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1998-99
THE PARLIAMENT OF THE COMMONWEALTH
OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
CUSTOMS TARIFF AMENDMENT BILL (NO. 3)
1999
EXPLANATORY
MEMORANDUM
(Circulated
by the Authority of the
Minister for Justice and Customs, Senator
the
Honourable Amanda Vanstone)
ISBN: 0642 426430
CUSTOMS TARIFF AMENDMENT BILL (NO. 3)
1999
The purpose of this Bill, which includes three schedules of amendments,
is to enact a range of amendments to the Customs Tariff Act
1995.
Schedule 1 inserts in Chapter 57 of Schedule 3 to the Tariff
Act an Additional Note to ensure that all textile mats, rugs, and the like are
classified within that Chapter.
Schedule 2 reinstates a 5% rate of duty
on a range of goods in Chapter 90. The rate of duty on these goods was reduced
to free on 1 September 1998 following the implementation of recommendations of
the Industry Commission report on the Medical and Scientific Equipment
Industries.
Schedule 3 implements the Government’s decision in
relation to the tariff recommendations contained in the Industry
Commission’s report on Packaging and Labelling.
The reinstatement of duty on goods classified in Chapter 90 and contained
in Schedule 2 of this Bill is expected to raise an additional $809,000 per annum
in revenue.
The reduction of duty on tinplate and the provision of a
concessional item for the duty free entry of certain aluminium sheet is expected
to reduce revenue by $1 million per annum.
The change to Chapter 57 in
Schedule 1 of this Bill is revenue neutral as it reinstates the previous
classification principles.
CUSTOMS TARIFF AMENDMENT BILL (NO. 3)
1999
A Bill for an Act to amend the Customs Tariff Act 1995, and for
related purposes.
Clause 1 - Short Title - Customs Tariff Amendment Act
(No. 3) 1999.
Clause 2 - Commencement
Subclause 1 - Clauses 1,
2 and 3 commence on the day on which this
Act receives the Royal
Assent.
Subclause 2 - Schedule 1 is taken to have commenced on 22 July
1999.
Subclause 3 - Schedule 2 is taken to have commenced on
3
September 1999.
Subclause 4 - Schedule 3 is taken to have commenced on 1
October 1999.
Clause 3 - Schedules
This clause is the formal
enabling provision for the Schedules to the Bill, providing that each Act
specified in the Schedules is amended in accordance with the applicable items of
the Schedules. The clause also provides that the other items of the Schedules
have effect according to their own terms.
Schedule 1 - The amendment in
this Schedule is taken to have effect from
22 July
1999.
. Covers - This amendment was notified in a Special
Commonwealth Gazette of 21 July 1999 and tabled in the House of
Representatives on 25 August 1999 as Customs Tariff Proposal No. 3 (1999). It
inserts an Additional Note in Chapter 57 to confirm that textile mats, rugs, and
the like are classified within Chapter 57 of the Customs
Tariff.
An importer of certain textile car/bath/door mats
objected to the goods being classified as “floor coverings” in
Chapter 57 of the Tariff Act and appealed the classification to the
Administrative Appeals Tribunal. The Tribunal originally found in favour of
Customs but after an appeal to the Federal Court and a re-hearing, the Tribunal
found in favour of the importer.
The classification of any textile mat
outside of Chapter 57 is inconsistent with the Harmonized Commodity Description
and Coding System, the international convention for classifying
goods. As a
signatory to this convention, Australia’s classification of goods must
accord with the international harmonized interpretation.
The insertion
of an Additional Note in Chapter 57, to direct importers that textile rugs,
mats, and similar articles are considered to be floor coverings for the purposes
of that Chapter, ensures Australia’s compliance with the international
Harmonized System.
Schedule 2 - The amendment in this Schedule is taken
to have effect from
3 September 1999.
. Covers - These
amendments were tabled in the House of Representatives on 2 September 1999 as
Customs Tariff Proposal No. 4 (1999). They reinstate the 5% customs rate of
duty on certain goods of Chapter 90 to the Customs Tariff.
The customs
rates of duty on goods classified to tariff headings 9013 to 9033 in Schedule 3
to the Customs Tariff were reduced to free on 1 September 1998 following
implementation of the recommendations of the Industry Commission’s report
on the Medical and Scientific Equipment Industries.
Following
implementation, some Australian manufacturers of non-medical and non-scientific
goods covered by headings 9013 to 9033 informed Government that this removal of
tariff assistance had affected their manufacturing viability and profitability.
In light of these representations, the 5% rate of duty was reinstated
from 3 September 1999 on:
• Certain drawing,
marking-out and mathematical calculating instruments of subheading
9017.20;
• Certain rules of wood or plastic and
steel tape measures of subheading
9017.80;
• Certain gas, electrical and liquid
meters of subheadings 9028.10, 9028.20 and 9028.30;
and
• Certain machines for balancing mechanical
parts and electrical test benches of subheadings 9031.10 and
9031.20.
Schedule 3 - The amendment in this Schedule is taken to have
effect from
1 October 1999.
. Covers - These amendments were
tabled in the House of Representatives on 22 September 1999 as Customs Tariff
Proposal No. 5 (1999). They implement the Government’s decision on the
tariff recommendations contained in the Industry Commission’s report on
Packaging and Labelling.
The 1996 Report on Packaging and Labelling
recommended the removal of customs rates of duty from steel tinplate and
aluminium cansheet. The Commission found that Australian producers of tinplate
and cansheet were internationally competitive and that the removal of tariffs
would enhance the performance of the user industries without significant adverse
effects. The Commission said the major industries that would benefit from the
removal of tariffs would be the canned food and canned beverage
industries.
The Government accepted the Industry Commission
recommendation to remove these tariffs, and the amendments contained in this
Schedule implement that decision.
The removal of customs duty applies to
tinplate classified in tariff subheadings 7210.11.00, 7210.12.00 and 7212.10.00.
In the case of cansheet, the removal of customs duty applies to three cansheet
products: bodystock, endstock and tabstock used in the manufacture of aluminium
cans. These products are classified to tariff subheadings 7606.12.00 or
7606.92.00. However, the tariff classification does not distinguish between
general aluminium sheeting and cansheet products. Since it is not the intention
to remove the tariff on general aluminium sheeting, a Schedule 4 concessional
item was created to provide duty free by-law entry of cansheet, the
specifications of which were defined in the by-law.