Customs Regulations (Amendment) 1994 No. 311
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 311
Issued by the Authority of the Minister for Small Business, Customs and Construction
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 business relating to the Customs, ....."
The purpose of the Regulations is to amend the Customs Regulations (the Regulations) to allow cleated cycling shoes to be imported duty-free via a Tariff Concession Order (TCO).
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 fists 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 fist goods within the restricted tariff class for which a TCO may be made.
On 14 March 1994 the Government approved the removal of cleated cycling shoes from the class of goods in respect of which a TCO cannot be made. Cleated cycling shoes can be classified to tariff subheadings 6402.19, 6403.19 or 6404.11 in Schedule 3 to the Customs Tariff Act 1987, depending upon their composition. Item 29 of Schedule 2 to the regulations excludes goods classified to headings 6401 to 6405 inclusive from eligibility for a TCO.
Subregulation 1.1 provides that the Regulations are taken to have commenced on 14 March 1994. This retrospectivity does not contravene subsection 48(2) of the Acts Interpretation Act 1901 as it confers a benefit on importers of cleated cycling shoes by making them eligible for duty-free entry under a TCO and does not impose any liabilities on any person.
Subregulation 3.1 amends Schedule 2 to insert the words "Shoes designed for cycling that include cleats moulded to the sole or cleats attached to the sole" into Column 3 of Item 29 so that the restriction does not apply to those goods.
Overview
The Customs Regulations (Amendment) 1994 No. 311 was enacted to address the specific issue of allowing the duty-free importation of cleated cycling shoes. This amendment was introduced by the Parliament of Australia to align with the Customs Act 1901, which governs the administration of customs and excise duties. The objective of the amendment was to modify the existing regulations to enable the importation of cleated cycling shoes under a Tariff Concession Order (TCO) without incurring duty, provided it did not significantly affect the market for Australian-made substitutable goods. The amendment was issued by the Authority of the Minister for Small Business, Customs and Construction and was intended to confer a benefit on importers by making these shoes eligible for duty-free entry, thereby enhancing their competitiveness and accessibility in the Australian market.
Scope and Application
The Customs Regulations (Amendment) 1994 No. 311, issued under the authority of the Minister for Small Business, Customs and Construction, amends the Customs Regulations to facilitate the duty-free import of cleated cycling shoes through a Tariff Concession Order (TCO). This amendment applies to entities importing cleated cycling shoes, aligning with the provisions of the Customs Act 1901 which allows the Governor-General to make regulations for the conduct of business relating to customs. The scope of the amendment is national, as it operates within the framework of the Commonwealth's customs regulations. The amendment is retrospective, taking effect from 14 March 1994, which is permissible under the Acts Interpretation Act 1901 as it does not impose any new liabilities but rather confers a benefit by allowing duty-free entry. The amendment removes the previous exclusion for cleated cycling shoes from eligibility for a TCO by amending Schedule 2 to specify that these shoes are no longer restricted from a TCO. This change is targeted and does not affect other goods or industries, ensuring that the amendment is specific to the intended category of cycling shoes.
Key Provisions
The Customs Regulations (Amendment) 1994 No. 311 modifies the Customs Regulations to allow for the duty-free entry of cleated cycling shoes via a Tariff Concession Order (TCO) (Subregulation 3.1). This amendment is effective as of 14 March 1994 (Subregulation 1.1). Cleated cycling shoes, which can be classified under tariff subheadings 6402.19, 6403.19, or 6404.11 in the Customs Tariff Act 1987, are now eligible for duty-free importation. This change was made by inserting the description "Shoes designed for cycling that include cleats moulded to the sole or cleats attached to the sole" into Column 3 of Item 29 of Schedule 2 of the Regulations, thereby excluding them from the previous restrictions on TCOs for goods classified under headings 6401 to 6405 inclusive.
The Regulations impose certain obligations on the parties involved. Importers of cleated cycling shoes must ensure that the shoes meet the specified description to qualify for duty-free entry. The Comptroller, as the authority responsible for making TCOs, must not issue an order for goods declared by the regulations to be ineligible for a TCO (Section 269SJ). The Comptroller must also ensure that any TCO issued complies with the conditions set out in Part XVA of the Customs Act 1901, which includes the requirement that the duty-free entry of the goods is not likely to have a significant adverse effect on the market for Australian-made substitutable goods.
Breach of the provisions of the Customs Regulations can lead to various legal consequences. Any person who contravenes the regulations may face civil or criminal penalties, depending on the nature and severity of the breach. Under the Customs Act 1901, penalties for breaches can include fines and imprisonment. For example, knowingly making a false statement or providing false information in connection with the importation of goods can result in a fine of up to $22,000 or imprisonment for up to two years, or both (Section 236). The Act also provides for the seizure of goods and other enforcement actions to ensure compliance with the regulations. It is essential for all parties involved to adhere to the requirements set out in the Customs Regulations to avoid these potential penalties.