Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods Notice (No. 2) 2025

Overview

The Customs Tariff Act 1995 was enacted by the Australian Parliament to regulate the rates of customs duty on goods imported into Australia. This legislation ensures a systematic and consistent application of tariff rates, which are essential for maintaining the integrity of the nation's trade policy and revenue collection. The 2025 Notice (No. 2) amends the rates of customs duty for excisable goods, responding to changes in the average weekly ordinary time earnings indexation as of 1 March 2025. This adjustment is necessary to align the duty rates with economic factors and maintain the effectiveness of the tariff structure. The notice, issued by Kimberlee Clydesdale, a delegate of the Comptroller-General of Customs, specifies new rates for various subheadings of Schedules 3 to 15, reflecting the policy objective of adjusting duties in response to economic indicators.

Scope and Application

The Customs Tariff Act 1995 applies to all goods imported into Australia, regulating the imposition of customs duties on such goods. The notice issued under subsections 19AB(11) and 19ACA(9) of the Act informs stakeholders of the changes to the rates of customs duty applicable to specified goods, effective from 1 March 2025. These changes are based on the average weekly ordinary time earnings indexation and affect goods classified under various subheadings of Schedule 3 and related tables in Schedules 4A, 5, 6, 6A, 7, 8, 8A, 8B, 9, 9A, 10, 10A, 11, 12, 13, 14, and 15 of the Act. The notice specifies the new duty rates for these goods, providing clarity on the financial obligations for importers. The changes apply nationally across Australia, affecting all entities involved in the importation of the specified goods.

Key Provisions

The Customs Tariff Act 1995 (the Customs Tariff Act) provides a framework for imposing customs duties on various goods imported into Australia. The Notice (No. 2) 2025, issued on 26 February 2025, details changes to the rates of customs duty for certain excise-equivalent goods effective from 1 March 2025. These changes are set out in a table included with the Notice, where Column 1 lists the specific customs tariff subheadings affected, and Column 2 specifies the new rates of duty to be applied from the effective date (subsections 19AB(11) and 19ACA(9)). The Notice mandates that for goods classified under the specified 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, the new rates of customs duty must be applied from 1 March 2025. For example, for goods under subheading 2401.1, the rate of customs duty is set at 0.00, while for subheading 2402.2, it is set at 0.80. This change affects how much duty is charged on these goods when they are imported into Australia. Entities and individuals importing the specified goods must ensure they comply with the new rates of duty as stipulated in the Notice. This involves updating their import documentation and financial records to reflect the new duty rates. Failure to do so may result in incorrect duty payments, which could lead to penalties or other enforcement actions by the Australian Border Force or the Department of Home Affairs. Breaches of the requirements under the Customs Tariff Act, including non-compliance with the specified duty rates, can result in various consequences. Civil penalties may be imposed for incorrect declarations or failure to pay the correct duty, with potential fines up to 100% of the duty owed. Additionally, criminal penalties may apply in cases of wilful or negligent breaches, with maximum penalties including fines of up to $11,000 or imprisonment for up to two years, or both, under section 282 of the Customs Act 1901. These penalties underscore the importance of adhering to the specified rates of customs duty as outlined in the Notice.