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.
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