Excise Regulations (Amendment)

EXPLANATORY STATEMENT

Statutory Rules 1986 No. 78

Excise Regulations (Amendment)

Issued by the Authority of the Minister of State for Industry, Technology and Commerce

Section 18 of the Customs and Excise Legislation Amendment Act (No 2) 1985 which came into operation on 1 May 1986 amends the Excise Act 1901 (the Act) to insert provisions into that Act to provide for the licensing, operation and control of inwards duty free shops (IDFS) and to set out the responsibilities and obligations to be complied with by the proprietors of the shops.

The amendments are part of a legislative package necessary to introduce limited IDFS at international airports in Australia. IDFS are to be located at a point between the disembarkation area and the “Customs barrier” to ensure that the goods to be sold duty free i.e. alcoholic liquor, tobacco products and perfume will be taken by incoming overseas passengers direct to the “Customs barrier” for clearance.

The introduction of IDFS does not alter the duty free concessions available to passengers. Current limits are 1 litre of alcoholic liquor and 250 grams of tobacco products. Perfume is limited to other than commercial quantities.

The purpose of the regulations, which are explained in further detail in the Attachment, is to amend the Excise Regulations to:

(a) prescribe for the purpose of sub-section 61E(2) of the Act the circumstances under which permission may be given for airport shop goods to be delivered to relevant travellers (sub-regulation 81(5));

(b) prescribe for the purpose of sub-section 61E(4) of the Act the conditions to which a permission is to be subject (sub-regulation 81(7)); and

(c) prescribe for the purpose of sub-section 61E(11) of the Act the grounds upon which a Collector of Customs may revoke a permission to deliver airport shop goods to relevant travellers (sub-regulation 81(8)).

Decisions of a Collector of Customs for the purposes of the Regulations are reviewable by the Administrative Appeals Tribunal.

ATTACHMENT

Excise Regulations (Amendment)

Statutory Rules 1986 No

Details of the regulations are as follows:

Regulation 1

As a consequence of the distinction now made between outwards duty free shops and IDFS, inserts a definition of “duty free shop” in Regulation 79 of the regulations to mean an outwards duty free shop.

Regulation 2

(i) Prescribes for the purposes of sub-section 58E(1) of the Act, airport shop goods sold to relevant travellers in an inwards duty free shop to be prescribed goods. This will permit Collectors of Customs to approve delivery of the goods for home consumption without the need for a formal entry and is consistent with all other procedures applying to goods imported by passengers; and

(ii) Inserts a new Regulation 81 into the regulations prescribing the other matters in respect of IDFS.

Sub-regulation 81(1)

Defines the term ‘relevant flight’ for the purposes of the regulations;

Sub-regulation 81(2)

Provides that the words and phrases used in section 61E of the Act have the same meanings in these regulations unless the contrary intention appears;

Sub-regulation 81(3)

Prohibits a Collector of Customs from giving a permission under sub-section 61E(2) of the Act unless an application for such a permission is made in accordance with the regulations. Sub-section 61E(2) of the Act provides for permission to be given for airport shop goods to be delivered to a relevant traveller and taken by the traveller for reporting to an officer of Customs at the “Customs barrier”;

Sub-regulation 81(4)

Provides that an application for a permission under sub-section 61E(2) of the Act is to:

(a) be in writing;

(b) relate to a single IDFS;

(c) specify certain details relating to the shop; and

(d) be lodged with a Collector of Customs for the State or Territory in which the IDFS is situated;

Sub-regulation 81(5)

Prescribes the circumstances in which a permission may be given under sub-section 61E(2) of the Act namely:

(i) that the applicant is the holder of a warehouse licence issued under Part V of the Act; and

(ii) that the applicant has been granted a lease or a licence and an authority to trade under the Airports (Business Concessions) Act 1959 to operate an IDFS;

Sub-regulation 81(6)

Provides for a permission to have effect from the day of the permission for the period specified in the permission;

Sub-regulation 81(7)

Specifies the conditions to which a permission under sub-section 61E(2) of the Act is to be subject. Such conditions are -

(a) that goods shall not be sold in the shop to a person unless that person is a relevant traveller and produces to the proprietor a ticket or other document that is evidence that the person has arrived in Australia on an international flight;

(b) that the proprietor, and servants and agents of the proprietor, shall not enter into an arrangement with a relevant traveller pursuant to which goods delivered to that relevant traveller under that permission are -

(i) to be transferred to the proprietor, or any servant or agent of the proprietor, after the relevant traveller has cleared customs; or

(ii) to remain with the proprietor or any servant or agent of the proprietor;

(c) that the proprietor shall, with reasonable prominence and in numbers sufficient to give reasonable notice to relevant travellers of the matters so stated, display in the IDFS signs in a form authorised in writing by a Collector of Customs for the purposes of this provision that state clearly -

(i) the amounts of alcoholic liquor, tobacco products and perfume that may be entered for home consumption by a relevant traveller free of duties of Customs and of duties of Excise; and

(ii) the conditions (if any) with which, for the purposes of the Customs Acts, a relevant traveller is to comply in relation to the purchase of goods at the shop;

Sub-regulation 81(8)

Specifies the grounds on which a Collector may revoke a permission given under section 61E(2) of the Act. Such grounds are -

(a) that a condition to which the permission is subject, being a condition required to be complied with by the proprietor of the IDFS to which the permission relates or by his servants or agents, has not been so complied with;

(b) that revocation of the permission is, for any other reason, necessary for the protection of the revenue or otherwise to ensure compliance with the Customs Acts;

(c) that a lease or licence or authority to trade as granted under the Airports (Business Concessions) Act 1959 has expired or been cancelled; and

Sub-regulation 81(9)

Requires a Collector of Customs to give notice in writing of the revocation of a permission given under sub-section 61E(2) of the Act and for such statement to include reasons for the revocation.