Notice of Intention to Propose Customs Tariff Alterations - Notice (No. 3) 2021

Overview

The Customs Act 1901 has been amended to include a notice for the intention to propose alterations to the customs tariff, as per section 273EA. This amendment was introduced to address the urgent need to modify customs duties on specific goods in response to the ongoing COVID-19 pandemic. The Notice (No. 3) 2021, signed by Matthew Duckworth, the delegate of the Minister for Home Affairs, specifies an alteration to the Customs Tariff Act 1995, effective from 1 July 2021. The policy objective is to facilitate the importation of medical and hygiene products related to combating COVID-19 by exempting them from duty during a specified period, thereby supporting Australia’s pandemic response efforts. This alteration aims to ensure the availability and affordability of essential goods during the public health crisis.

Scope and Application

The Customs Act 1901, as amended through the Notice (No. 3) 2021, applies to medical and hygiene products that can be used in combating COVID-19, specifying a duty-free arrangement for these goods within a defined timeframe. This alteration to the Customs Tariff, set to take effect from 1 July 2021, is intended to ease the importation of essential products during the COVID-19 pandemic, providing a temporary reduction in duty for goods that contribute to public health measures. The geographic reach of this amendment is national, applying across Australia, and it is enacted through the Commonwealth legislative framework. The exemption from duty is contingent on the goods being prescribed by a by-law and being imported during the period from 1 July 2021 to 30 June 2022, after which the standard tariff rates will resume. The application of this Act is specific to the entities and individuals involved in the importation of these prescribed goods, and it does not extend to other industries or types of goods unless explicitly included by subordinate instruments or further legislative amendments.

Key Provisions

The Customs Act 1901, as amended, provides a mechanism through which proposed changes to the Customs Tariff can be communicated to the Parliament. Section 273EA specifically outlines the process for proposing alterations to the Customs Tariff, allowing the Minister for Home Affairs to delegate the task of giving notice of these intended changes. In this instance, Matthew Duckworth, as the delegate of the Minister, has issued a notice (No. 3) of 2021, stating an intention to propose a Customs Tariff alteration within seven sitting days of the House of Representatives following the publication of the notice in the Gazette. This alteration, which is set to take effect from 1 July 2021, is detailed in the accompanying Schedule. The alteration to the Customs Tariff, as specified in the Schedule to the Notice, involves the addition of a new item to Schedule 4 of the Customs Tariff Act 1995. The new item, numbered 57C, pertains to goods that are prescribed by by-law and are medical or hygiene products capable of use in combating the novel coronavirus responsible for COVID-19. This provision applies specifically to goods for which the duty calculation period falls between 1 July 2021 and 30 June 2022. Entities and parties subject to the Customs Act 1901 are required to comply with the terms of the proposed alteration once it is enacted through the legislative process. This includes importers, exporters, and other stakeholders who must ensure that goods falling under the new item 57C are correctly identified and declared for customs purposes. Furthermore, the prescribed by-law must clearly outline the criteria for what constitutes a medical or hygiene product capable of use against COVID-19, ensuring that these definitions are adhered to by all relevant parties. Failure to comply with the Customs Tariff alterations as specified in the Customs Act 1901 may result in legal consequences. While the specific penalties for non-compliance with these tariff changes are not detailed in the notice itself, the Customs Act 1901 typically includes provisions for both civil and criminal penalties for breaches of customs regulations. These penalties can include fines, imprisonment, or both, depending on the severity and intent of the breach. The maximum penalties for customs offences can vary significantly, often correlating with the value of the goods involved and whether the breach was deliberate or inadvertent.