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CUSTOMS REGULATIONS (AMENDMENT) 1998 NO. 38
EXPLANATORY STATEMENTSTATUTORY RULES 1998 NO. 38
Issued by the Authority of the Minister for Customs and Consumer Affairs
Customs Act 1901
Customs Regulations (Amendment)
Section 270 of the Customs Act 1901 ("the Act") provides in part that the GovernorGeneral 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 Amendments
The purpose of the regulations is to extend to certain manufacturers the facility to import goods (whether intended for eventual reexport or for home consumption) on a duty deferral basis, where such assistance would enable the manufacturer to enhance an existing export market, or to establish an export market.
duty deferral: normally, duty must be paid on imported goods before they are used in a manufacturing process. These regulations will enable certain manufacturers to defer payment of that duty until after that manufacturing process.
in accordance with the new provisions, persons who hold a warehouse licence and obtain approval from the Secretary, Department of Industry, Science and Tourism (defined in the new regulations as the "DIST Secretary") may "manufacture-in-bond", that is, import goods, store those goods in a licensed warehouse, and use those goods in a manufacturing process within the confines of the warehouse. The existing go provisions in the regulations afford only limited opportunity for importers to "manufacture-in-bond" in relation to a limited class of goods; otherwise, it is generally not permitted to deal with imported goods in this manner.
The new provisions will provide for approval to be granted to "manufacture-in-bond" in relation to any imported goods where the DIST Secretary is satisfied, having regard to a business plan submitted by the manufacturer, that manufacture under the approval would increase the manufacturer's exports. This decision is reviewable by the Administrative Appeals Tribunal.
The Regulations commenced on gazettal.
ATTACHMENT
Regulation 1 - Amendment
Regulation 1 provides that the Customs Regulations ("the Regulations") are amended as set out in the regulations.
Regulation 2 - Commencement
Regulation 2 provides that the Regulations commence on gazettal.
Regulation 3 - Regulations 70-73
Regulation 3 omits regulations 70-73 inclusive and substitutes new regulations 70-74G inclusive.
* Existing regulations 70-73 provide for the existing arrangements for manufacturing in bond. These are limited in nature, being confined to a specific range of goods nominated in those regulations.
New regulations 70-74G substitute new provisions, extending the manufacturing in bond arrangements to any goods, subject to approval by the DIST Secretary.
Manufacturing in Bond
New regulation 70 provides definitions for the purpose of new manufacturing in bond provisions.
Application for approval to manufacture in bond
New regulation 71 provides that a person may apply to the DIST Secretary for approval to manufacture in bond.
Subregulation 71(2) provides that the application must be made on a form approved by the DIST Secretary, and must contain or be accompanied by the information required by the form.
Subregulation 71(3) provides that the application must be accompanied by a business plan, and be signed in a manner indicated in the form - subregulation 71(5).
Subregulation 71(4) provides that the business plan must give an outline of the applicant's plans for manufacturing in bond and, in particular, plans for selling the goods manufactured.
Subregulation 71(7) provides that the application form is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
* In accordance with that section, disallowable instruments must be tabled in each House of the Parliament within 15 sitting days after they are made.
Decisions about applications
New regulation 72 provides that the DIST Secretary must consider an application and decide whether to approve or refuse it. New subregulation 72(3) provides for the DIST Secretary to seek further information from the applicant if he or she considers that necessary.
this decision is reviewable by the Administrative Appeals Tribunal - new regulation 74C
Criteria for decisions
New regulation 73 sets out the matters to which the DIST Secretary must have regard in considering whether to grant approval to manufacture in bond. These matters are:
* the applicant's business plan - new paragraph 73(a);
* the likely increase in the level of the applicant's sales overseas if the approval is given - new paragraph 73(b);
* whether an earlier approval given to the applicant has been revoked, or
made subject to additional conditions after being reassessed -
new paragraph 73(c);
* any contracts for the sale overseas of the manufactured goods to which the applicant is a party - new paragraph 73(d);
* details of any market research conducted by the applicant about the goods the applicant proposes to manufacture in bond - new paragraph 73(e);
* any other information required by the application form -
new paragraph 73(f).
Ø Subregulation !L U7 provides that the application form is a
disallowable instrument for the purposes of section 46A of the
Acts Interpretation Act 1901.
Approval subject to conditions
New regulation 74 provides that the DIST Secretary may impose conditions on the grant of approval to manufacture in bond.
Reassessment of decisions
New regulation 74 provides that the DIST Secretary may, at any time, reassess an approval to manufacture in bond.
New subregulation 74A(2) provides that, prior to reassessing an approval, the DIST Secretary must give the holder 28 days written notice, and invite the holder to give the DIST Secretary any information that the holder considers relevant to the reassessment - new subregulation 74A(3).
New subregulation 74A(4) provides that, in reassessing an approval, the DIST Secretary may revoke the approval, make the approval subject to conditions, or change any conditions to which the approval is subject.
New subregulation 74A(5) provides that, in making a reassessment decision, the DIST Secretary may have regard to any information given by the holder, and any other information the DIST Secretary considers relevant to the reassessment.
* this decision is reviewable by the Administrative Appeals Tribunal - new regulation 74C
New subregulation 74A(6) provides that, where the holder fails to provide information within that 28 day period, the DIST Secretary is not prevented from proceeding to reassess the approval to manufacture in bond.
Telling affected person of decision on application or reassessment
New regulation 74B provides for affected persons to receive Written notification of decisions made in relation to manufacturing in bond, including notification that review of decisions is available by the Administrative Appeals Tribunal.
Review of decisions
New regulation 74C provides for review of unfavourable decisions by the Administrative Appeals Tribunal.
Telling Customs of decisions
New regulation 74D provides a mechanism for the DIST Secretary to advise Customs of decisions made concerning approval to manufacture in bond.
Since the grant of approval enables manufacturing to be performed in warehouses licensed under the Customs Act 1901, this advice is necessary to ensure that Customs is properly able to discharge its functions in that regard.
Getting information from Customs
New regulation 74E provides a mechanism for the DIST Secretary to request information from Customs that may help in considering an application for approval to manufacture in bond (new regulation 72), or reassessing an approval (new regulation 74A).
* information concerning the imports or exports of the applicant may be of assistance to the DIST Secretary in considering or reassessing approval to manufacture in bond.
Authorisation to make decisions
New regulation 74F enables the DIST Secretary to delegate his or her power to make decisions under these regulations relating to manufacture in bond.
Requirements for manufacturing in bond
New regulation 74G authorises manufacture in bond by the holder of a warehouse licence who has obtained approval from the DIST Secretary for that purpose, while that approval is in force.