Notice of Intention to Propose Customs Tariff Alterations - Notice (No. 2) 2020

Overview

The Customs Act 1901 was enacted to provide for the regulation of imports and exports of goods, including the imposition of customs duty. In 2020, the Australian Government introduced a Notice of Intention to propose a Customs Tariff alteration to address the urgent need for medical products and hygiene products amid the global COVID-19 pandemic. This alteration, specified in the Schedule to the Notice, was to exempt certain medical and hygiene products from duty if they were intended to combat COVID-19 and imported between 1 August 2020 and 31 December 2020. The notice was issued under the authority of Matthew Duckworth, a delegate of the Minister for Home Affairs, in accordance with section 273EA of the Customs Act 1901. The policy objective of this alteration was to facilitate the timely and cost-effective importation of essential products needed to manage the pandemic.

Scope and Application

The Customs Tariff alteration announced in the Notice (No.2) 2020 under section 273EA of the Customs Act 1901 specifies a temporary change to the customs duties on certain goods. This alteration applies to goods that are categorised as medical products or hygiene products, and are capable of use in combating COVID-19. The change in tariff applies to these goods if they are imported during the period beginning on 1 August 2020 and ending at the end of 31 December 2020. This Notice, signed by Matthew Duckworth, the delegate of the Minister for Home Affairs, indicates that a proposal will be made in the Parliament within 7 sitting days of the House of Representatives after the date of publication. The alteration is designed to provide temporary relief on customs duties to facilitate the import of critical supplies during the COVID-19 pandemic. The scope of the alteration is limited to the specified period and types of goods, as outlined in the Schedule to the Notice.

Key Provisions

The main operative sections of this legislation, particularly section 273EA of the Customs Act 1901, enable the delegate of the Minister for Home Affairs, Matthew Duckworth, to notify the intention to propose a Customs Tariff alteration. This notice (No.2) 2020 specifies the intention to propose a change to the Customs Tariff Act 1995 within 7 sitting days of the House of Representatives after its publication in the Gazette. The alteration pertains to the introduction of a new item in Schedule 4 of the Customs Tariff Act 1995, which will take effect from 1 August 2020. The obligations imposed by this Act require the delegate to ensure that the proposed changes are communicated effectively and within the specified timeframe. The delegate must also ensure that the proposed alterations align with the objectives of the Customs Tariff Act 1995, particularly concerning the classification and duty rates of imported goods. Additionally, the delegate must prepare the necessary documentation and evidence to support the proposed tariff changes, including justification for the new item (item 57A) concerning medical and hygiene products related to COVID-19. Any breach of the obligations or requirements stipulated in this legislation may result in legal consequences. The Act does not explicitly state penalties for non-compliance in this context, but breaches of similar provisions in the Customs Act 1901 generally attract fines or imprisonment. Specifically, under section 260 of the Customs Act 1901, penalties can include fines of up to 5,000 penalty units or imprisonment for up to five years, or both, for serious breaches. Furthermore, civil penalties may apply for incorrect classification or duty payment, as outlined in other sections of the Customs Act 1901, which can result in financial penalties based on the degree of non-compliance and the value of the goods involved.