Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
1998 -
99
THE PARLIAMENT OF THE COMMONWEALTH
OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Justice and
Customs,
Senator the Hon Amanda
Vanstone)
ISBN: 0642 404240
This Bill is one in a package of three Bills to
implement the Tradex Scheme ("Tradex"). The other Bills in the package are
the:
• Tradex Scheme Bill 1999,
which establishes the statutory scheme to be known as the Tradex Scheme;
and
• Tradex Duty Imposition Bill
1999, which imposes the tax payable under section 21 of the Tradex Scheme
Act 1999.
Tradex is a key element of the
Government's "Investing for Growth" industry statement. The objective of Tradex
is to allow for the importation of goods, without payment of duties of customs
or other taxes, provided the goods are subsequently exported or included in
other goods that are exported.
• Further
details of Tradex are contained in the Explanatory Memorandum for the Tradex
Scheme Bill 1999.
The purpose of this
Bill is to insert a new item, item 21A, into Schedule 4 to the Customs
Tariff 1995. This will allow for the importation, without payment of
customs duty, of goods included in a "tradex order", where those goods are
imported by the holder of the order.
• A
person must apply for a tradex order. Once made, a tradex order enables the
particular "eligible" goods identified in the order to be entered under item
21A. See further, the Tradex Scheme Bill 1999.
This Bill is one of a package of three Bills to
implement the Tradex initiative.
The detailed
regulation impact statement relating to Tradex is contained within the
Explanatory Memorandum for the Tradex Scheme Bill 1999.
The financial impact of the introduction of Tradex is
difficult to estimate accurately. The cost of revenue forgone will be highly
dependent on the level of utilisation of
Tradex.
Further information is set out in the
Explanatory Memorandum for the Tradex Scheme Bill
1999.
This clause provides for the Act to be cited as the
Customs Tariff Amendment (Tradex) Act 1999 (Tariff Amendment
Act).
This clause provides for the Tariff Amendment Act to
commence on the same day as the Tradex Scheme Act 1999. This will be 28
days after the Tradex Scheme Act 1999 receives the Royal
Assent.
This clause is the formal enabling provision for the
schedule to the Tariff Amendment Act, providing that each Act specified in the
Schedule is amended or repealed as set out in the applicable items of the
Schedule. The clause also provides that any other items of the Schedule have
effect according to their terms. This is a standard enabling clause for
transitional, savings and application items in amending legislation. There are
no such items in this Bill.
This item inserts a new item in Schedule 4 to the Act.
By providing a "Free" rate of duty, item 21A allows the importation, without
payment of customs duty, of goods which are the subject of a tradex order, where
the goods are imported by the holder of the tradex
order.
By providing that customs duty does not
have to be paid, this new item delivers one of the main benefits of
Tradex.