therein in items 12, 13 and 14 of Schedule 7A with references to the Customs Tariff Act 1987 and its new structure and terminology.
Overview
The Customs (Prohibited Imports) Regulations (Amendment) Statutory Rules 1987 No. 321 were enacted to align the Customs (Prohibited Imports) Regulations with the new harmonized tariff structure introduced by the Customs Tariff Act 1987. Issued by the authority of the Minister of State for Science and Small Business, these regulations address the need to update tariff terminology, reflect the new ministerial structure, and extend sanctions against South Africa to include goods of Namibian origin. The policy objective is to ensure that Australian customs regulations are consistent with international trade practices and effectively implement the government's foreign policy stance regarding South Africa and Namibia. These amendments were designed to take effect on 1 January 1988, coinciding with the commencement of the Customs Tariff Act 1987.
Scope and Application
The Customs (Prohibited Imports) Regulations (Amendment) Statutory Rules 1987 No. 321 apply to all entities and persons involved in the importation of goods into Australia, particularly those that import goods from South Africa and Namibia. The regulations are designed to align with the new harmonized tariff structure introduced by the Customs Tariff Act 1987 and to reflect the new Ministerial structure as per the Administrative Arrangements of 24 July 1987. These regulations extend the existing sanctions against South African goods to include goods from Namibia, ensuring that all goods of South African or Namibian origin are subject to the same import restrictions. The changes also incorporate necessary amendments to align with the new tariff terminology and Ministerial references, and they specify the procedures for handling import permissions for goods subject to these sanctions. The scope of these regulations is national, applying across all states and territories in Australia. There are no stated exclusions or exemptions within these regulations, and they come into effect on 1 January 1988, in conjunction with the commencement of the Customs Tariff Act 1987.
Key Provisions
The Customs (Prohibited Imports) Regulations (Amendment) Statutory Rules 1987 No. 321 introduce several key amendments to existing regulations, primarily focusing on the alignment with the new harmonized tariff structure and the extension of sanctions to include Namibian goods. Regulation 1 specifies that these amendments will come into effect on 1 January 1988, aligning with the commencement of the Customs Tariff Act 1987 (s.1). Regulation 2 ensures that the amended regulations are referred to as the “Principal Regulations” within these Statutory Rules (s.2).
These regulations impose several obligations and requirements on the parties they govern. Firstly, authorized persons who form an opinion that permission to import certain goods should not be granted must refer the matter to the Minister of State for Foreign Affairs and Trade (s.3(2A)). This requirement ensures that decisions regarding the importation of prohibited goods are subject to ministerial oversight and approval. Additionally, the regulations mandate the substitution of references to the Customs Tariff Act 1982 with those to the Customs Tariff Act 1987, reflecting the new tariff structure and terminology (s.3 and s.4). The changes also include updating Ministerial references to align with the new Administrative Arrangements, replacing references to the “Minister of State for Foreign Affairs” with “Minister of State for Foreign Affairs and Trade” (s.3).
Failure to comply with these regulations may result in significant consequences. While the specific penalties for breaches are not detailed in the explanatory statement, it is understood that breaches of customs regulations can lead to severe penalties under the Customs Act 1901. These may include fines, imprisonment, or both, depending on the severity of the offence. Additionally, the extension of sanctions to include Namibian goods implies that any importation of such goods without proper authorization could result in similar penalties, emphasizing the importance of adhering to the new regulatory framework. The precise penalties are determined by the relevant sections of the Customs Act 1901 and associated legislation, which govern the importation of prohibited goods.