EXPLANATORY STATEMENT
STATUTORY RULES 1987 No. 28
EXCISE REGULATIONS (AMENDMENT)
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR INDUSTRY. TECHNOLOGY AND COMMERCE
The main purpose of the Statutory Rules is to amend Schedule 2 to the Excise Regulations (‘the Regulations) to introduce into that Schedule new cases and conditions to permit certain additional goods liable to duties of Customs to be used in the manufacture of excisable goods while subject to control of the Customs.
The new item 6 in paragraph 7(c) of the Statutory Rules will permit imported manufactured tobacco upon which Customs duty has not been paid to be used in the manufacture of excisable tobacco, cigars, cigarettes or snuff if the Australian tobacco content is not less than 50% by weight. The requirement of a 50% Australian tobacco content accords with the Government’s tobacco stabilisation plan presently in operation. New item 7 in paragraph 7(c) of the Statutory Rules adds a new prescribed case to permit imported spirit containing not less than 84% by volume of alcohol to be used in the manufacture of other excisable spirit subject to certain conditions. The introduction of this item gives effect to part of the Government’s decision on the Industries Assistance Commission’s report No. 390 on the Chemical and Plastics Industries.
The amending regulations provide as follows:
Regulation 1 - removes the definition of “spirituous beverages” to ensure that liqueurs manufactured by either a process of distillation or by mixing of spirit over specified vegetable substances are both subject to the excise controls set out in Part XX of the Excise Regulations.
Part XX of the regulations sets out certain requirements that have to be met by manufacturers of spirituous beverages, such as licensing requirements, security and removal of spirit.
The current definition only permits the controls to apply to liqueurs manufactured by the mixing process and not the increasingly popular distillation process.
Regulation 2 - amends regulation 58 of the regulations to provide for the payment of rebates of Excise duty, in addition to remissions or refunds as currently provided. Further, the amendment will also permit any rebate payable to be set off against the whole or part of a person’s liability for Excise duty, as is the case with remissions and refunds of duty. The amendments are required as a consequence of the Government’s decision to pay a rebate of excise duty on exports and free market sales of crude oil in the context of its crude oil policy.
Regulations 3 to 6 - amend regulations 78, 78A, 247 and 248 of the regulations to acquit undertakings by the Minister for Industry, Technology and Commerce to the Chairman of the Senate Standing Committee on Regulations and Ordinances to include review rights and notices of same in respect of certain decisions under the regulations. In particular -
• Notice in writing of a decision by the Comptroller not to approve payment of drawback under subregulation 78(1) or paragraph 78A(8)(b) is to be provided to the affected person not later than 30 days after the date of the decision (regulations 3 and 4);
• decisions made not to approve payment of drawback referred to in proposed subregulations 78(2) or 78A(9) are to be reviewable by the Administrative Appeals Tribunal (AAT) (regulation 5);
• Notices required to be made under proposed subregulations 78(2) or 78A(9) are to include a statement that applications may be made to the AAT for review of the respective decisions (regulation 6)
Regulation 7 - amends Schedule 2 to the regulations to -
(i) revoke condition (1) applicable to item 1 in the Schedule and the condition applicable to item 5 in the Schedule to remove the requirements that the consent of the Collector, is to be given before blending can occur. It has been determined that such requirements place unnecessary regulatory burdens upon manufacturers particularly as -
• controls are exercised over the licensing of manufacturers, stock control and accounting practices of manufacturers and manufacturing methods and formula; and
• permission is required to move goods from one warehouse to another; and
(ii) add two new cases to the Schedule dealing with the blending of imported tobacco with Australian tobacco (item 6) and imported spirit containing not less than 84% by volume of alcohol with Australian spirit (item 7) and specifies the conditions attaching thereto.