Customs Tariff (Safeguard Goods) Notice (No. 2) 2007

Overview

The Customs Tariff (Safeguard Goods) Notice (No. 2) 2007 was enacted to implement the Special Agricultural Safeguard (SAGS) provisions under the Thailand-Australia Free Trade Agreement (TAFTA). This notice was issued by the Minister for Agriculture, Fisheries and Forestry and addresses the problem of excessive imports of certain agricultural goods, specifically prepared or preserved tuna from Thailand, which could potentially harm Australian producers. The policy objective is to provide a safeguard mechanism that allows for the imposition of additional duties when the volume of such imports exceeds a specified threshold within a calendar year, thereby protecting local industries from sudden surges in imports. Supplies en route based on contracts settled before the notice is gazetted are exempted from additional duties but are counted towards the next year's threshold. Consultations with relevant departments and industry stakeholders were conducted to ensure the notice's provisions are practical and balanced, with a determination that a Regulation Impact Statement was not necessary due to the administrative nature of the notice.

Scope and Application

The Customs Tariff (Safeguard Goods) Notice (No. 2) 2007 applies to the specific category of prepared or preserved tuna imported from Thailand, classified under subheading 1604.14.00 in Schedule 3 of the Customs Tariff Act. This notice pertains to the application of additional duties under the Special Agricultural Safeguard provisions of the Thailand-Australia Free Trade Agreement, activated when the volume of such imports exceeds a predetermined level within a calendar year. The notice is issued by the Minister for Agriculture, Fisheries and Forestry under section 16A of the Customs Tariff Act 1995, and its jurisdictional reach is national, applying across all Australian states and territories. However, supplies en route, based on contracts settled before the notice is gazetted in the Commonwealth Gazette, will be exempt from additional duties, although the volume will be counted against the next year's special safeguard volume. The notice extends its application through subordinate instruments as specified in the TAFTA, ensuring compliance with the agreed terms of the trade agreement.

Key Provisions

The Customs Tariff (Safeguard Goods) Notice (No. 2) 2007, issued under section 16A of the Customs Tariff Act 1995, specifies the application of additional duties on imports of prepared or preserved tuna from Thailand classified under subheading 1604.14.00 in Schedule 3 to the Customs Tariff Act. According to the Notice (section 2), additional duties will be applied once the specified volume of imports of these goods is exceeded in a given calendar year. This is in accordance with the Special Agricultural Safeguard (SSG) provisions of the Thailand-Australia Free Trade Agreement (TAFTA). The Notice also clarifies that supplies en route, based on a contract settled before the Notice is gazetted in the Commonwealth Gazette, will be exempt from additional duties. However, the volume of these goods will still be counted against the next year’s special safeguard volume. The Notice imposes several obligations and requirements on the parties and entities it governs. Firstly, the Minister for Agriculture, Fisheries and Forestry, who issues the Notice, must ensure that it specifies the kind of goods and the volume threshold that triggers the application of additional duties. Secondly, importers and traders must keep track of the volume of imports to avoid exceeding the specified threshold. Thirdly, the Australian Customs Service is responsible for implementing the additional duties on imports that exceed the specified volume. The Notice also outlines the consultation process undertaken with relevant departments and industry stakeholders, ensuring transparency and compliance with legislative requirements. There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Notice for breaching its provisions. However, failure to comply with the additional duties and volume thresholds could result in financial penalties or legal action by the Australian Customs Service. The Notice does not specify maximum penalties for breaches, but such matters would be governed by the Customs Tariff Act 1995 and any relevant administrative or regulatory frameworks. It is essential for importers, traders, and other affected parties to understand and adhere to the Notice's requirements to avoid any potential consequences.