Excise Tariff (No. 2) 1972

Overview

The Excise Tariff (No. 2) 1972 was enacted to address the issue of duty-free exemptions for goods intended for the use of certain representatives of foreign governments and their families. This Act amends the Excise Tariff 1921–1971, aiming to refine the conditions under which these exemptions apply. Enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, the Act seeks to ensure that the exemption from excise duties is granted judiciously, balancing the needs of foreign representatives with the fiscal responsibilities of the Commonwealth. The policy objective is to maintain an efficient system of duty exemptions while preventing potential abuse of these privileges.

Scope and Application

The Excise Tariff (No. 2) 1972 applies to goods intended for the use of certain representatives of governments of countries other than Australia and their families, specifically Trade Commissioners and their families. These individuals must not be Australian citizens, ordinarily resident in Australia, or engaged in a profession, business, or occupation in Australia to be eligible for the exemption from excise duties. The Act's jurisdiction is national, applying across the Commonwealth of Australia, including its territories. The Act amends the Excise Tariff 1921–1971, specifying that the exemption applies to goods manufactured or produced in Australia after the Act's commencement and to certain goods produced before the commencement but not yet subject to excise duty. The Schedule to the Principal Act is amended to clarify and restrict the conditions under which Trade Commissioners and their families may receive duty-free goods. Subordinate instruments may further define and refine the application of this Act, although no such instruments are specified in the text provided.

Key Provisions

The Excise Tariff (No. 2) 1972 primarily modifies the Excise Tariff 1921–1971 to adjust the exemption from excise duties for goods intended for the use of Trade Commissioners and their families (sections 1 and 4). The Act limits the duty-free importation of goods for Trade Commissioners and their families, except when the Minister declares that the reasonable requirements of the individual have been met by other goods already in Australia (section 3(a)). The Act also imposes an agreement for the individual to pay duty if the goods are sold or disposed of within two years of entry for home consumption, unless the Minister determines otherwise (section 3(b)). These amendments apply to goods manufactured or produced in Australia after the Act's commencement and to certain goods in the possession of manufacturers or producers before the Act's commencement (section 5). The Act specifically exempts articles for the official or personal use of Trade Commissioners and their families, provided the Trade Commissioner is not an Australian citizen, not ordinarily resident in Australia, and not engaged in a profession, business, or occupation (Schedule, item 10(d)). However, these exemptions are subject to the Minister's approval and declaration for articles intended for official use (Schedule, item 10(e)). The Excise Tariff (No. 2) 1972 imposes several obligations on the parties it governs. Trade Commissioners and their families must ensure that any goods imported for their use comply with the Act's provisions, particularly the exemptions and conditions outlined. The Minister's role includes declaring whether the reasonable requirements of the Trade Commissioner have been met by other goods already in Australia and approving articles for official use. Manufacturers or producers of goods subject to the Act must also ensure that any goods in their possession or control comply with the new provisions. Additionally, the Act requires Trade Commissioners and their families to agree to pay excise duty if the goods are sold or disposed of within two years of entry for home consumption, unless the Minister otherwise determines. Breach of the provisions of the Excise Tariff (No. 2) 1972 can result in civil and criminal consequences. For instance, if a Trade Commissioner or family member sells or disposes of goods within two years without complying with the duty payment agreement, they may be liable for the unpaid duty, potentially facing financial penalties. Similarly, if articles are imported that do not meet the criteria for exemption, the importer may be liable for the applicable excise duty. The Act does not specify maximum penalties for breaches, but non-compliance could lead to legal action by the Commonwealth to recover unpaid duties and penalties as determined by the relevant authorities.