US Free Trade Agreement Implementation (Customs Tariff) Act 2004

No. 121, 2004

An Act to amend the Customs Tariff Act 1995, and for related purposes

Contents

An Act to amend the Customs Tariff Act 1995, and for related purposes

[Assented to 16 August 2004]

The Parliament of Australia enacts:
1 Short title

This Act may be cited as the US Free Trade Agreement Implementation (Customs Tariff) Act 2004.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provision(s) Commencement Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent. 16 August 2004
2. Schedule 1, items 1 to 32 The later of: (a) 1 January 2005; and (b) the day on which the Australia-United States Free Trade Agreement, done at Washington DC on 18 May 2004, comes into force for Australia. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. The Minister for Trade must announce by notice in the Gazette the day on which the Agreement comes into force for Australia. 1 January 2005 (see Gazette 2004, GN51)
3. Schedule 1, item 33 The later of: (a) immediately after the commencement of the Customs Tariff Amendment (Textile, Clothing and Footwear Post-2005 Arrangements) Act 2004; and (b) immediately after the commencement of the provisions covered by table item 2. However, the provision(s) do not commence at all unless both of the events mentioned in paragraphs (a) and (b) occur. 1 January 2005 (paragraph (b) applies)
4. Schedule 1, item 34 At the same time as the provisions covered by table item 2. 1 January 2005
5. Schedule 1, items 35 to 56 The later of: (a) the start of the day on which the Customs Tariff Amendment (Fuels) Act 2004 receives the Royal Assent; and (b) immediately after the commencement of the provisions covered by table item 2. However, the provision(s) do not commence at all unless both of the events mentioned in paragraphs (a) and (b) occur. 1 January 2005 (paragraph (b) applies)
6. Schedule 1, item 57 At the same time as the provisions covered by table item 2. 1 January 2005

Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

 2

Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Amendments

Customs Tariff Act 1995

 1 Subsection 3(1) (at the end of the definition of rate column)

Add:

; or (c) the third column of the table in Schedule 5.

 2 Subsection 9(1)

Omit “Schedule 3 or 4”, substitute “Schedule 3, 4 or 5”.

 3 After paragraph 11(1)(b)

Insert:

or (ba) the third column of an item in the table in Schedule 5 that applies to goods;

 4 After paragraph 11(1)(d)

Insert:

or (e) the third column of that item in the table in Schedule 5;

 5 After paragraph 11(2)(b)

Insert:

or (ba) the third column of an item in the table in Schedule 5 that applies to goods;

 6 After section 13

Insert:

 13A When goods are US originating goods

For the purposes of this Act, goods are US originating goods if, and only if, they are US originating goods under Customs Act 1901.Division 1C of Part VIII of the

7 At the end of subsection 14(1)

Add:

; and (k) a rate of duty set out in a rate column in Schedule 4 applies in relation to the United States of America if “US” is specified in relation to the rate.

 8 Paragraph 16(a)

Repeal the paragraph, substitute:

by reference to the general rate set out in the third column of the tariff classification under which the goods are classified;

 a

if the goods:

 i

are not the produce or manufacture of a Preference Country; and

 ii

are not US originating goods;

 9 At the end of section 16

Add:

; (k) if the goods are US originating goods:

Note: See also subsection (2).

Note: If column 2 of an item in the table in Schedule 5 includes “(prescribed goods only)” and the goods are not prescribed for the purposes of that item, the rate of duty in respect of the goods is Free.

 i

if 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 Schedule 5—by reference to the rate of duty set out in column 3 of that item; or

 ii

otherwise—Free.

 2

However, if column 2 of an item in the table in Schedule 5 includes “(prescribed goods only)”, subparagraph (1)(k)(i) does not apply to the goods unless the goods are also prescribed for the purposes of that item.

 10 Subsection 18(1)

Repeal the subsection, substitute:

 1

Subject to sections 20 and 22, if an item in Schedule 4 prima facie applies to goods, that item only applies to those goods if the duty payable in respect of those goods under that item is less than the duty that, apart from this section, would be payable:

 a

under the tariff classification in Schedule 3 that applies to the goods; or

 b

under an item in the table in Schedule 5 that applies to the goods.

 11 Paragraph 18(2)(a)

Repeal the paragraph, substitute:

by reference to the general rate set out in the third column of that item;

 a

if the goods:

 i

are not the produce or manufacture of a Preference Country; and

 ii

are not US originating goods;

 12 At the end of subsection 18(2)

Add:

; (k) if the goods are US originating goods:

 i

if a rate of duty that applies in relation to the United States of America is set out in the third column of that item—by reference to that rate of duty; or

 ii

otherwise—Free.

 13 Subsection 19(1)

Omit “set out in the rate column of the subheading in Schedule 3 appearing in column 1 opposite that excise item are increased by the same amount on and from that day.”, substitute:

set out in:

are increased by the same amount on and from that day.

 a

the rate column of the subheading in Schedule 3 appearing in column 1 of the Table below, opposite that excise item; and

 b

the rate column of an item in the table in Schedule 5 that relates to a subheading in Schedule 3:

 i

that is specified in column 2 of that item in the table in Schedule 5; and

 ii

that appears in column 1 of the Table below, opposite that excise item;

 14 Before section 21

Insert:

 20A Regulations

The Governor-General may make regulations prescribing matters:

 a

required or permitted by this Act to be prescribed; or

 b

necessary or convenient to be prescribed for carrying out or giving effect to this Act.

 15 Schedule 4 (item 17A, column 3)

After “SG”, insert “/US”.

 16 Schedule 4 (item 19, column 3)

After “DC”, insert “/US”.

 17 Schedule 4 (item 20A, column 2)

After “Schedule 3”, insert “or 5”.

 18 Schedule 4 (item 20A, column 3)

After “SG”, insert “/US”.

 19 Schedule 4 (item 20B, column 2)

After “Schedule 3”, insert “or 5”.

 20 Schedule 4 (item 20B, column 3)

After “SG”, insert “/US”.

 21 Schedule 4 (item 34, column 3)

After “SG”, insert “/US”.

 22 Schedule 4 (item 41E, column 3)

After “SG”, insert “/US”.

 23 At the end of the last rate of duty in column 3 of item 44 in Schedule 4

Add:

 24 At the end of the last rate of duty in column 3 of item 47 in Schedule 4

Add:

 25 At the end of the last rate of duty in column 3 of item 50(1)(a) in Schedule 4

Add:

 26 At the end of the last rate of duty in column 3 of item 50(1)(b) in Schedule 4

Add:

 27 At the end of the last rate of duty in column 3 of item 50(2) in Schedule 4

Add:

 28 At the end of the last rate of duty in column 3 of item 53C in Schedule 4

Add:

 29 The rates of duty in column 3 of item 59 in Schedule 4

Repeal the rates of duty, substitute:

 30 Schedule 4 (item 61, column 3)

After “SG”, insert “/US”.

 31 Schedule 4 (item 70, column 3)

After “SG”, insert “/US”.

 32 At the end of the last rate of duty in column 3 of item 72B in Schedule 4

Add:

 33 Schedule 4 (item 73, column 3)

After “SG”, insert “/US”.

 34 At the end of the Act

Add:

 US originating goods

Note: See sections 15 and 16.

 35 Schedule 5 (before table item 1)

Insert:

 36 Schedule 5 (table item 63)

Repeal the item, substitute:

 37 Schedule 5 (cell at table item 64, column 3)

Repeal the cell, substitute:

 38 Schedule 5 (after table item 69)

Insert:

 39 Schedule 5 (table item 71)

Repeal the item, substitute:

 40 Schedule 5 (table item 72)

Repeal the item, substitute:

 41 Schedule 5 (table item 75)

Repeal the item, substitute:

 42 Schedule 5 (cell at table item 76, column 3)

Repeal the cell, substitute:

 43 Schedule 5 (after table item 80)

Insert:

 44 Schedule 5 (table item 84)

Repeal the item, substitute:

 45 Schedule 5 (table item 85)

Repeal the item, substitute:

 46 Schedule 5 (table item 88)

Repeal the item, substitute:

 47 Schedule 5 (cell at table item 89, column 3)

Repeal the cell, substitute:

 48 Schedule 5 (cell at table item 91, column 3)

Repeal the cell, substitute:

 49 Schedule 5 (after table item 96)

Insert:

 50 Schedule 5 (table item 100)

Repeal the item, substitute:

 51 Schedule 5 (table item 101)

Repeal the item, substitute:

 52 Schedule 5 (table item 104)

Repeal the item, substitute:

 53 Schedule 5 (cell at table item 105, column 3)

Repeal the cell, substitute:

 54 Schedule 5 (cell at table item 107, column 3)

Repeal the cell, substitute:

 55 Schedule 5 (after table item 112)

Insert:

 56 Schedule 5 (after table item 133)

Insert:

 57 User’s Guide

Repeal the User’s Guide, substitute:

USER’S GUIDE

This Guide aims to give a general overview of the operation and organisation of this Act.

The operation of the Act

The Act imposes Customs duty on goods imported into Australia.

To work out the duty payable on particular goods reference must be made to a Principal Tariff that is set out in Schedule 3. This tariff classifies goods in accordance with Australia’s international obligations as a party to the World Trade Organization Agreement.

Note: The text of the Agreement is set out in Australian Treaty Series 1995 No. 8. In 2004 this was available in the Australian Treaties Library of the Department of Foreign Affairs and Trade, accessible on the Internet through that Department’s world-wide web site.

The rate of duty applicable to particular goods is determined by the classification to which those goods belong and, in most cases, by reference to Schedule 3. However, the rate of duty for US originating goods is determined under Schedule 5.

Under Schedule 4, goods imported into Australia in specified circumstances, including goods imported for use by particular persons or bodies or in particular industries, may be subject to a lesser rate of duty than the nominal rate applying under Schedule 3 or 5.

Rates of duty under Schedules 3 and 5, and concessional rates of duty under Schedule 4, may vary according to the date of importation of the goods concerned, the country or place from which the goods are imported, or both of these circumstances.

The organisation of the Act

The Act consists of 3 Parts and 5 Schedules.

Part 1 deals with key concepts required for an understanding of the organisation and operation of the Customs Tariff.

Part 2 imposes Customs duty and sets out the method for working out the duty that is payable in respect of particular goods.

Customs Tariff Act 1987 with effect from 1 July 1996 and provides details of its final operation.Part 3 includes a regulation making power, repeals the

Schedule 1 sets out the countries and places to which special rates of duty apply under the Australian system of tariff preferences.

Schedule 2 sets out the general rules of interpretation for deciding the tariff classification within the Principal Tariff to which goods belong.

Schedule 3 sets out the Principal Tariff.

Schedule 4 identifies classes of goods to which concessional rates may apply and specifies the concessional rates of duty potentially applicable to such classes.

Schedule 5 sets out the rate of duty for US originating goods.

[Minister’s second reading speech made in—

House of Representatives on 23 June 2004

Senate on 3 August 2004]