Customs Regulations (Amendment) 1991 No. 316
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 316
CUSTOMS ACT 1901
CUSTOMS REGULATIONS (AMENDMENT)
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SMALL BUSINESS AND CUSTOMS
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, ..."
Regulation 107 of the Customs Regulations ("the Regulations") provides for exemption from customs duty liability for stores of aircraft falling into specific classes.
The Statutory Rules extend the exemption to the stores of aircraft engaged in flights approved under subsection 15(1) of the Air Navigation Act 1920.
Background
On 29 August 1991 the Government decided that certain amendments be made to the Regulations to allow flights approved under subsection 15(1) of the Air Navigation Act 1920 to be exempt from customs duty liability.
In its previous form Regulation 107 exempted the stores of aircraft other than Australian aircraft only if they were aircraft operating under an intergovernmental agreement between the Commonwealth and the government of another country.
Whilst the Government is unable to enter into an agreement with the Government of Taiwan as that country is not recognised as a sovereign nation, it intends to approve flights by Taiwanese aircraft under subsection 15(1) of the Air Navigation Act 1920, (which covers flights by foreign aircraft not possessing the nationality of a Contracting State to the Chicago Convention on Civil Aviation).
The exemption from customs duty liability for Taiwanese flights to Australia is intended to facilitate the establishment of a direct air link with Taiwan, with similar treatment being accorded to the Australian carrier, Australia Asia Airlines, by the Taiwanese authorities.
The Statutory Rules put into effect the Government's decision as follows:
Regulation 1.1 provides that the Customs Regulations are amended as set out in the proposed regulations.
Regulation 2.1 provides that a new paragraph "(ba)" is inserted after paragraph 107(1)(b). The new paragraph exempts from customs duty liability stores for consumption or use in an aircraft that is engaged on a flight approved under subsection 15(1) of the Air Navigation Act 1920.
Overview
The Customs Regulations (Amendment) 1991 No. 316, enacted by the Australian government, aimed to address a specific gap in the existing Customs Regulations concerning the exemption from customs duty liability for stores on aircraft. The Customs Act 1901 empowers the Governor-General to make regulations for the conduct of business relating to customs, and these amendments were made under this authority. The primary objective of these amendments was to extend the exemption from customs duty liability to stores of aircraft engaged in flights approved under subsection 15(1) of the Air Navigation Act 1920. This amendment was introduced to facilitate the establishment of a direct air link with Taiwan, providing reciprocal treatment similar to that offered to Australian carriers by Taiwanese authorities.
Scope and Application
The Customs Regulations (Amendment) 1991 No. 316, issued under the authority of the Minister of State for Small Business and Customs, amends the Customs Regulations to extend the exemption from customs duty liability to stores of aircraft engaged in flights approved under subsection 15(1) of the Air Navigation Act 1920. This amendment applies to stores intended for consumption or use in an aircraft, thereby including a broader range of flights in the exemption, specifically those approved under the mentioned subsection, which deals with flights by foreign aircraft not possessing the nationality of a Contracting State to the Chicago Convention on Civil Aviation. This change allows for the exemption of customs duty liability for stores in aircraft that may not be operating under an intergovernmental agreement but are approved under the Air Navigation Act. The amendment is intended to facilitate the establishment of direct air links with regions such as Taiwan, where formal intergovernmental agreements are not possible due to political recognition issues, and to ensure parity with arrangements made with Taiwanese authorities for Australian carriers like Australia Asia Airlines. The amendment does not alter the existing exemption for stores in Australian aircraft or those operating under intergovernmental agreements, maintaining the integrity of the original regulatory framework while extending the exemption to include approved foreign flights.
Key Provisions
The Customs Regulations (Amendment) 1991 No. 316 makes specific changes to the Customs Regulations, particularly in relation to the exemption from customs duty for certain aircraft stores. Regulation 1.1 outlines the amendments made to the Customs Regulations, ensuring that they align with the Customs Act 1901. Regulation 2.1 introduces a new paragraph (ba) into Regulation 107, which exempts stores intended for consumption or use in aircraft engaged on flights approved under subsection 15(1) of the Air Navigation Act 1920 from customs duty liability. This amendment broadens the scope of the exemption to include flights approved under this subsection, regardless of the nationality of the aircraft.
The obligations imposed by these amendments primarily concern the entities involved in the import and export of goods through the specified flights. Importers, exporters, and customs officials must now take into account this new exemption when processing goods intended for use on flights approved under subsection 15(1) of the Air Navigation Act 1920. This means that importers and exporters need to ensure that the goods intended for these flights meet the criteria for exemption and provide any necessary documentation to customs officials to facilitate the exemption process. Customs officials, in turn, are required to verify that the goods qualify for the exemption and are correctly classified under the new regulation.
Failure to comply with these regulations can result in significant consequences. For example, if goods that are eligible for the exemption are incorrectly charged customs duty, the responsible parties may face financial penalties or be required to repay the duty. Additionally, repeated or intentional non-compliance could lead to more severe penalties, including fines or other legal actions. While the specific penalties are not detailed in the Statutory Rules, the implications of non-compliance underscore the importance of adhering to the new provisions. Ensuring compliance helps maintain the integrity of the customs process and supports the objectives of facilitating direct air links with Taiwan and promoting equitable treatment for Australian carriers.