Commonwealth Numbered Regulations - Explanatory Statements

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CUSTOMS AMENDMENT REGULATIONS 2007 (NO. 2) (SLI NO 333 OF 2007)

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 333

 

Issued by the Authority of the Minister for Justice and Customs

Customs Act 1901

Customs Amendment Regulations 2007 (No. 2)

 

Section 270 of the Customs Act 1901 (the Act) provides in part that the Governor‑General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed for giving effect to the Act.

Section 96B of the Act sets out provisions relating to inwards duty free shops. Under subsection 96B(3), a Collector of Customs may give permission for specified airport shop goods that are sold to an international traveller arriving in Australia, in an inwards duty free shop, to be delivered to that traveller and for the goods to be taken to an officer of Customs for clearance.

‘Airport shop goods’ are defined in subsection 4(1) of the Act as goods declared by the regulations to be airport shop goods or goods included in a class of goods declared by the regulations to be a class of airport shop goods. Regulation 94 of the Customs Regulations 1926 (the Principal Regulations) declares the classes of airport shop goods for the purposes of section 96B of the Act.

The amending Regulations remove the restrictions on the range of goods that can be sold in inwards duty free shops as airport shop goods. Prior to making of the amending Regulations, only 8 classes of goods including alcohol and tobacco products, photographic film and perfumes could be sold in an inwards duty free shop.

The amending Regulations repeal and substitute subregulation 94(1) of the Principal Regulations. New subregulation 94(1) provides that, subject to new subregulation 94(1A) which lists a range of goods not included in a class of airport shop goods, the following classes of goods are declared to be classes of airport shop goods:

(a) alcoholic beverages;

(b) tobacco products; and

(c) goods which have all of the following characteristics:

(i) no more than $900 in value;

(ii) no more than 7kg in weight;

(iii) no more than 56cm in length, 36cm in height and 23cm in depth.

New subregulation 94(1) retains the class of tobacco products which is currently declared to be a class of airport shop goods, updates the currently declared class of alcoholic liquor to make it clear that all alcoholic beverages are a class of airport shop goods, and declares a new class of airport shop goods for goods that have all of the characteristics specified in new paragraph 94(1)(c).

A good that has all of the characteristics specified in new paragraph 94(1)(c) and is not otherwise excluded by new subregulation 94(1A), will be declared to be an airport shop good and therefore can be sold in an inwards duty free shop. For example, the new class of airport shop goods would permit goods that are traditionally sold in outwards duty free shops, such as MP3 players, watches, sunglasses, leather goods, cameras and pens, to now be sold in inwards duty free shops.

The $900 value restriction on goods in the new class of airport shop goods is imposed as it is identical to the current duty free concession for general goods for an individual traveller. The proposed size and weight restriction on goods in the new class of airport shop goods is imposed as it means that a traveller is able, on arrival, to access goods that they may otherwise have purchased overseas and brought in hand luggage to Australia.

New subregulation 94(1A) provides that the following goods are taken not to be included in a class of airport shop goods:

(a) alcoholic beverages that are not in sealed containers;

(b) food and beverages which are capable of immediate consumption, other than

commercially produced confectionery which is in sealed packaging and alcoholic

beverages that are in sealed containers;

(c) fresh or dried fruits;

(d) fresh or dried vegetables;

(e) live plants; and

(f) fresh or dried cut flowers.

The purpose of excluding these goods from being in a class of airport shop goods is to prevent inwards duty free shops selling food and beverages such as sandwiches, hot food, alcoholic beverages in glasses and other food and beverages which could be consumed immediately. The broad purpose of the amending Regulations is to allow a broader range of goods to be sold by inwards duty free shops to travellers that they then take with them into Australia, consistent with the duty free allowance. It is not intended that inwards duty free shops become businesses directed at consumption of goods on a duty or GST free basis on the premises or immediately on leaving the premises.

The exclusion of fresh and dried fruit, vegetables, cut flowers and live plants is required for quarantine purposes. The exclusion of these goods is consistent with current quarantine controls.

Consultation was undertaken with, and an exposure draft of the amendments were provided to, a range of affected industry groups and representatives, including airport authorities, airlines and duty free operators.

The amending Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.

0708400A


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