Customs Tariff (Safeguard Goods) Notice (No. 2) 2006

Overview

The Customs Tariff (Safeguard Goods) Notice (No 2) 2006 was enacted to address the problem of exceeding specified import volumes of prepared or preserved tuna from Thailand, in line with the Special Agricultural Safeguard provisions of the Thailand-Australia Free Trade Agreement (TAFTA). Published by the authority of the Minister for Agriculture, Fisheries and Forestry under section 16A of the Customs Tariff Act 1995, the notice introduces additional duties on imports once the specified volume of such goods is exceeded in a given calendar year. This legislative measure aims to protect Australian industries from potential harm due to a sudden increase in imports, ensuring a balance between free trade and domestic industry protection. Consultations with relevant departments and stakeholders were conducted to gauge the potential impact on businesses, and while a Regulation Impact Statement was deemed unnecessary, the process ensured that industry views were considered in the formulation of the notice.

Scope and Application

The Customs Tariff (Safeguard Goods) Notice (No 2) 2006 applies to the safeguard goods specified in the notice, which in this instance are imports of prepared or preserved tuna from Thailand classified under subheading 1604.14.00 in Schedule 3 to the Customs Tariff Act 1995. The notice is issued under section 16A of the Customs Tariff Act 1995, which allows for additional duties to be applied under the Special Agricultural Safeguard provisions of the Thailand-Australia Free Trade Agreement once a specified volume of imports is exceeded in a given calendar year. This notice specifically applies to the volume of tuna imports that have been surpassed in 2005, triggering the additional duties. The application of these duties is limited to imports after the notice is gazetted in the Commonwealth Gazette, with supplies en route based on contracts settled before the notice being exempted, although the volume will be counted against the next year’s special safeguard volume. The notice extends to the entire Commonwealth, affecting importers and entities involved in the trade of the specified tuna products from Thailand.

Key Provisions

The Customs Tariff (Safeguard Goods) Notice (No 2) 2006 primarily focuses on the application of additional duties under the Special Agricultural Safeguard (SSG) provisions of the Thailand-Australia Free Trade Agreement (TAFTA) for specific imports. Section 2 of the notice applies to safeguard goods, which are defined under section 16A of the Customs Tariff Act 1995. Specifically, this notice addresses imports of prepared or preserved tuna from Thailand classified under subheading 1604.14.00 in Schedule 3 to the Customs Tariff Act 1995. Once the volume of these imports exceeds the specified quantity for the year, additional duties will apply to further imports of these goods for that year (subsection 16A (1) of the Tariff Act). The obligations imposed by this notice are straightforward. The Minister for Agriculture, Fisheries and Forestry is responsible for publishing a notice when the volume of specified imports exceeds the predetermined threshold. This notice must be gazetted in the Commonwealth Gazette to inform relevant parties. Additionally, supplies of the goods en route at the time of the notice being gazetted, if contracted before the notice is published, will be exempt from additional duties. However, these quantities will count towards the next year's special safeguard volume. Failure to comply with the provisions of this notice can result in civil or criminal consequences. The notice does not specify particular offences or penalties within its text. However, the Customs Tariff Act 1995 and related legislation likely provide for various penalties for non-compliance, including fines and potential imprisonment for serious breaches. The specific penalties would depend on the nature and severity of the breach, as well as the relevant provisions of the Customs Tariff Act 1995 and other applicable laws. This notice was developed following consultations with the Department of Foreign Affairs and Trade, the Australian Customs Service, and registered industry stakeholders. Submissions were received from stakeholders through the Department of Agriculture, Fisheries and Forestry. The Office of Regulation Review determined that a Regulation Impact Statement was not mandatory for this notice as it is of an administrative and non-regulatory nature. This process ensures that the notice is well-informed by industry input and stakeholder feedback, aiming to balance the interests of both the domestic industry and international trade obligations.