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2002-2003
CUSTOMS TARIFF AMENDMENT BILL (NO. 2)
2003
(Circulated by authority of
the
Minister for Justice and Customs, Senator
the Honourable
Christopher Martin Ellison)
CUSTOMS TARIFF AMENDMENT BILL (NO. 2) 2003
The purpose of this Bill is to amend the Customs Tariff Act 1995
(the Tariff) to:
• impose additional customs duty on denatured
ethyl alcohol (ethanol) for use as fuel in internal combustion engines; and
• implement minor related amendments to the Tariff.
The
Excise Tariff Amendment Bill (No. 1) 2003 makes complementary changes to the
Excise Tariff Act 1921.
FINANCIAL IMPACT
STATEMENT
As there is little importation of denatured ethanol
into Australia, the financial impact is negligible.
The remaining
amendments in this Bill are of an administrative nature and have no financial
impact.
CUSTOMS TARIFF AMENDMENT BILL (NO. 2)
2003
Clause 1 - Short Title - Customs Tariff Amendment Act (No. 2)
2003.
Clause 2 - Commencement
This clause specifies that
Customs Tariff Amendment Act (No. 2) 2003 will be taken to have commenced
on 18 September 2002.
Clause 3 - Schedule(s)
This clause is the
formal enabling provision for the Schedule to the Bill, providing that each Act
specified in the Schedule is amended in accordance with the applicable items of
that Schedule. The clause also provides that other items of the Schedule have
effect according to their own terms.
SUMMARY OF
AMENDMENTS
Customs Tariff Amendment Bill (No. 2) 2003 contains amendments to the
Tariff to impose additional customs duty on denatured ethyl alcohol (ethanol)
for use as a fuel in internal combustion engines.
The new duty rate,
which is the same as the rate currently applying to petrol (38.143 cents per
litre), is a consequence of the Government’s decision to remove the
current fuel excise exemption on ethanol. It was also decided to impose an
equivalent amount of customs duty on imported denatured ethanol for use as a
fuel in internal combustion engines. At the same time, the Government
introduced a domestic production subsidy of 38.143 cents per litre on these
goods. These decisions are part of the Government’s strategy to encourage
the use of biofuels in transport in Australia.
The amendments contained
in the Bill were tabled in the House of Representatives in Customs Tariff
Proposal No. 3 (2002) on 16 September 2002 and took effect from
18 September 2002.
Item 1 creates a new tariff subheading 2207.20.10 to separately identify
ethanol for use as a fuel in internal combustion engines. The new customs duty
rate is the existing general rate of 5% plus 38.143 cents per
litre.
Other denatured ethanol is now classified in tariff subheading
2207.20.90 and retains its previous general duty rate of 5%.
Item 2 amends the table to item 44 in Schedule 4 to the Tariff by
including a reference to subheading 2207.20.10. Item 44 grants concessional
entry to particular imported goods that are for use in the manufacture of
excisable goods in terms of section 24 of the Excise Act 1901.