EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 93
CUSTOMS REGULATIONS (AMENDMENT)
Issued by the Authority of the Minister of State for Industry and Commerce.
The Customs Amendment Act 1983 (Act no. 19, Assented to 14 June 1983) (the amending Act) amended the Customs Act 1901 (the Act) by inserting a new Part XVA to introduce a new system for granting tariff concessions, to be known as the commercial tariff concession system.
The new system is based on a criterion which provides for tariff concession orders to be issued by the Minister for Industry and Commerce if he is satisfied that no goods serving similar functions are produced or are capable of being produced in the normal course of business in Australia.
Section 269D(1) of the amending Act provides that the Minister for Industry and Commerce shall not make a tariff concession order in respect of particular goods, declared by the Regulations to be goods in respect of which a tariff concession order shall not be made.
The main purpose of the Regulations is to amend the Customs Regulations (the Regulations), for the purposes of section 269D(1) of the amending Act, to insert a new Schedule 2 into the Regulations which lists the goods in respect of which a commercial tariff concession order will not be made.
The classes or kinds of goods to which a commercial tariff concession order will not be made are goods in respect of which a comprehensive range of both Australian made and imported goods exist and which, notwithstanding differences in construction, quality, price etc., basically compete with each other in the market place.
Included in this category are foodstuffs, motor vehicles, footwear apparel and jewellery. Tariff items covering apparel and footwear have been included in the Schedule to the Regulations but the items do not include goods such as ski boots, work gloves and urinary incontinance pants.
The inclusion of the goods in the Schedule to the Regulations is necessary because of the general interchangeability of all clothing and footwear as consumer goods. The availability of concessional entry of such goods (without an Industries Assistance Commission inquiry) is seen as being inconsistent with the objectives of the Government’s textile, clothing and footwear program of assistance.
These arguments do not necessarily hold for most textile items particularly textiles used as intermediate goods and for industrial purposes. Textiles tariff items have therefore generally been left out of the Schedule to the Regulations.
Regulation 1 inserts new regulations 184 and 185 into the Regulations to provide as follows-
Regulation 184 provides that certain terms and provisions shall for the purposes of regulation 185 and Schedule 2, have the same meanings or effect as they have for the purposes of Part XVA of the amending Act or of Schedule 3 to the Customs Tariff Act 1982, as the case may be; and
Regulation 185 specifies that tariff concession orders shall not be made in respect of the particular goods to which the Schedule to the regulations applies.
Regulations 2, 3, 4 and 5 are formal amendments only to existing regulations 195, 196, 199 and to the existing Schedule to accommodate the inclusion of Schedule 2.
Regulation 6 inserts the new Schedule 2 into the Regulations.
Overview
The Customs Amendment Act 1983 was enacted to address a gap in the Customs Act 1901 by introducing a new commercial tariff concession system through Part XVA. This system allows the Minister for Industry and Commerce to issue tariff concession orders for goods not produced or capable of being produced in Australia, thereby providing a mechanism for granting tariff relief. The Act was assented to on 14 June 1983 by the Parliament of Australia, aiming to refine the tariff concession process and better align it with national economic objectives. Specifically, the Act was designed to prevent the issuance of tariff concession orders for certain goods where a comprehensive range of both Australian and imported goods exist, which fundamentally compete in the marketplace. This was achieved through the insertion of a new Schedule 2 into the Customs Regulations, which lists the specific goods, such as foodstuffs, motor vehicles, footwear, and apparel, in respect of which tariff concession orders will not be made, to maintain consistency with broader government programs such as the textile, clothing, and footwear assistance scheme.
Scope and Application
The Customs Regulations (Amendment) Statutory Rules 1983 No. 93, issued under the Customs Amendment Act 1983, introduce a new commercial tariff concession system into the Customs Act 1901, aimed at regulating the granting of tariff concessions by the Minister for Industry and Commerce. This system applies to goods for which no comparable products are produced in Australia and seeks to balance trade and domestic production. The regulations establish a specific exclusion list in Schedule 2, prohibiting tariff concession orders for certain goods such as foodstuffs, motor vehicles, footwear, and apparel, which are deemed to compete in the marketplace and are inconsistent with government assistance programs. This exclusion does not extend to textiles used as intermediate goods or for industrial purposes, reflecting a nuanced approach to the regulation of different types of goods within the broader objectives of the Customs Act. The regulations also include formal amendments to existing regulations to integrate the new Schedule 2 into the Customs Regulations.
Key Provisions
The Customs Amendment Act 1983 introduced a new system for granting tariff concessions through the insertion of a new Part XVA in the Customs Act 1901. This new system, known as the commercial tariff concession system, allows the Minister for Industry and Commerce to issue tariff concession orders if satisfied that no goods serving similar functions are produced or are capable of being produced in the normal course of business in Australia (Section 269D(1)). However, Section 269D(1) also stipulates that the Minister shall not make a tariff concession order for particular goods listed by the Regulations. The Customs Regulations (Amendment) Statutory Rules 1983 No. 93 aim to amend the Customs Regulations by adding a new Schedule 2, which specifies the goods in respect of which a commercial tariff concession order will not be made.
The obligations imposed by the Regulations focus on ensuring that certain goods are not eligible for tariff concession orders. Specifically, Regulation 185 mandates that tariff concession orders shall not be made for the goods listed in Schedule 2. Regulation 184 ensures consistency in terminology and interpretation by aligning certain terms with those used in Part XVA of the amending Act and Schedule 3 to the Customs Tariff Act 1982. The formal amendments made by Regulations 2, 3, 4, and 5 are necessary to accommodate the inclusion of Schedule 2 into the existing regulatory framework. Regulation 6 formally inserts Schedule 2 into the Customs Regulations.
Breach of the provisions in the Customs Regulations (Amendment) could result in various consequences, although the specific legal ramifications are not detailed in the explanatory statement. Generally, under the Customs Act, failure to comply with tariff concession regulations could lead to penalties, fines, or other enforcement actions. While the exact penalties are not specified in the provided document, they could include financial penalties or other administrative actions as stipulated by the Customs Act and associated regulations. The severity of the penalties would depend on the specific nature and extent of the breach.