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2002-2003-2004
(Circulated
by authority of the
Minister for Justice and Customs,
Senator
the Honourable Christopher Martin Ellison)
CUSTOMS TARIFF AMENDMENT (FUELS) BILL
2004
GENERAL OUTLINE
The purpose of this Bill
is to amend the Customs Tariff Act 1995 (the Customs Tariff) to
incorporate in the Customs Tariff alterations contained in Customs Tariff
Proposal No. 3 (2003) relating to high sulphur diesel, Customs Tariff Proposal
No. 4 (2003), relating to aviation fuel and Customs Tariff Proposal No. 5 (2003)
relating to biodiesel, to:
• Impose a customs duty of 1 cent per
litre for high sulphur diesel on top of the normal diesel rate of 38.143
cents per litre from 1 July 2003, and 2 cents per litre from
1 January 2004. High sulphur diesel is diesel with a sulphur content
above 50 parts per million;
• Increase the rate of
customs duty for aviation fuels by 0.306 cents per litre to
$0.03151 per litre for aviation kerosene and to
$0.03114 per litre for aviation gasoline;
• Impose
customs duty on biodiesel for use as a fuel in an internal combustion engine at
the rate of 38.143 cents per litre, the same rate that applies to ultra low
sulphur diesel; and
• Implement minor consequential amendments to
the Customs Tariff and to the Customs Tariff Amendment Act (No. 1)
2003.
FINANCIAL IMPACT STATEMENT
Increased revenue
from the increase in excise and customs duties on high sulphur diesel is
estimated at $135 million for 2003-04 and $110 million for
2004-05.
Increased revenue from the increase in excise and customs duties
on aviation fuels is estimated at $6.5 million for 2003-2004.
Increased
revenue from the excise and customs duties on biodiesel, allowing for
displacement of diesel, is estimated at $5 million for 2003-2004 and $10 million
for 2004-2005. The excise and customs duties payable on biodiesel will be
offset by the biodiesel subsidy estimated at $15 million for 2003-2004 and $44
million for 2004-2005.
Other amendments in
the Bill have no financial impact.
NOTES ON CLAUSES
This clause provides that this Act may be cited as the Customs Tariff
Amendment (Fuels) Act 2004.
This clause provides that sections 1, 2 and 3 of the amendment Act will
commence on the day on which this Act receives Royal Assent.
This clause
also provides that Part 1 of Schedule 1 of the amendment Act will commence
immediately after the commencement of Schedule 2 to the Customs Tariff
Amendment Act
(No. 1) 2003, that is on 1 July
2003.
The clause provides that Part 2 of Schedule 1 of the amendment Act
will commence immediately after the commencement of Schedule 3 to the Customs
Tariff Amendment Act (No. 1) 2003, that is on 28 July 2003.
The
clause provides that Part 3 of Schedule 1 of the amendment Act will commence
immediately after the commencement of Schedule 2 to the Customs Tariff
Amendment Act (No. 1) 2003, that is on 1 July 2003.
The clause
provides that Part 4 of Schedule 1 of the amendment Act will commence
immediately after the commencement of Schedule 3 to the Customs Tariff
Amendment Act (No. 1) 2003, that is on 28 July 2003.
The clause
provides that Part 5 of Schedule 1 of the amendment Act will commence on
18 September 2003.
The clause provides that Part 1 of Schedule 2 of
the amendment Act will not commence unless the Customs Tariff Amendment Act
(No. 1) 2004 commences, in which case the provisions are taken to have
commenced immediately after the commencement of the provisions of Part 1 of
Schedule 1 of the amendment Act, that is on 1 July 2003.
The clause
provides that Part 2 of Schedule 2 of the amendment Act will not commence unless
the Customs Tariff Amendment Act (No. 1) 2004 commences, in which case
the provisions are taken to have commenced immediately after the commencement of
the provisions of Part 5 of Schedule 1 of the amendment Act, that is on
18 September 2003.
The clause provides that Schedule 3 of the
amendment Act will commence immediately after the commencement of section 1 of
the Customs Tariff Amendment Act (No. 1) 2003, that is on
30 June 2003, the date on which that Act received Royal
Assent.
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. 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. Such Bills necessarily have the same date
of effect as the original Proposal.
Clause 3 -
Schedule(s)
This clause provides the various Acts being amended or
repealed by this Act, which are specified in the Schedules to the
Act.
SUMMARY OF AMENDMENTS
SCHEDULE 1 – AMENDMENT OF
THE CUSTOMS TARIFF ACT 1995
Schedule 1 of the Customs Tariff
Amendment (Fuels) Bill 2004 (the Bill) incorporates, in the Customs Tariff,
alterations contained in Customs Tariff Proposals No. 3 (relating to ultra low
sulphur diesel), No. 4 (aviation fuel) and No. 5 of 2003 (biodiesel).
Customs Tariff Proposal No. 3 (2002) imposed an excise equivalent
customs duty on fuel ethanol for use in internal combustion engines. The Senate
has, however, delayed debate of Customs Tariff Amendment Bill (No. 2) 2003 (CTAB
(No. 2) 2003) that sought to incorporate, in the Customs Tariff, the alterations
contained in Customs Tariff Proposal No. 3 (2002).
It is possible that
the Bill will be passed before the CTAB (No. 2) 2003. The amendments in
Schedule 1 of the Bill treat ethanol as it was treated in the Customs Tariff
before the introduction into Parliament of Customs Tariff Proposal No. 3
(2002).
Schedule 2 of the Bill contains further amendments to the Customs
Tariff that will apply to ethanol if and when CTAB (No. 2) 2003 is
enacted.
Part 1 – Amendments providing different customs duty
rates for diesel and other fuels by reference to their sulphur
content
Part 1 of Schedule 1 of the Bill imposes an additional
customs duty of 1 cent per litre on high sulphur diesel on top of the normal
diesel rate of 38.143 cents per litre from 1 July 2003, and 2 cents
per litre from 1 January 2004. High sulphur diesel is diesel with a
sulphur content above 50 parts per million. Ultra low sulphur
diesel has a sulphur content not exceeding 50 parts per million.
The new
additional duty rates also apply to similar products being kerosene, heating
oil, stabilised crude petroleum oil and topped crude petroleum oil for use as a
fuel in an internal combustion engine and for certain other uses, whose sulphur
content exceeds 50 parts per million.
These duty rates were announced by
the Prime Minister on 31 May 1999 in the Measures for a Better
Environment package. The new duty rates will give effect to the
Government’s decision to encourage the early introduction of ultra low
sulphur diesel, which will be mandated by 1 January 2006 under the
Fuel Quality Standards Act 2000. The Government deferred the
introduction of the first increase of customs duty on high sulphur diesel and
similar products until 1 July 2003 because of concern about the possibility
of raising costs to diesel users when the farm sector was facing serious
drought conditions.
Part 1 of Schedule 1 to the Bill commences
immediately after the commencement of Schedule 2 to the Customs Tariff
Amendment Act (No. 1) 2003, that is on 1 July 2003.
Part 1 of
Schedule 1 incorporates in the Customs Tariff, alterations contained in
Part 1 of Schedule 1 to Customs Tariff Proposal No. 3 (2003). This
Proposal was introduced in Parliament on 25 June 2003 and Part 1 took
effect from 1 July 2003.
Subheading 2709.00.89 applies to stabilised crude petroleum oil. Item 1
repeals this subheading and replaces it with two new subheadings, 2709.00.87 and
2709.00.88, to differentiate this product with a sulphur content not exceeding
50 parts per million (2709.00.87) and with a sulphur content exceeding 50 parts
per million (2709.00.88) and to apply the rates of duty set out above to these
goods.
Subheading 2710.19.19 applies to topped crude petroleum oil. Item 2
repeals this subheading and replaces it with two new subheadings, 2710.19.17 and
2710.19.18, to differentiate this product with a sulphur content not exceeding
50 parts per million (2710.19.17) and with a sulphur content exceeding 50 parts
per million (2710.19.18) and to apply the rates of duty set out above to these
goods.
Subheading 2710.19.20 applies to diesel fuel. Item 3 repeals this
subheading and replaces it with two new subheadings, 2710.19.21 and 2710.19.29,
to differentiate this product with a sulphur content not exceeding 50 parts per
million (2710.19.21) and with a sulphur content exceeding 50 parts per million
(2710.19.29) and to apply the rates of duty set out above to these
goods.
Subheading 2710.19.39 applies to heating oil and kerosene. Item 4
repeals this subheading and replaces it with two new subheadings, 2710.19.37 and
2710.19.38, to differentiate these products with a sulphur content not exceeding
50 parts per million (2710.19.37) and with a sulphur content exceeding 50 parts
per million (2710.19.38) and to apply the rates of duty set out above to these
goods.
Subheading 2710.91.19 applies to topped crude petroleum oil. Item 5
repeals this subheading and replaces it with two new subheadings, 2710.91.17 and
2710.91.18, to differentiate this product with a sulphur content not exceeding
50 parts per million (2710.91.17) and with a sulphur content exceeding 50 parts
per million (2710.91.18) and to apply the rates of duty set out above to these
goods.
Subheading 2710.91.20 applies to diesel fuel. Item 6 repeals this
subheading and replaces it with two new subheadings, 2710.91.21 and 2710.91.29,
to differentiate this product with a sulphur content not exceeding 50 parts per
million (2710.91.21) and with a sulphur content exceeding 50 parts per million
(2710.91.29) and to apply the rates of duty set out above to these
goods.
Subheading 2710.91.39 applies to heating oil and kerosene. Item 7
repeals this subheading and replaces it with two new subheadings, 2710.91.37 and
2710.91.38, to differentiate these products with a sulphur content not exceeding
50 parts per million (2710.91.37) and with a sulphur content exceeding 50 parts
per million (2710.91.38) and to apply the rates of duty set out above to these
goods.
Subheading 2710.99.19 applies to topped crude petroleum oil. Item 8
repeals this subheading and replaces it with two new subheadings, 2710.99.17 and
2710.99.18, to differentiate this product with a sulphur content not exceeding
50 parts per million (2710.99.17) and with a sulphur content exceeding 50 parts
per million (2710.99.18) and to apply the rates of duty set out above to these
goods.
Subheading 2710.99.20 applies to diesel fuel. Item 9 repeals this
subheading and replaces it with two new subheadings, 2710.99.21 and 2710.99.29,
to differentiate this product with a sulphur content not exceeding 50 parts per
million (2710.99.21) and with a sulphur content exceeding 50 parts per million
(2710.99.29) and to apply the rates of duty set out above to these
goods.
Subheading 2710.99.39 applies to heating oil and kerosene. Item 10
repeals this subheading and replaces it with two new subheadings, 2710.99.37 and
2710.99.38, to differentiate these products with a sulphur content not exceeding
50 parts per million (2710.99.37) and with a sulphur content exceeding 50 parts
per million (2710.99.38) and to apply the rates of duty set out above to these
goods.
This item amends the table to item 44 in Schedule 4 to the Customs Tariff
by inserting new references to those subheadings that have been created in Part
1 of Schedule 1 of this Bill and deleting references to those subheadings that
have been repealed.
Item 44 grants concessional entry to particular
imported goods, by reference to their tariff classification, that are for use in
the manufacture of excisable goods in terms of section 24 of the
Excise Act 1921. The amendments to this item ensure that the
references to the classifications reflect the amendments contained in items 1 to
11 of Part 1 of Schedule 1 of this Bill.
Part 2 – Further
amendments relating to the different customs duty rates that apply to diesel and
other fuels by reference to their sulphur content
Part 2 of Schedule
1 to the Bill amends the Customs Tariff to insert the abbreviation for
Singapore, “SG”, into the duty rate for the new subheadings created
in Part 1 of Schedule 1 of the Bill.
Customs Tariff Amendment Act (No.
1) 2003 gave effect to Australia’s commitment to remove tariffs on
goods of Singapore origin under the Singapore Australia Free Trade Agreement
(SAFTA), from the entry into force of SAFTA on 28 July 2003.
The Customs Tariff imposes customs duties on certain alcohol, tobacco and
petroleum products that are equivalent to the excise duty imposed, under the
Excise Tariff Act 1921, on the same goods when domestically produced.
Such duties continue to apply to those goods when imported from Singapore. As
section 16 of the Customs Tariff provides that duty rates for goods from
Singapore are Free unless otherwise specified, it is necessary to specify a rate
of duty for the new subheadings created in Schedule 1 and applicable to
petroleum products when imported from Singapore.
Part 2 of Schedule 1 to
the Bill will commence immediately after the commencement of Schedule 3 to the
Customs Tariff Amendment Act (No. 1) 2003, that is on 28 July
2003.
Part 2 of Schedule 1 incorporates, in the Customs Tariff,
alterations contained in Part 2 of Schedule 1 to Customs Tariff
Proposal No. 3 (2003). Part 2 of Schedule 1 of the Proposal took effect from 28
July 2003, the date of entry into force of SAFTA.
Items 12 to 31
– Column 3 of subheadings of Schedule 3
The amendments
contained in items 12 to 31 insert the abbreviation for Singapore,
“SG”, into the duty rate for the new subheadings created in Part 1
of Schedule 1 of the Bill.
Part 3 – Amendments increasing the
customs duty rate on aviation fuels
Part 3 of Schedule 1 to this Bill
amends the Customs Tariff to increase customs duty rates for aviation gasoline
and aviation kerosene by 0.306 cents per litre, to $0.03151 per litre
for aviation kerosene and to $0.03114 per litre for aviation gasoline.
The increased duty rate was necessary to provide supplementary funding for the
Civil Aviation Safety Authority to ensure that it is adequately resourced to
continue to carry out its safety regulatory responsibilities.
This
measure was announced in the 2003-2004 Federal Budget on 13 May
2003.
Part 3 of Schedule 1 of the Bill will commence immediately after
the commencement of Schedule 2 to the Customs Tariff Amendment Act (No. 1)
2003, that is on 1 July 2003.
Part 3 of Schedule 1 incorporates in
the Customs Tariff, alterations contained in Part 1 of Schedule 1 to
Customs Tariff Proposal No. 4 (2003). This Proposal was introduced in
Parliament on 25 June 2003 and Part 1 took effect from 1 July
2003.
Subheading 2710.11.61 applies to aviation gasoline. This amendment
increases the duty rate for this subheading by 0.306 cents per litre to $0.03114
per litre.
Item 33 – The rates of duty in column 3 of subheading
2710.19.40 of Schedule 3
Subheading 2710.19.40 applies to aviation
kerosene. This amendment increases the duty rate for this subheading by 0.306
cents per litre to $0.03151 per litre.
Item 34 – The rates of
duty in column 3 of subheading 2710.91.40 of Schedule 3
Subheading
2710.91.40 applies to aviation kerosene. This amendment increases the duty rate
for this subheading by 0.306 cents per litre to $0.03151 per litre.
Subheading 2710.91.61 applies to aviation gasoline. This amendment
increases the duty rate for this subheading by 0.306 cents per litre to $0.03114
per litre.
Item 36 – The rates of duty in column 3 of subheading
2710.99.40 of Schedule 3
Subheading 2710.99.40 applies to aviation
kerosene. This amendment increases the duty rate for this subheading by 0.306
cents per litre to $0.03151 per litre.
Subheading 2710.99.61 applies to aviation gasoline. This amendment
increases the duty rate for this subheading by 0.306 cents per litre to $0.03114
per litre.
Part 4 – Further amendments relating to the increased
customs duty rate on aviation fuels
Part 4 of Schedule 1 to the Bill
amends the Customs Tariff to insert the abbreviation for Singapore,
“SG”, into the duty rate for the new subheadings created in Part 3
of Schedule 1 (amendments relating to aviation fuels) of the
Bill.
Customs Tariff Amendment Act (No. 1) 2003 gave effect to
Australia’s commitment to remove tariffs on goods of Singapore origin
under SAFTA, from the entry into force of SAFTA on
28 July 2003.
The
Customs Tariff imposes customs duties on certain alcohol, tobacco and petroleum
products that are equivalent to the excise duty imposed, under the Excise
Tariff Act 1921, on the same goods when domestically produced. Such duties
continue to apply to those goods when imported from Singapore. As section 16 of
the Customs Tariff provides that duty rates for goods from Singapore are Free
unless otherwise specified, it is necessary to specify a rate of duty for the
new subheadings created in Schedule 1 and applicable to petroleum products when
imported from Singapore.
Part 4 of Schedule 1 to the Bill commences
immediately after the commencement of Schedule 3 to the Customs Tariff
Amendment Act (No. 1) 2003, that is on 28 July 2003.
Part 4 of
Schedule 1 incorporates, in the Customs Tariff, alterations contained in
Part 2 of Schedule 1 to Customs Tariff Proposal No. 4 (2003). Part 2
of Schedule 1 of the Proposal took effect from 28 July 2003, the date of entry
into force of SAFTA.
Items 38 to 43 – Column 3 of subheadings of
Schedule 3
The amendments contained in items 38 to 43 insert the
abbreviation for Singapore, “SG”, into the duty rate for the new
subheadings created in Part 3 of Schedule 1 of the Bill.
Part 5 – Amendments providing for a customs duty rate on
biodiesel
Part 5 of Schedule 1 of the Bill amends the Customs
Tariff to impose a customs duty on biodiesel for use as a fuel in an
internal combustion engine at the rate of 38.143 cents per litre.
This
Part also inserts a definition of biodiesel into those Chapters of the Customs
Tariff that apply to biodiesel or petroleum blends containing biodiesel.
Biodiesel is defined as fuel for use in an internal combustion engine and
encompasses fuel that is manufactured by chemically altering vegetable oils or
animal fats (including recycled oils from these sources) to form mono-alkyl
esters, for the purpose of use in an internal combustion engine.
Where
appropriate, the duty rate for petroleum blends containing biodiesel matches the
provisions of the formula inserted into the Excise Tariff Act 1921 by the
Excise Tariff Amendment (Fuels) Bill 2004.
These changes were announced
in the 2003-04 Budget and form part of the Government’s fuel tax reform
arrangements to bring all currently untaxed fuels used in internal combustion
engines into the excise and customs duty system.
Part 5 of Schedule 1 of
the Bill commences on 18 September 2003.
Part 5 of Schedule 1 of the
Bill incorporates, in the Customs Tariff, alterations contained in Schedule 1 to
Customs Tariff Proposal No. 5 (2003). This Proposal was introduced in
Parliament on 16 September 2003 and took effect from 18 September
2003.
Item 44 of Part 5 of Schedule 1 inserts the definition of biodiesel in
Chapter 15 of the Customs Tariff as Additional Note 1 to that Chapter. When
pure, biodiesel is classified in heading 1516, animal or vegetable fats and
oils, inter-esterified or re-esterified.
Item 45 splits existing subheading 1516.10.00 (animal fats and oils and
their fractions) to create a new subheading 1516.10.10 to separately identify
biodiesel and apply the rate of duty of 38.143 cents per litre to this
product. Other goods of 1516.10.00 transfer to new subheading 1516.10.90
(Other) and retain their existing duty rate of Free.
Item 45 also splits
existing subheading 1516.20.00 (vegetable fats and oils and their fractions) to
create a new subheading 1516.20.10 to separately identify biodiesel and apply
the rate of duty of 38.143 cents per litre to this product. Other goods of
1516.20.00 transfer to new subheading 1516.20.90 (Other) and retain their
existing duty rate of Free.
Item 46 inserts the definition of biodiesel in Chapter 27 of the Customs
Tariff as Additional Note 3 to that Chapter. When blended with 70% or more by
weight of petroleum products, biodiesel is classified in heading 2710 of the
Customs Tariff (petroleum oils containing by weight 70% or more of petroleum
oils).
Item 47 creates a new subheading 2710.11.8 in the Customs Tariff to
separately identify blends of biodiesel and other substances (such as petroleum
diesel), other than gasoline. Subheading 2710.11 applies to light (petroleum)
oils and preparations.
Subheading 2710.11.8 is further split into
subheadings 2710.11.81 and 2710.11.82 to differentiate these blends in which the
sulphur content of the total volume of substances in the blend that are not
biodiesel does not exceed 50 parts per million (2710.11.81) and product in which
the sulphur content of the total volume of substances in the blend that are not
biodiesel exceeds 50 parts per million (2710.11.82). The item provides that the
duty rate applicable to blends containing biodiesel is the sum of the duty rates
applicable to the individual components: for the biodiesel component, 38.143
cents per litre; and, for other components in the blend, a rate of duty
dependent on the sulphur content.
The application of these duty rates
provides the same duty outcome for imported blends containing biodiesel as for
the same blends when manufactured domestically and subject to the Excise
Tariff Act 1921.
Item 48 creates a new subheading 2710.19.8 in the Customs Tariff to
separately identify blends of biodiesel and other substances (such as petroleum
diesel), other than gasoline. Subheading 2710.19 applies to heavy (petroleum)
oils and preparations.
Subheading 2710.19.8 is further split into
subheadings 2710.19.81 and 2710.19.82 to differentiate these blends in which the
sulphur content of the total volume of substances in the blend that are not
biodiesel does not exceed 50 parts per million (2710.19.81) and product in which
the sulphur content of the total volume of substances in the blend that are not
biodiesel exceeds 50 parts per million (2710.19.82). The item provides that the
duty rate applicable to blends containing biodiesel is the sum of the duty rates
applicable to the individual components: for the biodiesel component, 38.143
cents per litre; and, for other components in the blend, a rate of duty
dependent on the sulphur content.
The application of these duty rates
provides the same duty outcome for imported blends containing biodiesel as for
the same blends when manufactured domestically and subject to the Excise
Tariff Act 1921.
Item 49 creates a new subheading 2710.91.8 in the Customs Tariff to
separately identify blends of biodiesel and other substances (such as petroleum
diesel), other than gasoline. Subheading 2710.91 applies to petroleum oils that
meet the Customs Tariff definition of waste oils.
Subheading 2710.91.8 is
further split into subheadings 2710.91.81 and 2710.91.82 to differentiate this
product in which the sulphur content of the total volume of substances in the
blend that are not biodiesel does not exceed 50 parts per million (2710.91.81)
and product in which the sulphur content of the total volume of substances in
the blend that are not biodiesel exceeds 50 parts per million (2710.91.82). The
item provides that the duty rate applicable to blends containing biodiesel is
the sum of the duty rates applicable to the individual components: for the
biodiesel component, 38.143 cents per litre; and, for other components in the
blend, a rate of duty dependent on the sulphur content.
The application of these duty rates provides the same duty outcome for
imported blends containing biodiesel as for the same blends when manufactured
domestically and subject to the Excise Tariff Act 1921.
Item 50 creates a new subheading 2710.99.8 in the Customs Tariff to
separately identify blends of biodiesel and other substances (such as petroleum
diesel). Subheading 2710.99 applies to petroleum oils that meet the Customs
Tariff definition of waste oils.
Subheading 2710.99.8 is further split
into subheadings 2710.99.81 and 2710.99.82 to differentiate this product in
which the sulphur content of the total volume of substances in the blend that
are not biodiesel does not exceed 50 parts per million (2710.99.81) and product
in which the sulphur content of the total volume of substances in the blend that
are not biodiesel exceeds 50 parts per million (2710.99.82). The item provides
that the duty rate applicable to blends containing biodiesel is the sum of the
duty rates applicable to the individual components: for the biodiesel
component, 38.143 cents per litre; and, for other components in the blend, a
rate of duty dependent on the sulphur content.
The application of these
duty rates provides the same duty outcome for imported blends containing
biodiesel as for the same blends when manufactured domestically and subject to
the Excise Tariff Act 1921.
Item 51 inserts the definition of biodiesel in Chapter 38 of the Customs
Tariff as Additional Note 1 to that Chapter. When blended with other products
but less than 70% by weight of petroleum products, biodiesel is classified in
heading 3824 of the Customs Tariff (chemical products not elsewhere
specified).
Item 52 creates a new subheading 3824.90.2 in the Customs Tariff to
separately identify blends of biodiesel and other substances (but less than 70%
of petroleum products).
Subheading 3824.90.2 is further split into
subheadings 3824.90.21 and 3824.90.22 to differentiate this product in which the
sulphur content of the total volume of substances in the blend that are not
biodiesel does not exceed 50 parts per million (3824.90.21) and product in which
the sulphur content of the total volume of substances in the blend that are not
biodiesel exceeds 50 parts per million (3824.90.22). The item provides that the
duty rate applicable to blends containing biodiesel is the sum of the duty rates
applicable to the individual components: for the biodiesel component, 38.143
cents per litre; and, for other components in the blend, a rate of duty
dependent on the sulphur content.
The application of these duty rates
provides the same duty outcome for imported blends containing biodiesel as for
the same blends when manufactured domestically and subject to the Excise
Tariff Act 1921.
This item amends the table to item 44 in Schedule 4 to the Customs Tariff
by inserting new references to those subheadings that have been created in Part
5 of this Bill.
Item 44 grants concessional entry to particular imported
goods, by reference to their tariff classification, that are for use in the
manufacture of excisable goods in terms of section 24 of the
Excise Act 1921. The amendments to this item ensure that the
references to the classifications reflect the amendments contained in Part 5 of
Schedule 1 of the Bill.
SCHEDULE 2 – FURTHER AMENDMENTS OF THE CUSTOMS TARIFF ACT 1995
TO COMMENCE ONLY IF THE CUSTOMS TARIFF AMENDMENT ACT (NO. 1) 2004
COMMENCES
Schedule 2 of the Bill contains further amendments to the
Customs Tariff that treat ethanol as proposed in Customs Tariff Amendment Bill
(No. 2) 2003 (CTAB (No. 2) 2003). These amendments will commence only on the
commencement of CTAB (No. 2) 2003.
Part 1 of Schedule 2 to the Customs
Tariff Amendment (Fuels) Bill 2004 incorporates, in the Customs Tariff,
alterations contained in Customs Tariff Proposal No. 3 (2002). This Proposal
was introduced in Parliament on 16 September 2002 and took effect from 18
September 2002. The Proposal imposed a customs duty on fuel ethanol for use in
internal combustion engines.
Part 1 – Amendments relating to
the amendments made by Part 1 of Schedule 1 to this Act
Part 1 of
Schedule 2 of the Bill will not commence unless the Customs Tariff Amendment
Act
(No. 1) 2004 commences, in which case the provisions are taken
to have commenced immediately after the commencement of the provisions of Part 1
of Schedule 1 of this amendment Act, that is on 1 July 2003.
This item amends the table to item 44 in Schedule 4 to the Customs Tariff
by inserting the new tariff subheading 2207.20.10 that was created to separately
identify fuel ethanol and its corresponding Excise Tariff item
(11(K)).
Item 44 grants concessional entry to particular imported goods,
by reference to their tariff classification, that are for use in the manufacture
of excisable goods in terms of section 24 of the
Excise Act 1921. The amendments to this item ensure that the
references to the classifications reflect the amendments contained in CTAB (No.
2) 2003.
Part 2 – Amendments relating to the amendments made by
Part 5 of Schedule 1 to this Act
Part 5 of Schedule 1 of the Bill
amends the Customs Tariff to impose a customs duty on biodiesel for use
as a fuel in an internal combustion engine at the rate of 38.143 cents per
litre. Those amendments treat ethanol (for use as a fuel in an internal
combustion engine) as it was treated in the Customs Tariff before the
introduction into Parliament of Customs Tariff Proposal No. 3 (2002).
The
further amendments in Part 2 of Schedule 2 of the Bill will apply to ethanol
that is included in a blend of biodiesel and other substances. These amendments
will commence immediately after CTAB (No. 2) 2003 is enacted.
Part 2 of
Schedule 2 of the Bill will not commence unless the Customs Tariff Amendment
Act
(No. 1) 2004 commences, in which case the provisions are taken
to have commenced immediately after the commencement of the provisions of Part 5
of Schedule 1 of this amendment Act, that is on 18 September 2003.
Item 2 amends the description of this subheading to insert a reference to
“ethanol”.
Subheading 2710.11.81 applies to blends of
biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
does not exceed 50 parts per million.
Item 3 amends the duty description of the blends of biodiesel of
subheading 2710.11.81 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 4 amends the description of this subheading to insert a reference to
“ethanol”.
Subheading 2710.11.82 applies to blends of
biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
exceeds 50 parts per million.
Item 5 amends the duty description of the blends of biodiesel of
subheading 2710.11.82 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 6 amends the description of this subheading to insert a reference to
“ethanol”.
Subheading 2710.19.81 applies to blends of
biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
does not exceed 50 parts per million.
Item 7 amends the duty description of the blends of biodiesel of
subheading 2710.19.81 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 8 amends the description of this subheading to insert a reference to
“ethanol”.
Subheading 2710.19.82 applies to blends of
biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
exceeds 50 parts per million.
Item 9 amends the duty description of the blends of biodiesel of
subheading 2710.19.82 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 10 amends the description of this subheading to insert a reference
to “ethanol”.
Subheading 2710.91.81 applies to blends of
biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
does not exceed 50 parts per million.
Item 11 amends the duty description of the blends of biodiesel of
subheading 2710.91.81 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 12 amends the description of this subheading to insert a reference
to specify “ethanol”.
Subheading 2710.91.82 applies to blends
of biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
exceeds 50 parts per million.
Item 13 amends the duty description of the blends of biodiesel of
subheading 2710.91.82 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 14 amends the description of this subheading to insert a reference
to “ethanol”.
Subheading 2710.99.81 applies to blends of
biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
does not exceed 50 parts per million.
Item 15 amends the duty description of the blends of biodiesel of
subheading 2710.99.81 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 16 amends the description of this subheading to insert a reference
to “ethanol”.
Subheading 2710.99.82 applies to blends of
biodiesel and other substances, other than gasoline, in which the sulphur
content of the total volume of substances in the blend that are not biodiesel
exceeds 50 parts per million.
Item 17 amends the duty description of the blends of biodiesel of
subheading 2710.99.82 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 18 amends the description of this subheading to insert a reference
to “ethanol”.
Subheading 3824.90.21 applies to blends of
biodiesel and other substances, other than gasoline, (less than 70% by weight of
petroleum oils) in which the sulphur content of the total volume of substances
in the blend that are not biodiesel does not exceed 50 parts per million.
Item 19 amends the duty description of the blends of biodiesel of
subheading 3824.90.21 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 20 amends the description of this subheading to insert a reference
to “ethanol”.
Subheading 3824.90.22 applies to blends of
biodiesel and other substances, other than gasoline, (less than 70% by weight of
petroleum oils) in which the sulphur content of the total volume of substances
in the blend that are not biodiesel exceeds 50 parts per million.
Item 19 amends the duty description of the blends of biodiesel of
subheading 3824.90.21 to specify a reference to ethanol (if any) in the blend
and to apply the duty rate applicable to fuel ethanol (38.143 cents per
litre) to that ethanol.
Item 22 – Item 44 of Part III of
Schedule 4 (table)
This item amends the table to item 44 in Schedule
4 to the Customs Tariff by inserting the new tariff subheading 2207.20.10 that
was created to separately identify fuel ethanol and its corresponding Excise
Tariff item (11(K)). This amendment is consequential to the amendment in item
53 of Part 5 of Schedule 1 to the Bill that repealed and replaced the table to
item 44.
Item 44 grants concessional entry to particular imported goods,
by reference to their tariff classification, that are for use in the manufacture
of excisable goods in terms of section 24 of the
Excise Act 1921. The amendments to this item ensure that the
references to the classifications reflect the amendments contained in Customs
Tariff Amendment Act (No. 1) 2004.
SCHEDULE 3 – AMENDMENTS OF THE CUSTOMS TARIFF AMENDMENT
ACT (NO. 1) 2003
This Schedule contains technical
amendments to the Customs Tariff Amendment Act (No. 1) 2003.
Customs Tariff Amendment Act (No. 1) 2003, inter alia,
gave effect to Australia’s commitment to remove tariffs on goods of
Singapore origin under the Singapore Australia Free Trade Agreement (SAFTA),
from the entry into force of SAFTA on 28 July 2003.
The Customs Tariff
imposes customs duties on certain alcohol, tobacco and petroleum products that
are equivalent to the excise duty imposed, under the Excise Tariff Act
1921, on the same goods when domestically produced. Such duties continue to
apply to those goods when imported from Singapore. Section 16 of the Tariff
provides that duty rates for goods from Singapore are Free unless otherwise
specified.
Schedule 3 of the Bill commences immediately after the
commencement of section 1 of the Customs Tariff Amendment Act (No. 1)
2003, that is on 30 June 2003, the date on which that Act received Royal
Assent.
Item 1 – Item 25 of Schedule 3 (list)
Item 25
of Schedule 3 of the Customs Tariff Amendment Act (No. 1) 2003 specified
a rate of duty of 38.143 cents per litre for a number of subheadings applicable
to petroleum products from Singapore. That list of subheadings included a
number of subheadings that are proposed to be repealed by Part 1 of
Schedule 1 to the Bill (amendments relating to ultra low sulphur
diesel).
On the commencement of the Customs Tariff Amendment (Fuels)
Act 2004, those subheadings will become redundant.
Item 1 of Schedule
3 of the Bill amends the list of tariff subheadings in item 25 of Schedule 3 to
the Customs Tariff Amendment Act (No.1) 2003, to remove the redundant
subheadings.
Item 2 – Items 27 and 29 of Schedule
3
Items 27 and 29 of Schedule 3 of the Customs Tariff Amendment
Act (No. 1) 2003 specified a rate of duty of 2.808 cents per litre for those
subheadings applicable to aviation gasoline and 2.845 cents per litre for those
subheadings applicable to aviation kerosene.
As these duty rates have
been superseded by amendments contained in Part 3 of Schedule 1 to the Bill,
these items have been repealed from Customs Tariff Amendment Act (No. 1)
2003.