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2016
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
CUSTOMS AMENDMENT
(2017 HARMONIZED SYSTEM CHANGES) BILL 2016
EXPLANATORY MEMORANDUM
(Circulated by authority of the
Assistant Minister for Immigration and Border Protection,
the Honourable Alex Hawke MP)
CUSTOMS AMENDMENT (2017 HARMONIZED SYSTEM CHANGES) BILL 2016
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.
Customs Amendment (2017 Harmonized System Changes) Bill 2016
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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:
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
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.
ASSISTANT MINISTER FOR IMMIGRATION AND BORDER PROTECTION,
THE HONOURABLE ALEX HAWKE MP
Customs Amendment (2017 Harmonized System Changes) Bill 2016
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CUSTOMS AMENDMENT (2017 HARMONIZED SYSTEM CHANGES) BILL 2016
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.
Customs Amendment (2017 Harmonized System Changes) Bill 2016
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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.
Customs Tariff Amendment (2017 Harmonized System Changes) Bill 2016
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