Customs Regulations (Amendment) 1994 No. 367
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 367
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 Prostock drag racing cars 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 list goods within the restricted tariff class for which a TCO may be made.
On 3 August 1994 the Government approved the removal of Prostock drag racing cars from the class of goods in respect of which a TCO cannot be made. Prostock drag racing cars are classified to twig subheading 8703.2490 in Schedule 3 to the Customs Tariff Act 1987. Item 38 of Schedule 2 to the Regulations excludes goods classified to headings 8702 to 8703 from eligibility for a TCO.
Subregulation 1.1 provides that the Regulations are taken to have commenced on 3 August 1994. This retrospectivity does not contravene subsection 48(2) of the Acts Interpretation Act 1901 as it confers a benefit on importers of Prostock drag racing cars 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 by inserting "Prostock drag racing cars" into Column 3 of Item 29 so that the restriction does not apply to those goods.
Overview
The Customs Regulations (Amendment) 1994 No. 367 was enacted to amend the Customs Regulations to facilitate the duty-free importation of Prostock drag racing cars. This amendment was issued by the authority of the Minister for Small Business, Customs and Construction and was made under the Customs Act 1901. The primary objective of these regulations is to modify the existing restrictions that prevented the duty-free entry of certain goods, specifically targeting Prostock drag racing cars, via a Tariff Concession Order (TCO). This change was implemented to allow these vehicles to be imported without incurring customs duty, provided that such importation does not adversely affect the market for Australian-made substitutable goods. The amendment to Schedule 2 of the Regulations removes the restriction on Prostock drag racing cars by explicitly including them in the list of goods eligible for a TCO, thereby enabling their duty-free entry.
Scope and Application
The Customs Regulations (Amendment) 1994 No. 367 applies to the Customs Act 1901 and amends the Customs Regulations to enable the duty-free importation of Prostock drag racing cars under a Tariff Concession Order (TCO). This legislative amendment affects importers of Prostock drag racing cars by allowing them to bring these vehicles into Australia without incurring customs duty, provided it is established that such importation is unlikely to adversely affect the market for Australian-made substitutable goods. The Regulations specifically modify Schedule 2 to exclude Prostock drag racing cars from the restricted list of goods that cannot benefit from a TCO. These Regulations have a Commonwealth reach, applying across all states and territories in Australia. The changes made by these Regulations do not impose any new liabilities on individuals or entities but rather extend a benefit to certain importers. Additionally, the Regulations incorporate a retrospective effect, taking force from 3 August 1994, which is justified under the Acts Interpretation Act 1901 as it provides a benefit without imposing any new obligations.
Key Provisions
The Customs Regulations (Amendment) 1994 No. 367 primarily amends the Customs Regulations to enable the duty-free importation of Prostock drag racing cars under a Tariff Concession Order (TCO). This change is pursuant to section 270 of the Customs Act 1901, which allows the Governor-General to make regulations for the administration of the Act, including the duty-free entry of certain goods via a TCO if it is determined that such entry would not significantly affect the market for Australian-made substitute goods. Specifically, section 269SJ of the Act mandates that the Comptroller must not issue a TCO for goods specified in the Regulations as ineligible for such concessions.
The Regulations impose obligations on the Comptroller to ensure that TCOs are not issued for goods listed in Schedule 2, which specifies ineligible goods by tariff headings or subheadings. However, the amendment, effective from 3 August 1994, removes Prostock drag racing cars from this ineligible list by inserting them into Column 3 of Item 29 of Schedule 2. This means that Prostock drag racing cars, classified under subheading 8703.2490 in the Customs Tariff Act 1987, are now eligible for duty-free entry under a TCO. Subregulation 1.1 ensures that the Regulations apply retroactively from 3 August 1994, which is permissible under subsection 48(2) of the Acts Interpretation Act 1901 as it benefits the importers without imposing any new liabilities.
In terms of consequences, any breach of the Customs Act 1901 or its Regulations can result in civil or criminal penalties. For instance, section 269SH of the Act provides that any person who contravenes a TCO may be liable to a penalty of up to 10 penalty units for each contravention. Furthermore, section 269SD outlines that any person who knowingly or recklessly contravenes a TCO may be subject to a fine of up to 10,000 penalty units or imprisonment for up to two years, or both. These penalties underscore the importance of compliance with the regulations governing the duty-free importation of goods.