Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016

Administered by Department of Home Affairs

Legislation au F2016L01911 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2016 No.

 

Issued by the Assistant Minister for Immigration and Border Protection

Parliamentary Secretary to the Minister for Immigration and Border Protection

 

Customs Tariff Act 1901

 

Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016

 

The Customs Tariff Act 1995 (the Customs Tariff Act) gives effect to Australia’s import trade classification system. It assigns rates of customs duty, both general and preferential, to imported goods and enables the collection of these duties.  It also allows for the regulation of certain goods and the collection of trade statistics.

 

Subsection 20A of the Customs Tariff Act provides, in part, that 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, or which are necessary or convenient to be prescribed for giving effect to this Act.

 

Background and purpose

The purpose of the Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016 (the Amendment Regulation) is to amend the Customs Tariff Regulations 2004 (the Customs Tariff Regulations), to give effect to Australia’s commitments made under the World Trade Organization’s Expanded Information Technology Agreement (the Expanded ITA).

In the 2016‑17 Budget, the Government committed to reduce the customs duty rates incrementally for certain information technology products to Free, over time, and to do so in a manner consistent with the commitments made under the Expanded ITA.

Under the Expanded ITA, the customs duty rate for particular subsets of goods within certain tariff classifications will be reduced.  The customs duty rate for the other goods within the tariff classification will remain unchanged. This requires the creation of new tariff classifications to identify and distinguish these subsets of goods.

The Customs Tariff Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Act 2016 (the Amendment Act) amends the Customs Tariff Act to implement changes resulting from the Expanded ITA commitments.  The Amendment Regulation is consequential to the Amendment Act and enables the Customs Tariff Regulations to reflect the changes in the Customs Tariff Act.

The Customs Tariff Regulations contain references to certain tariff headings and subheadings. As a consequence of amendments made by the Amendment Act to some tariff headings and subheadings, and the resulting reclassification of goods, it is also necessary to amend the Customs Tariff Regulations to update these references and classifications. These amendments are of a technical nature only, and involve no change in policy.

The Amendment Regulation amends the Customs Tariff Regulations to update Schedule 2 in relation to ASEAN and New Zealand originating goods under Australia’s regional agreement with ASEAN and New Zealand, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA).

Schedule 2 of the Customs Tariff Regulations prescribes goods for the purposes of Schedule 8 of the Customs Tariff Act. Schedule 8 sets out phasing rates of duty for the purposes of the AANZFTA.  Some phasing rates apply in respect of prescribed goods only.  The prescription of these goods ensures that the phasing rates of duty for these items in Schedule 8 only apply to certain goods, in accordance with the AANZFTA. The implementation of the Expanded ITA commitments requires the update of the description of table items 14 and 15 in Schedule 8 of the Customs Tariff Act, which apply in respect of prescribed goods only.

 

Details of the Amendment Regulation are set out in Attachment A.

 

A Statement of Compatibility with Human Rights has been prepared and is at Attachment B.

 

During the negotiation of the Expanded ITA, targeted consultation was undertaken with a number of industry bodies, including:

  • The Australian Industry Group;
  • The Australian Information Industry Association
  • The Interactive Games and Entertainment Association
  • The Consumer Electronics Society of Australia
  • Telstra
  • Cochlear
  • The Australian arms of IBM and Hewlett Packard.

 

There was strong support of the Expanded ITA and no objections were received.

 

The Amendment Regulation commences on the commencement of Schedule 1 to the Customs Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Act 2016. That Schedule commences on 1 January 2017.

 

OPC62152 - A

ATTACHMENT A

 

 

Details of the Customs Tariff Amendment (Expanded Information Technology Agreement) Regulation 2016

 

Section 1 – Name of Regulation

 

This section provides that the title of the Regulation is the Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016 (the Amendment Regulation).

 

Section 2 – Commencement

 

This section provides that the Amendment Regulation is to commence immediately after the commencement of Schedule 1 to the Customs Tariff Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Act 2016.  That Schedule commences on 1 January 2017.

 

Section 3 – Authority

 

This section provides that the Amendment Regulation is made under the Customs Tariff Act 1995 (the Customs Tariff Act).

 

The purpose of this section is to set out the Act under which the Amendment Regulation is to be made.

 

Section 4 – Schedule(s)

 

This section provides for each instrument that is specified in a Schedule to this instrument is to be amended or repealed as set out in the applicable items in the Schedule concerned, and for any other item in a Schedule to this instrument to have effect according to its own terms.  The instrument that is being amended is the Customs Tariff Regulations 2004.

 

Schedule 1 – Amendments

 

Customs Tariff Regulations 2004 (the Customs Tariff Regulations)

 

Item 1 – Schedule 2(table items 14 and 15)

 

Schedule 2 prescribes goods for certain items listed in Schedule 8 of the Customs Tariff Act.

 

This item:

 

a)      repeals the description of the prescribed good and the tariff classification 8486.40.90 at table item 14 and replaces it with a new description: “Machines and apparatus which, but for the operation of Note 9 (C)(iii) to Chapter 84 of Schedule 3 to the Act, would be classified in 8428.90.00 of Schedule 3 to the Act”, and new tariff classification 8486.40.91.

 

 

 

b)   inserts a new item to refer to item 338A to Schedule 8 of the Customs Tariff Act to specifically prescribe “machines and apparatus which, but for the operation of Note 9 (C)(i) or (ii) to Chapter 84 of Schedule 3 to the Act, would be classified in 8428.90.00 of Schedule 3 to the Act”, with tariff classification 8486.40.99.

These amendments implement the changes to the Customs Tariff Regulations required by Australia’s commitments under the Expanded Information Technology Agreement.


ATTACHMENT B

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016

 

This legislative instrument, titled the Customs Tariff Amendment (Expanded Information Technology Agreement) Regulation 2016 (the Amendment Regulation), is compatible with human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview

In the 2016‑17 Budget, the Government committed to reduce the customs duty rates incrementally for certain information technology products to Free, over time, and to do so in a manner consistent with the commitments made under the World Trade Organization’s Expanded Information Technology Agreement (the Expanded ITA).

Under the Expanded ITA, commitments have been made to reduce the customs duty rate for particular subsets of goods within a classification.  The customs duty rate for the other goods within the classification will remain unchanged. This requires the creation of new tariff classifications to identify and distinguish these subsets of goods.

The Customs Tariff Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Act 2016 (the Amendment Act) amends the Customs Tariff Act 1995 (the Customs Tariff Act) to implement commitments under the Expanded ITA.  The proposed Amendment Regulation is consequential to the Amendment Act.

 

The purpose of the Amendment Regulation is to amend the Customs Tariff Regulations 2004 (the Customs Tariff Regulation) to create new tariff subheadings.  This enables the Customs Tariff Regulations to reflect the changes in the Customs Tariff Act.  The changes are to tariff classifications and descriptions of certain goods.

 

The Amendment Regulation commences on the day of commencement of Schedule 1 to the Amendment Act.  That Schedule commences on 1 January 2017.

 

Human Rights implications

 

This Amendment Regulation does not engage any of the applicable rights or freedoms.

 


Conclusion

 

This Amendment Regulation is compatible with human rights as it does not raise any human rights issues.

 

The Hon Alex Hawke MP, Assistant Minister for Immigration and Border Protection

Parliamentary Secretary to the Minister for Immigration and Border Protection

 

Overview

The Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016 was enacted to implement Australia's commitments under the World Trade Organization's Expanded Information Technology Agreement (Expanded ITA). This regulation amends the Customs Tariff Regulations 2004 to update tariff classifications and descriptions of certain information technology goods, thereby facilitating the reduction of customs duty rates on specified subsets of goods while maintaining the rates for others. It is a consequential measure to the Customs Tariff Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Act 2016, which amends the Customs Tariff Act 1995 to incorporate the commitments made under the Expanded ITA. The regulation ensures that Australia's customs duty structure aligns with international trade agreements, reflecting no changes in policy but updating technical references and classifications. The regulation was issued by the Assistant Minister for Immigration and Border Protection, Parliamentary Secretary to the Minister for Immigration and Border Protection, and it commenced on 1 January 2017, the same day as Schedule 1 of the Amendment Act.

Scope and Application

The Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016 applies to the implementation of Australia's commitments under the World Trade Organization's Expanded Information Technology Agreement (Expanded ITA). This regulation amends the Customs Tariff Regulations 2004 to give effect to the commitments made under the Expanded ITA, which involve reducing customs duty rates for certain information technology products to zero over time. It applies nationally, and its scope is limited to the amendments required to implement these commitments. The regulation creates new tariff classifications and descriptions for specific subsets of goods within certain tariff classifications, while maintaining the duty rates for other goods within those classifications. The Amendment Regulation is a direct consequence of the Customs Tariff Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Act 2016, which itself amends the Customs Tariff Act 1995 to incorporate the commitments under the Expanded ITA. The regulation ensures that the Customs Tariff Regulations reflect the changes made by the Amendment Act, specifically updating references and classifications in Schedule 2 of the Customs Tariff Regulations to align with the new tariff subheadings. The regulation does not extend or restrict its application through subordinate instruments, and it does not introduce any exclusions, exemptions, or thresholds beyond what is specified in the Amendment Act and the Expanded ITA. The regulation is compatible with human rights, as confirmed in the Statement of Compatibility with Human Rights, which concludes that the regulation does not engage any of the applicable rights or freedoms.

Key Provisions

The Customs Tariff Amendment (Expanded Information Technology Agreement Implementation) Regulation 2016 (Amendment Regulation) amends the Customs Tariff Regulations 2004 to implement Australia's commitments under the World Trade Organization's Expanded Information Technology Agreement (Expanded ITA). Specifically, it creates new tariff classifications to distinguish between subsets of goods for which customs duty rates will be reduced and those that will remain unchanged (Section 4). This amendment ensures the Customs Tariff Regulations reflect the changes made by the Customs Tariff Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Act 2016. The Amendment Regulation imposes obligations on entities importing goods subject to the reduced customs duty rates under the Expanded ITA. Importers must classify their goods according to the new tariff classifications established in the Regulation. This includes identifying and distinguishing between goods for which customs duty rates have been reduced and those for which rates remain unchanged (Section 2). Additionally, the Regulation mandates that the descriptions and classifications in the Customs Tariff Regulations be updated to align with the changes in the Customs Tariff Act (Section 4). The Amendment Regulation does not explicitly outline specific offences, penalties, or civil or criminal consequences for non-compliance with its provisions. However, failure to correctly classify goods according to the new tariff classifications could result in incorrect duty payments or other customs-related issues. The Customs Tariff Act 1995 provides for various offences and penalties related to customs duty evasion and incorrect classification of goods, which would apply in such cases. For example, incorrect classification that leads to underpayment of customs duty could result in penalties or fines as per the Customs Act 1901 (Section 150). The maximum penalties for such offences can include fines up to 10,000 penalty units or imprisonment for up to five years, or both, depending on the severity of the offence.

Legal classification tags

Area of Law
International Trade Law
Customs Law
Instrument
Regulation
Concepts
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations
Offence Provisions

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.