EXPLANATORY STATEMENT
Instrument of Revocation No. 3 (2011)
Customs Act 1901
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, that is the Customs Tariff Act 1995 (the Customs Tariff Act).
Section 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument (including rules, regulations or by‑laws) the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Background
The Automotive Competitiveness and Investment Scheme (ACIS) is a Government assistance program for the automotive industry. While the Scheme ended on 31 December 2010 the ACIS Administration Act 1999 (ACIS Act) provides participants with a further twelve months in which to apply ACIS credits against duty payable, or paid, on eligible imported goods.
ACIS has been replaced by Automotive Transformation Scheme (ATS) announced by the Government in November 2008. ATS commenced on 1 January 2011.
Customs By-law No. 0040028 was made for the purposes of item 41E which states:
Goods, as prescribed by by-law, being goods classified under a subheading of heading 8702, 8703 or 8704, including components therefore, imported by a person who owns duty credit under the Automotive Competitiveness and Investment Scheme set out in the ACIS Administration Act 1999 that can be applied in respect of the importation of those goods and who applies that credit to that importation
As the ACIS credits expire on 31 December 2011, By-law No. 0040028 is no longer required.
Instrument
CEO Instrument of Revocation No. 3 (2011) revokes Customs By-law No.0040028.
Consultation
No consultation was undertaken in relation to Instrument of Revocation No. 3 (2011) as it is of a minor and machinery nature and does not alter existing arrangements.
Commencement
CEO instrument of Revocation No. 3 (2011) takes effect on and from 1 January 2012.
Overview
The Customs Act 1901, enacted by the Australian Parliament, provides the framework for the regulation of customs and excise in Australia. The Act was introduced to address the need for streamlined and efficient management of customs duties and regulations. Under Section 271, the Chief Executive Officer of Customs has the authority to create by-laws to further specify the application of items in the Customs Tariff. This legislative instrument, Instrument of Revocation No. 3 (2011), issued under the authority of the Customs Act 1901, revokes Customs By-law No. 0040028, which was previously made to facilitate the application of credits under the Automotive Competitiveness and Investment Scheme (ACIS). Given that ACIS credits expire on 31 December 2011 and have been replaced by the Automotive Transformation Scheme (ATS), this revocation aligns with the legislative transition and the conclusion of the ACIS program. The revocation is effective from 1 January 2012.
Scope and Application
The Customs Act 1901, specifically through section 271, empowers the Chief Executive Officer of Customs to create by-laws for the application of certain Customs Tariff items, with the Customs Tariff Act 1995 defining the Customs Tariff as the Act imposing duties of customs. This regulatory framework is further supported by section 33(3) of the Acts Interpretation Act 1901, which allows for the repeal, rescission, revocation, amendment, or variation of any instrument made under an Act. Customs By-law No. 0040028, which was established for the purposes of item 41E of the Customs Tariff, applied to goods classified under subheadings 8702, 8703, or 8704, including their components, imported by entities holding duty credits under the Automotive Competitiveness and Investment Scheme, as outlined in the ACIS Administration Act 1999. However, with the conclusion of the Automotive Competitiveness and Investment Scheme on 31 December 2011, and its replacement by the Automotive Transformation Scheme, By-law No. 0040028 is no longer necessary. Consequently, the CEO Instrument of Revocation No. 3 (2011) revokes By-law No. 0040028, effective from 1 January 2012, as the cessation of ACIS credits means there is no longer a need for the by-law’s provisions.
Key Provisions
The primary operative sections of the Customs Act 1901 (section 271) allow the Chief Executive Officer of Customs to create by-laws for specific items within the Customs Tariff. In this context, section 271 facilitates the creation of Customs By-law No. 0040028 for item 41E of the Customs Tariff. This by-law, as noted, was intended to allow for the application of Automotive Competitiveness and Investment Scheme (ACIS) credits against duty payable on imported goods classified under specific headings (8702, 8703, and 8704). The Customs Tariff Act 1995 defines the Customs Tariff, which encompasses the duties of customs. Furthermore, section 33(3) of the Acts Interpretation Act 1901 allows for the repeal, rescind, revoke, amend, or vary of any such instruments, which supports the revocation of By-law No. 0040028 as per CEO Instrument of Revocation No. 3 (2011).
The obligations imposed by the Act on the parties governed include compliance with the Customs Tariff and its associated by-laws. Specifically, entities importing goods classified under headings 8702, 8703, or 8704 were required to apply any available ACIS credits against the duty payable on such imports, as stipulated by By-law No. 0040028. The revocation of this by-law, effective from 1 January 2012, signifies the end of this particular compliance requirement. It is crucial for importers to be aware of these changes to avoid any non-compliance issues.
There are no specific offences, penalties, or consequences outlined for breaching the revoked by-law No. 0040028. However, general non-compliance with Customs regulations can result in significant penalties. The Customs Act 1901 provides for various offences, including the importation of dutiable goods without paying duty, which can lead to substantial fines and potential criminal charges. The maximum penalties for such offences can include fines of up to 10,000 penalty units or imprisonment for up to 10 years, or both, for serious breaches. Additionally, civil penalties may apply, and these can be enforced through the courts, further emphasising the importance of adhering to customs regulations.