Notice of Revocation of Customs By-laws - Revocation No. 1 (2005)

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Legislation au F2005L00139 ByLaws Not in force Legislative Instrument

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EXPLANATORY STATEMENT

REVOCATION NO. 1 (2005)

Customs Act 1901

Background

Section 271 of the Customs Act 1901 (the Act) provides, in part, that where an item of a Customs Tariff is expressed to apply to goods, or to a class or kind of goods, as prescribed by by-law, the Chief Executive Officer of Customs may make by-laws for the purposes of that item. A Customs Tariff is defined in section 4 of the Act to mean an Act imposing duties of customs. The Customs Tariff Act 1995 (the Customs Tariff Act) is a Customs Tariff for the purposes of the Act.

Item 15 of Schedule 4 to the Customs Tariff Act provides that the following goods are dutiable at the rate of ‘Free’:

Goods, as prescribed by by-law, being:

(a) goods imported by passengers or members of the crew of ships or aircraft;

(b) goods that:

(i) at the time they are approved for delivery for home consumption, are the property of a person who has arrived in Australia on an international flight within the meaning of section 96B of the Customs Act 1901; and

(ii) were purchased by that person in an inwards duty free shop within the meaning of that section;

(c) goods, brought into, or sent to, Australia by such members of the Defence Force stationed outside Australia as are prescribed by by-law;

(d) goods imported by members of the forces of Canada, New Zealand or the United Kingdom; or

(e) passengers' personal effects, furniture or household goods

Before 1 February 2005, there were a number of by-laws made for the purpose of item 15. These by-laws covered the following goods:

– accompanied baggage of crew not ordinarily domiciled in Australia (by-law no. 9740006);

– alcoholic liquors and tobacco products imported by crew (only available if not used in the past ten days) (by-law no. 9740017);

– alcoholic beverages, tobacco productions, perfume concentrate and toilet waters (by-law no. 9840019); and

– accompanied and unaccompanied goods of passengers and crew that are not commercial goods (by-law no. 0240009);

– goods with combined duty, goods and services tax and wine equalisation tax that does not exceed $50 (by-law no. 0240010).

In particular, these by-laws allowed a passenger or crew member to import 1,125 ml of alcoholic beverages and certain other goods with a purchase price that does not exceed $400 ($200 for children) duty free. These concessions are increased to 2,250 ml of alcoholic beverages and goods with a value not exceeding $900 (for adult passengers). The tobacco products concession remains the same. Crew and children are able to import certain goods with a value not exceeding $450 duty free. However, if the amount or value of the goods exceeds these new concessions, duty will be payable on the entire amount or value of the goods within that group of items. This is different from the previous by-laws where duty was only payable on the amount or value in excess of the concession. For example, if a passenger imports 3,000 ml of alcoholic beverages, 300 grams of tobacco products and $850 of other goods, he or she will have to pay duty in relation to the 3,000 ml of alcoholic beverages and 300 grams of tobacco. This is different from the previous by-laws where duty was only payable on the amount or value in excess of the concession.

An open packet of cigarettes containing 25 or less cigarettes in the possession of an adult will also be able to be imported duty free.

The by-law that allows goods with combined duty, goods and services tax and wine equalisation tax that does not exceed $50 to be imported without the payment of duty is repealed.

The by-laws to be repealed will be combined into two by-laws. One will apply to personal goods, alcoholic beverages, tobacco products and other non-commercial goods that have a value not exceeding those set out above that are accompanied baggage. The second will cover certain accompanied or unaccompanied:

– clothing;

– articles of personal hygiene or grooming;

– caravans, trailers and boats;

– aircraft;

– machinery, plant and equipment, and

– fur apparel, person effects. furniture and household goods.

Instrument

The instrument repeals by-laws 9740006, 9740017, 9840019, 0240009 and 0240010.

Consultation

Representatives of the National Tourism Alliance (NTA), consisting of 22 major tourism industry associations together with eight State and Territory Tourism Industry Councils acting as a single industry co-ordinating body, have been consulted at length during the process.

Commencement

REVOCATION NO. 1 (2005) takes effect on and from 1 February 2005.

Overview

The Customs Act 1901 was enacted to establish and regulate customs duties and associated activities in Australia, addressing the need for a comprehensive framework governing the importation and exportation of goods. This Act empowers the Chief Executive Officer of Customs to create by-laws for specific items in the Customs Tariff, facilitating the enforcement of customs duties and regulations. The Customs Tariff Act 1995 further delineates the application of these duties, defining which goods are subject to customs tariffs. The problem this legislation aimed to address was the need for a structured approach to customs duties and the establishment of clear guidelines for the importation of goods, particularly concerning duty-free concessions. The enacting body responsible for this legislation was the Australian Parliament, with the stated policy objective being to streamline customs procedures and enhance the efficiency of duty enforcement. The 2005 revocation aimed to refine these regulations by updating the existing by-laws to better align with contemporary standards and practices.

Scope and Application

The Customs Act 1901 applies to various individuals, entities, and goods entering Australia, with the Customs Tariff Act 1995 further defining the dutiable goods. Under section 271 of the Customs Act, the Chief Executive Officer of Customs has the authority to make by-laws prescribing goods eligible for duty-free importation, such as those listed in Item 15 of Schedule 4 of the Customs Tariff Act. These include goods imported by passengers, crew members of ships or aircraft, and members of the Defence Force stationed outside Australia. The Act also applies to certain goods imported by members of allied forces and personal effects or household goods brought into Australia by passengers. The revocation instrument consolidates and replaces several existing by-laws to streamline the process and clarify the duty-free allowances for these categories of goods, taking effect from 1 February 2005.

Key Provisions

The Customs Act 1901 (the Act) empowers the Chief Executive Officer of Customs to create by-laws for certain items listed in the Customs Tariff, which is defined as an Act imposing duties of customs (section 271). Specifically, item 15 of Schedule 4 to the Customs Tariff Act 1995 (Customs Tariff Act) pertains to goods that are dutiable at the rate of 'Free', such as those imported by passengers, crew members, or Defence Force personnel, as well as certain personal effects and household goods. Prior to 1 February 2005, various by-laws were in place to clarify the application of these provisions, including limits on the duty-free value and quantity of goods that could be imported. These by-laws were repealed and replaced with new ones that establish different limits on duty-free imports. The new by-laws set out specific allowances for various categories of individuals and goods. For instance, adult passengers can now import 2,250 ml of alcoholic beverages and goods with a value not exceeding $900 duty-free, while crew members and children are allowed to import certain goods with a value not exceeding $450 duty-free. Open packets of cigarettes containing 25 or fewer cigarettes can also be imported duty-free by adults. Notably, if the quantity or value of the imported goods exceeds these limits, duty is payable on the entire amount or value, unlike previous by-laws where duty was only payable on the excess. The by-law that allowed goods with a combined duty, goods and services tax, and wine equalisation tax not exceeding $50 to be imported without duty is also repealed. Entities and individuals subject to the Act must comply with the new by-laws, which detail the types of goods that can be imported duty-free and the associated limits. Failure to adhere to these provisions may result in the imposition of duty on the entire amount or value of the goods in question. The revised by-laws aim to streamline the process and provide clearer guidelines for duty-free imports. The changes are intended to take effect on and from 1 February 2005, as stipulated in the revocation instrument. Representatives of the National Tourism Alliance (NTA), which includes major tourism industry associations and State and Territory Tourism Industry Councils, have been extensively consulted during the process.

Area of Law: Customs Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Repeal & Amendment; Enforcement Powers; Regulatory Standards

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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