Notice of Intention to Propose Customs Tariff Alterations - Notice (No.1) 2018

Overview

The Customs Act 1901 provides a framework for the regulation of customs and excise in Australia. Under section 273EA of the Act, a delegate of the Minister for Home Affairs and Minister for Immigration and Border Protection, Andrew Tankey, issued a Notice of Intention to Propose Customs Tariff Alterations in 2018. This notice indicates the intention to propose a tariff change concerning goods imported into Australia, effective from 1 July 2018. The alteration applies to both goods imported on or after this date and those imported before 1 July 2018, where the duty rate had not been determined prior to that date. The specific alteration, detailed in the Schedule, relates to the tariff treatment of kits containing medicaments and placebos, as well as placebos themselves, imported for use in clinical trials in Australia, provided all relevant Commonwealth importation laws are met. The policy objective is to streamline customs procedures for clinical trial materials, ensuring compliance with Australian laws while facilitating medical research.

Scope and Application

The Customs Act 1901, as notified in the Gazette, pertains to the alteration of customs tariffs that will apply to goods imported into Australia. Specifically, the Act applies to goods that are imported on or after the commencement date of 1 July 2018, and also to those imported before this date where the time for determining the rate of import duty had not yet occurred. This alteration aims to introduce changes in the treatment of certain goods, namely those kits containing medicaments and placebos that are intended for use in clinical trials within Australia, provided they satisfy the relevant by-laws and comply with all applicable Commonwealth laws. The alteration does not specify exclusions or exemptions beyond those already implied by the conditions set out in the Schedule, and it is anticipated that the changes will be formally proposed in Parliament within 7 sitting days of the House of Representatives following the publication of this notice. The scope of this legislative amendment is comprehensive as it impacts all entities and individuals involved in the importation of the specified goods into Australia.

Key Provisions

The Notice of Intention to Propose Customs Tariff Alterations, issued under section 273EA of the Customs Act 1901, specifies an upcoming change to the Customs Tariff. This change pertains to the imposition of import duties on certain goods. According to the Notice (No.1) 2018, it is intended that a proposal for a Customs Tariff alteration will be introduced in the Parliament within seven sitting days of the House of Representatives following the publication of this Notice in the Gazette. The alteration will take effect from 1 July 2018. Specifically, it will apply to goods imported into Australia on or after this date, as well as to goods imported before 1 July 2018 for which the time for determining the rate of import duty had not yet occurred. The alteration, as detailed in the Schedule, involves the addition of a new item (item 56) to Schedule 4 of the Customs Tariff Act 1995. This new item targets goods that are either kits containing medicaments and placebos, or placebos alone, intended for use in clinical trials in Australia. These kits must not indicate whether their contents are medicaments or placebos and must comply with all requirements prescribed by by-law. The Schedule also ensures that all requirements imposed by Commonwealth laws regarding the importation of these goods have been met. Under this Act, entities importing the specified goods must ensure compliance with the new tariff provisions. This includes verifying that the goods meet the criteria outlined in the Schedule, such as being intended for clinical trials and not indicating the contents of the kits. Importers must also ensure that all relevant Commonwealth laws have been adhered to, including any by-laws that prescribe additional requirements for these goods. Failure to comply with these obligations may have significant implications. Should there be a breach of the Customs Tariff alteration provisions, the consequences can be severe. The Act does not specify the exact penalties within the Notice itself, but breaches of the Customs Act 1901 can lead to both civil and criminal penalties. Civil penalties may include fines and the recovery of unpaid duties, while criminal penalties can result in imprisonment, reflecting the seriousness of non-compliance with customs regulations. The exact penalties would depend on the nature and severity of the breach, but they underscore the importance of adhering to the new tariff requirements.