Notice of Rates of Exchange - 19/03/2019

Overview

The Customs Act 1901, enacted by the Parliament of Australia, provides the legal framework for the regulation of imports and exports, including the assessment of customs duty on imported goods. This Act aims to ensure the accurate valuation of goods for customs purposes, particularly in cases where goods are valued in foreign currencies. The problem or gap addressed by this legislation is the need for a consistent and reliable method to convert foreign currency values into Australian dollars for customs valuation, which is critical for the correct application of tariffs and duties. This notice under section 161J of the Act, issued by Franco Alvarez as the delegate of the Comptroller-General of Customs, specifies the ruling rates of exchange for various currencies over a specified period to facilitate the accurate assessment of customs duty on imported goods. The policy objective is to maintain transparency and consistency in the customs valuation process, thereby ensuring fair and effective administration of customs duties.

Scope and Application

The Customs Act 1901, as specified in the notice of rates of exchange, applies to the valuation of imported goods for customs purposes. This notice, issued under section 161J of the Customs Act 1901, sets forth the ruling rates of exchange for various currencies, which are used to determine the value of imported goods entering Australia. The rates are applicable across the Commonwealth of Australia, affecting importers, customs brokers, and other entities involved in the import process. The notice provides exchange rates for multiple currencies, including the Brazilian Real, Canadian Dollar, Chinese Yuan, and others, for specific dates in March 2019. Notably, this notice does not exclude any currencies or entities from its application, and there are no stated thresholds or exemptions. The notice is effective as of the dates listed, and its application is not extended or restricted by subordinate instruments.

Key Provisions

Pursuant to section 161J of the Customs Act 1901, the notice specifies the ruling rates of exchange for various currencies against the Australian dollar for the dates listed. These rates are essential for determining the value of imported goods under Division 2 of Part VIII of the Customs Act 1901. The rates listed are for various currencies including the Brazilian Real, Canadian Dollar, Chinese Yuan, and many others, with rates provided for each day from 13 March 2019 to 19 March 2019. Entities and individuals involved in importing goods into Australia must use these specified rates of exchange to calculate the value of imported goods for customs purposes. This ensures consistency and accuracy in the valuation of goods for the purposes of determining applicable duties and taxes. Importers must adhere to these rates to comply with the requirements of the Customs Act 1901, particularly under Division 2 of Part VIII. Failure to comply with the requirements of using the specified rates of exchange may result in incorrect valuation of imported goods, leading to potential breaches of the Customs Act 1901. Such breaches could result in civil or criminal penalties, including fines and, in serious cases, imprisonment. The exact penalties would depend on the severity of the breach and would be determined in accordance with the provisions of the Customs Act 1901 and any other relevant legislation.