Commonwealth Numbered Regulations - Explanatory Statements

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EXCISE REGULATIONS (AMENDMENT) 1995 NO. 351

STATUTORY RULES 1995 No. 351

Issued by the Authority of the Minister for Small Business, Customs and Construction

Excise Act 1901

Excise Regulations (Amendment)

Section 164 of the Excise Act 1901 (the Act) provides in part that:

"(1)       The Governor-General may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed ... for giving effect to this Act or for the conduct of business relating to the Excise, ... "

The purpose of the Regulations is to amend regulation 79 of the Excise Regulations (the Regulations). Regulation 79 sets out the conditions to which sales of duty free goods in outwards duty free shops are subject and it is proposed to extend these conditions to sales made to travellers departing Australia by sea.

Section 61D of the Act contains the regime whereby permission may be given to sell duty free goods in a licensed warehouse to persons travelling overseas who may export the goods without the goods having been entered for export (subsection 61D(21)). Prior to 1 July 1995, this permission could only be given in respect of sales made to persons travelling overseas on international flights. Amendments to the Act effected by the Customs, Excise and Bounty Legislation Amendment Act 1995 (Act No. 85 of 1995) now allow such permissions to be given in respect of travellers departing Australia by sea.

Subsection 61D(5) provides that regulations may prescribe conditions to which a permission under subsection 61D(2) is to be subject. These conditions are prescribed in regulation 79 of the Regulations and are conditions that apply to both the proprietor of a duty free shop and to the travellers to whom the goods are sold. 'The present conditions, however, are worded such that they only apply in respect of sales of goods made to travellers departing on international flights. These conditions do not currently apply in respect of sales made to sea travellers. Therefore, the Regulations have been amended to extend their operation to sales of duty free goods made to travellers departing Australia by sea.

The amendments to the Regulations are set out in greater detail in the Attachment.

The Regulations commenced on gazettal.

ATTACHMENT

Regulation 1 - Amendment

This regulation provides that the Excise Regulations are amended as set out in the Regulations.

Regulation 2 - Regulation 79 (Outwards duty free shops)

Subregulation 2.1 amends subregulation 79(1) by omitting the definition of "airport departure area" and substituting a new definition of "departure area".

"Departure area" is defined as:

"a part of an airport or wharf that is set aside for the reception of relevant travellers:

(a) after the travellers have complied with requirements of Commonwealth laws relating to the departure of persons for places outside Australia; and

(b) before the travellers embark on an aircraft or ship for a relevant flight or relevant voyage:".

A relevant traveller is a person who intends to make an international flight or voyage.

Previously, the conditions under subregulation 79(7) only applied to duty free goods that were sold to a person departing Australia by air. Certain of the conditions applied once the goods were taken into an airport departure area (the conditions in paragraph 79(7)0) and subparagraph 79(7)(m)(iii)). However, as all of the conditions in subregulations 79(7) have been extended to persons departing Australia by sea, these certain conditions also apply once the goods are taken into a wharf departure area (see subregulations 2.10 and 2.14 below). The new definition of "departure area", therefore, extends the definition to include the relevant part of a wharf for the purposes of the subregulations 2. 10 and 2.14.

Subregulation 2.2 amends the definition of "on-airport duty free shop" in subregulation 79(1) by omitting "an airport departure area" and substituting "a departure area of an airport". This is a technical amendment only that is consequential upon the new definition of "departure area" in subregulation 2.1 above.

Subregulation 2.3 amends subregulation 79(1) by inserting a new definition of "relevant voyage". "Relevant voyage", in relation to a person who is a relevant traveller, means the international voyage in relation to which the person is a relevant traveller.

The phrase "relevant voyage" has been inserted into subregulation 79(7) by subregulations 2.5, 2.7, 2.8, 2.9, and 2.12 below in order to extend the conditions, that previously only applied to the sale of duty free goods to persons departing Australia by air, to sales made to persons departing Australia by sea. This new definition is, therefore, for the purposes of these amendments.

Subregulation 2.4 amends paragraph 79(7)(a) by inserting the words "or voyage" after "international flight".

Paragraph 79(7)(a) specifies the type of person to whom duty free goods may be sold and the evidence required to establish that the person is entitled to make an international flight. This amendment has extended to persons departing Australia by sea the requirement that they must produce evidence to the proprietor of a duty free shop that they are entitled to make an international voyage. Duty free goods cannot be sold to a person departing Australia by sea unless this evidence is produced.

Proposed subregulation 2.5 amends paragraph 79(7)(c) by inserting the words "or relevant voyage" after "relevant flight".

Paragraph 79(7)(c) specifies the time limit within which goods may be delivered from a duty free shop after sale. Goods must not be delivered from a duty free shop to a person departing on the international flight earlier than the 30th day before the flight is to depart- This amendment has extended the time restriction to goods being exported on an international voyage, such that they also must not be delivered earlier than the 30th day before the voyage is to depart.

Subregulation 2.6 amends subparagraph 79(7)(d)(i) by inserting the word "and" at the end of the subparagraph. This is a technical drafting amendment only.

Subregulation 2.7 omits and substitutes subparagraph 79(7)(d)(iii).

Paragraph 79(7)(d) specifies the type of package in which goods sold in a duty free shop must be enclosed for delivery from the shop. Subparagraph 79(7)(d)(iii) requires that, where the package in which the goods are enclosed is of a size that it may be carried in the cabin of an aircraft, the package must be transparent enough for the goods to be easily identified. This amendment has extended this requirement to where the package in which the goods are enclosed is of a size that it may be carried in the cabin of a ship.

Subregulation 2.8 omits and substitutes subparagraph 79(7)(e)(ii).

Paragraph 79(7)(e) specifies the particulars that are to be included in the triplicate invoice prepared by the proprietor of a duty free shop upon the sale of duty free goods. Subparagraph 79(7)(e)(ii) requires the particulars of the intended exportation of the goods by air, including the date and airport of departure, to be included on the invoice. This amendment has extended these particulars to include the particulars of an international voyage, including the wharf of departure, the name of the ship and the number or other designation of the international voyage.

Subregulation 2.9 omits and substitutes subparagraph 79(7)(g)(iii).

Paragraph 79(7)(g) specifies the particulars that are to be provided by the proprietor of the duty free shop to a Collector of Customs in relation to the sale of duty free goods in the shop. These details are required to be provided prior to the date of departure of the international flight or voyage. Subparagraph 79(7)(g)(iii) requires the particulars of the date and time of departure of an international flight and the flight number to be provided to a Collector. This amendment has extended these particulars to include the particulars of an international voyage, including the date and time of departure and name of the ship and the number or other designation of the international voyage.

Subregulation 2.10 amends paragraph 79(7)(h) by inserting "or ship" after "cabin of the aircraft".

Paragraph 79(7)(h) sets out the conditions that apply to the proprietor of a duty free shop in respect of duty free goods that were surrendered by relevant travellers for carriage otherwise than in the cabin of an aircraft ie, in the baggage hold of an aircraft. The proprietor wisas required to examine the contents of a package containing duty free goods and to remove the copy invoice from the package if the package remains sealed and have not been tampered with. This amendment has extended the application of these conditions and they now apply where goods are surrendered for carriage otherwise than in the cabin of a ship.

Subregulation 2.11 amends paragraph 79(7)f(j) by omitting "an airport departure area" and substituting "a departure area".

Paragraph 79(7)(j) sets out the conditions that apply to the proprietor of a duty free shop in respect of duty free goods taken by relevant travellers into an airport departure area. As with paragraph 79(7)(h), the proprietor is required to examine the contents of a package containing duty free goods and to remove the copy invoice from the package if the package remains sealed and has not been tampered with. This amendment has extended the application of these conditions and they now apply to goods that are also taken into a wharf departure area. The new definition of "departure area" has been inserted by subregulation 2.1 above.

Subregulation 2.12 omits subparagraphs 79(7)(k)(vi) and (vii) and substitutes 9 subparagraph 79(7)(k)(vi).

When the proprietor carries out the tasks required under paragraphs 79(7)(h) and (j), it is possible that discrepancies may be detected. For example, the package may have been opened and some duty free goods removed or the copy invoice may be been removed from the outside of the package, If such discrepancies are detected, paragraph 79(7)(k) provides that the proprietor must immediately cause to be given to a Collector of Customs a notice setting out certain particulars, including the particulars of the international flight.

This amendment has extended these particulars to also include the particulars of an international voyage, including the name of the ship and the number or other designation of the international voyage.

Subregulation 2.13 omits and substitutes sub-subparagraph 79(7)(m)(iii)(A).

Similar to paragraph 79(7)(h), subparagraph 79(7)(m)(iii) sets out the condition that apply to a relevant traveller in respect of duty free goods that are surrendered by a relevant traveller for carriage otherwise than in the cabin of an aircraft. Under subsubparagraph 79(7)(m)(iii)(A), a traveller is required to present the package to the proprietor of a duty free shop for examination and to permit the invoice to be removed from the package.

As with subregulation 2.10 this amendment has extended the application of this condition to where goods are surrendered for carriage otherwise than in the cabin of a ship.

Subregulation 2.14 omits and substitutes sub-subparagraph 79(7)(m)(iii)(B).

Similar to subparagraph 79(7)(j), subparagraph 79(7)(m)(iii) also sets out the condition that apply to a relevant traveller in respect of duty free goods that are taken by a relevant traveller into an airport departure area. Under sub-subparagraph 79(7)(m)(iii)(B), a traveller is required to present the package to the proprietor of a duty free shop for examination and to permit the invoice to be removed from the package.

This amendment has extended the application of this condition and it now applies to goods that are also taken into a wharf departure area. The new definition of "departure area" is inserted by subregulation 2.1 above.

Subregulation 2.15 omits and substitutes subparagraph 79(7)(m)(iv).

Subparagraph 79(7)(m)(iv) sets out the conditions that apply where a relevant traveller does not export the duty free goods on the international flight on which they were intended to be exported. A traveller is required to inform the proprietor of the duty free shop of this occurrence and may export the goods on a subsequent flight that departs not more than 48 hours after the original flight. The traveller is also required to provide the proprietor with the particulars of the subsequent flight. The traveller is also required to return the goods to the duty free shop if it was not intended to export them on the subsequent flight.

This amendment has extended the operation of subparagraph 79(7)(m)(iv) to the failure by a relevant traveller to export duty free goods on the original international voyage. A traveller may export the goods on a subsequent voyage that departs not more than 48 hours after the original voyage and must provide the proprietor of the duty free shop with details of this subsequent voyage. The traveller is also required to return the goods to the duty free shop if it is not intended to export them on the subsequent voyage.

Subregulation 2.16 amends subparagraph 79(7)(m)(v).

Subparagraph 79(7)(m)(v) sets out the conditions that apply where a relevant traveller intends to export the duty free goods on a subsequent flight in accordance with subparagraph 79(7)(m)(iv) but does not so export the goods. He or she is required to inform the proprietor of the duty free shop and return the goods to the duty free shop within the specified time limit.

This amendment has extended the operation of subparagraph 79(7)(m)(v) to the failure by a relevant traveller to export duty free goods on the subsequent international voyage.

Subregulation 2.17 amends subparagraph 79(7)(m)(v) by omitting "day of departure" (twice occurring) and substituting "date of departure". This is a technical amendment only to ensure that the phrase "date of departure" appears consistently throughout regulation 79.

Subregulation 2.18 amends paragraph 79(9)(b) by omitting "day of departure" and substituting "date of departure". This is a technical amendment only to ensure that the phrase "date of departure" appears consistently throughout regulation 79.