Notice of Rates of Exchange - 27/11/2018

Overview

The Commonwealth of Australia Customs Act 1901, amended by the Customs Amendment (Exchange Rates) Regulations 2018, establishes the ruling rates of exchange for determining the value of imported goods under the Act. Enacted by the Australian Parliament, this legislation was introduced to address the need for consistent and accurate exchange rates to ensure the proper valuation of imported goods for customs purposes. The policy objective of the amendment is to provide a reliable and updated set of exchange rates, facilitating the calculation of duty and tax on imported goods. The rates specified in the Regulations, effective from 21 November 2018 to 27 November 2018, cover major currencies including the Brazilian Real, Canadian Dollar, Chinese Yuan, Euro, and others, ensuring that customs officers and importers have access to the most recent exchange values for their transactions.

Scope and Application

The Customs Act 1901, as specified in section 161J, is concerned with the valuation of imported goods for the purposes of customs duty and includes provisions for determining the value of goods in foreign currencies. This Act applies to all imported goods subject to customs valuation, encompassing various entities, including importers, customs brokers, and other persons involved in the importation process. The geographic scope of this legislation is national, extending across all states and territories of Australia. The application of this act is not restricted by any specific exclusions or thresholds; however, it relies on the rates of exchange provided for specific currencies and dates. The rates of exchange themselves are determined by the delegate of the Comptroller-General of Customs and are subject to change as specified in the schedule. The Act's application can be extended or restricted through subordinate instruments, which may further detail the application of these rates or provide additional currencies and rates of exchange.

Key Provisions

Section 161J of the Customs Act 1901 specifies that the Comptroller-General of Customs may designate rates of exchange for the purpose of determining the value of imported goods. In this notice, issued under section 161J, Franco Alvarez, a delegate of the Comptroller-General of Customs, has provided the ruling rates of exchange for various currencies against the Australian dollar from 21 November 2018 to 27 November 2018. These rates are critical for calculating the customs value of imported goods as stipulated in Division 2 of Part VIII of the Act. The obligation under this notice falls upon importers and customs brokers who must use the specified rates of exchange to declare the value of imported goods accurately. This ensures that the correct amount of duty and tax is calculated and paid. The notice mandates that these rates be adhered to for all transactions occurring within the specified dates, ensuring consistency and fairness in the valuation process. Failure to comply with the rates specified in this notice could potentially result in misdeclaration of the value of imported goods, leading to penalties. While the Customs Act 1901 does not explicitly outline penalties for non-compliance with exchange rates in this specific notice, general penalties for non-compliance with customs regulations can include fines and, in severe cases, criminal charges. For example, knowingly or recklessly making a false statement in a customs document can result in a penalty of up to 10,000 penalty units or imprisonment for up to five years, or both, under section 269 of the Act. Therefore, adherence to the specified exchange rates is crucial to avoid any potential legal repercussions.