EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
CUSTOMS TARIFF (SAFEGUARD GOODS) NOTICE (No 1) 2008
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Under section 16A of the Customs Tariff Act 1995, additional duties can be applied under the Special Agricultural Safeguard (SSG) provisions of the Thailand-Australia Free Trade Agreement (TAFTA) once a specified volume of imports is exceeded in a given calendar year. If the Minister makes and publishes a notice specifying a kind of goods, and that the volume of goods of that kind so imported has been exceeded for the year, the additional duties apply to further imports of the goods in that year.
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This notice applies to safeguard goods on imports of prepared or preserved pineapple (canned) from Thailand classified under subheading 2008-20.00 in Schedule 3 to the Customs Tariff Act.
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Consultations were undertaken with the Department of Foreign Affairs and Trade and the Australian Customs Service. A formal consultation process with registered industry stakeholders was undertaken in relation to section 17 of the Legislative Instruments Act 2003, on the basis that this notice may have an effect on business.
The Office of Regulation Review has advised that a Regulation Impact Statement is not mandatory because the proposal is of an administrative/non regulatory nature.
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Overview
The Customs Tariff (Safeguard Goods) Notice (No 1) 2008 was enacted to provide additional duties on imports of prepared or preserved pineapple (canned) from Thailand, under the Special Agricultural Safeguard provisions of the Thailand-Australia Free Trade Agreement (TAFTA). This measure was introduced to address the issue of excessive imports of certain agricultural products that could potentially harm Australian producers. The notice was issued under section 16A of the Customs Tariff Act 1995 and was subject to consultation with relevant departments and stakeholders, as mandated by section 17 of the Legislative Instruments Act 2003. The policy objective is to protect the local industry from the adverse effects of a sudden increase in the volume of imported goods. The notice applies to safeguard goods classified under subheading 2008-20.00 in Schedule 3 to the Customs Tariff Act and becomes effective once the specified volume of imports is exceeded in a given calendar year.
Scope and Application
The Customs Tariff (Safeguard Goods) Notice (No 1) 2008, issued under section 16A of the Customs Tariff Act 1995, provides for the application of additional duties on imports of prepared or preserved pineapple (canned) from Thailand once a specified volume is exceeded in a given calendar year. This measure is enacted in accordance with the Special Agricultural Safeguard provisions of the Thailand-Australia Free Trade Agreement (TAFTA). The additional duties are triggered if the Minister for Agriculture, Fisheries and Forestry makes and publishes a notice detailing the kind of goods and the volume threshold that has been surpassed for the year. The notice specifically applies to goods classified under subheading 2008-20.00 in Schedule 3 to the Customs Tariff Act. The enactment of this notice follows consultations with relevant departments and industry stakeholders, ensuring that its implications on business are considered. While a Regulation Impact Statement was deemed unnecessary due to the administrative nature of the proposal, formal consultations were undertaken to gather insights from industry stakeholders.
Key Provisions
The Customs Tariff (Safeguard Goods) Notice (No 1) 2008 (the Notice) under section 16A of the Customs Tariff Act 1995, provides that additional duties can be applied under the Special Agricultural Safeguard (SAG) provisions of the Thailand-Australia Free Trade Agreement (TAFTA) when a specified volume of imports is exceeded for a given calendar year. This particular Notice applies to safeguard goods on imports of prepared or preserved pineapple (canned) from Thailand, classified under subheading 2008-20.00 in Schedule 3 to the Customs Tariff Act. This means that if the volume of prepared or preserved pineapple (canned) imported from Thailand exceeds the specified volume, additional duties will apply to further imports of the goods for that year.
The Notice imposes obligations on the parties involved, primarily the Australian government and the importers of the specified goods. The government is required to monitor the volume of imported pineapples and determine when the specified volume has been exceeded. Importers are required to declare the goods correctly and ensure they are aware of the additional duties that may apply if the specified volume is exceeded. The Notice also requires consultation with relevant stakeholders, including the Department of Foreign Affairs and Trade and the Australian Customs Service, and a formal consultation process with registered industry stakeholders under section 17 of the Legislative Instruments Act 2003.
Breach of the Notice or failure to comply with the requirements may result in civil or criminal consequences. The Notice does not specify the exact penalties for breach, but the Customs Tariff Act 1995 provides for penalties for incorrect declarations, including fines and imprisonment. The maximum penalties for incorrect declarations under the Customs Tariff Act 1995 are a fine of up to $11,000 or imprisonment for up to two years, or both. It is important for importers to ensure they are aware of the additional duties that may apply and to declare their goods correctly to avoid any potential consequences.