EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
CUSTOMS TARIFF (SAFEGUARD GOODS) NOTICE (No. 3) 2007
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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 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. Supplies en route on the basis of a contract settled before the notice is gazetted in the Commonwealth Gazette will be exempted from additional duties but the volume will be counted against next year’s special safeguard volume.
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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, and submissions were received from stakeholders by the Department of Agriculture, Fisheries and Forestry. 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. 3) 2007 was enacted to implement the Special Agricultural Safeguard (SAGS) provisions outlined in the Thailand-Australia Free Trade Agreement (TAFTA). This notice, issued by the Minister for Agriculture, Fisheries and Forestry under section 16A of the Customs Tariff Act 1995, introduces additional duties on imports of specific agricultural goods once a predetermined volume threshold is exceeded in a given calendar year. The primary policy objective of this legislation is to protect Australian industries from a sudden surge in imports, thereby maintaining a stable market for domestic producers. The notice specifically addresses the import of prepared or preserved pineapple (canned) from Thailand, classified under subheading 2008-20.00 in Schedule 3 of the Customs Tariff Act. Supplies en route based on contracts established before the notice was gazetted are exempt from the additional duties but will be counted towards the following year's safeguard volume. Consultations with relevant departments and stakeholders were conducted to ensure the notice effectively balances trade interests with the need to protect local industries.
Scope and Application
The Customs Tariff (Safeguard Goods) Notice (No. 3) 2007 applies to imports of prepared or preserved pineapple, specifically canned pineapple, from Thailand that are classified under subheading 2008-20.00 in Schedule 3 to the Customs Tariff Act. This notice is issued under section 16A of the Customs Tariff Act 1995, which allows for the imposition of additional duties under the Special Agricultural Safeguard (SSG) provisions of the Thailand-Australia Free Trade Agreement (TAFTA). The application of additional duties is contingent upon the volume of imports of the specified goods exceeding a certain threshold for the calendar year. The notice is geographically applicable within the Commonwealth of Australia, impacting entities and individuals involved in the import of these goods. Exemptions apply to supplies en route that were contracted before the notice was gazetted in the Commonwealth Gazette, although these will count against the next year's special safeguard volume. The notice extends its application through subordinate instruments as required by the Customs Tariff Act 1995 and the TAFTA, and it does not include exclusions or exemptions beyond those explicitly stated.
Key Provisions
The Customs Tariff (Safeguard Goods) Notice (No. 3) 2007, under section 16A of the Customs Tariff Act 1995, pertains to the application of additional duties through the Special Agricultural Safeguard (SSG) provisions of the Thailand-Australia Free Trade Agreement (TAFTA). Specifically, section 1 of the Notice applies to prepared or preserved pineapple (canned) imported from Thailand under subheading 2008-20.00 in Schedule 3 to the Customs Tariff Act. When the volume of these imports exceeds a specified threshold for a given calendar year, additional duties are imposed on further imports of the same goods for that year. It is important to note that supplies en route, based on contracts settled before the notice is gazetted in the Commonwealth Gazette, are exempt from these additional duties but are counted against the next year’s special safeguard volume.
The Notice imposes several obligations on the parties involved. Firstly, the Minister for Agriculture, Fisheries and Forestry is responsible for publishing the notice and determining when the specified volume of imports has been exceeded. This ensures that the additional duties can be appropriately applied once the threshold is breached. Secondly, industry stakeholders and importers are required to monitor the volume of imports to ensure compliance with the Notice. This involves keeping track of the quantities of prepared or preserved pineapple (canned) imported from Thailand to avoid incurring additional duties. Furthermore, the Notice requires that any supplies en route, based on contracts settled before the Notice is published, are exempt from additional duties, although they will still count towards the next year’s safeguard volume.
In terms of penalties and consequences for breach, the Notice does not explicitly detail specific offences or penalties within its text. However, the imposition of additional duties under the SSG provisions suggests that non-compliance with the Notice could result in financial penalties for importers. While the Notice does not specify the exact penalties, it is reasonable to infer that failure to adhere to the volume thresholds and the duty application process could lead to financial repercussions. Additionally, any misrepresentation or fraudulent behaviour related to import volumes could result in further civil or criminal consequences, although these are not detailed in the Notice itself. The Notice does indicate that consultations were undertaken with relevant departments and industry stakeholders, ensuring that the implications of the Notice on business were considered before its implementation.