Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2008 - 2009
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
CUSTOMS TARIFF AMENDMENT (ASEAN-AUSTRALIA-NEW ZEALAND
FREE TRADE AGREEMENT IMPLEMENTATION) Bill 2009
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Home Affairs
the Honourable Brendan O'Connor MP)
CUSTOMS TARIFF AMENDMENT (ASEAN-AUSTRALIA-NEW ZEALAND
FREE TRADE AGREEMENT IMPLEMENTATION) BILL 2009
OUTLINE
The purpose of the Customs Tariff Amendment (ASEAN-Australia-New Zealand
Free Trade Agreement Implementation) Bill 2009 (the Tariff Bill) is to
amend the Customs Tariff Act 1995 (the Customs Tariff) to implement the
Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (the
Agreement) by:
. providing free rates, and preferential rates, of customs duty for goods
that are AANZ originating goods in accordance with new Division 1G of
Part VIII of the Customs Act 1901 (the Customs Act). New Division 1G is
proposed to be inserted in the Customs Act by the Customs Amendment
(ASEAN-Australia-New Zealand Free Trade Agreement Implementation)
Bill 2009 (the Customs Bill);
. phasing the preferential rates of customs duty for all goods to Free by
2020;
. maintaining rates of customs duty on certain goods (alcohol, tobacco and
petroleum products) that are equivalent to the rates of excise duty
payable on such goods when locally manufactured; and
. creating a new Schedule 8 in the Customs Tariff to accommodate the
preferential, phasing and excise equivalent rates of duty.
Complementary amendments will also be made to the Customs Act by the
Customs Bill to give effect to the Agreement.
FINANCIAL IMPACT STATEMENT
It is estimated that the customs duty forgone as a result of the
implementation of the Agreement could be approximately $971 million for the
period up to the end of the 2012/13 financial year. This figure will be
affected by a range of factors, including the degree of utilisation of the
Agreement's tariff commitments, changes in trade flows, fluctuations in
exchange rates and GDP growth.
REGULATION IMPACT STATEMENT
A Regulation Impact Statement covering the tariff amendments is contained
in the Explanatory Memorandum for the Customs Amendment (ASEAN-Australia-
New Zealand Free Trade Agreement Implementation) Bill 2009.
CUSTOMS TARIFF AMENDMENT (ASEAN-AUSTRALIA-NEW ZEALAND
FREE TRADE AGREEMENT IMPLEMENTATION) BILL 2009
NOTES ON CLAUSES
Clause 1 - Short Title
This clause provides for the Tariff Bill, when enacted, to be cited as the
Customs Tariff Amendment (ASEAN-Australia-New Zealand Free Trade
Agreement Implementation) Act 2009.
Clause 2 - Commencement
1. Subclause (1) provides that each provision of this Act specified in
column 1 of the table in that subclause commences, or is taken to have
commenced, on the day or at the time specified in column 2 of the table.
This subclause also provides that any other statement in column 2 of the
table has effect according to its terms.
2. Item 1 of the table in this clause provides that sections 1 to 3 and
anything in the Act not covered elsewhere in the table will commence on
the day on which the Act receives the Royal Assent.
3. Item 2 of the table provides that Schedule 1 of the Tariff Bill will
commence at the same time as Schedule 1 to the Customs Amendment (ASEAN-
Australia-New Zealand Free Trade Agreement Implementation) Act 2009
commences.
4. Item 3 of the table provides that Schedule 2 of the Tariff Bill will
commence on the later of:
a) the start of the day Schedule 1 to the Customs Tariff Amendment (Carbon
Pollution Reduction Scheme) Act 2009 commences; and
b) immediately after the commencement of the provisions covered by table
item 2.
However, Schedule 2 of the Tariff Bill does not commence at all if the
events mentioned in paragraphs (a) and (b) do not occur.
Clause 3 - Schedule(s)
5. This clause is the formal enabling provision for the Schedules to the
Tariff Bill, providing that each Act specified in a Schedule is amended
or repealed in accordance with the applicable items in the Schedule. In
the Tariff Bill, the Customs Tariff Act 1995 is being amended.
6. Clause 3 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.
SCHEDULE 1 - MAIN AMENDMENTS
Amendments to the Customs Tariff Act 1995
Introductory comments
7. The Agreement Establishing the ASEAN-Australia-New Zealand Free Trade
Area was signed on 27 February 2009 by the Minister for Trade, the Hon
Simon Crean MP and representatives of the eleven other Parties to the
Agreement, namely New Zealand, and the ASEAN Member States of Brunei
Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines,
Singapore, Thailand and Viet Nam.
8. On entry into force of the Agreement, the Tariff Bill will amend the
Customs Tariff to provide rates of customs duty for AANZ originating
goods, as set out in the Schedule to the Agreement.
9. Under the Agreement, rates of customs duty for AANZ originating goods
will either be eliminated on entry into force of the Agreement or phase
to Free over a number of years, but no later than 2020. Under this Bill,
certain alcohol, tobacco and petroleum products will continue to be
subject to rates of customs duty that are equivalent to the rates of
excise duty payable on such goods when locally manufactured, which is
permitted under the Agreement (see paragraphs 58 to 60). Rates of customs
duty applicable to AANZ originating goods, including phasing rates, will
be set out, as required, in a new Schedule 8 to the Customs Tariff. If a
rate of duty is not specified in Schedule 8 for AANZ originating goods,
then the rate of duty of Free applies.
10. The rules for determining whether goods are AANZ originating goods will
be set out in a new Division 1G of the Customs Act. However, goods from
a particular country will not be AANZ originating goods until the
Agreement comes into force for that country.
11. The Agreement is expected to enter into force for Australia on 1
January 2010. Under the provisions of the Customs Bill, the Minister for
Home Affairs is required to publish a Notice in the Commonwealth Gazette
advising when the Agreement enters into force for Australia, for New
Zealand and for each of the ten ASEAN countries.
12. All ten ASEAN countries are currently listed as Developing Countries
under Schedule 1 of the Customs Tariff. For example, Cambodia is
currently listed under Division 1 of Part 2 of Schedule 1 as a Developing
Country for which Least Developed Country rates of duty apply. Goods
from New Zealand receive preferential rates under the Australia-New
Zealand Closer Economic Relations Trade Agreement. When implemented, the
Tariff Bill will not affect the existing preferential status of any of
the ASEAN countries or New Zealand.
13. Amendments are being made to the Customs Tariff to include references
to the new Schedule 8, to AANZ originating goods, and to specify duty
rates in Schedule 4 (Schedule of Concessional Rates) for AANZ originating
goods. Sections 16 and 18 of the Customs Tariff will also be amended to
provide rules for determining customs duty for AANZ originating goods.
Item 1 Subsection 3(1) (at the end of the definition of rate column)
14. Item 1 amends the definition of rate column in subsection 3(1) of the
Customs Tariff to include a reference to the third column of the table in
new Schedule 8. Schedule 8 of the Customs Tariff will be used to specify
rates of duty, including phasing rates, for AANZ originating goods, as
required.
Item 2 Subsection 9(1)
15. Item 2 amends subsection 9(1) of the Customs Tariff to include a
reference to Schedule 8.
16. This amendment allows rates of duty to be specified in the rate column
in new Schedule 8 of the Customs Tariff that will apply to AANZ
originating goods.
Item 3 After paragraph 11(1)(bc)
17. Item 3 adds new paragraph (1)(bd) to section 11 to include a reference
to a rate of duty set out in the third column of an item in the table in
new Schedule 8 of the Customs Tariff that applies to the goods. Section
11 sets out the rules for determining when a phasing rate of duty takes
effect.
Item 4 After paragraph 11(1)(g)
18. Item 4 adds new paragraph (1)(h) to section 11 to include a reference
to a specified date set out in the third column of an item in the table
in new Schedule 8 of the Customs Tariff that applies to AANZ originating
goods.
Item 5 After paragraph 11(2)(bc)
19. Item 5 adds new paragraph (2)(bd) to section 11 to include a reference
to a rate of duty set out in the third column of an item in the table in
new Schedule 8 of the Customs Tariff that applies to AANZ originating
goods.
20. The amendments provided by items 3, 4 and 5 allow phasing rates of duty
to be inserted in Schedule 8.
Item 6 After section 13D
21. Item 6 amends the Customs Tariff by inserting a new section 13E. The
new section provides that, for the purposes of the Customs Tariff, goods
are AANZ originating goods if, and only if, they are AANZ originating
goods under new Division 1G of Part VIII of the Customs Act. New
Division 1G of Part VIII of the Customs Act sets out the rules for
determining whether goods are AANZ originating goods.
22. Amendments to sections 16 and 18 of the Customs Tariff (see below)
insert new provisions to determine the rate of customs duty that applies
to goods that are AANZ originating goods. The purpose of new section 13E
is to ensure that those rates will only apply to goods that satisfy the
new rules set out in new Division 1G of the Customs Act.
Item 7 After subparagraph 16(1)(a)(v)
23. Item 7 amends the Customs Tariff by inserting a new subparagraph
16(1)(a)(vi). Section 16 of the Customs Tariff sets out how customs duty
is calculated, including for goods that are the produce or manufacture of
particular countries and classes of countries for preference purposes.
Paragraph 16(1)(a) provides that if the goods are not the produce or
manufacture of a Preference Country or a country to which a Free Trade
Agreement applies, the duty must be worked out by reference to the
general rate set out in the third column of the tariff classification in
Schedule 3 under which the goods are classified.
24. New subparagraph 16(1)(a)(vi) ensures that the general rate of duty set
out in Schedule 3 does not apply to AANZ originating goods.
Item 8 Paragraph 16(1)(g) (note)
25. Paragraph 16(1)(g) sets out the method of calculating duty for goods
from Developing Countries, including Chile and Thailand. For Chile and
Thailand, this calculation is currently conditioned by subsections 16(3)
and 16(4) and the above note directs users to these subsections. As
these subsections are being deleted and replaced by a new
subsection 16(5), of more general application, this note is no longer
required. (Refer to comments under item 10 below).
Item 9 At the end of subsection 16(1)
26. Item 9 inserts new paragraph 16(1)(n) into the Customs Tariff. This
paragraph provides that a free rate of customs duty is payable on goods
that are AANZ originating goods unless the goods are classified to a
heading or subheading in Schedule 3 that is specified in column 2 of an
item in the table in new Schedule 8. If the goods are so classified, the
duty on those goods will be worked out by reference to the rate of duty
set out in column 3 of the relevant item in Schedule 8.
Item 10 Subsections 16(3) and (4)
27. Item 10 amends the Customs Tariff by repealing subsections 16(3) and
16(4). In implementing previous free trade agreements, including the
Thailand-Australia Free Trade Agreement and the Australia-Chile Free
Trade Agreement, goods imported from Thailand or Chile could, prima
facie, be subject to an existing preference scheme or to a free trade
agreement. Both Chile and Thailand are Developing Countries and are
accorded DCS preferential rates of duty.
28. Subsections 16(3), 16(4) and 18(3) were inserted in the Customs Tariff
to clarify that, in the above circumstances, the relevant free trade
agreement should be used for eligible goods imported from these countries
as it provided rates of duty that were lower than, or at least not higher
than, the rate provided under the preference scheme.
29. In the case of the AANZ Free Trade Agreement, it has not been practical
to provide similar provisions for all ten ASEAN countries and New
Zealand.
30. Item 10 repeals subsections 16(3) and 16(4) of the Customs Tariff and
inserts a new subsection 16(5).
31. Subsection 16(5) provides that where more than one preference scheme or
free trade agreement, prima facie, applies to goods, then the scheme or
agreement that provides the least amount of customs duty should be used,
subject to goods meeting relevant rules of origin requirements. The
application of a preference scheme or free trade agreement that imposes
the least amount of duty on imported goods is consistent with existing
arrangements. These amendments will provide direction for importers and
customs administration as to the application of preference schemes and
free trade agreements.
32. Item 10 also inserts a new subsection 16(3) into the Customs Tariff.
This subsection provides that if column 2 of an item in the table in
Schedule 8 includes the term "(prescribed goods only)", subparagraph
(1)(n)(i) does not apply to the goods unless the goods are also
prescribed for the purposes of that item.
33. New subsection 16(3) accommodates a limited number of circumstances
where the Agreement specifies different rates of duty for goods that are
classified in the same tariff subheading. In this case, goods that have
a substantive rate (that is a rate other than Free) under the Agreement
will be prescribed and will be subject to the rate of duty set out in
column 3 of Schedule 8. Goods that are not prescribed will receive a
free rate of duty in accordance with subparagraph 16(1)(n)(ii).
34. In Schedule 8, the entries relating to tariff subheadings 6103.10.00,
6107.99.00 and 6115.10.10 appear twice, with both entries using the term
"(prescribed goods only)". In these cases, the Agreement provides
different but substantive rates of customs duty for the goods concerned
and it is necessary to prescribe both sets of goods to give effect to the
provisions of the Agreement.
35. Goods that are required to be prescribed for the purposes of Schedule 8
will be prescribed in the Customs Tariff Regulations 2004 (the Tariff
Regulations).
36. Further comments are provided under item 30 in respect of Schedule 8.
37. Item 10 also inserts a new subsection 16(4) into the Customs Tariff.
This subsection applies in the circumstance where goods are AANZ
originating goods but a particular country is specified in column 3 of
Schedule 8. In this case, section 16(4) provides that the rate specified
for that country applies to the goods, and not the AANZ rate, whether or
not the AANZ rate is Free.
38. New subsection 16(4) accommodates a limited number of circumstances
where the Agreement specifies different rates of duty for certain goods
imported only from certain ASEAN countries. These provisions are used in
items 341 to 365 in Schedule 8, in relation to motor vehicles from
Indonesia, Malaysia and Thailand. (Refer also to comments in relation to
item 59 in Schedule 4, paragraphs 55 and 56 in this Explanatory
Memorandum).
Item 11 At the end of subsection 18(1)
39. Section 18 of the Customs Tariff sets out how customs duty is
calculated in those circumstances where a concessional rate of customs
duty under an item in Schedule 4 of the Customs Tariff is provided for
certain goods. In particular, subsection 18(1) provides that a
concessional rate of customs duty can be used only where the rate of
customs duty is less than that which would otherwise be payable under
Schedules 3, 5, 6 or 7.
40. Item 11 amends subsection 18(1) to add a new paragraph (1)(e). This
amendment provides that a concessional item in Schedule 4 only applies to
goods if the duty is lower than the duty payable under Schedule 8. This
provision is consistent with the same provision for other schedules of
the Customs Tariff, for example Schedule 7, Chilean originating goods.
Item 12 After subparagraph 18(2)(a)(v)
41. Item 12 amends the Customs Tariff by inserting a new subparagraph
18(2)(a)(vi). Schedule 4 of the Customs Tariff lists approximately 100
items where a concessional rate of customs duty is provided for
particular goods. Section 18 of the Customs Tariff sets out how customs
duty is calculated for such goods, in particular for goods that are the
produce or manufacture of particular countries and classes of countries
for preference purposes. Paragraph 18(2)(a) provides that if the goods
are not the produce or manufacture of a preference country or a country
to which a free trade agreement applies, the duty must be worked out by
reference to the general rate set out in the third column of an item in
Schedule 4 that applies to the goods.
42. New subparagraph 18(2)(a)(v) ensures that the general rate of duty set
out in Schedule 4 does not apply to AANZ originating goods.
Item 13 Paragraph 18(2)(g) (note)
43. Paragraph 18(2)(g) sets out the method of calculating duty for goods
from Developing Countries, including Chile and Thailand. For Chile and
Thailand, this calculation is currently conditioned by subsection 18(3)
and the above note directs users to this subsection. As the subsection
is being amended to be of more general application, this note is no
longer required. (Refer to comments under item 15 below).
Item 14 At the end of subsection 18(2)
44. Item 14 inserts new paragraph 18(2)(n) into the Customs Tariff to set
out how customs duty is calculated for goods that are AANZ originating
goods and that are subject to a concessional item in Schedule 4. This
paragraph provides that if the goods are AANZ originating goods and
"AANZ" is specified in the third column of an item in Schedule 4, the
amount of duty is calculated by reference to that rate of duty. If there
is no such rate, the rate is Free.
Item 15 Subsection 18(3)
45. Item 15 amends subsection 18(3). The revised subsection provides a
similar provision to new subsection 16(5). (See comments under item 10).
Where more than one preference scheme or free trade agreement, prima
facie, applies to goods that are subject to a concessional item in
Schedule 4, then the scheme or agreement that provides the least amount
of customs duty should be used, subject to goods meeting relevant rules
of origin requirements. The application of a preference scheme or free
trade agreement that imposes the least amount of duty on imported goods
is consistent with existing arrangements.
Item 16 After paragraph 19(1)(d)
46. Section 6A of the Excise Tariff Act 1921 (the Excise Tariff) provides
for the automatic indexation of certain excise rates of duty in line with
movements in the Consumer Price Index, in February and August of each
year. The goods to which automatic indexation applies are certain
alcohol and tobacco products.
47. Section 19 of the Customs Tariff provides for the same indexation to be
made to customs rates of duty for equivalent imported goods. For this
purpose, section 19 contains a table that pairs customs tariff
subheadings with the corresponding excise tariff items.
48. Item 16 amends subsection 19(1) of the Customs Tariff by adding, in new
paragraph (e), a reference to the rate column in new Schedule 8 of the
Customs Tariff to enable the indexation provisions to apply to the rates
of customs duty for those alcohol and tobacco products that are AANZ
originating goods.
Items 17 to 29 Schedule 4
49. Schedule 4 of the Customs Tariff lists approximately 100 items where a
concessional rate of customs duty is provided for particular goods. In
most cases, the concessional rate of customs duty for such goods is Free.
However, in some circumstances, instead of a free rate of duty, the
items provide a lower rate of customs duty than the general rate that is
otherwise payable.
50. The Agreement only provides for duty concessions for goods in
Schedule 3 of the Customs Tariff. As paragraph 18(2)(n) of the Customs
Tariff provides that the rate of customs duty for AANZ originating goods
subject to a concessional item in Schedule 4 is Free, unless "AANZ" is
specified in respect of a rate, it is necessary to specify rates of
customs duty for AANZ originating goods for those concessional items
where the rate of duty is not Free.
51. Items 17, 19, 21, 22, 23, 24, 25, 26, 27, 28 and 29 amend the existing
rates of customs duty for relevant Schedule 4 items by adding or
inserting the appropriate duty rate for AANZ originating goods.
52. Item 18 inserts a reference to new Schedule 8 in the description of
goods for concessional item 20A (goods returned to Australia after repair
overseas).
53. Item 20 inserts a reference to new Schedule 8 in the description of
goods for concessional item 20B (replaced goods returned to Australia as
part of a batch repair process).
54. An amendment has not been made to item 59 of Schedule 4. This item
provides concessional rates of duty for used or second hand passenger
motor vehicles. Under the Agreement, the rate of duty for all AANZ
originating used or second hand passenger motor vehicles is Free. There
is therefore no requirement for AANZ originating goods to access item 59
and no amendment is being made to the item.
Item 30 At the end of the Act
Schedule 8 - ASEAN-Australia-New Zealand (AANZ) originating goods
55. Item 30 inserts new Schedule 8 into the Customs Tariff.
56. Annex 1 (Schedule of Tariff Commitments Australia) of the Agreement
provides that rates of customs duty for AANZ originating goods are to be
reduced to Free over a period of time. Items 1, 2, 112 to 114, 123 to
125 and 132 to 367 in Schedule 8 impose phasing rates of customs duty on
AANZ originating goods as specified in the Agreement. Column 3 of the
table in Schedule 8 sets out, opposite the relevant headings and
subheadings of Schedule 3, the timing of those phasing rates and also the
rates of customs duty that will apply to AANZ originating goods at each
step of that phasing.
57. Paragraph (e) of Article 3 of the General Definitions and Article 1 of
Chapter 2, Trade in Goods, of the Agreement provide that customs duty
does not include duties that are equivalent to an Australian tax imposed
on the same goods when domestically produced. Such goods include
alcohol, tobacco and petroleum products that are subject to customs
duties at a rate that is equivalent to the excise duty imposed under the
Excise Tariff, on those goods when domestically produced.
58. Section 16 of the Tariff, as amended, provides that the rates of
customs duty for AANZ originating goods are Free unless a rate of duty is
specified for those goods in Schedule 8. Therefore, it is necessary to
specify the relevant headings and subheadings for the above alcohol,
tobacco and petroleum products in Schedule 8 and the appropriate rate of
customs duty.
59. Items 3 to 111, 115 to 122 and 126 to 131 of Schedule 8 impose customs
duty on the alcohol, tobacco and petroleum products that are AANZ
originating goods, at a rate that is equivalent to the excise duty
imposed under the Excise Tariff, on the same goods when domestically
produced.
60. In a number of instances, particularly relating to textiles, clothing
and footwear goods, the Agreement specifies rates of duty that are higher
than the general rate of duty set out in Schedule 3 of the Customs
Tariff. The general rate of duty is the highest rate of customs duty
that Australia imposes on imported goods. In these cases, Schedule 8
specifies the general rate of duty for those goods.
61. In Schedule 8, table items 113, 114, 123, 143, 144, 145, 146, 179, 180,
212, 213, 238, 239, 335, 338 and 339 use the term "(prescribed goods
only)". In these instances, the rate specified for those table items
will only apply to goods that are prescribed in the Tariff Regulations.
62. In three instances referring to tariff subheadings 6103.10.00,
6107.99.00 and 6115.10.10, table items 179 and 180, 212 and 213, and 238
and 239 repeat those subheadings with the term "(prescribed goods only)".
This enables two different rates to be imposed on AANZ originating goods
covered by those subheadings.
63. In Schedule 8, table items 341 to 365 impose rates of duty of 5% for
certain motor vehicles when imported as AANZ originating goods from
Indonesia, Thailand and Malaysia. When imported from other ASEAN
countries or New Zealand, the rate of duty for these goods is Free.
Items 31 to 35 User's Guide
64. These items omit and substitute text in the User's Guide to the Customs
Tariff, as required, to insert references to new Schedule 8.
Item 36 Application
65. This item provides that the amendments made by items 1 to 15 and 17 to
30 set out in Schedule 1 of the Tariff Bill will apply to goods imported
into Australia on or after the commencement of item 36. (Item 16 relates
to the indexation provisions in section 19 of the Customs Tariff and is
not covered by the application provision - comments under item 16 refer).
66. The commencement provisions of the Tariff Bill provide that item 36
will commence at the same time as Schedule 1 to the Customs Bill, that is
on the day that the Agreement comes into force for Australia.
67. Item 36 also applies to goods that were imported before the above day
but for which the time for working out the rate of import duty on those
goods had not occurred before that day. For example, if the Agreement
commences on 1 January 2010, item 36 provides that amendments to the
Customs Tariff shall apply to goods that were imported and warehoused
before 1 January 2010 but not entered into home consumption until on or
after 1 January 2010.
Item 37 Transitional - indexation
68. As noted, (refer comments under item 16), section 19 of the Customs
Tariff provides that customs rates of duty, for certain alcohol and
tobacco products, are adjusted automatically, twice yearly, in line with
movements in the Consumer Price Index (CPI). These adjustments occur in
February and August of each year.
69. The Tariff Bill has been drafted using rates of duty that reflect the
CPI increase that occurred on 1 August 2009, following the release of the
June 2009 CPI figures. Should the Agreement not commence for Australia
before 1 February 2010, these figures may be superseded by increased duty
rates, as a consequence of the February 2010 indexation. Further
legislative amendment would be required to reflect the post-February 2010
duty rates.
70. Item 37 is a transitional provision that provides for the circumstance
where the February 2010 CPI adjustments occur before the commencement of
the Agreement, those adjustments will apply automatically to the relevant
items in Schedule 8.
71. Item 37 is in accordance with the terms of the Agreement and will serve
to avoid the requirement for further legislative action in connection
with the adjustment of duty rates in line with the CPI.
SCHEDULE 2 - CONTINGENT AMENDMENTS RELATING TO CARBON POLLUTION REDUCTION
SCHEME
Amendments to the Customs Tariff Act 1995
Items 1 to 41 Schedule 8
72. The Customs Tariff Amendment (Carbon Pollution Reduction Scheme) Bill
2009 was introduced into Parliament in May 2009.
73. When enacted, the Customs Tariff Amendment (Carbon Pollution Reduction
Scheme) Act 2009 will lower rates of customs duty from 38.143 cents per
litre to 35.688 cents per litre for those subheadings in Schedule 3 to
the Customs Tariff applicable to a range of petroleum products. These
duty rates are the customs duty equivalent of the excise duty on these
products. The Act will also provide equivalent reductions of duty for
Schedule 5 (US originating goods), Schedule 6 (Thai originating goods)
and Schedule 7 (Chilean originating goods). Equivalent changes to excise
rates of duty in the Excise Tariff will be made at the same time for
domestically manufactured goods.
74. Schedule 2 of the Tariff Bill provides the same duty reductions for the
relevant items in Schedule 8 for AANZ originating goods.
75. The commencement provisions for Schedule 2 of the Tariff Bill provide
that this
Schedule will commence on the later of the commencement of the Customs
Tariff Amendment (Carbon Pollution Reduction Scheme) Act 2009 and the
Customs Tariff Amendment (ASEAN-Australia-New Zealand Free Trade
Agreement Implementation) Act 2009.
76. However, Schedule 2 will not commence unless both of the above Acts
commence.
Item 42 Application
77. This item provides that the amendments contained in Schedule 2 of the
Tariff Bill apply to goods imported into Australia on or after the
commencement of the Schedule.
78. Item 42 also applies to goods that were imported before the above date
but on which the time for working out the rate of import duty on those
goods had not occurred before that date.