Commonwealth Numbered Regulations - Explanatory Statements

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Issued by the Authority of the Minister for Small Business, Construction and Customs

Customs Act 1901

Customs Regulations (Amendment)

Section 270 of the Customs Act 1901 (the Act) provides in part that (1) "The GovernorGeneral may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed for giving effect to this Act ... "

Section 163 of the Act then specifies, amongst other things, that rebates of customs duty are allowed in such circumstances and subject to such conditions and restrictions as are prescribed, and that the regulations may also prescribe the amount of any rebate of customs duty that may be allowed.

The Government decided on 28 May 1989 that the road funding component of customs duty on diesel used in certain ships would be rebated to the coastal shipping industry from 1 July 1992.

The rationale for the rebate was to ensure that coastal shipping operators and, indirectly, the users of coastal shipping would no longer subsidise competing transport modes. The rebate is part of a package of reforms to the Australian shipping industry designed to increase the efficiency and competitiveness of that industry, and is therefore to be available to those parties involved in that process.

The Regulations implement the Government's decision by specifying the diesel fuel eligible for rebate and specifying the rate of rebate applicable as follows:

Regulation 1 is a machinery provision which specifies that the Customs Regulations are amended by the Regulations.

Regulation 2 provides for a new rebate circumstance in the Customs Regulations by inserting new paragraph 126(1)(a) which specifies the eligibility criteria for the new rebate scheme to be as follows:

       the rebate is to be payable to the purchaser of diesel fuel where customs duty has been paid on that diesel fuel at the rate specified under subheading 2710.00.20 of Schedule 3 to the Customs Tariff Act 1987;

       the fuel has been purchased by the applicant on or after 1 July 1992 for use in an eligible vessel; that is, a vessel which is 60 metres or more in length and comes within the definition of a "trading ship" in the Ships (Capital Grants) Act 1987; and

       the applicant for rebate certifies that no other rebate, remission, refund or drawback has been, is being or will be claimed in respect of that diesel fuel.

Regulation 3 specifies the rate of rebate applicable by inserting a new regulation 126B which specifies that the rate of rebate for diesel fuel to which new paragraph 126(1)(q) applies is to be 5.31 cents per litre.

The Regulations commenced on gazettal.

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