Commonwealth Numbered Regulations - Explanatory Statements

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CUSTOMS AMENDMENT REGULATIONS 2000 (NO. 12) 2000 NO. 349

STATUTORY RULES 2000 No. 349

Issued by the Authority of the Minister for Justice and Customs

Customs Act 1901

Customs Amendment Regulations 2000 (No. 12)

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.

Section 96A of the Act provides for the licensing of warehouses as outwards duty free shops. Section 96A of the Act provides in part that:

(2)       Subject to the regulations (if any), a Collector may give permission, in accordance with subsection (3), for goods that are specified in the permission and are sold to a relevant traveller in an outwards duty free shop that is specified in the permission to be:

(a)       delivered to the relevant traveller personally for export by him when making the international flight or voyage in relation to which he is a relevant traveller; and

(b)       exported by the relevant traveller when making that flight or voyage without the goods having been entered for export;

and, subject to subsection (13), the permission is authority for such goods to be so delivered and so exported.

Subsection 96A(5) provides in part that the regulations may prescribe conditions to which a permission given under subsection (2) is to be subject. Subsection 96A(7) provides in part that the conditions:

*       may apply to the proprietor of the duty free shop or the relevant traveller; and

*       may include a condition that the permission only applies to sales to relevant travellers who comply with a prescribed requirement or requirements, such as a requirement to produce a ticket or other travel document.

Subsections 96B(3), 96B(5) and 96B(7) make similar provision in relation to inwards duty free shops.

Regulations 93 and 95 of the Customs Regulations 1956 (the Regulations) prescribe the conditions under which a permission to sell duty free goods in a warehouse may be granted.

The purpose of the Regulations is to amend the Regulations to facilitate the sale of duty free goods by using the telephone, facsimile and the internet. The amendments enable duty free shop proprietors and travellers to enter into agreements to sell duty free goods using these forms of communication. At present, the traveller is required to be physically in the shop to purchase the goods.

The Regulations provide that a proprietor may not enter into an agreement to sell duty free goods to a person unless the person provides the proprietor with details of the intended exportation of the goods - including details such as flight number and date of departure. The person must also show the proprietor the ticket or other travel document to confirm the information previously provided before the person obtains delivery of the goods.

The Regulations are explained in more detail in the attachment.

The Regulations commenced on gazettal.

ATTACHMENT

Customs Amendment Regulations 2000 (No. 12)

Regulation 1 - Name of Regulations

Regulation 1 provides that the Regulations are the Customs Amendment Regulations 2000 (No. 12).

Regulation 2 - Commencement

Regulation 2 provides that the Regulations commenced on gazettal.

Regulation 3 - Amendment of Customs Regulations 1926

Regulation 3 provides that Schedule 1 amends the Customs Regulations 1926 (the Regulations).

Schedule 1 - Amendment

Item 1 - Paragraph 93(7)(a)

Item 1 amends paragraph 93(7)(a) and inserts two new paragraphs 93(7)(b) and (ba).

New paragraph 93(7)(a) concerns the usual situation where the traveller is physically in the duty free shop to purchase goods. The structure of the paragraph has been amended but the content of the condition remains the same. The paragraph imposes a condition on the permission to sell duty free goods which requires that the proprietor must only sell goods to a relevant traveller who has shown the necessary ticket or other approved document that shows that the person is entitled to make the international flight or voyage.

New paragraph 93(7)(b) addresses the situation where the traveller is not physically in the shop but wishes to purchase the goods using the telephone or over the internet (or by some other form of communication). The Act requires that the actual sale of goods take place in the shop; however, the proposed amendment permits the traveller and the duty free shop proprietor to enter into an agreement to sell the goods by phone or using the internet. An agreement to sell is a contract under which the transfer of property in the goods takes place at a future time or subject to some condition thereafter to be fulfilled. An agreement to sell becomes a sale when the time elapses or the conditions are satisfied. The agreement to sell must provide for the sale to take place in the shop.

New paragraph 93(7)(b) provides that the proprietor must not enter into an agreement to sell goods to a person unless 3 criteria are met. First, the person must be a relevant traveller. Second, the person must have given the proprietor details of the intended exportation of the goods, that is; the flight or voyage details, including the date of departure, airport or wharf of departure, the flight number, name of the ship and number or other designation of the voyage and the ticket number or other authorised travel document details. The details which must be provided by the traveller are those required for the proprietor to fill out the necessary invoice which is attached to the goods (under subparagraph 93(7)(e)(ii) of the Regulations). These details may be provided orally (over the telephone) or in writing, for example, by email or facsimile.

Finally, it is a condition that the actual sale of the goods takes place in the shop.

New paragraph 93(7)(ba) ensures that where agreements to sell duty free goods are entered into, the traveller does not obtain possession of the goods unless the flight or voyage details that he or she provided to the proprietor are confirmed. The paragraph requires that the proprietor must not deliver the goods to the traveller unless the traveller has shown his or her ticket or other travel document that confirms the details the traveller previously provided.

Item 2 - Paragraph 93(7)(b)

Item 2 is a consequential amendment. Paragraph 93(7)(c) currently provides that the goods must not be delivered to a traveller more than 30 days before the day on which, according to the ticket or other document, the flight or voyage is to depart. Item 2 amends the paragraph to include a reference to the situation where the details of the flight or voyage are provided by the traveller.

Item 3 - Paragraph 93(8)(a)

Subregulation 93(8) imposes conditions in relation to permissions granted for on-airport duty free shops. Item 3 amends paragraph 93(8)(a) and inserts two new paragraphs 93(8)(aa) and (ab).

As with item 1 above, new paragraph 93(8)(a) concerns the usual situation where the traveller is physically in the on-airport duty free shop to purchase goods. The structure of the paragraph has been amended but the content remains the same. The paragraph imposes a condition on the permission that requires that the proprietor must only sell goods to a relevant traveller who has shown the necessary ticket or other document proving that the person is entitled to make the international flight or voyage.

New paragraph 93(8)(aa) addresses the situation where the traveller is not physically in the shop but wishes to purchase goods using the telephone or over the internet (or by some other form of communication). As with item 1, the amendments permit the duty free shop proprietor and the traveller to enter into an agreement to sell duty free goods.

New paragraph 93(8)(aa) provides that the proprietor must not enter into an agreement to sell goods unless 3 criteria are met. First, the person must be a relevant traveller. Second, the person must have given the proprietor details of the intended exportation of the goods, that is the flight or voyage details, including the date of departure, airport or wharf of departure, the flight number and the ticket number. These details are those required for the proprietor to fill out the necessary invoice which is delivered with the goods (under subparagraphs 93(8)(b)(ii) and 93(8)(c)(i)). These details may be provided orally (over the telephone) or in writing, for example, by email or facsimile.

Finally, it is a condition that the actual sale of the goods takes place in the shop.

New paragraph 93(8)(ab) ensures that where agreements to sell duty free goods are entered into, the traveller does not obtain possession of the goods unless the flight or voyage details that he or she provided to the proprietor are confirmed. The paragraph requires that the proprietor must not deliver the goods to the traveller unless the traveller has shown his or her ticket or other document which confirms the details the traveller previously provided.

Item 4 - Subparagraph 93(8)(d)(i)

Item 4 substitutes a new subparagraph 93(8)(d)(i). Subparagraph (i) currently requires that the proprietor deliver one copy of the invoice to the traveller with the goods. The amendment provides for the proprietor to place one copy with the goods that are to be delivered to the traveller. This amendment is to reflect the fact that when a sale takes place to a traveller who is not in the store, the delivery of the goods will occur at some later date.

Item 5 - Subparagraph 93(8)(d)(ii)

Item 5 amends subparagraph 93(8)(d)(ii) by omitting the words "subject to paragraph (f)". Paragraph (f) was repealed by Statutory Rule No. 447 of 1992. The cross-reference to this paragraph in subparagraph 93(8)(d)(ii) was overlooked when this amendment was made.

Item 6 - Subregulation 93(14)

Item 6 substitutes a new subregulation 93(14). Existing subregulation 93(14) provides that at the time of buying duty free goods at an outwards duty free shop, a relevant traveller must sign a recognition, in an approved form, of the traveller's obligations concerning the export of the goods.

New subregulation 93(14) provides that the traveller must sign the recognition at or before delivery of the goods. This amendment is required because where the traveller is not in the shop, he or she obviously cannot sign the recognition at the time of buying the goods. Under the proposed amendments, the goods may be delivered to the traveller at a location other than the shop.

Item 7 - Paragraph 95(7)(a)

Subregulation 95(7) imposes conditions in relation to permissions granted for inwards duty free shops. Item 7 amends paragraph 95(7)(a) and inserts two new paragraphs 95(7)(aa) and (ab).

As with items 1 and 3 above, new paragraph 95(7)(a) concerns the usual situation where the traveller is physically in the inwards duty free shop to purchase goods. The structure of the paragraph has been amended but the content remains the same. The paragraph imposes a condition on the permission which requires that the proprietor must only sell goods to a relevant traveller who has shown the necessary ticket or other document proving that the person has arrived on an international flight or voyage.

New paragraph 95(7)(aa) addresses the situation where the traveller is not physically in the shop but wishes to order goods by telephone or over the internet (or by some other form of communication). As with items 1 & 3, this amendment permits the duty free shop proprietor and the traveller to enter into an agreement to sell duty free goods.

New paragraph 95(7)(aa) will provide that the proprietor must not enter into an agreement to sell goods unless 4 criteria are met. First, the person must be or intend to be a relevant traveller. Second, the person must have given the proprietor details of the intended exportation of the goods, that is the flight or voyage details, including the date of departure, airport or wharf of departure, the flight number and the ticket number. These details are those required for the proprietor to fill out the necessary invoice that is attached to the goods. These details may be provided orally (over the telephone) or in writing, for example, by email or facsimile.

Third, the proprietor must inform the person of the concessional limits which apply to the entry of alcohol and tobacco products and any conditions with which the traveller is to comply. At present, travellers are permitted to import 1125ml of alcoholic liquor and 250 cigarettes or 250 grams of cigars or tobacco products duty free.

Existing paragraph 95(7)(c) of the Regulations requires the proprietor of an inwards duty free shop to display signs advising travellers of the concessional limits and any conditions imposed by the Customs Act concerning the purchase of goods at the shop. As the regulations now involve situations where the traveller is not physically in the shop, this paragraph requires that the traveller must be informed of these matters by the proprietor.

Finally, it is a condition that the actual sale of the goods takes place in the shop.

New paragraph 95(7)(ab) ensures that where agreements to sell duty free goods are entered into, the traveller does not obtain possession of the goods unless the flight or voyage details that he or she provided to the proprietor are confirmed. The paragraph requires that the proprietor must not deliver the goods to the traveller unless the traveller has shown their ticket or other document which confirms the details they previously provided.