CUSTOMS TARIFF AMENDMENT BILL (NO. 1) 2007 Explanatory Memorandum

Commonwealth of Australia Explanatory Memoranda

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CUSTOMS TARIFF AMENDMENT BILL (NO. 1) 2007

2004-2005-2006-2007 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES CUSTOMS TARIFF AMENDMENT BILL (NO. 1) 2007 EXPLANATORY MEMORANDUM (Circulated by authority of the Minister for Justice and Customs, Senator the Honourable David Johnston)

CUSTOMS TARIFF AMENDMENT BILL (NO. 1) 2007 OUTLINE The purpose of this Bill is to make minor amendments to the Customs Tariff Act 1995 (the Customs Tariff). Schedule 1 will repeal the current subheading for the chemical binapacryl and create a new subheading for this chemical. This will ensure that binapacryl is correctly classified in the Customs Tariff. The separate identification of this chemical is required under the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, to which Australia is a signatory. Schedule 2 will move prepared culture media for the development or maintenance of viruses from its current subheading, where it has a customs duty rate of 5%, to a new subheading, where it will receive a customs duty rate of "Free". This amendment was included in Customs Tariff Proposal (No. 1) 2007, which was tabled in the House of Representatives on 15 February 2007. FINANCIAL IMPACT STATEMENT The amendments will have no financial impact. Page 2 Customs Tariff Amendment Bill (No. 1) 2007

CUSTOMS TARIFF AMENDMENT BILL (NO. 1) 2007 NOTES ON CLAUSES Clause 1 - Short title 1. This clause provides for the Bill, when enacted, to be cited as the Customs Tariff Amendment Act (No. 1) 2007. Clause 2 - Commencement 2. Subclause (1) provides that each provision of the Act specified in column 1 of the table in subclause (1) commences or is taken to have commenced on the day or at the time specified in column 2 of the table. 3. Item 1 of the table provides that sections 1 to 3 and anything in the Act not covered elsewhere in the table will commence on the day on which the Act receives the Royal Assent. 4. Item 2 of the table provides that Schedule 1 will commence on the day on which the Act receives the Royal Assent. 5. Item 3 of the table provides that Schedule 2 will commence immediately after the commencement of the Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006 (the HS2007 Act). The HS2007 Act commenced on the day it received the Royal Assent, being 4 November 2006. The application provision in the HS2007 Act specified that the amendments took effect from 1 January 2007. 6. The amendment contained in item 1 of Schedule 2 was contained in Customs Tariff Proposal (No. 1) 2007, which was tabled in the House of Representatives on 15 February 2007. The date of effect of the change was 1 January 2007 as the change was originally included in Customs Tariff Notice No. 1 (2006), published in Special Commonwealth Gazette S222 on 15 December 2006, in accordance with section 273EA of the Customs Act 1901. 7. The Customs Tariff Proposal mechanism is used for effecting alterations to the Customs Tariff, particularly when such alterations are required to have effect in a short time frame that cannot be achieved through a Customs Tariff Amendment Bill. Customs Tariff Proposals are used most commonly for introducing new items, for changing rates of duty and for restructuring items in the Schedules to the Customs Tariff. 8. Following the introduction of a Customs Tariff Proposal in the House of Representatives, the alterations contained in the Proposal are incorporated in a Customs Tariff Amendment Bill that is introduced into and debated by the Parliament. Customs Tariff Amendment Bill (No. 1) 2007 Page 3

Clause 3 - Schedule(s) 9. This clause is the formal enabling provision for the Schedules to the Bill, providing that each Act specified in a Schedule is amended in accordance with the applicable items of the Schedule. In this Bill, the Customs Tariff is being amended. 10. The clause also provides that the other items of the Schedules have effect according to their terms. This is a standard enabling clause for transitional, savings and application items in amending legislation. Page 4 Customs Tariff Amendment Bill (No. 1) 2007

SCHEDULE 1 - Binapacryl Customs Tariff Act 1995 Item 1 - Schedule 3 (after subheading 2916.19.10) 1. This item inserts new subheading 2916.19.20 in Schedule 3 to the Customs Tariff to separately identify binapacryl. This substance is a pesticide. These goods transfer from subheading 2916.36.00. 2. This amendment has been made in accordance with the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade. The separate identification of this chemical is required under this convention, to which Australia is a signatory. Item 2 - Schedule 3 (subheading 2916.36.00) 3. This item repeals subheading 2916.36.00 (Binapacryl (ISO)). These goods transfer to the new subheading 2916.19.20. Item 3 - Application 4. This item provides that the amendments contained in items 1 and 2 of Schedule 1 to the Bill apply to goods imported into Australia on or after the day on which the Act receives the Royal Assent and also to goods which are imported before that date but on which the time for working out the rate of import duty on those goods will be after that date. For example, this application provision will apply to goods that are warehoused on importation before the Act receives the Royal Assent but which are not entered for home consumption until on or after the date of Royal Assent. Customs Tariff Amendment Bill (No. 1) 2007 Page 5

SCHEDULE 2 - Prepared culture media Customs Tariff Act 1995 Item 1 - Schedule 3 (subheading 3821.00.10, the description of goods in column 2) 5. This amendment repeals and substitutes the description for subheading 3821.00.10 in Schedule 3 to the Customs Tariff. The new description no longer contains a reference to prepared culture media for the development or maintenance of viruses. These goods will transfer to subheading 3821.00.90 (Other) in Schedule 3. 6. This amendment will move prepared culture media for the development or maintenance of viruses from its current subheading, where it has a customs duty rate of 5%, to a new subheading, where it will receive a customs duty rate of "Free". It was always intended that, as part of the HS2007 changes, that this type of prepared culture media would maintain its "Free" rate of customs duty. Item 2 - Application 7. This item provides that the amendment contained in item 1 of Schedule 2 to the Bill applies to goods imported into Australia on or after 1 January 2007 and also to goods that were imported before that date but on which the time for working out the rate of import duty on those goods had not occurred before that date. For example, this application provision will apply to goods that were warehoused on importation before 1 January 2007 and not entered into home consumption until on or after 1 January 2007. Page 6 Customs Tariff Amendment Bill (No. 1) 2007

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