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2022-2023
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
CUSTOMS TARIFF AMENDMENT (INCORPORATION OF PROPOSALS)
BILL (NO. 2) 2023
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Home Affairs, the Honourable Clare O'Neil MP)
CUSTOMS TARIFF AMENDMENT (INCORPORATION OF PROPOSALS)
BILL (No. 2) 2023
GENERAL OUTLINE
The Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023 (Bill) amends
the Customs Tariff Act 1995 (Customs Tariff Act) to incorporate multiple alterations to that
Act effected by Customs Tariff Proposal (No. 1) 2023, Customs Tariff Proposal (No. 3) 2023,
Customs Tariff Proposal (No. 4) 2023 and Customs Tariff Proposal (No. 5) 2023.
• Part 1 of Schedule 1 to the Bill amends table item 9 of Schedule 4 to the Customs Tariff
Act and expands the scope of the tariff concession provided by that item to include
goods covered by the Agreement between the Government of Australia and the
European Space Agency for a Co-operative Space Vehicle Tracking Program, done at
Capetown on 5 October 2011 (Agreement). This measure incorporates the alteration set
out in Customs Tariff Proposal (No.1) 2023, tabled in Parliament on 25 May 2023, and
has effect that goods prescribed by by-law and covered by the Agreement are eligible
for the concessional customs duty rate of 'Free'.
• Part 2 of Schedule 1 to the Bill amends paragraph 18B(1)(b) of the Customs Tariff Act
to extend the duration, in which the temporary decrease in duties for goods imported
from Ukraine, applies. This measure incorporates the alteration set out in Customs
Tariff Proposal (No.3) 2023, tabled in Parliament on 9 August 2023, and has effect that:
(a) the 'Free' rate of customs duty for goods that are the produce or manufacture of
Ukraine; and
(b) the reduced rate for goods classified under a tariff classification in Chapter 22,
24, 27, 29, 34 or 38 of Schedule 3 to the Customs Tariff Act for which a 'DC'
tariff rate is listed;
are extended to cover goods imported into Australia during the period of 24 months
beginning on 4 July 2022; being an increase from 12 months to 24 months.
• Part 3 of Schedule 1 to the Bill inserts new table item 59 into Schedule 4 to the
Customs Tariff Act to provide a 'Free' rate of customs duty to goods that are imported
for use in connection with international sporting events prescribed by by-law. This
measure incorporates the alterations set out in Customs Tariff Proposal (No.4) 2023,
tabled in Parliament on 9 August 2023, and has effect that the concessional rate of
customs duty will apply to goods as prescribed by by-law.
• Part 4 of Schedule 1 to the Bill amends paragraph 18A(5)(b) of the Customs Tariff Act
to extend the duration, in which the temporary additional duty for imported goods that
are the produce or manufacture of Russia or Belarus, applies. This measure
incorporates Customs Tariff Proposal (No. 5) 2023, tabled in Parliament on 18 October
2023, and has effect that the temporary duty of 35 per cent will continue to apply to
these goods (until 24 October 2025) in addition to the general rate of customs duty that
would ordinarily apply, except where these goods are eligible for certain tariff
concessions or left for direct shipment to Australia before 25 April 2022.
Page 2 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
FINANCIAL IMPACT STATEMENT
The financial implications of the measures in the Bill are outlined in the table below.
Measure ($ million) 2023-24 2024-25 2025-26 Total
Goods covered by - - - -
space agreement
Further temporary -1.0 - - -1.0
decrease in duties for
goods from Ukraine
Goods for use in - - - -
connection with an
international sporting
event
Further temporary 3.0 6.0 3.0 12.0
increase in duties for
goods from Russia or
Belarus
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
A Statement of Compatibility with Human Rights in respect of the amendments contained in
the Bill is at Attachment A. The Statement assesses the amendments to be compatible with
Australia's human rights obligations.
Page 3 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
CUSTOMS TARIFF AMENDMENT (INCORPORATION OF PROPOSALS)
BILL (NO. 2) 2023
Clause 1 Short title
1. This clauses provides for the Customs Tariff Amendment (Incorporation of Proposals) Bill
(No. 2) 2023 (Bill), when enacted, to be cited as the Customs Tariff Amendment
(Incorporation of Proposals) Act (No. 2) 2023.
Clause 2 Commencement
2. This clause sets out, in a table, the date on which provisions of the Bill, when enacted, will
commence. It provides that information in column 3 of this table is not part of the Act, and
that the information in this column or information may be edited, in any published version of
the Act.
3. Table item 1 provides for clauses 1 to 3 and anything in the Bill not elsewhere covered by the
table to commence on the day the Bill receives Royal Assent.
4. Table item 2 provides for Part 1 of Schedule 1 to commence on 1 December 2022.
5. Table item 3 provides for Part 2 of Schedule 1 to commence on 4 July 2023.
6. Table item 4 provides for Part 3 of Schedule 1 to commence on 1 January 2022.
7. Table item 5 provides for Part 4 of Schedule 1 to commence on 25 October 2023.
8. Parts 1 to 4 of Schedule 1 to the Bill incorporate multiple alterations to that Act effected by
Customs Tariff Proposal (No. 1) 2023, Customs Tariff Proposal (No. 3) 2023, Customs Tariff
Proposal (No. 4) 2023 and Customs Tariff Proposal (No. 5) 2023. The retrospective
commencement dates are necessary to ensure that there is no gap in operation between
amendments made by the individual Parts of Schedule 1 to the Bill and the date on which the
alterations as made by the corresponding Customs Tariff Proposals commenced.
9. The note below the table provides that the table relates only to the provisions of the Bill, as
originally enacted. It will not be amended to deal with later amendments. The purpose of this
note clarifies that the commencement of any subsequent amendments will not be reflected in
this table.
Clause 3 Schedules
10. This clause enables the Schedules of the Bill, when enacted, to amend or repeal provisions of
legislation specified in the Schedules, in accordance with the applicable items. The Customs
Tariff Act 1995 (Customs Tariff Act) is being amended by the Bill when enacted.
Schedule 1--Amendments
11. The Customs Tariff Proposal mechanism is used for effecting alterations to the Customs
Tariff Act, particularly when such alterations are required to have effect in a short timeframe
that cannot be achieved by a Customs Tariff Amendment Bill. Customs Tariff Proposals are
Page 4 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
used most commonly for introducing new items, for changing rates of duty or for
restructuring items in the Schedules to the Customs Tariff Act.
12. When the Parliament is sitting, Customs Tariff Proposals are tabled in the House of
Representatives, specifying alterations to the Customs Tariff Act. Where Parliament is not
sitting for a period exceeding seven days, the Minister may under section 273EA of the
Customs Act 1901 (Customs Act) make a legislative instrument giving notice that, within
seven sitting days of the House of Representatives after the date of registration of the
instrument, the Minister will propose in Parliament a Customs Tariff alteration in accordance
with particulars in the instrument and operating as from such time as in the instrument.
13. Following the introduction of a Customs Tariff Proposal in the House of Representatives, the
alterations contained in the Proposal are incorporated into the Customs Tariff Act through the
enactment of a Customs Tariff Amendment Bill.
Part 1--Goods covered by space agreement
Customs Tariff Act 1995
Introductory Comments
14. Schedule 4 to the Customs Tariff Act provides concessional rates of customs duty for goods
that meet the terms set out in the listed concessional items. Item 9 of Schedule 4
(International Organisations Concession) provides a concessional customs duty rate of 'Free'
to prescribed goods of certain international organisations. Eligible goods are prescribed in a
by-law made under section 271 of the Customs Act for item 9.
15. To be eligible for the International Organisation Concession, the international organisation
must be established by an agreement between the Government of Australia and the
government of another country or countries. This requirement was introduced in 1983. Prior
to 1983, international organisations were able to use the concession if that organisation had
an agreement with the Government of Australia that provides for goods to be imported free
from customs duty.
16. Australia and the European Space Agency have had a long-standing partnership. Since 1979,
agreements have been in place to enable European Space Agency ground stations in Australia
to track and communicate with space missions.
17. In late 2022, the European Space Agency requested advice from the Australian Border Force
(ABF) on claiming the International Organisation Concession. In preparing this advice the
ABF examined the Agreement between the Government of Australia and the European Space
Agency for a Co-operative Space Vehicle Tracking Program, done at Capetown on 5 October
2011 (Agreement).
18. The Agreement provides that the European Space Agency be able to import goods free from
customs duty. Despite this the ABF determined that the European Space Agency was not
within the scope of the existing concession.
19. To ensure that the Australian Government is meeting its obligations under the Agreement, the
ABF amended the International Organisations Concession. The amendments were first made
Page 5 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
by Notice of Intention to Propose Customs Tariff Alteration (No. 1) 2023 registered on
31 March 2023. The amendments apply retrospectively from 1 December 2022 to enable the
European Space Agency to seek refunds for customs duty paid since this time.
20. On 31 March 2023, the Notice of Intention to Propose Customs Tariff Alteration (No. 1) 2023
was registered on the Federal Register of Legislation for the purposes of section 273EA of
the Customs Act. That Notice advised of the intention to expand the scope of the tariff
concession provided by table item 9 of Schedule 4 to include goods covered by the
Agreement, to be eligible for the concessional customs duty rate of 'Free'. The related
Customs Proposal (No.1) 2023 was proposed in the House of Representatives on
25 May 2023.
Item 1 Schedule 4 (at the end of the cell at table item 9, column headed "Description of
goods")
21. This item inserts new paragraph (c) into table item 9 of Schedule 4 to the Customs Tariff Act
to expand the scope of the tariff concession provided by that table item, specifically to also
provide for goods covered by the Agreement between the Government of Australia and the
European Space Agency for a Co-operative Space Vehicle Tracking Program, done at
Capetown on 5 October 2011 (Agreement).
22. The Agreement is in Australian Treaty Series 2012 No. 29 ([2012] ATS 29) and could in
2023 be viewed free of charge in the Australian Treaties Library on the Austlii website
(austlii.edu.au).
23. This amendment has effect that the goods covered by the Agreement, and prescribed by
by-law for paragraph (c) of table item 9, are eligible for the concessional customs duty rate of
'Free'.
24. This amendment enables goods, including goods covered by the Articles 10 and 11 of the
Agreement, to be prescribed. Article 10 relates to the effects for the personal and household
use of such persons entering Australia for the purpose of the Agreed Activities, and Article
11 relates to equipment, materials, supplies and other property which are certified by the
Agency to be imported for use in the Agreed Activities.
25. Article 2 of the Agreement defines 'Agreed Activities' to mean the following activities:
(a) tracking and telecommand of the Agency's space vehicles or other space vehicles as
may be arranged between the Agency and the Australian co-operating agency; and
(b) acquiring data from the space vehicles mentioned in paragraph (a).
Item 2 Application provision
26. This item provides that the amendments made by item 1 of Schedule 1 to the Bill apply in
relation to:
(a) goods imported into Australia on or after the commencement of this item; and
(b) goods imported into Australia before the commencement of this item, where the time
for working out the rate of import duty on the goods had not occurred before the
commencement of this item.
Page 6 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
27. This item, operating together with the table item 2 of clause 2 of the Bill, provides that the
'Free' rate of customs duty for the goods imported for use in the Agreed Activities applies
retrospectively from 1 December 2022. This provides a benefit to those persons who have
imported such goods from 1 December 2022, enabling them to apply for a refund of the
import duties they have paid.
Part 2--Further temporary decrease in duties for goods from Ukraine
Customs Tariff Act 1995
Introductory Comments
28. On 4 July 2022, the Prime Minister announced that Australia would join like-minded
countries in providing a temporary 'Free' rate of customs duty for goods that are the produce
or manufacture of Ukraine. This measure aimed to assist Ukraine's continued participation in
international trade and support its efforts to uphold its territorial integrity in response to
Russia's illegal invasion and is necessary for the protection of Australia's essential security
interests. This violation of Ukraine's sovereignty and territorial integrity undermines the
rules-based international order, which is essential to Australia's international, regional and
domestic stability and security.
29. The temporary 'Free' rate of customs duty applied to goods imported into Australia between
4 July 2022 and 3 July 2023 that are the produce or manufacture of Ukraine. Section 18B
provided that the rates of customs duty for goods that are classified to tariff subheadings in
Chapters 22, 24, 27, 29, 34 and 38 of Schedule 3 to the Customs Tariff Act for which a 'DC'
tariff rate is listed, would be calculated as the lower of either the 'DC' rate in Schedule 3 or
any concessional rate applying in Schedule 4. All other goods that are the produce or
manufacture of Ukraine and are imported within this period had a duty rate of 'Free'.
30. On 26 June 2023, the Prime Minister, Deputy Prime Minister and Minister for Foreign
Affairs announced, as part of further assistance to Ukraine, that Australia will extend
duty-free access for goods imported from Ukraine for a further 12 months, to support its
recovery and trade opportunities.
31. On 3 July 2023, the Notice of Intention to Propose Customs Tariff Alteration (No. 2) 2023
was registered on the Federal Register of Legislation for the purposes of section 273EA of
the Customs Act. That Notice advised of the intention to extend the duty-free concession for
goods imported from the Ukraine for a further 12 months. The related Customs Tariff
Proposal (No. 3) 2023 was proposed in the House of Representatives on 9 August 2023.
32. The measure is a response to Russia's continuing illegal invasion of Ukraine, supported by
Belarus, and is necessary for the protection of Australia's essential security interests. Russia's
actions, supported by Belarus, are a gross violation of international law, including the Charter
of the United Nations. The violation of Ukraine's sovereignty and territorial integrity
undermines the rules-based international order. Australia is committed to upholding these
principles, which are essential to international, regional and domestic stability and security.
33. The extension is in line with Australia's continuing commitment to supporting Ukraine's
continued participation in international trade and the efforts of Ukraine to uphold its
Page 7 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
territorial integrity. The measure is also consistent with similar initiatives from the
United States, European Union and United Kingdom.
Item 3 Paragraph 18B(1)(b)
34. This item amends paragraph 18B(1)(b) of the Customs Tariff Act to extend the duration, in
which the importation of goods (covered by section 18B) that are the produce or manufacture
of Ukraine, is subject to the temporary decrease in customs duties. The amendment extends
the duration from the period of 12 months beginning on 4 July 2022 and ending on
3 July 2023 to the period beginning on 4 July 2022 and ending at the end of 3 July 2024. This
results in the increase of the duration from 12 months to 24 months. The scope of section 18B
of the Customs Tariff Act is otherwise not changed.
35. Most goods that are the produce or manufacture of Ukraine continue to be covered by a
'Free' rate of duty. However, this 'Free' rate of duty continues to not apply to goods
classified under a tariff classification in Chapter 22, 24, 27, 29, 34 or 38 of Schedule 3 to the
Customs Tariff Act for which a 'DC' tariff rate is listed. The rate of duty for these goods is
calculated as the lower rate of either the 'DC' rate in Schedule 3, or any concessional rate
applying in Schedule 4. These exceptions continue to maintain the excise-equivalent customs
duty payable for goods such as alcohol, fuel and tobacco.
36. The rules for determining whether goods are the produce or manufacture of Ukraine continue
to be the same rules applicable to Developing Countries accessing 'DC' rates in the
Australian System of Trade Preferences. Having clear and transparent rules of origin
minimises the risk of transhipment of goods through Ukraine that would otherwise not be
entitled to the 'Free' rate of duty.
Part 3--Goods for use in connection with an international sporting event
Customs Tariff Act 1995
Introductory Comments
37. Schedule 4 to the Customs Tariff Act provides concessional rates of customs duty for goods
that meet the terms set out in the listed concessional items. In accordance with section 18(1)
of the Customs Tariff Act, goods are able to access concessional treatment under an item of
Schedule 4 if the duty rate applicable to the goods under the item is less than the rate of
customs duty that would be applicable to the goods under another schedule of the Customs
Tariff Act
38. On 30 June 2023, the Notice of Intention to Propose Customs Tariff Alteration (No. 3) 2023
was registered on the Federal Register of Legislation for the purposes of section 273EA of
the Customs Act. That Notice advised of the intention to insert new table item 59 in
Schedule 4 of the Customs Tariff Act to provide a 'Free' rate of customs duty to goods that
are imported for use in connection with an international sporting event as prescribed by
by-law.
39. The related Customs Proposal (No. 4) 2023 was proposed in the House of Representatives on
9 August 2023.
Page 8 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
Item 4 At the end of Schedule 4
40. This item inserts new item 59 into Schedule 4 to the Customs Tariff Act as 'Goods for
International Sporting Events'. Schedule 4 identifies classes of goods to which concessional
rates may apply and specifies the concessional rates potentially available to such classes.
41. The effect of this amendment is that goods, as prescribed by by-law, for use in connection
with an international sporting event prescribed by the by-law, are eligible for a 'Free' rate of
customs duty. The Customs Amendment (FIFA and Returned Goods) By-Laws 2023,
published on the Federal Register of Legislation on 10 July 2023, inserted section 74 of the
Customs By-Laws 2023 and prescribes the Customs By-law No. 2320518 (By-law). This
By-law provides that goods for use in Australia in connection with the Federation
Internationale de Football Association (FIFA) Women's World Cup Australia New Zealand
2023, that meet the conditions in subsection 3 of the description, are subject to a 'Free' rate
of duty.
42. The by-laws that prescribe goods for the purposes of Schedule 4 concessional items are made
under section 271 of the Customs Act.
Item 5 Application provision
43. This item provides that the amendments made by item 4 of Schedule 1 to this Bill apply in
relation to:
(a) goods imported into Australia on or after the commencement of this item; and
(b) goods imported into Australia before the commencement of this item, where the time
for working out the rate of import duty on the goods had not occurred before the
commencement of this item.
44. This item, operating with table item 4 of clause 2 to the Bill, provides that the 'Free' rate of
customs duty for the goods used in connection with an international sporting event prescribed
by by-law applies from 1 January 2022. This provides a benefit to those persons who
imported goods that comply with the by-law, imported from 1 January 2022, are eligible to
apply for a refund of the duty they have paid.
Part 4--Further temporary increase in duties for goods from Russia or Belarus
Customs Tariff Act 1995
Introductory Comments
45. On 31 March 2022, the then Prime Minister announced that Australia would join like-minded
countries in temporarily removing Most Favoured Nation (MFN) tariff treatment and
imposing an additional duty on goods from Russia and Belarus. Ordinarily, goods from
Russia and Belarus would be subject to the general rate of customs duty, most commonly
5 per cent or 'Free'. Instead, most goods that are the produce or manufacture of Russia and
Belarus are subject to a temporary rate of customs duty of 35 per cent in addition to the
general rate of customs duty that would have ordinarily applied to the goods. The temporary
removal of MFN treatment and imposition of additional duty was a response to Russia's
illegal invasion of Ukraine and is necessary for the protection of Australia's essential security
Page 9 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
interests. This violation of Ukraine's sovereignty and territorial integrity undermines the
rules-based international order, which is essential to Australia's international, regional and
domestic stability and security. Economic measures against Russia and Belarus are a
necessary part of the international community's response to their flagrant violation of the
Charter of the United Nations.
46. The temporary additional duty applied to all goods that are the produce or manufacture of
Russia or Belarus, left on or after 25 April 2022 for direct shipment to Australia and are
imported into Australia between 25 April 2022 and 24 October 2023. The additional duty did
not apply to goods that are otherwise eligible for certain tariff concessions provided under
Schedule 4 to the Customs Tariff Act. Relevant concessions are identified in subsection
18A(3) of the Customs Tariff Act.
47. The additional duty applied to goods that are the produce or manufacture of Russia or Belarus
regardless of when the goods were manufactured. This includes goods that were the produce
of manufacture of places that are geographically part of present day Russia or Belarus but not
named as such. The additional duty also applies in circumstances where the goods were
imported into Australia from a country other than Russia or Belarus.
48. On 25 September 2023, the Notice of Intention to Propose Customs Tariff
Alterations (No. 4) 2023 was registered on the Federal Register of Legislation for the
purposes of section 273EA of the Customs Act. That Notice advised of the intention to
extend the measure until 24 October 2025.
49. The related Customs Proposal (No. 5) 2023 was proposed in the House of Representatives on
18 October 2023.
Item 6 Paragraph 18A(5)(b)
50. This item amends paragraph 18A(5)(b) of the Customs Tariff Act to extend the duration in
which the importation of goods (covered by section 18A), that are the produce or
manufacture of Russia or Belarus, is subject to the temporary additional customs duty. The
amendment extends the duration from the period beginning on 25 April 2022 and ending at
the end of 24 October 2023 to the period beginning on 25 April 2022 and ending at the end of
24 October 2025. This results in the increase of the duration from 18 months to 42 months.
The scope of section 18A of the Customs Tariff Act is otherwise not changed.
Page 10 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
Attachment A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
The Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023 (the Bill) is
compatible with human rights and freedoms recognised or declared in the international
instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The Customs Act 1901 (the Customs Act) concerns customs related functions and is the
legislative authority that sets out the customs requirements for the importation and
exportation of goods to and from Australia.
The Customs Tariff Act 1995 (the Customs Tariff Act) gives effect to Australia's import trade
classification system. It is used to assign rates of customs duty, both general and preferential,
to imported goods and enables the collection of these duties.
Subsection 273EA(1) of the Customs Act provides that where Parliament is not sitting for a
period exceeding seven days, the Minster may make a legislative instrument giving notice
that it is intended, within seven sitting days of the House of Representatives after the date of
registration of the instrument, the Minister will propose in Parliament a Customs Tariff
alteration in accordance with particulars in the instrument and operating as from such time
specified in the instrument.
Following the introduction of a customs tariff proposal in the House of Representatives, the
alterations contained in that proposal are incorporated into the Customs Tariff Act by a
Customs Tariff Amendment Bill.
The Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023 (the Bill)
amends the Customs Tariff Act to incorporate multiple alterations to that Act effected by
Customs Tariff Proposal (No. 1) 2023, Customs Tariff Proposal (No. 3) 2023, Customs Tariff
Proposal (No. 4) 2023 and Customs Tariff Proposal (No. 5) 2023 as follows.
Part 1 - Goods covered by space agreement
Part 1 of Schedule 1 to the Bill amends table item 9 of Schedule 4 to the Customs Tariff Act
and expands the scope of the tariff concession provided by that item to include goods covered
by the Agreement between the Government of Australia and the European Space Agency for
a Co-operative Space Vehicle Tracking Program, done at Capetown on 5 October 2011
(Agreement).
The Agreement, amongst other matters, sets out the following obligations:
• Under Article 10.2, the effects for the personal and household use of persons
entering Australia for the purpose of the Agreed Activities shall be permitted free
Page 11 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
entry in accordance with Australian customs law in effect at the date the goods
are imported.
• Under Article 11.2, equipment, materials, supplies and other property which are
certified by the Agency to be imported for use in the Agreed Activities.
Article 2 of the Agreement defines "Agreed Activities" to mean the following activities:
(a) tracking and telecommand of the Agency's space vehicles or other space vehicles
as may be arranged between the Agency and the Australian co-operating agency;
and
(b) acquiring data from the space vehicles mentioned in paragraph (a).
The amendments contained in Part 1 of Schedule 1 to the Bill incorporate the amendments
proposed by Customs Tariff Proposal (No.1) 2023, tabled in Parliament on 25 May 2023 and
has effect that goods prescribed by by-law and covered by the Agreement are eligible for the
concessional customs duty rate of 'Free'. The amendments contained in Part 1 of Schedule 1
to the Bill commence on 1 December 2022.
The retrospective commencement date has the benefit of enabling those who imported such
goods from 1 December 2022, to apply for a refund of the import duties they have paid.
Part 2 - Further temporary decrease in duties for goods from Ukraine
The purpose of Part 2 of Schedule 1 to the Bill is to amend paragraph 18B(1)(b) of the
Customs Tariff Act to extend the duration that the temporary decrease in duties for goods
imported from Ukraine applies. This measure incorporates the alteration set out in Customs
Tariff Proposal (No. 3) 2023, tabled in Parliament on 9 August 2023, and has effect that:
(a) the 'Free' rate of customs duty for goods that are the produce or manufacture of
Ukraine; and
(b) the reduced rate for goods classified under a tariff classification in Chapter 22, 24,
27, 29, 34 or 38 of Schedule 3 to the Customs Tariff Act for which a 'DC' tariff rate
is listed;
are extended cover goods imported into Australia during the period of 24 months
beginning on 4 July 2022; being an increase from 12 months to 24 months.
The amendment extends the 'Free' rate of customs duty for goods that are the produce or
manufacture of Ukraine, except for excise equivalent goods such as certain alcohol, tobacco,
fuel and petroleum products, imported into Australia for a further 12 months, between 4 July
2022 and 3 July 2024.
This measure is a response to Russia's illegal invasion of Ukraine, supported by Belarus. This
measure contributes to Ukraine's continued participation in international trade, and supports
efforts by Ukraine to uphold its territorial integrity. The measure is consistent with similar
initiatives from the United States, European Union and United Kingdom.
The amendments contained in Part 2 of Schedule 1 to the Bill incorporate the amendments
contained in Notice of Intention to Propose Customs Tariff Alteration (No. 2) 2023. The
amendments contained in Part 2 of Schedule 1 to the Bill commence on 4 July 2023.
Page 12 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
Part 3 - Goods for use in connection with an international sporting event
The purpose of Part 3 of Schedule 1 to the Bill inserts new table item 59 into Schedule 4 to
the Customs Tariff Act to provide a 'Free' rate of customs duty to goods that are imported for
use in connection with international sporting events prescribed by by-law.
The amendments contained in Part 3 of Schedule 1 to the Bill incorporates the alterations set
out in Customs Tariff Proposal (No. 4) 2023, tabled in Parliament on 9 August 2023, and has
effect that the concessional rate of customs duty will apply to goods as prescribed by by-law.
The amendments contained in Part 3 of Schedule 1 to the Bill commence on 1 January 2022.
The retrospective commencement date has the benefit of enabling those who imported such
goods from 1 January 2022, to apply for a refund of the import duties they have paid.
Part 4 - Further temporary increase in duties for goods from Russia or Belarus
In Australia, Most-Favoured Nation (MFN) tariff treatment is given effect through the
general rates of duty in the Customs Tariff Act. Australia has joined like-minded countries in
temporarily removing MFN tariff treatment and imposing an additional duty on goods from
Russia and Belarus.
The purpose of Part 4 of Schedule 1 to the Bill is to amend paragraph 18A(5)(b) of the
Customs Tariff Act to extend the duration in which the temporary increase for imported
goods that are the produce or manufacture of Russia or Belarus applies. This measure
incorporates Customs Tariff Proposal (No. 5) 2023, tabled in Parliament on 18 October 2023,
and has effect that the temporary duty of 35 per cent will continue to apply to these goods
(until 24 October 2025) in addition to the general rate of customs duty that would ordinarily
apply, except where these goods are eligible for certain tariff concessions or left for direct
shipment to Australia before 25 April 2022.
The amendments contained in Part 4 of Schedule 1 to the Bill incorporates the amendments
contained in Notice of Intention to Propose Customs Tariff Alterations (No. 4) 2023. The
amendments contained in Part 4 of Schedule 1 to the Bill commence on 25 October 2023.
Human rights implications
The amendments contained in Part 4 of Schedule 1 to the Bill, which extend the temporary
additional duty on goods that are the produce or manufacture of Russia or Belarus, may
engage:
• the right to an adequate standard of living, including adequate food, clothing and
housing in Article 11(1) of the International Covenant on Economic, Social and
Cultural Rights (ICESCR); and
• the right to the highest attainable standard of health, in Article 12 of the ICESCR.
These rights are engaged to the extent that the extension of the imposition of an additional
duty impacts the importation of relevant goods into the Australian market. These measures
are not expected to have a detrimental effect on the Australian market as they are temporary
and any impacts can be absorbed by alternative markets.
Page 13 Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 2) 2023
Economic measures, such as the extension of the temporary additional duty, against Russia
and Belarus are a necessary part of the international community's response to their flagrant
violation of the Charter of the United Nations. This violation of Ukraine's sovereignty and
territorial integrity undermines the rules-based international order, which is essential to
Australia's international, regional and domestic stability and security. As such, to the extent
that these rights may be engaged, it is reasonable, necessary and proportionate in addressing
the public, social and international concern with the conflict in Ukraine.
Conclusions
To the extent that the Bill may limit human rights, those limitations are reasonable, necessary
and proportionate.
The Honourable Clare O'Neil MP, Minister for Home Affairs
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