Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods Notice (No. 2) 2026

Overview

The Customs Tariff Act 1995 was enacted to provide for the imposition of customs duty and excise on goods imported into Australia. It fills a critical gap by establishing a comprehensive framework for regulating the importation of goods, thereby ensuring that the government can collect necessary revenue and protect domestic industries. The Act is administered by the Australian Parliament, which enacts the legislation and sets the policy objectives aimed at maintaining economic stability and protecting public health and safety. This particular notice, issued under the authority of the Comptroller-General of Customs, specifies updated rates of customs duty effective from 3 March 2026. The notice was made to address the need for regular adjustments to the duty rates in response to changes in the Average Weekly Ordinary Time Earnings Index, ensuring that the duty rates remain in line with economic conditions and inflationary pressures.

Scope and Application

The Customs Tariff Act 1995 applies to the imposition and collection of customs duties on goods imported into Australia. This legislation affects a broad range of entities, including importers, customs brokers, and the general public who are involved in the importation process. The act extends to all goods imported into Australia, irrespective of the state or territory in which the goods are destined. The application of the act is comprehensive, covering all types of goods entering the country's borders, and is not restricted to particular industries or types of transactions. The act is applicable on a national level, as it is a Commonwealth Act, and applies uniformly across Australia. The notice issued under this act adjusts the rates of customs duty for specific goods, as indicated in the Table, which affects the cost of importing these goods into the country. This notice is part of the broader mechanism through which the Commonwealth government regulates and manages the economic impact of imports through tariff adjustments.

Key Provisions

The Customs Tariff Act 1995, in its Notice (No. 2) 2026, specifies changes to the rates of customs duty for certain goods. According to sections 19AB(11) and 19ACA(9), the rates for goods classified under subheadings in Schedule 3, as well as those listed in Schedules 4A through 16, are updated from 3 March 2026. These new rates are detailed in the table included in the notice, correlating each subheading with its new duty rate. For instance, subheading 2401.10 now has a duty rate of $2,445.26 per kilogram, while subheading 2402.20 will have a duty rate of 0.80. The Act imposes specific obligations on importers and customs brokers to ensure they apply the correct rates of duty as outlined in the notice. Importers must declare the value of goods correctly and pay the updated duty rates as per the table in the notice. Customs brokers, on the other hand, are required to ensure their clients' declarations reflect these new rates and to update their systems accordingly to avoid non-compliance. Failure to adhere to the new rates may result in incorrect duty payments, which could lead to legal repercussions. Breaching the provisions of the Customs Tariff Act can result in both civil and criminal penalties. Civil penalties may include fines, with the maximum penalty often depending on the severity and frequency of the breach. For instance, wilful or negligent underpayment of customs duty could lead to significant financial penalties. Criminal penalties may apply in cases of intentional or reckless disregard for the Act's provisions, potentially leading to imprisonment or substantial fines. The specific penalties are determined by the nature and extent of the breach, as outlined in the relevant sections of the Act.