Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods - Notice (No. 2) 2019

Overview

The Customs Tariff Act 1995 was enacted to provide for the administration and collection of customs duty and excise, and for related matters. This Act was introduced to address the need for a comprehensive framework governing the imposition and collection of customs duties and excise in Australia. The Customs Tariff Act 1995 was enacted by the Parliament of Australia, aiming to streamline and regulate the tariffs applicable to imported and exported goods, ensuring consistency and fairness in trade practices. The policy objective behind the Act is to facilitate international trade while generating revenue for the government and protecting domestic industries by imposing appropriate duties on imported goods. This notice, issued under the authority of the Customs Tariff Act 1995, updates the rates of customs duty for certain excise-equivalent goods, effective from 1 March 2019, aligning these rates with the average weekly ordinary time earnings indexation.

Scope and Application

The Customs Tariff Act 1995, as amended by the Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods (No. 2) 2019, applies to goods classified under specific subheadings of Schedule 3 and related tables in Schedules 4A, 5, 6, 7, 8, 8B, 9, 10, 11, and 12. This Act mandates that the rates of customs duty for these goods are set according to the new rates detailed in the table within the notice, effective from 1 March 2019. The notice was issued by Matthew Duckworth, a delegate of the Comptroller-General of Customs, pursuant to the provisions of the Tariff Act. These rates are adjusted based on the average weekly ordinary time earnings indexation, ensuring that duties reflect current economic conditions. The application of the Act is national in scope, impacting importers, exporters, and other entities involved in the importation or exportation of goods subject to the specified subheadings. No exclusions, exemptions, or thresholds are explicitly stated in the notice, although the application might be further defined or restricted through subordinate instruments or regulations.

Key Provisions

The Customs Tariff Act 1995 Notice (No. 2) 2019 outlines modifications to the rates of customs duty for excise-equivalent goods, effective from 1 March 2019. This notice, issued by Matthew Duckworth, the delegate of the Comptroller-General of Customs, specifically addresses the rates of duty for goods classified under various subheadings of Schedule 3 and related tables in Schedules 4A, 5, 6, 7, 8, 8B, 9, 10, 11, and 12 of the Tariff Act (subsections 19AB(11) and 19ACA(9)). The notice details new rates of customs duty for each affected subheading, which are set out in a table accompanying the notice. The notice mandates that the rates of customs duty for specified subheadings of Schedule 3, as well as for goods listed in the referenced tables of Schedules 4A, 5, 6, 7, 8, 8B, 9, 10, 11, and 12, will be adjusted to those listed in Column 2 of the table opposite each relevant subheading in Column 1. For example, subheading 2401.1 will now have a duty rate of $1,090.33 per kilogram, while subheading 2401.2 will have a duty rate of 0.00. These changes are tied to the average weekly ordinary time earnings indexation as of 1 September 2018, reflecting updated economic data. Entities and individuals involved in the importation of goods subject to these changes must ensure compliance with the new rates of duty. This includes accurately declaring the value of imported goods and calculating the appropriate customs duty based on the revised rates. Importers, customs brokers, and other relevant parties must update their systems and records to reflect these changes, ensuring that all duties are paid correctly and in a timely manner. Failure to adhere to these updated rates can result in non-compliance, which may lead to penalties and other legal consequences. The Customs Tariff Act 1995 imposes specific penalties for non-compliance with the duties and obligations outlined in the legislation. Any breach of the duty requirements can result in civil or criminal penalties, depending on the severity and intent of the violation. Under the Act, penalties for civil breaches can include fines up to a maximum of $22,000 for individuals and $110,000 for corporations, as well as potential imprisonment terms. For criminal offences, the penalties can be more severe, with fines and imprisonment terms specified under the relevant sections of the Act. Accurate compliance with the new rates of duty is therefore essential to avoid these consequences.