EXPLANATORY STATEMENT

 

Select Legislative Instrument 2006 No. 329

 

Issued by the Authority of the Minister for Justice and Customs

Customs Act 1901

Customs Amendment Regulations 2006 (No. 5)

Subsection 270(1) 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 or as may be necessary or convenient to be prescribed for giving effect to the Act or for the conduct of any other business relating to the Customs.

The purpose of the amending Regulations is to amend the Customs Regulations 1926 (the Principal Regulations) to update references to tariff headings and subheadings and the classification of goods as a result of amendments to the Customs Tariff Act 1995 (the Customs Tariff Act).

The Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 received the Royal Assent and commenced on 4 November 2006. This Act contains amendments to the Customs Tariff Act which implement changes resulting from the third review of the Harmonized Commodity Description and Coding System, commonly referred to as the Harmonized System. The Harmonized System forms the basis of the Australian Customs Tariff. There are approximately 1200 amendments to the Customs Tariff Act which have effect on and from 1 January 2007.

The Principal Regulations contain several references to tariff headings and subheadings in the Customs Tariff Act. As a consequence of the amendments to some of these headings and subheadings, and the resulting reclassification of some goods, it is also necessary to amend the Principal Regulations to update these references and classifications, also with effect from 1 January 2007. These amendments are of a technical nature only, and involve no change in policy.

The amending Regulations:

•       insert a new subheading in paragraph 185(2)(c) of the Principal Regulations;

•       repeal item 32 of Schedule 2 to the Principal Regulations; and

•       substitute the tariff classification at column 2 of item 48 of Schedule 2 to the Principal Regulations.

Associated amendments to the Customs Tariff Regulations 2004 and the Customs (Australia-US Free Trade Agreement) Regulations 2004, resulting from the third review of the Harmonized System, are the subject of separate regulations.

No consultation was undertaken specifically in relation to the amendments as they are of a minor or machinery nature and do not substantially alter existing arrangements.

The amending Regulations commence on 1 January 2007.

 

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