EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO 102
CUSTOMS REGULATIONS (AMENDMENT)
ISSUED BY AUTHORITY OF THE MINISTER
OF STATE FOR INDUSTRY, TECHOLOGY AND COMMERCE
The Customs and Excise Legislation Amendment Act 1986 (Act No. 34 of 1986, which received the Royal Assent on 3 June 1986) amended the Customs Act 1901 (“the Act”) to provide for tariff concessions on goods re-imported after repair or renovation. That amendment requires consequential amendments to be made to the Customs Regulations.
The opportunity has also been taken to make some technical corrections to the Regulations.
The Regulations provide as follows:
Regulation 1 adds the words “and repair” to Regulation 180. This amendment will provide that the word “repair” has the same meaning in Regulations 181, 182 and 183 of the Customs Regulations as it has in Part XVA of “the Act”,
Regulation 2 makes various miscellaneous amendments to the provisions of Regulation 181 of the Customs Regulations, as follows;
Paragraphs (a) - (c) inclusive clarifiy paragraphs 181(p), (s) and (t) of the Regulations by only requiring the information requested in those paragraphs to be forwarded when the applicant is making an application for a Commercial Tariff Concession Order (“concession order”),
Paragraph (e) inserts a new paragraph 181(1)(ta) which specifies the particulars an applicant must forward when that person is making an application for a “concession order” on goods that have been imported after repair or renovation,
Paragraphs (f) - (i) inclusive make minor corrections and amendments to the procedures to be followed when lodging an application for a “concession order”, as well as replacing outdated references to the Department of Industry, Technology and Commerce with references to the Australian Customs Service.
Regulation 3 amends Regulation 182 of the Customs Regulations. The proposed Regulation makes minor amendments to the procedures to be followed by a person giving notice to Customs
that the person intends making an application for a “concession order”, as well as replacing outdated references to the Department of Industry, Technology and Commerce with references to the Australian Customs Service.
Regulation 4 provides that for the purposes of Regulation 185 and Schedule 2 to the regulations a person shall be taken to be capable of repairing particular goods if in the normal course of business the person is prepared to accept orders to repair those goods.
Regulation 5 amends Schedule 2 to the Customs Regulations, to -
• amend item 1 to allow fatty alcohols falling within tariff item 15.10 to become eligible to receive “concession orders” as a result of the Government’s agreement to a recommendation of the Industries Assistance Commission’s Report on Chemicals and Plastics,
• amend item 6 to reinstate the exclusion from eligibility for a “concession order” for paper apparel, which has been made necessary as a result of a change in the tariff classification of such apparel.
• insert a new item 32 to reinstate the exclusion from eligibility for a “concession order” for statuettes and ornaments of base metal, which has been made necessary as a result of a change in the tariff classification of those goods.
Overview
The Customs and Excise Legislation Amendment Act 1986 (Act No. 34 of 1986) was enacted to address the need for tariff concessions on goods that have undergone repair or renovation upon re-import. This Act was assented to on 3 June 1986 by the Australian Parliament, and its purpose was to amend the Customs Act 1901 to facilitate these concessions, necessitating corresponding changes to the Customs Regulations. The Act also aimed to correct technical issues within the existing regulations and update references to reflect the transition from the Department of Industry, Technology and Commerce to the Australian Customs Service. This legislative effort ensured that the regulatory framework aligned with the policy objectives of providing tariff relief while maintaining efficient customs administration.
Scope and Application
The Customs and Excise Legislation Amendment Act 1986, as amended by the Statutory Rules 1987 No. 102, updates the Customs Regulations to reflect changes in tariff concessions for goods that have undergone repair or renovation. The amendments primarily target the regulatory framework governing the application and eligibility criteria for Commercial Tariff Concession Orders. The Act applies to individuals and entities that import goods after they have been repaired or renovated, specifically those seeking tariff concessions for such goods. These regulations operate under the Commonwealth jurisdiction, impacting all states and territories within Australia. The scope of the regulations is further clarified and streamlined by amending outdated references and technical corrections. For instance, the regulations now direct applicants to address the Australian Customs Service rather than the Department of Industry, Technology and Commerce. Specific exclusions and eligibility criteria have been updated, including the eligibility of certain fatty alcohols and the exclusion of paper apparel and statuettes from concession eligibility due to changes in tariff classifications. The application of these regulations is further defined and refined through subordinate instruments, ensuring the legislative intent is accurately implemented and enforced.
Key Provisions
The primary operative sections of these Regulations, issued under the Customs and Excise Legislation Amendment Act 1986, amend the Customs Act 1901 to introduce tariff concessions for goods re-imported after repair or renovation. Regulation 1 incorporates the word “repair” into Regulation 180, ensuring it has the same meaning as in Part XVA of the Act. Regulation 2 clarifies and amends the information required when applying for a Commercial Tariff Concession Order, including inserting a new paragraph 181(1)(ta) specifying the details to be provided for goods imported post-repair or renovation. Regulation 3 updates the procedures for notifying Customs of an application for a concession order and replaces outdated references to the Department of Industry, Technology and Commerce with the Australian Customs Service. Regulation 4 specifies that a person is considered capable of repairing particular goods if they regularly accept orders to repair those goods in their business. Regulation 5 amends Schedule 2 to the Customs Regulations, making fatty alcohols eligible for concession orders, excluding paper apparel and statuettes and ornaments of base metal from such eligibility due to changes in tariff classification.
These Regulations impose several obligations on parties and entities governed by them. They require applicants to provide specific information when applying for a concession order, including details pertinent to goods imported after repair or renovation. The Regulations also mandate that individuals or entities must demonstrate their capability to repair particular goods to be eligible for tariff concessions. Additionally, they outline the procedures for notifying Customs of an application for a concession order, replacing outdated references to ensure the process aligns with current practices.
Failure to comply with the provisions of these Regulations may result in various consequences. While specific offences and penalties are not detailed in the text, non-compliance could potentially lead to the denial of tariff concessions, which could result in higher import duties and taxes. Additionally, providing incorrect or incomplete information in an application for a concession order could lead to administrative penalties or the refusal of the application itself. These consequences are intended to ensure that the tariff concessions are granted fairly and only to those who meet the eligibility criteria and procedural requirements set forth by the Regulations.