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CUSTOMS AMENDMENT REGULATIONS 2009 (NO. 1) (SLI NO 91 OF 2009)
Select Legislative Instrument 2009 No. 91
Issued by the Authority of the Minister for Home Affairs
Customs Act 1901
Customs Amendment Regulations 2009 (No. 1)
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, or as may be necessary or convenient to be prescribed, for giving effect to the Act.
The purpose of the amending Regulations is to terminate the Manufacturing in Bond Scheme which is contained in regulations 70 to 74G of the Customs Regulations 1926 (the Principal Regulations) and to repeal a number of other regulations in the Principal Regulations which are no longer used.
Repeal of the Manufacturing in Bond Scheme - Regulations 70 to 74G of the Principal Regulations
Regulations 70 to 74G of the Principal Regulations set out the Manufacturing in Bond Scheme (the Scheme). The Scheme, which was set up in 1998, allows approved manufacturers to defer the payment of duty payable on imported goods if the imported goods are to be incorporated into goods which are for export.
A review of the Tradex and Manufacturing in Bond Schemes, which was completed in 2006, recommended that the Scheme should be terminated as it had not been used by manufacturers since it commenced and the Tradex Scheme provides manufacturers with equivalent benefits without the compliance cost involved with the Scheme.
The amending Regulations, which omit regulations 70 to 74G from the Principal Regulations, implement the recommendation of the review to terminate the Scheme.
Repeal of other Regulations
Regulation 102 of the Principal Regulations provides for the granting of a Certificate of Clearance if an application for the certificate has been made under subsection 118(2) or (5) of the Act and the application has been made in accordance with Form 40. Form 40, which contains a guarantee to pay duty on inwards goods that have been reported but not produced, is contained in Schedule 1 to the Principal Regulations.
As all inwards cargo is now reported electronically in the Integrated Cargo System and the delivery of goods cannot take place without the payment of relevant duties, the guarantee in Form 40 is no longer relied upon. The amending Regulations repeals Form 40 and regulation 102 from the Principal Regulations.
Regulation 104 of the Principal Regulations requires the Master of an overseas vessel arriving at an Australian port from overseas and travelling to another Australian port or for an overseas destination via an Australian port to take out a transire (a Customs permit) in Form 22A. Form 22A, which is contained in Schedule 1 to the Principal Regulations, is required to be produced to the Collector at each subsequent port of call in Australia and retained by the Collector at the vessel's last Australian port of call.
As the Act contains other mechanisms to control and record the movement of goods to be exported, the requirement to take out a transire and to produce the transire at each subsequent port is no longer required. The amending Regulations repeals Form 22A and regulation 104 from the Principal Regulations.
Relevant stakeholders including industry and industry associations were consulted as part of the review of the Tradex and Manufacturing in Bond Scheme. While the repeal of the other regulations does not substantially alter existing arrangements, the relevant industry association was consulted as part of the repeal process.
The amending Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.