Excise Regulations (Amendment)

Overview

The Excise Regulations Amendment (Control and Custody of Excisable Goods) Regulations 1921 were enacted to amend the Excise Regulations 1913, introducing new obligations for the safekeeping and accounting of excisable goods during their removal from factories to licensed Customs warehouses or for exportation. This regulation was made under the authority of the Excise Act 1901-1918 and was introduced by the Federal Executive Council, with the Governor-General's assent, to address the need for better management and accountability of excisable goods in transit. The policy objective of these regulations is to ensure that excisable goods are securely kept and properly accounted for during their movement, thereby enhancing compliance and preventing potential tax evasion or loss of goods. Failure to comply with these obligations can result in financial penalties equivalent to the duty on the goods not accounted for, reinforcing the importance of adherence to the regulations.

Scope and Application

The Excise Regulations 1913, as amended by Statutory Rules 1921, No. 194, pertain to the responsibility and accountability of individuals or entities with control or custody of excisable goods during their movement from a factory to a licensed Customs warehouse, between licensed Customs warehouses, or from a factory for export purposes. These regulations apply to any person or entity involved in the handling of such goods and are enforced by the Collector, ensuring the goods are safely kept and accounted for. Failure to comply with these obligations may result in penalties equal to the duty on the goods, and any amount due can be pursued in a civil court. Notably, these regulations do not alter existing liabilities under the Excise Act 1901-1918 or any related security arrangements, and they provide a mechanism for legal recourse through civil courts with the statements of the Collector acting as prima facie evidence in such cases. The scope of these regulations extends nationally across the Commonwealth of Australia, as mandated by the federal legislation.

Key Provisions

The Excise Regulation 1921, introduced under the Excise Act 1901-1918, introduces a new regulation, 160a, which imposes specific responsibilities on individuals who control or have custody of excisable goods during their movement. According to regulation 160a(1), any person responsible for excisable goods while they are being transported from a factory to a licensed Customs warehouse, from one Customs warehouse to another, or from a factory for export, must ensure the safekeeping of these goods and provide an account to the Collector that satisfies their requirements. Failure to meet these obligations is subject to financial penalties as outlined in regulation 160a(2), which stipulates that the individual will be liable to pay an amount equivalent to the duty on the excisable goods that were not safely kept or adequately accounted for. It is important to note that this regulation does not affect any existing liabilities under the Excise Act 1901-1918 or any securities provided in accordance with it, as clarified in regulation 160a(3). Additionally, any sums owed to the Collector under this regulation can be pursued through civil action in any competent court, with the Collector’s statements being considered as prima facie evidence in such proceedings, as per regulation 160a(4) and (5). Compliance with regulation 160a necessitates that individuals who manage excisable goods during transit adhere strictly to the stipulated guidelines. They must ensure that the goods are securely kept and provide detailed accounts to the Collector. This includes maintaining records and documentation that meet the Collector's standards of satisfaction. Furthermore, the regulation demands that any financial obligations arising from non-compliance are settled by the responsible individual. This financial liability extends to covering the duty on the excisable goods that were not properly safeguarded or accounted for, as specified in regulation 160a(2). The regulation also ensures that the individual's existing liabilities and any securities given under the Excise Act 1901-1918 remain unaffected, as per regulation 160a(3). The enforcement of these financial obligations is facilitated through civil litigation, with the Collector’s statements being accepted as valid evidence unless disproven, as stipulated in regulation 160a(5). The Excise Regulation 1921 introduces significant consequences for those who fail to comply with regulation 160a. According to regulation 160a(2), any person who neglects their duty to ensure the safekeeping and proper accounting of excisable goods will be liable to pay a financial penalty equal to the duty on the goods that were not safely kept or accounted for to the Collector’s satisfaction. This financial penalty is a direct consequence of non-compliance and serves as a deterrent against such breaches. The regulation also allows for the enforcement of these financial obligations through civil action, as outlined in regulation 160a(4). In any such legal proceedings, the Collector’s statements are treated as prima facie evidence, simplifying the process of claiming the owed amounts, as indicated in regulation 160a(5). These provisions collectively ensure that individuals are held accountable for their responsibilities regarding the handling of excisable goods and that any breaches are met with appropriate financial penalties. In summary, the Excise Regulation 1921 introduces regulation 160a, which places stringent responsibilities on individuals controlling or having custody of excisable goods during their movement. Non-compliance with these responsibilities, as detailed in regulation 160a(1) and (2), results in financial penalties equivalent to the duty on the goods not safely kept or accounted for. These financial obligations can be pursued through civil litigation, with the Collector’s statements acting as prima facie evidence, as stipulated in regulation 160a(4) and (5). The regulation ensures that existing liabilities and securities under the Excise Act 1901-1918 remain unaffected, as clarified in regulation 160a(3). Overall, regulation 160a serves to enforce accountability and compliance in the handling of excisable goods, with clear financial and legal consequences for non-compliance.