Customs Tariff (Industries Preservation) Act 1922

Overview

The Customs Tariff (Industries Preservation) Act 1922, enacted by the Commonwealth Parliament, amends the Customs Tariff (Industries Preservation) Act 1921. The Act addresses the problem of protecting Australian industries from the detrimental effects of imported goods, particularly when the currency of exporting countries has significantly depreciated. The policy objective of the Act is to ensure that Australian industries remain competitive by imposing appropriate tariffs that reflect the true value of imported goods. This is achieved by adjusting the duties on imported goods based on the landed cost, the Australian wholesale price of similar locally manufactured goods, and the extent of currency depreciation. The Act provides for the Minister to determine the percentage additions to the duty, not exceeding specified limits, after inquiry and report by the Tariff Board. Additionally, the Act modifies the value for duty calculation, ensuring that the tariffs imposed are reflective of the economic realities of both the exporting and importing countries.

Scope and Application

The Customs Tariff (Industries Preservation) Act 1922 applies to the Commonwealth of Australia and pertains to the regulation of customs duties on imported goods to protect local industries. This Act amends the Customs Tariff (Industries Preservation) Act 1921, introducing changes to the calculation and imposition of duties, particularly in instances where the currency of the exporting country has significantly depreciated. The Act applies to imported goods, their consignees, and the entities responsible for determining the value and applicable duties. The amendments extend the authority of the Minister to determine additional duties, with input from the Tariff Board, up to a specified percentage, thereby allowing for adjustments in response to economic conditions. The Act’s provisions are designed to ensure that imported goods do not undercut the prices of similar Australian-made products, thereby protecting domestic industries from unfair competition. The Act's reach is limited to the Commonwealth, and it does not specify any exclusions or exemptions beyond the outlined provisions.

Key Provisions

The Customs Tariff (Industries Preservation) Act 1922 (referred to as the Act) primarily amends the Customs Tariff (Industries Preservation) Act 1921 (the Principal Act) by adjusting the tariff rates and conditions for certain imported goods. Section 2 of the Act modifies the allowable addition to the cost of imported goods to determine the duty, changing it from a fixed five percent to a variable addition determined by the Minister, up to twenty percent, after consultation with the Tariff Board. Section 3 similarly adjusts the allowable addition for goods on consignment, setting it at up to fifteen percent, also determined by the Minister. Section 4 introduces a new sub-section for calculating duty when the currency of the exporting country has significantly depreciated, ensuring the duty charged does not fall below a certain threshold relative to Australian wholesale prices. Section 5 adds a new sub-section for determining the value for duty under the Customs Act 1901–1920, incorporating the dumping preference duty. Section 6 increases the penalty for contravention of the Act from two to three years imprisonment. Section 7 revises the provision on separate collection of duties, ensuring that duty is not imposed on the same goods under different sections of the Act. The Act imposes several obligations on the parties it governs, primarily those involved in the importation of goods. The Minister must consult with the Tariff Board to determine the allowable additions to the cost of imported goods and the value for duty, as outlined in sections 2 and 5. Importers must ensure their goods comply with the new tariff rates and conditions specified in the Act. The Tariff Board is responsible for reporting to the Minister on the appropriate additions and values, as required by the amended sections. The Act also mandates the separate collection of duties, ensuring that no goods are subject to double taxation under different sections, as stipulated in section 7. For breaches of the Act, section 6 imposes a criminal penalty of up to three years imprisonment. This is a significant increase from the previous penalty of two years, reflecting the seriousness with which the Act treats non-compliance. Additionally, the Act ensures that the value for duty is correctly calculated by incorporating the dumping preference duty and adjusting for currency depreciation, as detailed in sections 4 and 5. Failure to adhere to these provisions could result in incorrect duty assessments, potentially leading to legal disputes and financial penalties.