EXPLANATORY STATEMENT

 

Select Legislative Instrument 2008 No. 225

 

Issued by the Authority of the Minister for Home Affairs

Customs Act 1901

Customs Amendment Regulations 2008 (No. 6)

 

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, or as may be necessary or convenient to be prescribed, for giving effect to the Act.

Part XVA of the Act provides for the making of Tariff Concession Orders (TCOs) in certain circumstances; goods that are covered by a TCO may then be imported into Australia free from customs duty. However, subsection 269SJ(1) of the Act provides, in part, that the CEO of Customs must not make a TCO in respect of goods declared by the regulations to be goods to which a TCO should not extend.

The purpose of the amending Regulations is to allow TCOs to be made for marine saddles and parts for such saddles. Marine saddles are specialized seats used in high speed marine applications, for example sea rescue vessels and police response vessels. They are designed to absorb the lateral and vertical shocks and stresses resulting from high speed travel over water.

Regulation 185 of the Customs Regulations 1926 (the Principal Regulations) provides, in part, that for the purposes of subsection 269SJ(1), a TCO cannot be made for a good classified to a heading/subheading in column 2 of Schedule 2 to the Principal Regulations unless the good is listed in column 3 of Schedule 2. If goods are listed in column 3, a TCO can be made in respect of those goods.

The amending Regulations amend Schedule 2 to the Principal Regulations to include marine saddles in column 3 of item 45A and parts for such saddles in column 3 of item 47. These goods are classified to subheadings 9401.7 and 9401.90.90 respectively of Schedule 3 to the Customs Tariff Act 1995.

These two subheadings are included in the respective items of Column 2 of Schedule 2 so, prior to the amending Regulations, a TCO could not be made for these goods.

Consultation was undertaken with industry and industry groups. The making of TCOs in respect of these goods will not adversely affect Australian industry as these products are not part of the general types of furniture manufactured in Australia.

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

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