Customs Regulations (Amendment)

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1974 No. 112

REGULATIONS UNDER THE CUSTOMS ACT 1901-1973.*

I, THE GOVERNOR-GENERAL of Australia, acting with the advice of the Executive Council, hereby make the following Regulations under the Customs Act 1901-1973.

Dated this twenty-first day of June, 1974.

PAUL HASLUCK

Governor-General.

By His Excellency’s Command,

LIONEL MURPHY

Minister of State for Customs and Excise.

————

Amendment of the Customs REGULATIONS†

1. These Regulations shall come into operation on the date fixed by Proclamation under sub-section 2 (2) of the Customs Act 1971.

2. Regulations 126 and 128 of the Customs Regulations and the heading immediately preceding regulation 126 are repealed and the following heading and regulations substituted:—

“ REFUNDS, REBATES AND REMISSIONS OF DUTY

“ 126. Where—

(a) the goods on which duty has been paid or is payable have deteriorated or been damaged, pillaged, lost or destroyed during the voyage or flight;

(b) the goods on which duty has been paid or is payable have been landed in a deteriorated or damaged condition;

(c) the goods on which duty has been paid or is payable have deteriorated or been damaged, pillaged, lost or destroyed while subject to the control of the Customs;

(d) the goods on which duty has been paid or is payable have deteriorated or been damaged or destroyed while undergoing treatment pursuant to the provisions of the Quarantine Act 1908-1973, the

* Notified in the Australian Government Gazette on 29 June 1974.

† Statutory Rules 1926, No. 203, as amended to date. For previous amendments of the Customs Regulations see footnote † to Statutory Rules 1974, No. 29 and see also Statutory Rules 1974, No. 29.

deterioration, damage or destruction being directly or indirectly attributable to that treatment and the goods having been ordered into quarantine directly from the control of the Customs;

(e) duty has been paid through manifest error of fact or patent misconception of the law;

(f) after duty has been paid on goods, a by-law or determination is made under Part XVI of the Act the effect of which is that duty is not payable on those goods or duty is payable on those goods at a rate which is less than the rate which was applicable when the goods were entered for home consumption;

(g) in respect of goods on which ad valorem duty has been paid or is payable, the importer of the goods has received a refund or remission of the whole or part of the price paid or to be paid for the goods owing to a fault or defect in the goods;

(h) the goods on which ad valorem duty has been paid or is payable, at the time of importation—

(i) were inherently faulty or defective; or

(ii) did not conform to contract specifications furnished by the importer to the manufacturer or supplier,

and all reasonable steps have been taken by the importer to obtain redress from the manufacturer or supplier but without success;

(j) diesel fuel on which duty has been paid has been sold to a person who is the holder of a certificate within the meaning of the Diesel Fuel Taxation (Administration) Act 1957-1973 for use otherwise than in propelling road vehicles on public roads and—

(i) the price at which the diesel fuel was sold to that person was a price that did not include an amount in respect of duty; or

(ii) if the price at which the diesel fuel was sold to that person was a price that did include an amount in respect of duty, an amount equal to the amount of duty has been refunded or credited to that person; or

(k) duty is payable on the importation of leaf tobacco that is to be manufactured in Australia into tobacco, cigarettes or cigars,

that circumstance is a prescribed circumstance for the purposes of section 163 of the Act.

“ 127. (1) A refund of duty shall not be made unless an application for the refund in accordance with regulation 128 is delivered in accordance with that regulation within the period within which that application may, by virtue of regulation 128a, be made.

“ (2) Subject to sub-regulation (3), a remission of duty shall not be made unless an application for the remission in accordance with regulation 128 is delivered in accordance with that regulation before the goods leave the control of the Customs.

“ (3) Sub-regulation (2) does not apply where the circumstance in which the remission of duty may be made is such that the goods on which duty was payable have been totally lost or destroyed or have otherwise ceased to exist.

“ (4) Where the circumstance in which a refund or remission of the whole of the duty paid or payable on goods is such that the goods have not been totally lost or destroyed, or have not otherwise ceased to exist, the refund or remission shall not be made unless the goods are destroyed under the supervision of an officer or are exported.

“ (5) A refund of duty shall not be made in a circumstance specified in paragraph (j) of regulation 126 unless a rebate under the Diesel Fuel Taxation (Administration) Act 1957-1973 has not been paid in respect of the diesel fuel on which duty was paid.

“ (6) A rebate of duty made under a circumstance specified in paragraph (k) of regulation 126 shall be made at the time at which the leaf tobacco is entered, or is deemed to be entered, for home consumption and shall be made at the rate of—

(a) where the leaf tobacco is to be manufactured in Australia into tobacco or cigarettes—1 per centum; or

(b) where the leaf tobacco is to be manufactured in Australia into cigars —3 per centum.

“ 128. An application for a refund or remission of duty shall—

(a) be in writing;

(b) state, as far as practicable, the nature and particulars of the claim; and

“ 128a. (1) An application for a refund of duty—

(a) in a circumstance specified in paragraph (a), (b) or (c) of regulation 126; or

(b) where duty has been paid through manifest error of fact, the goods on which duty was paid having been invoiced as part of the contents of packages but not received,

may, subject to sub-regulation (3), be made within 14 days after the delivery from the control of the Customs of the goods or of the packages in which the goods were originally packed or were assumed to have been packed.

“(2) An application for a refund of duty in a circumstance specified in paragraph (d) of regulation 126 may, subject to sub-regulation (3), be made within 14 days after the goods were released from quarantine.

“ (3) Where—

(a) the information necessary to verify an application of a kind referred to in sub-regulation (1) had come into the possession of the Customs before the delivery from the control of the Customs of the goods or of the packages in which the goods were originally packed or were assumed to have been packed; or

(b) for some other reason, it is equitable that the period within which an application of a kind referred to in sub-regulation (1) or (2) may be made should be extended,

the application may be made within 12 months after the date on which duty was paid.

“ (4) An application for a refund of duty in a circumstance specified in paragraph (f) of regulation 126 may be made within 12 months after the date on which the by-law or determination was made.

“ (5) An application for a refund of duty in any circumstance other than a circumstance referred to in any of the preceding provisions of this regulation may be made—

(a) where any information necessary to verify the application had to be obtained from a country other than Australia—within 2 years; or

(b) in any other case—within 12 months,

after the date on which duty was paid.

“ 128b. (1) A refund, rebate or remission of duty may, subject to the Act and to these Regulations, be made by a Collector.

“ (2) Where the circumstance in which a refund or remission of duty may be made is such that the goods on which duty has been paid or is payable—

(a) have deteriorated or been damaged;

(b) are faulty or defective; or

to such an extent that the goods have no value, a refund or remission of the whole of the duty paid or payable shall, subject to sub-regulation (4) of regulation 127, be made.

“ (3) Where the circumstance in which a refund or remission of duty may be made is such that the goods on which duty has been paid or is payable—

(a) have deteriorated or been damaged;

(b) are faulty or defective; or

to such an extent that the goods have a reduced value, a refund or remission of part of the duty paid or payable shall be made.

“ (4) In determining the amount of a partial refund or remission of duty, a Collector shall have regard to the extent to which the circumstance in which the refund or remission may be made has reduced the value of the goods on which duty was paid or is payable, and he shall ensure that, as far as practicable, the amount of the partial refund or remission is such that the amount of duty that will have been paid or will be payable after the refund or remission has been made will bear to the amount of duty paid or payable before the refund or remission was made the same proportion as the value as so reduced of the goods bears to the value of the goods before being so reduced.

“ (5) A Collector may make arrangements with a person to whom a refund of duty may be made whereby the amount of the refund may be set off against the whole or part of that person’s liability for duty, and an amount that has been so set off in pursuance of such an arrangement shall, for the purposes of the Act and these Regulations, be deemed to have been refunded to that person.”.

Overview

The Customs Regulations 1974, enacted by the Australian government, are regulations made under the Customs Act 1901-1973 to provide detailed rules and procedures for the administration of customs duties and related matters. These regulations address the need for comprehensive guidelines to ensure the smooth operation of customs procedures, covering aspects such as the assessment, collection, and refund or remission of duties. The enactment body responsible for these regulations is the Governor-General of Australia, acting on the advice of the Executive Council. The primary policy objective of these regulations is to facilitate the accurate and efficient management of customs duties, ensuring compliance with the Customs Act and providing clarity and consistency in the application of customs laws.

Scope and Application

The Customs Regulations 1974, made under the Customs Act 1901-1973, outline the procedures and conditions for refunds, rebates, and remissions of duty on imported goods under various circumstances. This legislation applies to importers, exporters, and other entities involved in the importation of goods into Australia, and it regulates the process by which duty may be refunded, rebated, or remitted under specific conditions, such as when goods are damaged, destroyed, or do not meet contractual specifications. The application of these regulations is national in scope, impacting all states and territories within Australia. Notably, the regulations specify exclusions and thresholds, such as the need for a written application and the time limits within which such applications must be made, which vary depending on the nature of the claim. These regulations are further refined and extended through subordinate instruments, which can include further clarifications or adjustments to the conditions and processes outlined in the primary legislation.

Key Provisions

The Customs Regulations under the Customs Act 1901-1973, specifically in relation to refunds, rebates, and remissions of duty, outline various circumstances in which duty may be refunded, rebated, or remitted (Regulation 126). These circumstances include instances where goods are damaged, lost, or destroyed during transit or while under Customs control, or when duty has been paid in error (Regulation 126(a)-(d) and (f)). Other scenarios include situations where goods are inherently faulty, defective, or do not meet contractual specifications, as well as cases involving diesel fuel and leaf tobacco (Regulation 126(e), (h), and (k)). A refund or remission of duty is only permissible if an application is submitted in accordance with Regulation 128, and within the prescribed timeframes stipulated in Regulation 128a. Importantly, if goods have been totally lost or destroyed, the requirement for an application before the goods leave Customs control does not apply (Regulation 127(2) and (3)). The obligations imposed by these Regulations on entities and parties involved include ensuring that applications for refunds or remissions are made in writing and delivered to a Collector, detailing the nature and particulars of the claim (Regulation 128). Collectors, in turn, are responsible for processing these applications and determining whether a refund or remission is warranted, taking into account the specific circumstances outlined in Regulation 126 (Regulation 128b). Collectors must also ensure that any refund or remission reflects the proportionate reduction in the value of the goods (Regulation 128b(4)). Violations of these provisions may result in civil or criminal consequences. While the specific penalties for breaches are not detailed within the excerpt provided, under the broader Customs Act, offences can lead to fines and imprisonment. The maximum penalties can vary significantly depending on the nature and severity of the offence, but they can include substantial fines and lengthy prison sentences for serious violations. It is essential for parties to comply with these Regulations to avoid potential legal repercussions.

Area of Law: Customs Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Reporting & Disclosure Obligations; Refund & Remission of Duty

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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