Notice of Rates of Exchange - 21/03/2017

Overview

The Customs Act 1901, as amended, is a key piece of legislation in Australia that governs the administration of customs and excise duties. It was enacted to facilitate the regulation of the import and export of goods, and to provide for the collection of duties and taxes on imported goods. The Customs Act 1901 is administered by the Australian Customs and Border Protection Service, a division of the Department of Home Affairs. The policy objective of the Act is to ensure the efficient and effective management of Australia's borders, including the control of the import and export of goods, the protection of the community from risks associated with the movement of goods, people, and vessels, and the collection of revenue through customs duties and other charges. The Act provides for the imposition and collection of customs duties, excise, and other charges on imported goods, as well as the regulation of the export of goods. The Customs Act 1901 also provides for the protection of intellectual property rights, the enforcement of trade sanctions, and the regulation of the movement of goods through Australia's ports and airports.

Scope and Application

The Customs Act 1901, as notified by section 161J, applies to the determination of the value of imported goods for the purpose of applying customs duties. This notice of rates of exchange is issued by Roderick Siebel, a delegate of the Comptroller-General of Customs, and specifies the ruling rates of exchange for various currencies relative to the Australian Dollar on specified dates. The rates listed apply to the valuation of imported goods under the provisions of Division 2 of Part VIII of the Customs Act 1901, which is a Commonwealth Act and thus has a national jurisdictional reach. The notice does not include any stated exclusions, exemptions, or thresholds, but it is likely that other provisions of the Customs Act 1901 will apply in determining the scope of application of these rates. The rates may also be extended or restricted by subordinate instruments as necessary.

Key Provisions

Section 161J of the Customs Act 1901 specifies the ruling rates of exchange for various currencies on particular dates, which are crucial for determining the value of imported goods. These rates are listed in a schedule, with each currency assigned a rate of exchange against the Australian dollar for specified dates between 15/03/2017 and 21/03/2017. These rates are used to ascertain the value of imported goods as per Division 2 of Part VIII of the Customs Act 1901. The Act imposes specific obligations on importers and customs officials to use the prescribed exchange rates to calculate the value of imported goods accurately. Importers must declare the value of goods based on these rates, while customs officials must ensure that the correct rates are applied to the declared values. Failure to adhere to these rates can lead to incorrect valuations, which may result in disputes over the amount of duty payable. Breach of the requirements to correctly apply the ruling rates of exchange can lead to civil and criminal consequences. While the Customs Act 1901 does not explicitly state penalties for errors in exchange rate application, the incorrect declaration of the value of goods can result in penalties for under-declaration of duty, which is a serious offence. Such offences may attract fines and, in severe cases, imprisonment. The maximum penalties for offences under the Customs Act 1901 can be substantial, depending on the severity and intent behind the breach.