Delivery of Goods Liable to Customs or Excise Duty for use in the Manufacture of Tobacco, Cigars, Cigarettes, or Snuff Regulations

Overview

The Excise Act 1901 was enacted by the Parliament of Australia to address the need for a comprehensive system of excise duties on certain goods produced or manufactured within Australia. This legislation aimed to regulate the collection of excise duties and to provide a framework for the administration and enforcement of these duties. The Excise Regulations 1902, made under the authority of the Excise Act 1901, further detail the procedures for the delivery and storage of goods that are liable to excise duties, specifically for their use in the manufacture of tobacco, cigars, cigarettes, and snuff. The primary policy objective of these regulations is to ensure that excisable goods are used solely for their intended manufacturing purposes, thereby preventing their diversion for other uses and ensuring the collection of the appropriate duties. These regulations empower the Collector to permit the delivery of certain excisable goods to manufacturers, subject to strict controls and oversight to maintain the integrity of the excise duty system.

Scope and Application

The Regulations under the Excise Act 1901 pertain to the delivery of goods liable to customs or excise duty for use in the manufacture of tobacco, cigars, cigarettes, or snuff. These regulations apply to manufacturers who wish to use specified excisable goods and goods liable to customs duty in the production of these items. The excisable goods and customs-liable goods include items such as glucose, spirits, glycerine, liquorice, sugar, spice, starch, starch flour, cigarette paper, cork manufactures for tips, flavoring essences, essential oils, and tags. The regulations are applicable nationally across Australia, reflecting the Commonwealth's legislative authority. Manufacturers must apply for permission to deliver these goods free of duty and must adhere to stringent conditions including transportation under customs supervision, storage in approved secure storerooms, and controlled removal and usage within the factory premises. The regulations ensure that any goods capable of being used as food or beverage are rendered unfit for such use, thereby restricting their application to the specified manufacturing activities.

Key Provisions

The Excise Act 1901 and the subsequent regulations under it establish a framework for the management of goods subject to customs or excise duties, particularly those intended for the manufacture of tobacco, cigars, cigarettes, or snuff. Section 24 of the regulations allows the Collector to permit certain excisable goods and goods liable to customs duties to be delivered free of duty for use in these specific industries, provided the manufacturer applies for such permission (Section 24(1)). These goods, which include glucose, spirits, glycerine, liquorice, sugar, spice, starch, starch flour, cigarette paper, cork manufactures for tips, flavoring essences, essential oils, and tags, must be delivered to the factory under the supervision of a customs officer or in a licensed carriage (Section 24(2)). Once at the factory, these goods must be stored in a secure and approved storeroom, with specific requirements for the locking mechanisms and supervision during removal (Sections 24(3) to (5)). Manufacturers are obligated to ensure that the goods remain within the factory premises and are used solely for the intended manufacturing processes. For goods that could be used as food or beverages, they must be rendered unfit for such uses by mixing with tobacco juice or through other treatments under the supervision of an officer (Section 24(6)(a) and (b)). Additionally, manufacturers are required to maintain detailed records of the quantities of goods received into and taken out of the storeroom for use in their factories (Section 24(7)). These provisions are designed to ensure the proper use of these goods for their intended purposes and to prevent their diversion for other uses. Failure to comply with these regulations can result in significant legal consequences. While the regulations themselves do not explicitly state penalties, breaches of the Excise Act 1901 or any associated regulations can lead to substantial fines and potential imprisonment under the principal Act. The Act imposes strict controls and supervisory measures to deter misuse and ensure compliance, thereby protecting the revenue from excise and customs duties.