Customs Regulations (Amendment) 1992 No. 328
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 328
Issued by the Authority of the Minister for Small Business, Construction and Customs
Customs Act 1901
Customs Regulations (Amendment)
Section 270 of the Customs Act 1901 (the Act) provides in part that (1) "The GovernorGeneral 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 ... "
Section 163 of the Act then specifies, amongst other things, that rebates of customs duty are allowed in such circumstances and subject to such conditions and restrictions as are prescribed, and that the regulations may also prescribe the amount of any rebate of customs duty that may be allowed.
The Government decided on 28 May 1989 that the road funding component of customs duty on diesel used in certain ships would be rebated to the coastal shipping industry from 1 July 1992.
The rationale for the rebate was to ensure that coastal shipping operators and, indirectly, the users of coastal shipping would no longer subsidise competing transport modes. The rebate is part of a package of reforms to the Australian shipping industry designed to increase the efficiency and competitiveness of that industry, and is therefore to be available to those parties involved in that process.
The Regulations implement the Government's decision by specifying the diesel fuel eligible for rebate and specifying the rate of rebate applicable as follows:
Regulation 1 is a machinery provision which specifies that the Customs Regulations are amended by the Regulations.
Regulation 2 provides for a new rebate circumstance in the Customs Regulations by inserting new paragraph 126(1)(a) which specifies the eligibility criteria for the new rebate scheme to be as follows:
• the rebate is to be payable to the purchaser of diesel fuel where customs duty has been paid on that diesel fuel at the rate specified under subheading 2710.00.20 of Schedule 3 to the Customs Tariff Act 1987;
• the fuel has been purchased by the applicant on or after 1 July 1992 for use in an eligible vessel; that is, a vessel which is 60 metres or more in length and comes within the definition of a "trading ship" in the Ships (Capital Grants) Act 1987; and
• the applicant for rebate certifies that no other rebate, remission, refund or drawback has been, is being or will be claimed in respect of that diesel fuel.
Regulation 3 specifies the rate of rebate applicable by inserting a new regulation 126B which specifies that the rate of rebate for diesel fuel to which new paragraph 126(1)(q) applies is to be 5.31 cents per litre.
The Regulations commenced on gazettal.
Overview
The Customs Regulations (Amendment) 1992 No. 328, issued under the authority of the Minister for Small Business, Construction and Customs, was enacted to address a specific economic issue within the Australian shipping industry. This amendment to the Customs Regulations was necessitated by the Government's decision to rebate the road funding component of customs duty on diesel used in certain ships to the coastal shipping industry, effective from 1 July 1992. The objective of this rebate was to alleviate the financial burden on coastal shipping operators and their customers by ensuring they no longer subsidise competing transport modes, thereby enhancing the efficiency and competitiveness of the coastal shipping industry. The Regulations were implemented in line with section 270 of the Customs Act 1901, which allows the Governor-General to make regulations to give effect to the Act, and section 163, which specifies the conditions and restrictions on rebates of customs duty. The new regulations outline the eligibility criteria for the rebate and the specific rate applicable to diesel fuel used in eligible vessels.
Scope and Application
The Customs Regulations (Amendment) 1992 No. 328 applies to the Customs Act 1901 and aims to implement a decision by the Government to rebate the road funding component of customs duty on diesel used in certain ships to the coastal shipping industry. This rebate is intended to ensure that coastal shipping operators and their customers are no longer subsidising competing transport modes, aligning with broader reforms to enhance the efficiency and competitiveness of the Australian shipping industry. The rebate applies to diesel fuel purchased on or after 1 July 1992 for use in eligible vessels, which must be 60 metres or more in length and fall within the definition of a "trading ship" as outlined in the Ships (Capital Grants) Act 1987. The rebate is conditional on the purchaser paying customs duty at the specified rate and certifying that no other rebate, remission, refund, or drawback has been, is being, or will be claimed in respect of that diesel fuel. The rebate rate is set at 5.31 cents per litre, and the regulations commenced upon gazettal. The regulations may be further specified or extended through subordinate instruments, but these are not detailed in the provided explanatory statement.
Key Provisions
The Customs Regulations (Amendment) 1992 No. 328 introduces significant changes to the Customs Act 1901 by amending the Customs Regulations to allow a rebate on customs duty for diesel fuel used in certain vessels. Section 270 of the Customs Act 1901 allows the Governor-General to make regulations not inconsistent with the Act, prescribing all matters required or permitted to be prescribed for giving effect to the Act (section 270(1)). Specifically, section 163 of the Act enables rebates of customs duty under certain conditions and restrictions as prescribed by the regulations, and allows the regulations to specify the amount of any rebate. The amendment made by Regulation 2 inserts a new paragraph 126(1)(a) into the Customs Regulations, detailing the circumstances under which a rebate is payable. Regulation 3 specifies the rate of rebate applicable to diesel fuel, setting it at 5.31 cents per litre for eligible vessels.
The Customs Regulations (Amendment) 1992 No. 328 imposes several obligations on parties or entities it governs. Firstly, the rebate is available only to purchasers of diesel fuel who have paid customs duty at the specified rate under subheading 2710.00.20 of Schedule 3 to the Customs Tariff Act 1987. The fuel must have been purchased on or after 1 July 1992 for use in a vessel that meets the eligibility criteria, specifically being 60 metres or more in length and classified as a "trading ship" under the Ships (Capital Grants) Act 1987. Additionally, the applicant must certify that no other rebate, remission, refund, or drawback has been, is being, or will be claimed in respect of that diesel fuel. These criteria ensure that the rebate is restricted to the intended recipients and that there is no double claiming of rebates.
Breaching the requirements set out in the Customs Regulations (Amendment) 1992 No. 328 can lead to civil and criminal consequences. Any person who fails to comply with the provisions of the Customs Act 1901 or the regulations may be subject to penalties. Under section 213 of the Customs Act 1901, a person who knowingly makes a false statement or representation, or conceals a material fact, in relation to a matter prescribed by the regulations can be fined up to 5,000 penalty units or imprisoned for up to five years, or both. Additionally, failure to comply with the rebate conditions can result in the recovery of any rebate received and additional financial penalties. These stringent measures are in place to ensure compliance and maintain the integrity of the rebate scheme.