Notice of Rates of Exchange - 21/02/2017

Overview

The Customs Act 1901 is a foundational piece of legislation in Australia that was enacted to regulate the customs and excise duties, and it includes provisions for the assessment of the value of imported goods. The Act addresses the problem of ensuring a consistent and accurate method for determining the value of imported goods for customs purposes. The policy objective is to establish ruling rates of exchange that can be used to convert foreign currency values into Australian dollars, thereby facilitating the imposition of appropriate customs duties and taxes. This particular piece of legislation, C2017G00214, specifies the ruling rates of exchange for various currencies as at specific dates in February 2016 and February 2017. This was enacted by the Parliament of Australia and aims to provide clarity and uniformity in the valuation of imported goods for customs purposes.

Scope and Application

The Customs Act 1901 applies to the valuation of imported goods for the purposes of determining the amount of duty payable, with the Act extending to the Commonwealth of Australia and its territories. Specifically, section 161J of the Customs Act 1901 requires the delegate of the Comptroller-General of Customs to specify the rates of exchange for foreign currencies to Australian dollars for determining the value of imported goods. This notification, made by Roderick Siebel, delegate of the Comptroller-General of Customs, provides the ruling rates of exchange for various foreign currencies against the Australian dollar for specific dates. The rates are listed in the schedule and are applicable for determining the value of imported goods under Division 2 of Part VIII of the Customs Act 1901. The Act does not explicitly state exclusions, exemptions, or thresholds, but the application of these rates is integral to the valuation process under the Act.

Key Provisions

The Notice of Rates of Exchange (Gazette C2017G00214) specifies the ruling rates of exchange for various currencies against the Australian dollar for the purpose of determining the value of imported goods under Division 2 of Part VIII of the Customs Act 1901 (section 161J). These rates are effective from 15/02/2016 to 21/02/2017, as indicated in the columns provided for each currency. For example, the Brazilian Real was valued at 2.3806 AUD on 15/02/2016 and at 2.3759 AUD on 21/02/2017. The obligations imposed by this notice primarily concern importers who need to accurately declare the value of goods for customs purposes. Importers must use the specified rates of exchange to convert the value of imported goods from the foreign currency to Australian dollars. This requirement ensures that the correct customs duty and other applicable taxes are calculated based on the accurate valuation of the imported goods. Failure to use the correct rates could result in under or overpayment of customs duties, which could lead to compliance issues with Australian Customs regulations. Breaches of the requirements under the Customs Act 1901 can result in significant penalties. Under section 161J, providing false information regarding the value of imported goods is an offence and can attract criminal penalties, including fines and imprisonment. The specific penalties depend on the severity of the offence and the discretion of the court, but they can be substantial. Additionally, the Australian Customs and Border Protection Service may impose civil penalties for incorrect valuation, which can include fines up to the amount of unpaid duty or tax. The accuracy and compliance with the specified rates of exchange are therefore crucial to avoid both civil and criminal repercussions.