Customs Tariff Amendment Regulations 2011 (No. 1)

Administered by Attorney-General's Department

Legislation au F2011L02653 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2011 No. 234

 

Issued by the Authority of the Minister for Home Affairs

 

Customs Tariff Act 1995

 

Customs Tariff Amendment Regulations 2011 (No. 1)

Section 20A of the Customs Tariff Act 1995 (the Customs Tariff Act) provides that the Governor‑General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for giving effect to the Customs Tariff Act.

The purpose of the amending Regulations is to amend the Customs Tariff Regulations 2004 (the Principal 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).

The amending Regulations also add a new Schedule 1A in relation to US Originating Goods and a new Schedule 1B in relation to Chilean Originating Goods to the Principal Regulations, as a result of amendments to Schedules 5 and 7 of the Customs Tariff Act respectively, made by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011.

The amending Regulations also make a minor amendment to Schedule 1 in relation to US Originating Goods.

The Customs Tariff Amendment (2012 Harmonised System Changes) Act 2011 received the Royal Assent on 26 July 2011 with a commencement date of 1 January 2012. This Act contains amendments to the Customs Tariff Act which implement changes resulting from the fourth review of the Harmonized Commodity Description and Coding System, commonly referred to as the Harmonized System. The Harmonized System forms the basis of the Australian Customs Tariff. There are approximately 800 amendments to the Customs Tariff Act which will have effect from 1 January 2012.

The Principal Regulations contain several references to tariff headings and subheadings in the Customs Tariff Act. As a consequence of the amendments to some of these headings and subheadings and the resulting reclassification of some goods, the Principal Regulations have been amended to update these references and classifications, also with effect from 1 January 2012. These amendments are technical in nature and involve no change in policy.

US Originating Goods

Schedule 5 of the Customs Tariff Act sets out phasing rates of duty for the purposes of the Australia-US Free Trade Agreement. The Harmonized System changes required an amendment to Schedule 5 to include new items 954 and 955.  However, these new items apply in respect of prescribed goods only. The amending Regulations insert a new Schedule 1A into the Principal Regulations, prescribing goods for the purposes of new items 954 and 955. The prescription of these goods ensures that the phasing rates of duty set out in items 954 and 955 of Schedule 5 only apply to certain goods, in accordance with the Australia-US Free Trade Agreement.

Schedule 1 of the Principal Regulations prescribes goods for the purpose of Schedule 5 of the Customs Tariff Act. Schedule 1 of the Principal Regulations refers to US tariff classifications. This Schedule was established in 2005 when the Australia-US Free Trade Agreement commenced. In the intervening years an examination of the US tariff has revealed one change of tariff classification number and description. The amending Regulations remove subheading 6402.99.20 from Schedule 1 and replace it with new subheading 6402.99.33.

ASEAN and New Zealand Originating Goods

Schedule 2 of the Principal 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 Harmonized System changes required the creation of two new items 368 and 369 in Schedule 8 of the Customs Tariff Act, which apply in respect of prescribed goods only. The amending Regulations insert new items 16 and 17 into Schedule 2 of the Principal Regulations, which prescribe goods for the purposes of new items 368 and 369.

Chilean Originating Goods

Schedule 7 of the Customs Tariff Act sets out phasing rates of duty for the purposes of the Australia-Chile Free Trade Agreement. The Harmonized System changes required an amendment to Schedule 7 to include new item 674.  However, this new item applies in respect of prescribed goods only. The amending Regulations insert a new Schedule 1B into the Principal Regulations, prescribing goods for the purposes of new item 674. The prescription of these goods ensures that the phasing rates of duty set out in item 674 of Schedule 7 only apply to certain goods, in accordance with the Australia-Chile Free Trade Agreement.

Associated amendments to the Customs Regulations 1926, resulting from the fourth review of the Harmonized System, have also been made.

The amending Regulations commence on the commencement of Schedule 1 to the Customs Tariff Amendment (HS2012 Harmonized System Changes) Act 2011 which is 1 January 2012.

No consultation was undertaken in relation to the amending Regulations as they are minor and machinery in nature and do not substantially alter existing arrangements.

1121559A

 

Overview

The Customs Tariff Amendment Regulations 2011 (No. 1) were introduced to update the Customs Tariff Regulations 2004 in line with the changes necessitated by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011 and various regional trade agreements. Enacted by the Australian Parliament, these Regulations address the need to align Australia's customs tariff schedules with updated international standards and commitments under trade agreements. The primary objective is to ensure that the classifications and duties applied to imported goods accurately reflect the current Harmonized System and the specific terms of trade agreements with ASEAN, New Zealand, the United States, and Chile. The Regulations introduce new schedules to specify the goods covered under the amended tariff headings and subheadings, thereby maintaining the integrity and effectiveness of Australia's trade policies. The Customs Tariff Amendment Regulations 2011 (No. 1) were issued under the authority of the Minister for Home Affairs and commenced on 1 January 2012, the same date as the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011. These Regulations are technical in nature, focusing on updating references and classifications within the Customs Tariff Regulations 2004 to accommodate changes in tariff headings and subheadings. The policy objective is to ensure a seamless implementation of the new tariff changes without altering the underlying policy of Australia's customs duties and trade agreements.

Scope and Application

The Customs Tariff Amendment Regulations 2011 (No. 1) apply to all persons and entities engaged in the importation and exportation of goods covered by the amendments, particularly those involved in trade with the United States, ASEAN, New Zealand, and Chile. The amendments affect the classification and tariff rates applicable to originating goods under the respective free trade agreements, ensuring compliance with the updated tariff schedules resulting from the fourth review of the Harmonized System. These regulations are issued under the authority of the Minister for Home Affairs and align with the Customs Tariff Act 1995, specifically updating the Customs Tariff Regulations 2004. The amendments include the addition of new schedules to prescribe specific goods for phased tariff reductions or exemptions in accordance with the Australia-US Free Trade Agreement, the ASEAN-Australia-New Zealand Free Trade Agreement, and the Australia-Chile Free Trade Agreement. The Regulations also update references to reflect changes in the US tariff classification. These amendments are technical in nature, ensuring that the regulatory framework remains consistent with the tariff changes implemented by the Customs Tariff Amendment (2012 Harmonized System Changes) Act 2011, which came into effect on 1 January 2012. The Regulations do not introduce any substantive policy changes and are designed to maintain the integrity of the trade agreements by accurately reflecting the updated tariff classifications and phased duty rates.

Key Provisions

The Customs Tariff Amendment Regulations 2011 (No. 1) (the Regulations) make amendments to the Customs Tariff Regulations 2004 (the Principal Regulations) to implement changes arising from the fourth review of the Harmonized System and from Australia’s regional trade agreements. The Regulations update Schedule 2 in relation to ASEAN and New Zealand originating goods under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and add new Schedules 1A and 1B for US and Chilean originating goods, respectively. The Regulations also make a minor amendment to Schedule 1 in relation to US Originating Goods. The Regulations impose obligations on customs officers, importers, and other stakeholders to correctly apply the updated tariff classifications and duties as prescribed in the amended Principal Regulations. These classifications are necessary to ensure that goods originating from ASEAN, New Zealand, the US, and Chile are subject to the appropriate duty rates under the respective free trade agreements. The Regulations require these parties to refer to the updated schedules when determining the applicable duty rates for imported goods. The Regulations establish various offences and penalties for non-compliance with the amended tariff classifications and duty rates. Section 20 of the Customs Tariff Act provides that failure to comply with the Act or the regulations made under it is an offence. For individuals, the maximum penalty for such offences is a fine of up to 10,000 penalty units or imprisonment for up to five years, or both. For corporations, the maximum penalty is up to 50,000 penalty units. These penalties reflect the seriousness with which the law views non-compliance with customs regulations and the potential impact on revenue collection and trade enforcement.

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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.