EXPLANATORY STATEMENT
By-law No. 0619031 (replacing BL 9640107)Instrument of Revocation No. 1 (2006)
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 powers 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
On 4 November 2006, the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 (the HS 2007 Act) received the Royal Assent (Act No. 118, 2006). This Act makes changes to tariff headings and subheadings in the Customs Tariff Actwill amend, with effect from 1 January 2007.,
The changes under the HS 2007 Act affect a the tariff headings and subheadings to which existing Customs By-law Nos. 9640107, 9940021, 9640079 and 0604883 appliesrefer. These by-laws relate to items 21, 36, 38 and 73 of Schedule 4 to the Customs Tariff Act respectively. These items set out concessional rates of duty for goods specified in each respective item, as prescribed by by-law.
Item 21 applies to goods that are imported for repair, alteration or industrial processing and are to be exported. Customs By-law No. 9640107 applies to recorded magnetic tape or film imported for industrial processing and upon completion export. The heading to be amended is 8524: This heading will be replaced by 8523.
Instrument
To take into account the changes under the HS 2007 Act, Instrument of Revocation No. 1 (2006) revokes By-law Nos. 9640107, 9940021, 9640079 and 0604883.9640107 is being revoked The revoked by-laws are and replaced under separate instruments by -issued asnew By-laws Nos. 0619031, 0618807, 0618799 and 0618808 respectively0619031. to include reference to the above heading.
The amended by-law will preserve the coverage of By-law No. 9640107.The new by-laws incorporate the changes to the tariff headings and subheadings under the HS 2007 Act, but are otherwise substantially the same as the revoked by-laws.
Consultation
No consultation was undertaken in relation to Instrument of Revocation No. 1 (2006) as it is of a minor and machinery nature and does not substantially alter existing arrangements.
Commencement
By-law 0619Instrument of Revocation No. 1 (2006) 031 will takes effect on and from 1 January 2007, the date on which new By-laws Nos. 0619031, 0618807, 0618799 and 0618808 take effect.
Overview
The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 was enacted to address changes to tariff headings and subheadings within the Customs Tariff Act 1995. This legislation was introduced to ensure that Australia's customs duties and regulations were aligned with the 2007 Harmonised System, an internationally recognised framework for classifying goods. The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 was assented to by the Royal Assent on 4 November 2006 and received effect from 1 January 2007. The Customs Act 1901 empowers the Chief Executive Officer of Customs to make by-laws for the purposes of applying Customs Tariff items to goods or classes of goods, as prescribed by by-law. As such, the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 introduced amendments to the Customs Tariff Act 1995 to reflect the changes under the HS 2007 Act, ensuring that the relevant by-laws remain accurate and up-to-date.
Scope and Application
The Customs Act 1901, specifically under section 271, empowers the Chief Executive Officer of Customs to create by-laws that apply to items within the Customs Tariff, which is defined in the Customs Tariff Act 1995. This authority extends to the amendment, revocation, or replacement of existing by-laws as necessitated by changes in tariff headings and subheadings. Instrument of Revocation No. 1 (2006) revokes Customs By-law Nos. 9640107, 9940021, 9640079, and 0604883, which previously applied to certain tariff items such as recorded magnetic tape or film imported for industrial processing and subsequent export, as outlined in Schedule 4 of the Customs Tariff Act. These by-laws have been replaced by new ones, namely By-laws Nos. 0619031, 0618807, 0618799, and 0618808, which incorporate the changes mandated by the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006. The new by-laws are designed to align with the updated tariff headings and subheadings while maintaining the original intent and coverage of the revoked by-laws. These legislative changes will take effect from 1 January 2007.
Key Provisions
The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, which received Royal Assent on 4 November 2006, introduced significant changes to tariff headings and subheadings in the Customs Tariff Act 1995. To align with these changes, Instrument of Revocation No. 1 (2006) revokes existing Customs By-law Nos. 9640107, 9940021, 9640079, and 0604883 and replaces them with new By-laws Nos. 0619031, 0618807, 0618799, and 0618808. These by-laws relate to specific items in Schedule 4 of the Customs Tariff Act, such as item 21 which applies to goods imported for repair, alteration, or industrial processing and subsequently exported. For instance, Customs By-law No. 9640107, which applied to recorded magnetic tape or film imported for industrial processing and then exported, will be replaced by By-law No. 0619031, which incorporates the changes to the tariff headings and subheadings.
These new by-laws are designed to maintain the same regulatory framework but with updated references to the revised tariff headings and subheadings. For example, the tariff heading 8524, which was applicable under the previous by-law, will now be replaced by 8523 under the new by-law. This ensures that the concessional rates of duty for specified goods remain consistent while aligning with the updated tariff structure. The new by-laws will take effect on 1 January 2007, the same date on which the HS 2007 Act comes into force.
The obligations imposed by the new by-laws are largely similar to those of the revoked by-laws, ensuring that parties involved in the import and export of goods affected by these by-laws continue to comply with the same regulatory requirements. These obligations include adhering to the specified tariff headings and subheadings, ensuring that goods imported for processing and subsequently exported are correctly classified and subject to the appropriate duty rates.
Failure to comply with these by-laws can result in various civil and criminal consequences. The specific penalties for breach are not detailed in the explanatory statement but generally, breaches of customs regulations can lead to fines, confiscation of goods, and in severe cases, criminal charges. The maximum penalties for customs offences can vary depending on the nature and severity of the breach, but they can include substantial fines and imprisonment. It is important for all parties involved to ensure strict adherence to the new by-laws to avoid any legal repercussions.