Excise Regulations (Amendment)

Overview

The Excise Regulations (Amendment) 1991 No. 317, enacted to amend the Excise Regulations under the Excise Act 1901, was introduced to address the need for an exemption from excise duty liability for stores used in aircraft engaged in specific flights approved under subsection 15(1) of the Air Navigation Act 1920. This legislative change was authorised by the Minister of State for Small Business and Customs and is aimed at facilitating the establishment of a direct air link with Taiwan. The amendment was necessary as, while Australia cannot enter into an intergovernmental agreement with Taiwan due to its non-recognition as a sovereign nation, it still intended to approve flights by Taiwanese aircraft under the aforementioned subsection. The policy objective behind this amendment is to extend the excise duty exemption to include stores for consumption or use in these approved flights, thereby treating Taiwanese flights similarly to those of Australian carriers such as Australia Asia Airlines.

Scope and Application

The Excise Regulations (Amendment) 1991 No. 317, issued under the authority of the Minister of State for Small Business and Customs, amends the Excise Regulations to extend the exemption from excise duty liability to stores of aircraft engaged in flights approved under subsection 15(1) of the Air Navigation Act 1920. This amendment applies to both Australian and foreign aircraft, including those from countries such as Taiwan, which the Commonwealth cannot recognise as a sovereign nation but can approve flights under the specified subsection of the Air Navigation Act. The purpose of this amendment is to facilitate the establishment of a direct air link with Taiwan and to provide similar treatment to Australian carriers by Taiwanese authorities. The exemption is intended to apply to stores for consumption or use in these aircraft, ensuring that they are not subjected to excise duty liability. The amendment is implemented through the insertion of a new paragraph "(ba)" in Regulation 2.1 of the Excise Regulations, which supplements the existing Regulation 186 that previously exempted certain foreign aircraft operating under intergovernmental agreements.

Key Provisions

The Excise Regulations (Amendment) 1991 No. 317 amends the existing Excise Regulations under the Excise Act 1901 to extend excise duty exemptions to certain aircraft stores. According to Regulation 1.1, the amendments are designed to align with the Act's requirements and permit certain activities related to excise. Specifically, Regulation 2.1 introduces a new paragraph (ba) after paragraph 107(1)(b). This new paragraph exempts from excise duty liability the stores for consumption or use in an aircraft that is engaged in a flight approved under subsection 15(1) of the Air Navigation Act 1920. This amendment broadens the scope of the exemption to include flights approved under this subsection, which covers flights by foreign aircraft not possessing the nationality of a Contracting State to the Chicago Convention on Civil Aviation. The obligations imposed by these amendments primarily affect aircraft operators who may now be exempt from excise duty liability under certain conditions. For these operators, the key requirement is to ensure that the flights they operate are approved under subsection 15(1) of the Air Navigation Act 1920. This would typically involve demonstrating compliance with the necessary aviation regulations and securing the requisite approvals from the relevant authorities before the flights commence. The amendment seeks to facilitate the establishment of direct air links with Taiwan, providing similar treatment to Australian carriers operating under reciprocal agreements. Breach of the provisions outlined in these regulations can lead to civil and criminal consequences. For instance, if an aircraft operator knowingly uses stores that are not exempt under the new regulations, they could be subject to excise duty liabilities. Additionally, failure to comply with the requirements for flight approval under the Air Navigation Act 1920 could result in penalties under that Act. The maximum penalties for non-compliance with excise regulations can include substantial fines and, in severe cases, imprisonment. These measures are in place to ensure adherence to the legislative framework governing excise duties and air navigation.