Commonwealth Numbered Regulations - Explanatory Statements

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Issued by the Authority of the Minister for Justice and Customs

Customs Act 1901

Customs Amendment Regulations 1999 (No. 4)

Section 270 of the Customs Act 1901 (the Act) provides in part that the Governor-General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed for giving effect to the Act.

Purpose of the Regulations

These regulations make a technical amendment to paragraph 126(1)(q) of the Customs Regulations 1926 ("the Regulations") as a consequence of amendments proposed to the Customs Tariff Act 1995 ("the Customs Tariff').


In January 1998 legislation, known as the Fuel Substitution (Minimisation) Legislation was introduced. This legislation was intended to deter and detect fuel substitution activities.

While the introduction of the legislation initially had a pronounced effect on these practices, there are indications that fuel substitution has been increasing again in recent months.

It appears that current fuel substitution activities are primarily occurring through opportunistic use of the current structure of the Excise Tariff Act 1922 ("the ExciseTariff"). Hence, it is proposed to amend the Excise Tariff to restrict the opportunities for fuel substitution.

It is proposed to make amendments to the Customs Tariff to mirror those being made to the Excise Tariff. In particular, subheading 2710.00.29 of Schedule 3 to the Customs Tariff will be replaced by subheading 2710.00.20.

Currently, paragraph 126(1)(q) allows a refund to be applied for where duty has been paid under subheading 2710.00.29 of Schedule 3 to the Customs Tariff, the fuel is used for certain purposes and the person claiming the rebate certifies that they have not or will not claim any other remission, rebate, refund or drawback.

The regulations replace the reference to subheading "2710.00.29" with "2710.00.2". This will ensure that refunds of duty paid under current subheading 2710.00.29 and proposed subheading 2710.00.20 will continue to be able to be claimed in relation to certain diesel fuel.

Details of the regulations will are set out in the Attachment.

The regulations commence on gazettal.


Regulation 1 - Name of regulations

Regulation 1. provides that the regulations are named the "Customs Amendment Regulations 1999 (No. 4)".

Regulation 2 - Commencement

Regulation 2 provides that the regulations are to commence on gazettal.

Regulation 3 - Amendment of Customs Regulations 1926

Regulation 3. provides that paragraph 126(1)(q) of the Regulations be amended by omitting "2710.00.29" and substituting "2710.00.2".

This is a technical amendment that will allow refunds to be continued to be claimed in relation to certain diesel fuel upon which duty is paid currently under subheading 2710.00.29 of Schedule 3 to the Customs Tariff and in the future, under proposed subheading 2710.00.20 of that same schedule.

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