Notice of Rates of Exchange - 11/06/2019

Overview

The Customs Act 1901 is an Australian federal law enacted by the Parliament of Australia to regulate customs and excise matters, including the valuation of imported goods. One of the key issues the Act addresses is the accurate determination of the value of imported goods for the purpose of assessing customs duty. To facilitate this, the Act includes provisions for setting ruling rates of exchange, as seen in the 2019 Gazette Notice by Martin Ryan, delegate of the Comptroller-General of Customs, which specifies the rates of exchange for various currencies over a period of time. This ensures consistency and transparency in the valuation process, thereby supporting the policy objective of effective customs administration and revenue collection.

Scope and Application

The Customs Act 1901, as specified in the Gazette Notice C2019G00512, applies to the valuation of imported goods for customs purposes in Australia. It mandates the determination of the value of imported goods by establishing ruling rates of exchange for various currencies, which are to be used in the calculation of the value of imported goods. These rates are effective from the dates specified in the notice and are applied to ascertain the value of imported goods under Division 2 of Part VIII of the Customs Act 1901. The Act applies nationally across Australia and is applicable to all imported goods that are subject to customs duties. The rates of exchange specified are applicable to all entities importing goods into Australia, irrespective of the size or nature of the entity. The ruling rates of exchange are determined by a delegate of the Comptroller-General of Customs, as authorised under section 161J of the Customs Act 1901. The notice provides specific exchange rates for various currencies over a period of a week, from 5 June 2019 to 11 June 2019. The rates are subject to change and may be updated in subsequent notices, reflecting the dynamic nature of currency exchange rates. There are no stated exclusions, exemptions, or thresholds within this notice. The application of the rates may be extended or restricted through subordinate instruments issued under the authority of the Customs Act 1901.

Key Provisions

The Customs Act 1901, as amended, includes a provision in section 161J that empowers the delegate of the Comptroller-General of Customs to specify ruling rates of exchange for foreign currencies against the Australian Dollar. This specification is essential for determining the value of imported goods under the Customs Act. The rates are published in a schedule, detailing the exchange rates for various currencies over a series of dates. For instance, Column 3 of the schedule lists the rate for the Brazilian Real on 5th June 2019 as 2.7092, while Column 4 shows the rate for the Canadian Dollar on 6th June 2019 as 0.9368. The obligations imposed by the Act on parties and entities primarily involve the accurate declaration of the value of imported goods based on the specified rates of exchange. Importers must ensure that the value of their goods is calculated correctly using the rates provided by the delegate, and these values must be reflected in the relevant customs documentation. This requirement ensures transparency and accuracy in the valuation process, which is crucial for determining the applicable customs duties and taxes. Breach of the obligations under the Customs Act can lead to various civil and criminal consequences. For example, providing false information or failing to declare the correct value of imported goods can result in fines and penalties. Under the Customs Act, the penalties for misleading or providing false information can be severe, including fines up to 10,000 penalty units or imprisonment for up to five years, or both. In addition to criminal penalties, there are also civil penalties that may apply, such as the imposition of additional duties and interest on the undervalued goods. These measures ensure compliance and uphold the integrity of the customs valuation system.