Excise Regulations, 1913 (Amendment)

Overview

The Excise Regulations 1917, enacted as Statutory Rules 1917, No. 159, were made under the authority of the Excise Act 1901 to amend the Excise Regulations 1913. These regulations were established to address the evolving financial landscape during the First World War, allowing for the deposit of Commonwealth War Loan Bonds and negotiable instruments as part of Customs Securities. This was done to facilitate easier and more flexible financial arrangements for subscribers to Customs Securities, enabling them to deposit assets other than cash to satisfy their liabilities. The regulations were introduced by the Federal Executive Council, with the Governor-General making the regulations on the advice of the relevant Minister. The overarching policy objective was to provide a mechanism for efficient management and enforcement of Customs Securities during a time of national financial strain.

Scope and Application

This statutory rule, made under the Excise Act 1901, pertains to the regulation of deposits made by subscribers to Customs Securities. The regulation applies to subscribers to Customs Securities, who may deposit cash, Commonwealth War Loan Bonds, or approved negotiable instruments with the Collector to cover their liabilities. The regulation delineates the process for the appropriation of these deposits if the Collector secures a judgment against the subscriber, allowing for the disposition of non-cash deposits to satisfy the judgment. It further specifies the circumstances under which subscribers can reclaim unappropriated deposits and collect interest on deposited bonds or instruments before the Collector disposes of them. The regulation's application is national, as it operates within the Commonwealth of Australia. It does not explicitly exclude or exempt any particular person, entity, or transaction from its scope, but rather sets out the procedures that apply broadly to all subscribers to Customs Securities. The regulation can be extended or restricted through subordinate instruments, as permitted under the authority of the Excise Act 1901.

Key Provisions

The Excise Regulations 1917, under the Excise Act 1901, introduce provisions for subscribers to Customs Securities to deposit various forms of collateral with the Collector, including cash, Commonwealth War Loan Bonds, and approved negotiable instruments (section 180a(1)). This deposit must cover the full amount of the liability stated in the security. If the Collector secures a judgment against the subscriber, they may appropriate part or all of the deposit to satisfy the judgment and associated costs (section 180a(2)). If the deposit does not cover the full amount, the Collector can use other means to enforce payment of the remaining balance. The Collector has the discretion to dispose of deposited War Loan Bonds or negotiable instruments through auction or private sale if the deposit is not in cash, with the net proceeds considered as a cash deposit (section 180a(3)). The Collector must issue a certificate detailing the disposal, which serves as proof of the transaction (section 180a(4)). Any appropriated portion of the deposit becomes the absolute property of the Commonwealth (section 180a(5)). Subscribers are entitled to the return of any unappropriated deposit when the Customs Security expires or is otherwise discharged (section 180a(6)). Additionally, subscribers can collect and retain any interest on deposited War Loan Bonds or negotiable instruments until they are disposed of by the Collector (section 180a(7)). If such instruments are not payable to bearer, subscribers must provide duly executed transfers or assignments to the Collector, and further assignments as requested to facilitate disposal (section 180a(8)). Subscribers to Customs Securities must comply with specific obligations under these regulations. They must deposit cash, Commonwealth War Loan Bonds, or approved negotiable instruments with the Collector, ensuring the deposit equals the full liability amount of the security (section 180a(1)). Subscribers are also required to provide duly executed transfers or assignments for non-bearer instruments to facilitate disposal by the Collector (section 180a(8)). If the Collector secures a judgment against the subscriber, they must allow the Collector to appropriate part of the deposit to satisfy the judgment and costs (section 180a(2)). Subscribers should ensure that they are aware of and comply with the terms regarding the return of unappropriated deposits upon the expiration or discharge of the Customs Security (section 180a(6)). Furthermore, subscribers are entitled to collect and retain any interest on deposited War Loan Bonds or negotiable instruments until these instruments are disposed of by the Collector (section 180a(7)). Breaches of the Excise Regulations 1917 could lead to various consequences. If the Collector secures a judgment against a subscriber and the deposit is insufficient to cover the judgment and costs, the Collector is empowered to enforce payment of the remaining balance through execution or other means (section 180a(2)). Failure to deposit the required amount or provide necessary transfers or assignments could result in the Collector taking appropriate action to recover the owed amount. Any appropriated portion of the deposit becomes the absolute property of the Commonwealth, meaning the subscriber forfeits that portion of their deposit (section 180a(5)). Additionally, if subscribers fail to comply with the requirements for disposing of non-bearer instruments or providing necessary documentation, the Collector may take necessary steps to enforce compliance, including disposing of the instruments and using the net proceeds as a cash deposit. There are no specific penalties mentioned in the regulations for these breaches, but the consequences are tied to the actions the Collector can take to recover owed amounts and enforce compliance.