EXPLANATORY STATEMENT
Issued by the Delegate of the Minister for Home Affairs
Customs Act 1901
Notice of Intention to Propose Customs Tariff Alterations (No. 1) 2023
Legislative Authority
The Customs Act 1901 (Customs Act) concerns customs-related functions and is the legislative authority that sets out the customs requirements for the importation and exportation of goods to and from Australia.
The Customs Tariff Act 1995 (Customs Tariff Act) gives effect to Australia’s import trade classification system. It is used to assign rates of customs duty, both general and preferential, to imported goods and enables the collection of these duties.
Background
Subsection 273EA(1) of the Customs Act provides that where Parliament is not sitting for a period of at least seven days, the Minister may, under section 273EA of the Customs Act, publish a notice that within seven sitting days of the House of Representatives after the date of publication of the notice, the Minister will propose in Parliament a Customs Tariff alteration in accordance with particulars in the notice and operating as from such time as in the notice. Subsection 273EA(1) further provides that a notice that does not raise duty may apply retrospectively up to six months before the time of publication.
This mechanism is used for initially effecting alterations to the Customs Tariff Act, particularly when such alterations are required to have effect in a short timeframe that cannot be achieved through a Customs Tariff Amendment Bill. Following the introduction of a Customs Tariff Proposal in the House of Representatives, the alterations contained in the Proposal would be incorporated into the Customs Tariff Act by a Customs Tariff Amendment Bill.
The Agreement between the Government of Australia and the European Space Agency for a Co-operative Space Vehicle Tracking Program (Agreement), amongst other matters, sets out the following obligations:
- Under Article 10.2, the effects for the personal and household use of persons entering Australia for the purpose of the Agreed Activities shall be permitted free entry in accordance with Australian customs law in effect at the date the goods are imported.
- Under Article 11.2, equipment, materials, supplies and other property which are certified by the Agency to be imported for use in the Agreed Activities.
Article 2 of the Agreement defines “Agreed Activities” to mean the following activities:
(a) tracking and telecommand of the Agency’s space vehicles or other space vehicles as may be arranged between the Agency and the Australian co-operating agency; and
(b) acquiring data from the space vehicles mentioned in paragraph (a).
Purpose and effect
The Notice of Intention to Propose Customs Tariff Alterations (No. 1) 2023 (Notice) sets out the intention to propose a Customs Tariff alteration, effecting changes to table item 9 of Schedule 4 to the Customs Tariff Act to expand the scope of the tariff concession provided by that table item. Specifically, table item 9 of Schedule 4 to the Customs Tariff Act is amended to insert new paragraph (c) to enable goods as prescribed by by-law, that are covered by the Agreement.
The alteration has the effect of enabling goods prescribed by by-law and covered by the Agreement to be eligible for the concessional customs duty rate of “Free”.
Consultation
The Department of Industry, Science and Resources and the Australian Space Agency were consulted on the measure on the requirements of the Agreement and alignment of this amendment with the European Space Agency’s current import program, and together, agreed to the retrospective commencement and scope of goods. No public consultation was undertaken because the amendments are to give effect to obligations under an Agreement to which Australia is a party and because the amendments are mechanical in nature.
Details
Details of the Notice are set out in Attachment A.
The alterations outlined in the Notice take effect from 1 December 2022. The retrospective commencement of the alteration does not disadvantage any person. Instead, together with a by-law to prescribed goods to which paragraph (c) of table item 9 of Schedule 4 to the Customs Tariff Act applies, it enables persons who imported goods covered by that paragraph (c) to be able claim a refund of customs duty paid, being the difference between the concessional customs duty and the general rate of duty of customs.
Other
A Statement of Compatibility with Human Rights has been prepared for this notice and is at Attachment B. The Statement assesses the alteration to be compatible with human rights as it does not raise any human rights issues.
ATTACHMENT A
Details of the Notice of Intention to Propose Customs Tariff Alterations (No. 1) 2023
Schedule 1 – Alteration to the Customs Tariff Act 1995
Schedule 1 to the Notice of Intention to Propose Customs Tariff Alterations (No. 1) 2023 (Notice) outlines the proposed alterations to the Customs Tariff Act 1995 (Customs Tariff Act) to expand the scope of the tariff concession provided by table item 9 of Schedule 4 to that Act. The proposed alterations operate starting on 1 December 2022.
The retrospective commencement of the alteration does not disadvantage any person. Instead, together with a by-law to prescribed goods to which paragraph (c) of table item 9 of Schedule 4 to the Customs Tariff Act applies, it enables persons who imported goods covered by that paragraph (c) to be able claim a refund of customs duty paid, being the difference between the concessional customs duty and the general rate of duty of customs.
Customs Tariff Act 1995
Item [1] Schedule 4 (at the end of the cell at table item 9, column headed “Description of goods”)
This item inserts new paragraph (c) into table item 9 of Schedule 4 to the Customs Tariff Act to expand the scope of the tariff concession provided by that table item, specifically to also provide for goods covered by the Agreement between the Government of Australia and the European Space Agency for a Co-operative Space Vehicle Tracking Program, done at Capetown on 5 October 2011, Australian Treaty Series 2012 No. 29 ([2012] ATS 29) (Agreement).
The Agreement is publicly available, free of charge, in the Australian Treaty Series available at the Australasian Legal Information Institute website at: http://www.austlii.edu.au
This amendment has effect that that goods covered by the Agreement, and prescribed by by‑law for paragraph (c) of table item 9, are eligible for the concessional customs duty rate of “Free”.
The goods that are covered by the Agreement are those set out in Articles 10 and 11. These include:
- effects for the personal and household use of such persons entering Australia for the purpose of the Agreed Activities;
- equipment, materials, supplies and other property which are certified by the Agency to be imported for use in the Agreed Activities.
Article 2 of the Agreement defines “Agreed Activities” to mean the following activities:
(a) tracking and telecommand of the Agency’s space vehicles or other space vehicles as may be arranged between the Agency and the Australian co-operating agency; and
(b) acquiring data from the space vehicles mentioned in paragraph (a).
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Notice of Intention to Propose Customs Tariff Alterations (No. 1) 2023
The Notice of Intention to Propose Customs Tariff Alterations (No. 1) 2023 is 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 Customs Act 1901 (Customs Act) concerns customs-related functions and is the legislative authority that sets out the customs requirements for the importation and exportation of goods to and from Australia.
The Customs Tariff Act 1995 (Customs Tariff Act) gives effect to Australia’s import trade classification system. It is used to assign rates of customs duty, both general and preferential, to imported goods and enables the collection of these duties.
Subsection 273EA(1) of the Customs Act provides that where Parliament is not sitting for a period of at least 7 days, the Minister may, under section 273EA of the Customs Act, publish a notice that within 7 sitting days of the House of Representatives after the date of publication of the notice, the Minister will propose in Parliament a Customs Tariff alteration in accordance with particulars in the notice and operating from such time as is specified in the notice. Subsection 273EA(1) further provides that a notice that does not raise duty may apply retrospectively up to six months before the time of publication.
The Notice of Intention to Propose Customs Tariff Alterations (No. 1) 2023 (the Notice) sets out the intention to propose a Customs Tariff alteration effecting changes to table item 9 of Schedule 4 to the Customs Tariff Act to expand the scope of the tariff concession provided by that table item. Specifically, table item 9 of Schedule 4 to the Customs Tariff Act is amended to insert new paragraph (c) to enable goods as prescribed by by-law, that are covered by the Agreement between the Government of Australia and the European Space Agency for a Co-operative Space Vehicle Tracking Program (Agreement), to be eligible for the concessional customs duty rate of “Free” under that item.
This amendment enables goods, including goods covered by the following Articles of the Agreement, to be prescribed:
- Article 10 ‑ the effects for the personal and household use of such persons entering Australia for the purpose of the Agreed Activities;
- Article 11 ‑ equipment, materials, supplies and other property which are certified by the Agency to be imported for use in the Agreed Activities.
Article 2 of the Agreement defines “Agreed Activities” to mean the following activities:
(a) tracking and telecommand of the Agency’s space vehicles or other space vehicles as may be arranged between the Agency and the Australian co-operating agency; and
(b) acquiring data from the space vehicles mentioned in paragraph (a).
The alteration to the Customs Tariff Act has effect on 1 December 2022.
Human rights implications
The Notice does not engage any of the applicable rights or freedoms.
Conclusion
The Notice is compatible with human rights as it does not raise any human rights issues.
Clare O’Neil, Minister for Home Affairs