Customs Regulations (Amendment) 1997 No. 52
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 52
Issued by the Authority of the Minister for Small Business and Consumer Affairs
Customs Act 1901
Customs Regulations (Amendment)
Section 270 of the Customs Act 1901 ("the Act") provides in part that the Governor-General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed for giving effect to the Act.
Subsection 162(1) of the Act makes provision for the temporary importation of certain goods. It provides that "Where ... a person imports goods included in a prescribed class or goods intended for a prescribed purpose and intends to export those goods, the Collector may grant to the person importing the goods permission to take delivery of those goods upon giving a security or an undertaking, to the satisfaction of the Collector, for the payment of the duty on those goods". Other conditions are then set out in section 162 relating to such matters as the time within which the goods must be exported.
These amendments to the Customs Regulations ("the Regulations") provide for the inclusion of a new prescribed class of goods and a new prescribed purpose for the purposes of section 162 of the Act. These cover goods which are testing or evaluation equipment and goods which are intended for the purposes of testing or evaluation.
The need for this new prescribed class and prescribed purpose has been identified by a review of the operation of the temporary importation provisions of the Act and Regulations which is being undertaken by the Australian Customs Service.
Previously, the Australian Customs Service had administered the temporary importation provisions broadly, but since August 1996, in the light of legal advice on the scope of the previous provisions, a more restricted view of the operation of the provisions was enforced. This caused concern to a number of different sectors of industry that import goods to be tested or evaluated or to undertake testing or evaluation of other goods. These amendments permit these importers to avail themselves of the temporary importation provisions again.
Details of the Regulations are as follows:
Regulation 1 provides that the Customs Regulations ("the Regulations") are amended as set out in these regulations.
Regulation 2 provides for the omission of the previous paragraph 124(1)(b) of the Regulations and the substitution of a new paragraph 124(1)(b), relating to the prescribed classes of goods for section 162 of the Act, and a new paragraph 124(1)(c), relating to the prescribed purposes for section 162 of the Act.
New paragraph 124(1)(b) has been redrafted to reflect current drafting style. In addition, it now includes a new subparagraph 124(1)(b)(iv) to cover "testing and evaluation equipment". This new circumstance is drafted in broad terms and is intended to allow imported goods to be brought in to test and evaluate other goods. For instance, a particular good may be imported to calibrate another good. Further, the previous subparagraph 124(1)(b)(iv), which prescribed "goods imported for assembly or other industrial purposes approved by the Collector", has been redrafted and moved to new subparagraph 124(1)(c)(i).
New paragraph 124(1)(c) prescribes two purposes for the purposes of section 162. As discussed above, new subparagraph 124(1)(c)(i) is a modem redraft of subparagraph 124(1)(b)(iv); the coverage of this subparagraph remains the same. The new prescribed purpose in subparagraph 124(1)(c)(ii) is drafted in broad terms and is intended to allow a wide variety of goods to be temporarily imported so that they may be tested or evaluated. For instance, it is intended to cover such goods as motor vehicles for such purposes as crash testing or heat endurance testing, and electrical goods for such purposes as certification testing at Australian laboratories,
These Regulations commenced on gazettal.
Overview
The Customs Regulations (Amendment) 1997 No. 52, issued under the authority of the Minister for Small Business and Consumer Affairs, were enacted to amend the Customs Regulations in response to a review of the temporary importation provisions of the Customs Act 1901. The amendments address a gap identified in the regulatory framework by introducing new classes and purposes for the temporary importation of goods. This was necessary following a shift in the interpretation of the existing provisions, which had caused concern among various sectors reliant on the temporary importation of goods for testing or evaluation. The policy objective of these amendments is to restore the flexibility of temporary importation for these specific classes of goods, facilitating continued business operations for industries that depend on such practices.
These amendments to the Customs Regulations aim to reinstate the broad administration of temporary importation provisions that had previously been enforced before the stricter interpretation in August 1996. By including "testing and evaluation equipment" as a prescribed class and "goods intended for testing or evaluation" as a prescribed purpose, the amendments ensure that businesses can again import goods temporarily for activities such as calibration, crash testing, and certification. The regulations were designed to be effective upon gazettal, ensuring that the necessary adjustments to the regulatory framework could be implemented without delay.
Scope and Application
The Customs Regulations (Amendment) 1997 No. 52 amends the Customs Regulations to address the temporary importation of specific goods for testing or evaluation purposes, expanding the scope of goods that can be temporarily imported under the Customs Act 1901. This amendment applies to individuals and entities that import goods intended for temporary use in Australia, specifically targeting sectors of industry that rely on importing goods for testing or evaluation, or for undertaking testing or evaluation of other goods. The amendment ensures that such goods can be imported without immediate payment of duty, provided they are exported within the prescribed timeframe. This change was prompted by a review of the temporary importation provisions, which previously had a more restricted interpretation since August 1996, causing concern among relevant industries. The new regulations clarify and broaden the categories of goods and purposes eligible for temporary importation, thereby facilitating smoother operations for affected sectors. The Regulations are applicable nationally and came into effect on gazette.
Key Provisions
The Customs Regulations (Amendment) 1997 No. 52 primarily focuses on expanding the categories of goods that can be temporarily imported under the Customs Act 1901. Regulation 2, in particular, amends the prescribed classes of goods and purposes for temporary importation under section 162 of the Act. This amendment introduces a new prescribed class of goods, "testing and evaluation equipment," and a new prescribed purpose, "goods intended for testing or evaluation." This means that individuals or businesses importing goods such as motor vehicles for crash testing, electrical goods for certification testing, or any other items that require testing or evaluation can now take advantage of the temporary importation provisions, as long as they meet the conditions stipulated in the Act.
These Regulations impose specific obligations on parties seeking to temporarily import goods. Firstly, they must ensure that the goods fall within the newly prescribed classes or purposes. Secondly, they must obtain permission from the Collector of Customs, providing a security or undertaking for the payment of any applicable duties. Additionally, they must adhere to the conditions set out in section 162 of the Act, including the timeframes within which the goods must be exported. The Regulations ensure that the temporary importation process is streamlined and clearly defined for these specific goods and purposes.
Failure to comply with the provisions of the Customs Act 1901 and the amended Customs Regulations can result in various civil and criminal consequences. For example, if a person fails to provide the required security or undertaking for the payment of duties, they may face penalties under section 165 of the Act. The maximum penalties for offences under the Customs Act can include fines and imprisonment, depending on the severity of the breach. Specifically, section 176 sets out the maximum penalty for serious offences as a fine of up to 10,000 penalty units or imprisonment for up to five years, or both. For lesser offences, the penalties can include fines of up to 2,200 penalty units or imprisonment for up to 12 months, or both. It is crucial for all parties involved in the temporary importation of goods to understand and comply with these obligations and requirements to avoid any legal repercussions.