Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods Notice (No. 2) 2024

Overview

The Customs Tariff Act 1995 was enacted to provide for the imposition of customs duty on imported goods and to facilitate the administration of the Australian Customs Tariff. This Act was introduced to address the need for a comprehensive framework governing the imposition and collection of customs duties on goods entering Australia. The Customs Tariff Act 1995 is administered by the Parliament of Australia, with the objective of regulating the importation of goods to protect domestic industries, raise revenue, and enforce trade agreements. The 2024 Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods is a gazetted notice issued under the authority of the Comptroller-General of Customs, ensuring that the rates of customs duty are updated in line with economic indicators such as the average weekly ordinary time earnings indexation. This notice reflects the ongoing commitment to maintaining a fair and responsive tariff structure that aligns with Australia's economic conditions.

Scope and Application

The Customs Tariff Act 1995 applies to all goods imported into Australia, encompassing both individuals and entities engaged in importing activities, as well as industries reliant on the importation of goods. The Act specifies the rates of customs duty applicable to various goods, which are subject to change based on factors such as the average weekly ordinary time earnings indexation. The Notice (No. 2) 2024 provides updated rates of customs duty for excisable goods, effective from 1 March 2024, which applies nationally across Australia. The changes outlined in the notice affect the duty rates for specific goods classified under various subheadings in Schedules 3 to 15 of the Customs Tariff Act. Notably, the notice excludes any goods not listed in the updated Table, maintaining their previous duty rates unless otherwise specified. The application of the Act may be further extended or restricted through subordinate instruments, which may include regulations or legislative instruments that detail specific provisions or exemptions.

Key Provisions

The Customs Tariff Act 1995 (Customs Tariff Act) has been amended through the Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods Notice (No. 2) 2024 (the Notice). This Notice, signed by Kimberlee Clydesdale as a delegate of the Comptroller-General of Customs, specifies new rates of customs duty for certain goods, effective from 1 March 2024 (subsections 19AB(11) and 19ACA(9)). The changes pertain to goods classified under specific subheadings in Schedules 3, 4A, 5, 6, 6A, 7, 8, 8A, 8B, 9, 9A, 10, 10A, 11, 12, 13, 14, and 15 of the Customs Tariff Act, with detailed rates listed in the accompanying table. The Notice imposes new rates of customs duty on goods listed in the table. For example, subheading 2401.1 now has a duty rate of $1,893.57 per kilogram, while subheading 2402.2 has a rate of 0.80. Other subheadings have varying rates, such as $1.27816 per stick for subheading 2403.1, and rates based on tobacco content for subheading 2403.9. These rates apply to goods classified under these subheadings in the aforementioned schedules of the Customs Tariff Act. Breaches of the provisions in the Customs Tariff Act, including failure to comply with the new rates of duty specified in the Notice, could result in civil or criminal penalties. While the Notice does not specify penalties, the Customs Tariff Act generally provides for various penalties for non-compliance, including fines and imprisonment. The maximum penalties can vary depending on the nature and severity of the breach, as outlined in the relevant sections of the Customs Tariff Act.