EXPLANATORY STATEMENT
Statutory Rules 1986 No. 175
Customs Regulations (Amendment)
Issued by Authority of the Minister of State for Industry, Technology and Commerce
Section 71A of the Customs Act 1901 permits a Collector to approve the delivery for home consumption of prescribed goods without the need for a formal entry.
Regulation 42 (1) of the Customs Regulations currently restricts the monetary value of goods that may be imported into Australia without entry to $250.
The Australian Customs Service Collector’s Conference of October 1985 considered the question of raising the monetary value of total goods that may be imported into Australia without the need for a formal entry. It was decided that the monetary limit of goods entered through the Parcel Post System be raised from $250 to $1000, whilst the $250 limit for goods entered by air and sea freight should remain unchanged. The last increase in the value limit occurred in 1975.
The regulations amend Regulation 42 of the Customs Regulations by inserting a paragraph 42(1)(c), which classes goods consigned by post by the same person to one person in Australia with a value of less than $1000, as being goods able to be imported without entry, and amending sub-regulation 42(2) to provide that the ‘value of goods imported by post shall be ascertained by reference to the Customs value of the goods determined in accordance with Division 2 of Part VIII of the Customs Act 1901.
Overview
The Customs Regulations (Amendment) Statutory Rules 1986 No. 175, enacted to address the need for a more flexible approach to the importation of goods without formal entry, were issued by authority of the Minister of State for Industry, Technology and Commerce. This amendment to the Customs Regulations, under Section 71A of the Customs Act 1901, responds to a policy objective of accommodating the increasing value of goods that can be reasonably imported without the need for a formal entry, particularly through the Parcel Post System. This change aims to streamline the customs process for lower-value goods, facilitating more efficient and cost-effective importation while maintaining control over higher-value imports. By raising the monetary limit for goods that can be imported without entry from $250 to $1000 for goods sent by post, the regulations aim to better align with contemporary import practices and reduce administrative burdens on importers.
Scope and Application
The Customs Regulations (Amendment) Statutory Rules 1986 No. 175, issued under Section 71A of the Customs Act 1901, introduce an amendment to the monetary threshold for goods imported into Australia without the necessity of a formal entry. Specifically, these regulations adjust the monetary limit for goods that can be delivered for home consumption without a formal entry, with a distinction made between goods imported by parcel post and those imported via air and sea freight. Goods consigned by post by the same person to one person in Australia with a value of less than $1000 are now eligible for importation without entry, whereas the $250 limit for goods entering through air and sea freight remains unchanged. This amendment reflects a decision made by the Australian Customs Service Collector’s Conference in October 1985, responding to the need to update the monetary limit which had last been increased in 1975. The value of goods imported by post is to be determined according to the Customs value of the goods, as outlined in Division 2 of Part VIII of the Customs Act 1901. These regulations apply to individuals and entities importing goods into Australia, with a specific focus on the method of import and the monetary value of the goods, thereby affecting the logistics and compliance processes for importers.
Key Provisions
The Customs Regulations (Amendment) Statutory Rules 1986 No. 175 primarily amend Regulation 42 to increase the monetary value limit for goods that can be imported without a formal entry when consigned by post. Under the current Regulation 42(1), the monetary value of goods that may be imported into Australia without entry is capped at $250. The amendment introduces a new paragraph 42(1)(c) (Regulation 42(1)(c)) which permits the delivery for home consumption of goods consigned by post, provided the total value of the goods does not exceed $1000. This change applies only to goods sent by post by the same person to one person in Australia. The amendment also modifies sub-regulation 42(2) to clarify that the value of goods imported by post should be determined using the Customs value as outlined in Division 2 of Part VIII of the Customs Act 1901.
The amendment imposes specific obligations on the parties involved in the importation of goods by post. The Collector, who is responsible for administering the Customs Act 1901, must now approve the delivery of goods without a formal entry if the goods meet the criteria set out in Regulation 42(1)(c). Importers must ensure that the total value of the goods consigned by post does not exceed the $1000 limit, and they must provide accurate information regarding the value of the goods. The Collector's Conference's decision to raise the monetary limit for goods entered through the Parcel Post System to $1000 aims to streamline the importation process for smaller consignments while maintaining the existing $250 limit for goods imported via air and sea freight.
Breaching the provisions of the amended Regulation 42 may lead to various civil or criminal consequences. If a person knowingly imports goods exceeding the specified value limit or provides false information about the value of the goods, they could face penalties under the Customs Act 1901. The maximum penalty for knowingly making a false statement in a Customs document can be up to 2,500 penalty units or imprisonment for five years, or both, for an individual. For a body corporate, the maximum penalty can be up to 125,000 penalty units. These penalties underscore the importance of compliance with the amended regulations to avoid severe legal repercussions.