Customs Act 1901-Specified Percentage of Total Factory Costs Determination No 1 of 2013 [F2013L02198] -New and continuing matters [2014] AUSStaCSDLM 17 (12 February 2014)

• Customs Act 1901 - Specified Percentage of Total Factory Costs Determination No. 1 of 2013 [F2013L02198]
• Insufficient description regarding consultation

Customs Act 1901 - Specified Percentage of Total Factory Costs Determination No. 1 of 2013 [F2013L02198]

Purpose	Determines that the specified percentage of the total factory cost of wiring harnesses claimed to be the manufacture of Samoa is 40% where the wiring harnesses: (a) are classified to subheading 8544.30.00 of Schedule 3 to the Customs Tariff Act 1995; and (b) are of a kind used in, and are for use in, passenger motor vehicles, as defined in Chapter 87 of the Customs Tariff Act 1995
Last day to disallow	15 May 2014
Authorising legislation	Customs Act 1901
Department	Immigration and Border Protection

ISSUE:

Insufficient description regarding consultation

Section 17 of the Legislative Instruments Act 2003 directs a rule-maker to be satisfied that appropriate consultation, as is reasonably practicable, has been undertaken in relation to a proposed instrument, particularly where that instrument is likely to have an effect on business. Section 18, however, provides that in some circumstances such consultation may be unnecessary or inappropriate. The ES which must accompany an instrument is required to describe the nature of any consultation that has been carried out or, if there has been no consultation, to explain why none was undertaken (section 26). With reference to these requirements, the ES for the instrument states:

A reduction in the specified percentage of 10% in respect of the goods included in the Determination granted to Samoa may affect elements of the Australian automotive industry. However, consultation with industry has established that the majority of the Australian automotive industry indicated their support to the continuation of the derogation.

While the committee does not usually interpret section 26 as requiring a highly detailed description of consultation undertaken, it usually regards an overly general description, as in this case, is not sufficient to satisfy the requirements of the Legislative Instruments Act 2003. The committee therefore requests further information from the minister; and requests that the ES be updated in accordance with the requirements of the Legislative Instruments Act 2003.