Customs Regulations (Amendment) 1994 No. 53
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 53
Issued by the Authority of the Minister for Science and Small Business
Customs Act 1901
Customs Regulations (Amendment)
Section 270 of the Customs Act 1901 (the Act) provides in part that:
"(1) The Governor-General may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed ... for giving effect to this Act or for the conduct of any business relating to the Customs, ...".
The purpose of these Regulations is to amend the Customs Regulations (the Regulations) to allow Anhydrous Dextrose and Monohydrate Dextrose to be imported duty-free via a Tariff Concession Order (TCO). Anhydrous Dextrose and Monohydrate Dextrose are pharmaceutical grades of dextrose used in intravenous solution in hospitals and which are not manufactured in Australia.
Part XVA of the Act provides for the duty-free entry of certain goods via a TCO where it is established that the duty-free entry of those goods is not likely to have a significant adverse effect on the market for Australian made substitutable goods. Section 269SJ of the Act provides that the Comptroller must not make a TCO in respect of goods declared by the regulations to be goods to which a TCO should not extend.
Schedule 2 to the Regulations lists goods in respect of which TCOs must not be made under Part XVA of the Act. It does this by specifying the tariff heading or subheading of such goods in Column 2 of Schedule 2. Column 3 of the Schedule provides the facility to list goods within the restricted tariff class for which a TCO may be made.
On 14 December 1993 the Government approved the removal of Anhydrous Dextrose and Monohydrate Dextrose from the class of goods in respect of which a TCO cannot be made. Anhydrous Dextrose and Monohydrate Dextrose are classified to tariff sub-heading 1702.3 0 in Schedule 3 to the Customs Tariff Act 1987. Item 6 of Schedule 2 to the Regulations excludes goods classified to headings 1520 to 2403, inclusive, from eligibility for a TCO.
Subregulation 3.1 amends Schedule 2 to insert the words "Anhydrous Dextrose and Monohydrate Dextrose", into Column 3 of Item 6 so that the restriction does not apply to those goods.
Subregulation 1.1 provides that the Regulations are taken to have commenced on 14 December 1993. This retrospectivity does not contravene subsection 48(2) of the Acts Interpretation Act 1901 as it confers a benefit on importers of Anhydrous Dextrose and Monohydrate Dextrose by making them eligible for duty-free entry under a TCO and does not impose any liabilities on any person.
Overview
The Customs Regulations (Amendment) 1994 No. 53 was enacted to address the gap in the ability to import pharmaceutical grades of dextrose duty-free, specifically Anhydrous Dextrose and Monohydrate Dextrose, which are not manufactured in Australia and are used in intravenous solutions in hospitals. This amendment was authorised under section 270 of the Customs Act 1901, which allows the Governor-General to make regulations for giving effect to the Act. The policy objective is to ensure that the duty-free entry of these essential medical supplies does not have a significant adverse effect on the market for Australian-made substitutable goods, as stipulated under Part XVA of the Act. The regulations were issued by the Minister for Science and Small Business and became effective from 14 December 1993, conferring a benefit to importers without imposing any liabilities.
Scope and Application
The Customs Regulations (Amendment) 1994 No. 53, issued under the authority of the Minister for Science and Small Business, pertains to the Customs Act 1901. These regulations specifically amend the Customs Regulations to facilitate the duty-free importation of Anhydrous Dextrose and Monohydrate Dextrose, which are pharmaceutical-grade dextroses used in intravenous solutions in hospitals and are not manufactured in Australia. This amendment ensures that these essential medical supplies can be imported without incurring customs duties, provided it is established that such imports will not significantly disrupt the market for locally produced substitute goods. The regulations align with Part XVA of the Act, which allows for the duty-free entry of certain goods via a Tariff Concession Order, subject to certain conditions. The Comptroller is mandated to not issue such orders for goods explicitly declared by regulations to be ineligible, and the amendments ensure that these dextroses are no longer restricted under Schedule 2 of the Regulations. The retrospective commencement date of 14 December 1993, as provided by subregulation 1.1, ensures that importers benefit from duty-free entry without retroactive imposition of liabilities.
Key Provisions
The Customs Regulations (Amendment) 1994 No. 53 introduce changes to the Customs Regulations to facilitate the duty-free importation of Anhydrous Dextrose and Monohydrate Dextrose via a Tariff Concession Order (TCO) under the Customs Act 1901. The primary operative section in this context is Section 270 of the Customs Act 1901, which empowers the Governor-General to make regulations for the administration of the Customs Act. Specifically, Subregulation 3.1 of the amending regulations modifies Schedule 2 to the Customs Regulations to insert "Anhydrous Dextrose and Monohydrate Dextrose" into Column 3 of Item 6, thereby removing these pharmaceutical-grade dextrose products from the list of goods ineligible for a TCO.
The Act and the amended Regulations impose certain obligations and requirements on the parties involved. Firstly, the Comptroller, as designated by the Act, must ensure that any TCO made under Part XVA of the Act adheres to the conditions set out in the Act and the Regulations. The Comptroller is also mandated to ensure that the duty-free entry of goods is not likely to have a significant adverse effect on the Australian market for substitutable goods. Additionally, the importer of Anhydrous Dextrose and Monohydrate Dextrose must declare these goods for importation and comply with any conditions attached to the TCO that grants them duty-free entry.
Furthermore, the Regulations, as amended, include provisions that stipulate certain consequences for breaches. While the explanatory statement does not explicitly list offences or penalties, it is understood that failure to comply with the Customs Act and the amended Regulations could result in penalties. Under Section 269SJ of the Act, the Comptroller must not make a TCO in respect of goods declared by the regulations to be goods to which a TCO should not extend. A breach of this provision could potentially result in civil or criminal penalties as outlined in the Customs Act 1901. However, the specific penalties are not detailed in the explanatory statement, and one would need to refer to the full text of the Act for precise information on the maximum penalties applicable. Nonetheless, it is clear that any non-compliance with the regulatory requirements could lead to serious legal ramifications.