EXPLANATORY STATEMENT
Instrument of Revocation of Customs By-Law 2017, No. 1
Customs Act 1901
Authority
Section 271 of the Customs Act 1901 (the Customs Act) provides, in part, that where an item of a Customs Tariff is expressed to apply to goods, or to a class or kind of goods, as prescribed by by-law, the Comptroller-General of Customs may make by-laws for the purposes of that item.
A Customs Tariff is defined in section 4 of the Act to mean an act imposing duties of customs. The Customs Tariff Act 1995 (the Customs Tariff Act) is a Customs Tariff for the purposes of the Customs Act.
Section 33(3) of the Acts Interpretation Act 1901 complements the power of the Comptroller‑General of Customs under section 271 of the Customs Act, and provides that, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Background
Item 15 of Schedule 4 to the Customs Tariff Act provides that goods, as prescribed by by‑law, that are, goods imported by passengers or members of the crew of ships or aircraft, are dutiable at a rate of ‘Free’, including cigarettes or equivalent up to a certain allowance.
The Customs By-Law No. 1300953 provides, in part, for 50 cigarettes or equivalent to be dutiable at a rate of ‘Free’.
The 2016‑17 Budget included a commitment to reduce the duty free tobacco allowance from 50 cigarettes or equivalent to 25 cigarettes or equivalent from 1 July 2017. The commitment is reflected in the new Customs By-Law No. 1700053 (the new By-Law), which commences on 1 July 2017. As a result of the new By-Law, the Customs By-Law No. 1300953 will need to be revoked.
Purpose
The purpose of the Instrument of Revocation of Customs By-Law 2017, No. 1 (the Instrument) is to revoke the Customs By-law No. 1300953.
Consultation
No consultation was undertaken because the Instrument is machinery in nature and only revokes the by-law that will become redundant on 1 July 2017 by operation of the new By‑Law.
Human Rights Implications
This instrument does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The Statement of Compatibility with Human Rights is at Attachment A.
Commencement
The Instrument commences on 1 July 2017
ATTACHMENT A
Statement of Compatibility with Human Rights
(Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011)
Instrument of Revocation of Customs By-Law 2017, No. 1
Overview
Item 15 of Schedule 4 to the Customs Tariff Act provides that goods, as prescribed by by‑law, that are, goods imported by passengers or members of the crew of ships or aircraft, are dutiable at a rate of ‘Free’, including cigarettes or equivalent up to a certain allowance.
The Customs By-Law No. 1300953 provides, in part, for 50 cigarettes or equivalent to be dutiable at a rate of ‘Free’.
The 2016‑17 Budget included a commitment to reduce the duty free tobacco allowance from 50 cigarettes or equivalent to 25 cigarettes or equivalent from 1 July 2017. The commitment is reflected in the new Customs By-Law No. 1700053 (the new By-Law), which commences on 1 July 2017. As a result of the new By-Law, the Customs By-Law No. 1300953 will need to be revoked.
The purpose of the Instrument of Revocation of Customs By-Law 2017, No. 1 (the Instrument) is to revoke the Customs By-law No. 1300953.
Human rights implications
This Instrument is only revoking Customs By-law No. 1300953. The revocation does not have the effect of engaging and in any way diminishing those human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Conclusion
This Instrument is therefore compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
The Instrument of Revocation of Customs By-Law 2017, No. 1 was enacted to address the need to revoke an existing by-law in light of a change in policy regarding the duty-free allowance for cigarettes imported by passengers or crew members of ships and aircraft. This Instrument was introduced under the authority of the Customs Act 1901, which empowers the Comptroller-General of Customs to make by-laws to implement items in the Customs Tariff. The Instrument revokes Customs By-law No. 1300953, which had previously allowed for the duty-free import of up to 50 cigarettes or equivalent. This change was necessitated by the 2016-17 Budget commitment to halve this allowance to 25 cigarettes or equivalent, a policy change reflected in the new Customs By-law No. 1700053, effective from 1 July 2017. The revocation was deemed machinery in nature, with no consultation required, and it has no implications for human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Instrument of Revocation of Customs By-Law 2017, No. 1 applies to the revocation of the Customs By-law No. 1300953, which concerned the duty-free allowance of cigarettes imported by passengers or crew members of ships and aircraft. The Instrument specifically targets the Customs Tariff as outlined in the Customs Act 1901, with the Customs Tariff Act 1995 serving as the governing act imposing duties of customs. This revocation is necessary to implement a change in policy, reducing the duty-free allowance from 50 cigarettes or equivalent to 25 cigarettes or equivalent, as per the 2016-17 Budget. The Instrument is geographically applicable across the Commonwealth of Australia, affecting all entities and individuals subject to the Customs Act 1901. It is important to note that the Instrument does not specify any exclusions, exemptions, or thresholds, and it is a direct revocation without the need for subordinate instruments, as the new by-law, No. 1700053, will take effect on 1 July 2017, rendering the old by-law redundant.
Key Provisions
The main operative sections of the Instrument of Revocation of Customs By-Law 2017, No. 1 (the Instrument) are essentially focused on the revocation of a previous Customs By-law. Specifically, section 2 of the Instrument revokes Customs By-law No. 1300953, which had previously set out the duty-free allowance for cigarettes or their equivalent imported by passengers or crew members of ships or aircraft at 50 cigarettes or equivalent. This revocation is necessary to make way for the new Customs By-law No. 1700053, which reduces the duty-free allowance to 25 cigarettes or equivalent, effective from 1 July 2017.
The Instrument imposes certain obligations and requirements primarily on the Comptroller-General of Customs. Under section 271 of the Customs Act 1901, the Comptroller-General has the authority to make by-laws for the purposes of items in the Customs Tariff, as defined in section 4 of the Customs Act. Section 33(3) of the Acts Interpretation Act 1901 complements this power by providing that the authority to make such by-laws includes the power to repeal, rescind, revoke, amend, or vary them. In this case, the Instrument exercises the power to revoke the outdated by-law to align with the new policy direction set out in the 2016-17 Budget.
Regarding consequences for breach, the Instrument itself does not outline specific offences, penalties, or consequences for non-compliance. However, under the broader framework of the Customs Act, any failure to comply with the Customs By-laws, including the new or revoked by-laws, could result in significant penalties. For example, the Customs Act provides for both civil and criminal penalties for breaches, with the potential for substantial fines and imprisonment. The exact penalties would depend on the specific nature and severity of the breach, as outlined in the relevant sections of the Customs Act.
The revocation of Customs By-law No. 1300953 by the Instrument is a procedural measure that ensures the Customs By-laws remain current and reflective of policy changes. There are no direct human rights implications, as confirmed by the Statement of Compatibility with Human Rights, which states that the Instrument does not engage, impact on, or limit human rights and freedoms as recognised or declared in international instruments.