Explanatory Memorandum
(Circulated by authority of the Assistant Minister for Immigration and Border Protection, the Honourable Alex Hawke MP)Outline
The Customs Amendment (2017 Harmonized System Changes) Bill 2016 (the HS2017 Customs Bill) contains amendments to the Customs Act 1901 (the Customs Act).
These amendments will implement consequential changes resulting from the fifth review of the International Convention on the Harmonized Commodity Description and Coding System, commonly referred to as the Harmonized System (HS) administered by the World Customs Organization (WCO). Australia is a signatory to the HS and is required to implement these changes from 1 January 2017.
The HS2017 Customs Bill will amend the Customs Act by replacing the references to subheadings 3824.90.50 and 3824.90.60 with subheadings 3824.99.30 and 3824.99.40 in the definition of "biofuel blend" in subsection 105B(4) of the Customs Act.
Complementary amendments will also be made to the Customs Tariff Act 1995 (Customs Tariff Act) by the Customs Tariff Amendment (2017 Harmonized System Changes) Bill 2016 to implement the HS 2017 amendments.
The HS2017 Customs Bill will also insert a reference to Schedule 12 to the Customs Tariff Act in subparagraph 105B(3)(b)(ii) and the definition of "biofuel blend" in subsection 105B(4) of the Customs Act, to maintain the collection of the correct import duties for biofuels and biofuel blends imported under the China-Australia Free Trade Agreement (ChAFTA).
Financial impact statement
The measures in the Bill have no financial impact.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Customs Amendment (2017 Harmonized System Changes) Bill 2016
This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The Bill amends the Customs Act 1901 (Customs Act) by:
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- replacing the references to subheadings 3824.90.50 and 3824.90.60 with subheadings 3824.99.30 and 3824.99.40 in the definition of "biofuel blend" in subsection 105B(4) of the Customs Act to implement the consequential changes resulting from the World Customs Organization's fifth review of the International Convention on the Harmonized Commodity Description and Coding System, commonly referred to as the Harmonized System
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- inserting a reference to Schedule 12 to the Customs Tariff Act 1995 in subparagraph 105B(3)(b)(ii) and subsection 105B(4) to maintain the collection of the correct import duties for biofuels and biofuel blends imported under the China-Australia Free Trade Agreement.
Human rights implications
This legislative instrument does not engage, impact on, or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Conclusion
This Bill is compatible with human rights.
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the Act, when enacted, to be cited as the Customs Amendment (2017 Harmonized System Changes) Act 2016.
Clause 2 - Commencement
Subclause (1) provides that each provision of this Act specified in Column 1 of the table in that subclause commences, or is taken to have commenced, on the day or at the time specified in Column 2 of the table. This subclause also provides that any other statement in Column 2 of the table has effect according to its terms.
Item 1 of the table in this clause provides that sections 1 to 3 and anything in the Act not covered elsewhere in the table will commence on the day on which the Act receives the Royal Assent.
Item 2 of the table provides that Schedule 1 of the HS2017 Customs Bill commences at the same time as Schedule 1 to the Customs Tariff Amendment (2017 Harmonized System Changes) Act 2016 commences. That Act commences on 1 January 2017.
Clause 3 - Schedule(s)
This clause is the formal enabling provision for the Schedule to the HS2017 Customs Bill, providing that each Act specified in the Schedule is amended in accordance with the applicable items of that Schedule. The clause also provides that other items of the Schedule have effect according to their own terms. This is a standard enabling clause for transitional, savings and application items in amending legislation.
Schedule 1 - Amendments
Customs Act 1901
Part VAA of the Customs Act deals with the treatment of imported excise-equivalent goods in the manufacture of excisable goods. Excise-equivalent goods are those goods that, if they were produced or manufactured in Australia, would be subject to excise duty under the Excise Tariff Act 1921. This Part contains special rules for the treatment of biofuels and biofuel blends.
The amendments in the HS2017 Customs Bill make minor amendments to maintain the collection of the correct import duties for biofuels and biofuel blends imported under ChAFTA, and to implement changes required as part of the fifth review of the HS.
Item 1 - Subparagraph 105B(3)(b)(ii)
Item 1 omits the term "or 11" and substitutes with ", 11 or 12" in subparagraph 105B(3)(b)(ii).
This amendment inserts a reference to Schedule 12 to the Customs Tariff Act to maintain the collection of the correct import duties for biofuels and biofuel blends imported under ChAFTA.
Item 2 - Subsection 105B(4) (paragraph (a) of the definition of biofuel blend )
Item 2 omits the reference to subheadings 3824.90.50 and 3824.90.60, and substitutes these with a reference to subheadings 3824.99.30 and 3824.99.40 in paragraph (a) of the definition of "biofuel blend" in subsection 105B(4).
This amendment implements consequential changes resulting from the fifth review of the HS by the WCO, to ensure the effective continuing operation of the provisions in
Part VAA in relation to these products. Subheading 3824.90 in Schedule 3 to the Customs Tariff Act was subdivided into subheadings 3824.91 and 3824.99. Subheading 3824.91 separates certain substances controlled under the Chemical Weapons Convention from other goods of subheading 3824.99. Goods from current subheadings 3824.90.50 and 3824.90.60 are now classified to new subheadings 3824.99.30 and 3824.99.40 respectively.
Item 3 - Subsection 105B(4) (paragraph (b) of the definition of biofuel blend )
Item 3 omits the term "or 11" and substitutes with ", 11 or 12" in paragraph (b) of the definition of "biofuel blend" in subsection 105B(4).
This amendment inserts a reference to Schedule 12 to the Customs Tariff Act to maintain the collection of the correct import duties for biofuels and biofuel blends imported under ChAFTA.