EXPLANATORY STATEMENT
Statutory Rules 1985 No. 234
Excise Regulations (Amendment)
Issued by the Authority of the Minister of State for Industry, Technology and Commerce
The Statute Law (Miscellaneous Provisions) Act (No. 1) 1984, amongst other things, inserted a new Part XV entitled Regulations and Departmental By-laws into the Excise Act 1901 (“the Act”). That Part came into operation on 23 July 1985.
The new Part XV of the Act is along similar lines to Part XVI of the Customs Act 1901, entitled Regulations and By-laws.
The main purpose of the regulations is to amend the Excise Regulations (“the Regulations”) as a consequence of the insertion of the new Part XV into the Act.
The regulations also make a correction to a recent amendent to the Regulations (regulation 2).
Details of the regulations are as follows:
Regulation 1:
Omits paragraph 50(1)(d) of the Regulations and substitutes new paragraphs 50(1)(d) and 50(1)(da) to provide for remissions, rebates and refunds of Excise duties to be made in circumstances where:
(a) Excise duty has been paid on goods and those goods, being ship’s or aircraft stores under section 160A of the Act, become goods that are no longer liable to Excise duty (paragraph (d)); or
(b) Excise duty has been paid on goods and a Departmental By-law under Part XV of the Act is made and which has the effect that duty is not payable on those goods or is payable at a lower rate than when the goods were entered for home consumption (paragraph (da)). The paragraph is in similar terms to Customs Regulation 126(f)and is the amendment required as a consequence of the insertion of the new Part XV into the Act.
Regulation 2
Statutory Rules 1985 No. 75, amongst other things, purported to amend Excise Regulation 51 by inserting after the word “allowed” the words “in a circumstance specified in sub-regulation 50(1)”. The word “allowed”, however, appears in both sub-regulations 51(1) and 51(2). Regulation 2 remakes sub-regulation 51(1) to make it clear that the word “allowed” only relates to sub-regulation 51(1).
Regulation 3
Omits sub-regulation 53(1) of the Regulations and substitutes a new sub-regulation 53(1) to provide that remissions, rebates or refunds of Excise duty are payable where an application for refund in accordance with Excise Regulation 52 is delivered to a Collector:
(a) for remissions, rebates or refunds under proposed paragraph 50(1)(da) (Regulation 1) - within 12 months after the date of the making of the Departmental By-law (Paragraph 53(1)(a)). This paragraph is in similar terms to Customs Regulation 128A(4) and is the amendment required as a consequence of the insertion of the new Part XV into the Act; and
(b) in any other case - within 14 days after the date on which the duty is paid.
Overview
The Excise Regulations (Amendment) Statutory Rules 1985 No. 234 were enacted to align the Excise Regulations with the new Part XV inserted into the Excise Act 1901 by the Statute Law (Miscellaneous Provisions) Act (No. 1) 1984. This amendment aimed to correct and update the regulations in response to the structural changes introduced by the 1984 Act, ensuring consistency with the parallel provisions in the Customs Act 1901. The regulations were issued under the authority of the Minister of State for Industry, Technology and Commerce. The primary objective of these amendments is to clarify and refine the process for remissions, rebates, and refunds of excise duties, particularly in scenarios where goods subject to excise duty become exempt or where departmental by-laws alter duty rates. This amendment also includes a correction to a recent change to the regulations to ensure clarity and precision in the application of excise duties.
These regulations address a specific gap in the Excise Regulations by providing for the circumstances under which excise duties can be remitted, rebated, or refunded. The rules introduced by these regulations aim to ensure that the Excise Regulations remain effective and relevant following the structural changes implemented by the Statute Law (Miscellaneous Provisions) Act (No. 1) 1984. By updating the regulations, the government aims to maintain a clear and consistent framework for the administration of excise duties, ensuring that the regulations align with the broader legislative intent and support the efficient operation of the excise system.
Scope and Application
The Excise Regulations (Amendment) Statutory Rules 1985 No. 234 amend the Excise Regulations, which are a subset of the Excise Act 1901, to reflect the insertion of Part XV into the Act. This amendment primarily impacts the process of remissions, rebates, and refunds of excise duties, ensuring they are aligned with the new regulatory framework introduced by Part XV. These regulations apply to individuals and entities that deal with excise duties, including businesses involved in the manufacturing, storage, or transportation of goods subject to excise. The scope extends across all states and territories within Australia, as the Excise Act 1901 is a Commonwealth law. The amendment clarifies the conditions under which excise duties can be remitted, rebated, or refunded, particularly when goods become exempt from excise or when departmental by-laws alter the duty rates. The regulations also rectify a previous error in the excise duty refund application timeline. The amendments are not subject to exclusions, exemptions, or specific thresholds within these regulations, though the application for refunds is subject to certain time limits depending on the circumstances.
Key Provisions
The Excise Regulations (Amendment) Statutory Rules 1985 No. 234 introduce several key amendments to the Excise Regulations, particularly in relation to remissions, rebates, and refunds of excise duties. Regulation 1 (paragraphs 50(1)(d) and 50(1)(da)) outlines specific circumstances under which excise duty can be remitted, rebated, or refunded. These circumstances include situations where excise duty has been paid on goods that subsequently become exempt from excise duty, such as ship’s or aircraft stores under section 160A of the Excise Act 1901, and where a Departmental By-law results in the goods becoming exempt or subject to a lower rate of duty than when they were initially entered for home consumption. Regulation 2 clarifies that the term "allowed" in Excise Regulation 51 applies solely to sub-regulation 51(1), addressing an ambiguity in Statutory Rules 1985 No. 75. Regulation 3 introduces new timelines for applications for refunds, specifying that applications for remissions, rebates, or refunds under the new provisions (paragraph 50(1)(da)) must be submitted within 12 months of the making of the relevant Departmental By-law, whereas applications under other circumstances must be submitted within 14 days of the duty being paid.
The Excise Regulations (Amendment) Statutory Rules impose specific obligations on entities subject to excise duty, particularly in the context of applying for and receiving remissions, rebates, and refunds. The regulations require that applications for refunds must be delivered to a Collector within the specified timeframes: within 12 months for cases governed by Departmental By-laws and within 14 days for other cases. The amendments also clarify that the term "allowed" in Excise Regulation 51 pertains exclusively to sub-regulation 51(1), ensuring that the conditions for remissions, rebates, and refunds are correctly interpreted and applied. Additionally, the regulations mandate that any changes resulting from new Departmental By-laws are to be reflected in the process for seeking and obtaining duty remissions, rebates, or refunds.
The Excise Regulations (Amendment) Statutory Rules include provisions for civil and criminal consequences for non-compliance with the new regulations. While the explanatory statement does not detail specific offences or penalties, it is implied that failure to adhere to the prescribed timelines and conditions for remissions, rebates, and refunds could result in legal repercussions. Given the context of excise duty regulations, non-compliance might lead to financial penalties or other enforcement actions as provided by the Excise Act 1901. However, the exact penalties are not specified in the explanatory statement and would need to be referred to within the broader legislative framework of the Excise Act 1901.