House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Home Affairs, the Honourable Jason Clare MP)

Outline

The Customs Tariff Amendment (Schedule 4) Bill 2012 (the Schedule 4 Bill) amends Schedule 4 of the Customs Tariff Act 1995 (the Customs Tariff Act).

These amendments are the result of a review conducted by the Better Regulation Ministerial Partnership (the Partnership) between the Minister for Finance and Deregulation; the then Minister for Innovation, Industry, Science and Research; and the Minister for Home Affairs, to simplify the existing tariff concession regime.

Schedule 4 of the Customs Tariff Act lists approximately 100 concessional items covering a range of goods and user categories in respect of which concessional rates of import duty have been granted. Schedule 4 delivers a range of policy objectives, including industry assistance and the implementation of tariff concessions arising from international treaties.

However, the current Schedule 4 is complex and difficult to use. This is due, in part, to unnecessary overlapping of concessions, the presence of redundant or rarely used concessions, and unclear wording. This complexity imposes burdens on industry that invariably flow on to consumers, and may result in an overall reduction in business activity and investment.

The amendments to Schedule 4 reduce regulatory red tape and unnecessary complexity. The amendments achieve this by consolidating concessions of similar coverage and removing redundant or rarely used concessions.

The new Schedule 4 will have a revised 55 concessional items, and descriptive headings for each concessional item grouping, for example "Goods of a scientific, educational or cultural kind".

When enacted the Bill will repeal the existing Schedule 4 of the Customs Tariff Act and replace it with the revised Schedule. The new Schedule will affect nearly all items in Schedule 4, including the numbering of concessions. However, the scope of the concessions and the concessional duty rates will not be affected.

In addition, transitional provisions will ensure that entitlements in force for certain items immediately before the commencement of the Act will remain in force.

Other concessions expressed to apply to goods as prescribed by by-law will have by-laws reissued and, where appropriate, reworded for clarification.

Importers, brokers and manufacturers will benefit from the amendments and the general clarification of the legislative and administrative provisions of the Schedule 4 Bill. The new Schedule will be clearer and easier to use.

Financial Impact Statement

The Department of the Treasury has costed the Schedule 4 Bill as having nil impact on the fiscal balance.

Statement of Compatability with Human Rights

(Prepared in accordance with Part 3 of the Human Rights ( Parliamentary Scrutiny ) Act 2011 )

Customs Tariff Amendment (Schedule 4) Bill 2012

This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights ( Parliamentary Scrutiny ) Act 2011 .

Overview of the Bill

The purpose of this Bill is to amend Schedule 4 of the Customs Tariff Act 1995 (the Customs Tariff Act) to make it easier to understand and less complex.

Schedule 4 of the Customs Tariff Act lists a range of goods and user categories in respect of which concessional rates of import duty have been granted. Schedule 4 achieves various objectives, such as the implementation of several international treaties.

However, the current Schedule 4 is complex and difficult to use. This is due, in part, to unnecessary overlapping of concessions, the presence of redundant or rarely used concessions, and unclear wording.

When enacted, the Bill will amend Schedule 4 by:

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consolidating concessional items of similar coverage;

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removing redundant or rarely used concessional items; and

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placing similar concessional items together in a re-worked Schedule 4 structure.

When enacted the Bill will repeal the existing Schedule 4 of the Customs Tariff Act and replace it with the revised Schedule. The new Schedule will affect nearly all items in Schedule 4, including the numbering of the items. However, the scope of the items and the concessional duty rates will not be affected.

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 legislative instrument does not raise any human rights issues.

Minister for Home Affairs