Tobacco, Drawback and Starch Regulations (Amendment) (Provisional)

Overview

The Provisional Regulation under the Excise Act 1901, enacted in 1908, serves to provide immediate amendments to drawback regulations concerning excise duty. This legislation was introduced to address the need for prompt adjustments to the existing drawback regulations, ensuring that Australia's excise duty policies could be swiftly adapted to changing economic and trade conditions. The regulation was enacted by the Governor-General in Council, acting on the advice of the Federal Executive Council, highlighting the urgency and importance of the adjustments made. The policy objective is to provide drawback on the exportation of specified excisable goods, thereby facilitating trade and ensuring that Australian exporters are not unduly burdened by excise duties on goods intended for export.

Scope and Application

The Provisional Regulation under the Excise Act 1901 pertains to the drawback of excise duty and applies to the exportation of specified excisable goods such as spirits, cigarettes, sugar, tobacco, snuff, starch, cigars, and beer. The regulation allows for the full amount of the excise duty paid to be reclaimed upon the exportation of these goods. Additionally, the regulation includes provisions for the drawback of sugar used in the manufacture of certain articles, subject to specific proportion limitations. The regulation extends to the entire Commonwealth of Australia and applies to any person or entity exporting the listed excisable goods. It is noteworthy that the regulation supersedes previous drawback regulations and is designed to come into immediate operation, as certified by the Governor-General. The regulation is intended to provide relief to exporters by ensuring they can recover excise duty paid on exported goods, thereby promoting trade and mitigating the impact of excise duty on export activities.

Key Provisions

The main operative sections of this Provisional Regulation under the Excise Act 1901 concern the allowance of drawback on the exportation of certain excisable goods. Specifically, Section 50 allows for the full amount of excise duty paid to be claimed as drawback on the export of spirits, cigarettes, sugar, tobacco, snuff, starch, cigars, and beer (Section 50). Additionally, sugar used in the manufacture of certain articles may also qualify for drawback on export, subject to specific proportions not being exceeded (Section 50). These provisions ensure that manufacturers or exporters can recoup excise duties paid on goods that leave the country. The Act imposes certain obligations and requirements on parties seeking drawback on the export of excisable goods. For instance, manufacturers or exporters must ensure that the goods in question are indeed exported, and not merely trans-shipped within the Commonwealth or re-imported under false pretenses. Furthermore, if sugar is used in the manufacture of other goods, the proportion of sugar to the total weight must adhere strictly to the stipulated limits: two-thirds for confectionery, comfits, succades, sweetmeats, and sugar candy; one-half for jams and jellies; three-quarters for table jellies in packets; and five-thirty-sixths for canned and preserved fruits. These conditions must be met for drawback to be granted. Failure to comply with the conditions set out in the Act may result in serious consequences. Although the specific offences and penalties are not detailed in the excerpt provided, it is reasonable to infer that breaches of the drawback regulations could be subject to penalties under the Excise Act 1901 or other relevant legislation. Typically, such breaches might involve fines, imprisonment, or both, depending on the severity and intent of the infringement. The precise penalties would be determined by the courts, but they could potentially include substantial fines and periods of incarceration for wilful or repeated violations.