EXPLANATORY STATEMENT
CUSTOMS ACT 1901
CUSTOMS REGULATIONS (AMENDMENT)
STATUTORY RULES 1987 NO. 316
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE AND SMALL BUSINESS
A 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 the Customs Tariff Act 1987 introduces a new tariff structure and new terminology, amendments to the Customs Regulations are necessary to accommodate the new tariff system. In particular, amendments are required to Regulations 184 and 185 and Schedule 2, which deal with tariff concession orders, and amendments to Regulations 99, 99A, 99B and 100, which refer to the Australian Export Commodity Classification.
Details of the regulations are as follows:
Regulation 1 is a machinery provision which provides for the regulations to come into operation on 1 January 1988, the commencement date of the new Harmonized Tariff System.
Regulation 2 is a machinery provision which defines the term “Principal Regulations” as the Customs Regulations for the purposes of these regulations.
Regulations 3 and 4 provide that the references to the “Australian Export Commodity Classification” in Regulations 99 and 99A of the Customs Regulations are replaced with references to the “Australian Harmonized Export Commodity Classification”, which is the new title for this document.
Regulation 5 replaces the former subregulation 99B(1) with a new subregulation which inserts a reference to the new “Australian Harmonized Export Commodity Classification” document and the date it comes into force.
Regulation 6 provides that the reference to the “Australian Export Commodity Classification” in Regulation 100 of the Customs Regulations is replaced with a reference to the “Australian Harmonized Export Commodity Classification”.
Regulation 7 replaces the present subregulation 184(3) of the Customs Regulations with a new interpretative provision for the purposes of the new harmonized tariff.
Regulation 8 repeals the present Regulation 185 of the Customs Regulations and substitutes a new Regulation 185 which takes account of the new structure and terminology of the Customs Tariff Act 1987.
Regulation 9 repeals the present Schedule 2 to the Customs Regulations and substitutes a new Schedule which takes account of the new structure and terminology of the Customs Tariff Act 1987.
Overview
The Customs Regulations (Amendment) Statutory Rules 1987 No. 316, enacted by the Parliament of Australia, aim to bring about a reorganisation of the Tariff Classification System to align it with international standards, addressing the need for a streamlined and internationally compatible customs tariff structure. The Customs Tariff Act 1987, which received Royal Assent on 5 June 1987 and commenced on 1 January 1988, necessitated these amendments to the Customs Regulations to effectively implement the new tariff system. The policy objective behind these amendments is to ensure that Australia’s customs regulations are harmonised with international practices, thereby facilitating smoother trade and reducing the potential for disputes or misunderstandings in tariff classifications. This alignment is critical for maintaining the efficiency and effectiveness of customs operations in the global trading environment.
Scope and Application
The Customs Tariff Act 1987, and the subsequent amendments to the Customs Regulations, apply to all individuals, businesses, and entities engaged in the importation and exportation of goods within Australia. The act and its regulations are designed to align Australia’s tariff classification system with international standards, thereby facilitating smoother trade practices and reducing discrepancies in tariff classifications. These changes impact all sectors of the economy that are involved in cross-border trade, including manufacturers, importers, exporters, and logistics providers. The geographic scope of the act is national, as it applies across all states and territories of Australia. There are no specific exclusions or exemptions mentioned in the explanatory statement, but it is implied that the regulations apply universally to all entities involved in customs activities. The new Harmonized Tariff System and the associated regulations are designed to be implemented from 1 January 1988, with specific provisions outlined to ensure a seamless transition from the previous system. The subordinate instruments detailed in the regulations will ensure that the new system is fully operational and that all stakeholders are compliant with the updated requirements.
Key Provisions
The Customs Regulations (Amendment) Statutory Rules 1987 No. 316, issued by the authority of the Minister of State for Science and Small Business, introduce significant amendments to the Customs Regulations to align them with the new tariff structure established by the Customs Tariff Act 1987. These amendments are set to commence on 1 January 1988, the same date as the new Harmonised Tariff System (Regulation 1). Regulation 2 defines "Principal Regulations" as the Customs Regulations for the purposes of these amendments. Key changes include the replacement of references to the "Australian Export Commodity Classification" with the "Australian Harmonized Export Commodity Classification" in Regulations 99, 99A, 99B and 100 (Regulations 3, 4, 5 and 6). Regulation 7 updates the interpretative provision in Regulation 184(3) to suit the new tariff structure. Regulation 8 replaces the former Regulation 185 to align with the new Customs Tariff Act 1987, while Regulation 9 replaces Schedule 2 to reflect the updated terminology and structure of the Act.
These amendments impose specific obligations on entities governed by the Customs Regulations. They must now reference the "Australian Harmonized Export Commodity Classification" document instead of the "Australian Export Commodity Classification" in their dealings with customs. This includes updating their internal classifications, documentation, and any relevant systems to ensure compliance with the new terminology and structure. The new provisions also necessitate that entities involved in tariff concession orders adapt to the changes outlined in Regulations 7, 8 and 9. Accurate and timely updates to classification systems and documentation are crucial to meet these regulatory requirements.
Failure to comply with the provisions of the Customs Regulations (Amendment) Statutory Rules 1987 No. 316 may result in civil or criminal consequences. The specific offences and penalties are not detailed in the explanatory statement, but under the broader Customs Act 1901, penalties for non-compliance can include substantial fines and, in severe cases, imprisonment. The exact penalties would depend on the nature and severity of the breach, as well as any previous history of non-compliance. Therefore, entities must ensure thorough adherence to the new regulations to avoid potential legal repercussions.