EXPLANATORY STATEMENT
Issued by the Delegate of the Minister for Home Affairs
Customs Act 1901
Notice of Intention to Propose Customs Tariff Alterations (No. 3) 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 has effect that, when 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.
Purpose and effect
The Notice of Intention to Propose Customs Tariff Alterations (No. 3) 2023 (Notice) advises of the intention to insert new table item 59 in Schedule 4 of the Customs Tariff Act. The effect of the proposed amendment will be to provide a ‘Free’ rate of customs duty to goods that are imported for use in connection with international sporting events prescribed by by‑law. The concessional rate of customs duty will apply to goods as prescribed by by-law.
The alteration outlined in the Notice has a retrospective commencement of 1 January 2023. This will enable persons who entered for home consumption from this date goods that are eligible for concessional treatment under the item to claim a refund of customs duty paid.
Consultation
The Department of the Treasury and Office of Sport in the Department of Health were consulted on the scope and timing of the measure.
The Office of Impact Analysis has advised that the proposed amendments are unlikely to have a more than minor impact. The OIA reference number is OIA23-05095.
Details
Details of the Notice are set out in Attachment A.
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. 3) 2023
Schedule 1–Alteration to the Customs Tariff Act 1995
Schedule 1 to the Notice of Intention to Propose Customs Tariff Alterations (No. 3) 2023 (Notice) outlines the proposed alterations to the Customs Tariff Act 1995 (Customs Tariff Act) to insert a new tariff concession, table item 59 of Schedule 4 to that Act. The proposed alterations operate starting on 1 January 2023.
The retrospective commencement of the alteration will enable persons who imported goods that are eligible for concessional treatment to claim a refund of customs duty paid, being the difference between the concessional customs duty and the general rate of duty of customs, where their goods were entered for home consumption from the date on which the alterations in the Notice commence.
Customs Tariff Act 1995
Item 1 Schedule 4 (at the end of the schedule)
Schedule 4 of the Customs Tariff Act provides a concessional rate of customs duty to goods that meet the terms of the items in this schedule. In accordance with section 18(1) of the Customs Tariff Act, goods are able to access concessional treatment under an item of Schedule 4 if the duty rate applicable to the goods under the item is less than the rate of customs duty that would be applicable to the goods under another schedule of the Customs Tariff Act.
Item 1 inserts new table item 59 into Schedule 4 to the Customs Tariff Act. The amendment provides a duty rate of ‘Free’ to goods, as prescribed by by-law, for use in connection with an international sporting event prescribed by the by-law.
The effect of the amendment is that goods that have a duty rate other than ‘Free’ under another schedule of the Customs Tariff Act and are imported for use in connection with an international sporting event will be eligible for the concessional customs duty rate of ‘Free’, where the goods meet the terms of a by-law made for the purposes of the table item.
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. 3) 2023
The Notice of Intention to Propose Customs Tariff Alterations (No. 3) 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 has effect that, when 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. 3) 2023 (Notice) advises of the intention to insert new table item 59 in Schedule 4 of the Customs Tariff Act. The effect of the proposed amendment will be to provide a ‘Free’ rate of customs duty to goods prescribed by by-law that are imported for use in connection with international sporting events. The concessional rate of customs duty will apply to goods of specified sporting events as prescribed by by-law.
The alteration to the Customs Tariff Act has effect, retrospectively, from 1 January 2023.
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