BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
PART I—PRELIMINARY
Short title
This Act may be cited as the Customs Tariff Act 1987.
Commencement
This Act commences on a day to be fixed by Proclamation.
General administration of Act
The Comptroller has the general administration of this Act.
Incorporation of Customs Act
The Customs Act 1901 is incorporated, and shall be read as one, with this Act.
Interpretation
5. (1) In this Act, unless the contrary intention appears:
“abbreviation”, in relation to a country or place, means the abbreviation specified in Schedule 1 opposite to the name of that country or place;
“amount of duty” includes no duty;
“Chapter” means a Chapter of a Section of Schedule 3;
“column” means a column of a Schedule;
“commencement day” means the day on which this Act commences;
“constituent”, in relation to goods, includes:
(a) a part, a component, and an ingredient, of the goods; and
(b) an accessory for the goods;
“Convention” means the International Convention on the Harmonized Commodity Description and Coding System done at Brussels on 14 June 1983;
“dash” means the symbol “—”;
“Developing Country” means:
(a) a country that is a Developing Country under paragraph 17 (b); or
(b) a place that is to be treated as a Developing Country under paragraph 17 (c);
“duty” means a duty of Customs imposed by section 21;
“excise tariff item” means an item, subitem, paragraph or subparagraph in the Schedule to the Excise Tariff Act 1921;
“Forum Island Country” means a country that is a Forum Island Country under paragraph 17 (a);
“general rate” means a rate of duty, other than a rate that applies in relation to a Preference Country under section 19;
“heading” means a heading in Schedule 3;
“Interpretation Rules” means the General Rules for the Interpretation of the Harmonized System provided for by the Convention, being the rules a copy of the English text of which is set out in Schedule 2;
“presented”, in relation to goods, means imported into Australia;
“quota sign” means the abbreviation and figure “Sch.5”;
“rate column” means:
(a) the third column of Schedule 3;
(b) the third column of Schedule 4; or
(c) the third column of Schedule 5;
“subheading” means a subheading of a heading;
“Tariff instrument” means:
(a) a Customs Tariff Proposal introduced (whether before or after the commencement of this Act) into the House of Representatives;
(b) a notice published (whether before or after the commencement of this Act) in accordance with section 273ea of the Customs Act 1901; or
(c) an order, a by-law or a determination made (whether before or after the commencement of this Act) under the Customs Act 1901.
(2) In Schedule 3, unless the contrary intention appears, “Section” means a Section of Schedule 3.
Headings in Schedule 3
6. (1) In Schedule 3:
(a) either:
(i) 4 digits in the first column; or
(ii) 8 digits in the first column not opposite to a dash or dashes in the second column;
indicate the beginning of a heading; and
(b) 5, 6, 7 or 8 digits in the first column opposite to a dash or dashes in the second column indicate the beginning of a subheading of the heading in which the digits appear.
(2) Where a subheading appears immediately before a subheading beginning with the same sequence of digits as the first-mentioned subheading followed by a digit or digits, the first-mentioned subheading shall be taken to be subdivided into the second-mentioned subheading and the other subheading, or subheadings:
(a) beginning with that sequence followed by a digit or digits; and
(b) whose second column begins with the same number of dashes as the second-mentioned subheading.
(3) For the purposes of this Act:
(a) a heading may be referred to by the word “heading” followed by the digits with which the heading begins; and
(b) a subheading of a heading may be referred to by the word “subheading” followed by the digits with which the subheading begins.
(4) In the Table in section 26, in Schedule 3, 4 or 5 or in any Act that amends, or in any Tariff instrument that relates to, that Table or Schedule 3, 4 or 5:
(a) a heading may be referred to by the digits with which the heading begins; and
(b) a subheading of a heading may be referred to by the digits with which the subheading begins.
Items in Schedule 4
(1) In Schedule 4, a number, or a number and letter, in the first column indicates the beginning of an item.
(2) For the purposes of this Act, an item in Schedule 4 may be referred to by the word “item” followed by the number, or the number and letter, with which the item begins.
Items in Schedule 5
(1) In Schedule 5:
(a) a number in the first column indicates the beginning of an item; and
(b) a number and letter in the first column indicate the beginning of a subitem of the item in which the number and letter appear.
(2) For the purposes of this Act:
(a) an item in Schedule 5 may be referred to by the word “item” followed by the number with which the item begins; and
(b) a subitem of an item in Schedule 5 may be referred to by the word “subitem” followed by the number and letter with which the subitem begins.
Tariff classification
A reference in this Act to the tariff classification under which goods are classified is a reference to the heading or subheading:
(a) in whose third column a rate of duty or the quota sign is set out; and
(b) under which the goods are classified.
Rules for classifying goods under Schedule 3
(1) The Interpretation Rules shall be used for ascertaining the tariff classification under which goods are classified.
(2) Where the letters “NSA” are specified in relation to a description of goods in the second column of a subheading of a heading, the goods described do not include any goods prima facie classified under a preceding subheading of that heading whose second column begins with the same number of dashes as the first-mentioned subheading.
Application of Schedule 4
(1) Subject to subsection (2), an item in Schedule 4 applies to goods if the goods are described in the second column of that item.
(2) If goods are described in the second column of 2 or more items in Schedule 4, the item in that Schedule that applies to the goods is the item
under which the least amount of duty would be payable in respect of the goods or, if there are 2 or more such items, the last occurring such item.
(3) For the purposes of Schedule 4:
(a) goods shall be taken to serve similar functions to other goods if, and only if, they would serve similar functions to the other goods for the purposes of Part XVA of the Customs Act 1901;
(b) goods shall not be taken to have been produced in Australia unless, for the purposes of that Part, they would be taken to have been produced in Australia; and
(c) a person shall be taken to be capable of producing goods in the normal course of business if, and only if, the person would, for the purposes of that Part, be taken to be so capable.
Application of Schedule 5
(1) An item in Schedule 5 applies to goods if the goods are described in the second column of that item.
(2) A subitem in Schedule 5 applies to goods if:
(a) the item in which the subitem is included applies to the goods; and
(b) the goods are described in the second column of that subitem.
(3) In ascertaining whether goods are described in the second column of an item or subitem in Schedule 5, regard shall be had to the notes to that Schedule.
(4) Unless the contrary intention appears, any word or phrase used in an item in Schedule 5 has the same meaning as it would have if it were used in any heading or subheading specified in the Table in that item.
(5) Where the letters “NSA” are specified in relation to a description of goods in the second column of a subitem of an item in Schedule 5, the goods described do not include any goods to which a preceding subitem of that item applies.
Rates of duty—ad valorem duties
(1) Unless the contrary intention appears, where, in Schedule 3, 4 or 5, reference is made to a percentage in relation to goods or in relation to a part, component or ingredient of goods, the reference is to that percentage of the value of the goods, or of that part, component or ingredient of the goods, as the case may be.
(2) The value of any goods for the purposes of this Act is, unless the contrary intention appears, the customs value of the goods ascertained or determined in accordance with Division 2 of Part VIII of the Customs Act 1901.
(3) The value of a part, component or ingredient of any goods for the purposes of this Act is, unless the contrary intention appears, such proportion of the value of the goods as the Comptroller determines.
Rates of duty—certain words etc. deemed rates
(1) Where the word “Free” is set out in section 22, 23 or 25 or in a rate column, that word shall, unless the contrary intention appears, be deemed to be a rate of duty.
(2) Any words, or words and figures, set out in a rate column, being words, or words and figures, that enable the duty to be ascertained in respect of goods (whether by reference to a rate or rates of duty or otherwise) shall, unless the contrary intention appears, be deemed to be a rate of duty.
Rates of duty—alternative rates
Where:
(a) 2 rates of duty are set out in the third column of the tariff classification under which goods are classified or 2 rates of duty are set out in the third column of a subitem in Schedule 5 that applies to goods; and
(b) the second occurring rate is expressed to apply if it is lower, or is expressed to apply if it is higher, than the other rate;
the second occurring rate applies only where an amount of duty ascertained in respect of those goods by reference to that rate is less, or is greater, as the case may be, than the duty ascertained in respect of those goods by reference to that other rate.
Rates of duty—phasing rates
(1) For the purposes of this section, a rate of duty set out in:
(a) the third column of a tariff classification under which goods are classified;
(b) the third column of an item in Schedule 4 that applies to goods; or
(c) the third column of a subitem in Schedule 5 that applies to goods;
has effect from a specified date if that date preceded by the word “From” is specified in:
(d) the second column of that tariff classification;
(e) the second column of that item in Schedule 4; or
(f) the second column of that subitem in Schedule 5;
as the case may be, in relation to the rate.
(2) For the purposes of this Act, where a rate of duty set out in:
(a) the third column of a tariff classification under which goods are classified;
(b) the third column of an item in Schedule 4 that applies to goods; or
(c) the third column of a subitem in Schedule 5 that applies to goods;
has effect from a specified date, that rate shall only be taken to be so set out, and any rate not having effect from that date shall be taken not to be so set out, when ascertaining duty in respect of the goods, or goods that are
part of the goods, entered for home consumption on or after that date and not on or after any later date from which a rate so set out has effect.
Classes of countries and places in relation to which special rates apply
For the purposes of this Act:
(a) a country specified in column 1 of Part I of Schedule 1 is a Forum Island Country;
(b) a country specified in column 1 of Division 1 of Part II of Schedule 1 is a Developing Country; and
(c) a place specified in column 1 of Division 2 of Part II of Schedule 1 shall be treated as a Developing Country.
Goods the produce or manufacture of country
For the purposes of this Act, goods are the produce or manufacture of a country or place if, and only if, they are, under section 151 of the Customs Act 1901, the produce or manufacture of the country or place for the purposes of that Act.
Application of rates of duty in relation to countries and places
(1) Subject to this section, for the purposes of this Act:
(a) a rate of duty set out in a rate column applies in relation to New Zealand if “NZ” is specified in relation to the rate;
(b) a rate of duty so set out applies in relation to Papua New Guinea if “PNG” is specified in relation to the rate;
(c) a rate of duty so set out applies in relation to every Forum Island Country if “FI” is specified in relation to the rate;
(d) a rate of duty so set out applies in relation to every Developing Country if “DC” is specified in relation to the rate;
(e) a rate of duty so set out applies in relation to a particular Forum Island Country or Developing Country, if its name, or the abbreviation for it, is specified in relation to the rate; and
(f) a rate of duty so set out applies in relation to Canada if “CAN” is specified in relation to the rate.
(2) A rate of duty set out in a rate column in relation to which “FI” or “DC” is specified does not apply in relation to a Forum Island Country or a Developing Country if those letters are followed by a phrase that begins with the word “except” and contains its name or the abbreviation for it.
Application of quota signs in relation to countries and places
(1) Subject to subsection (2), for the purposes of this Act:
(a) the quota sign set out in a rate column applies in relation to New Zealand if “NZ” is specified in relation to the sign;
(b) the quota sign so set out applies in relation to Papua New Guinea if “PNG” is specified in relation to the sign;
(c) the quota sign so set out applies in relation to every Forum Island Country if “FI” is specified in relation to the sign;
(d) the quota sign so set out applies in relation to every Developing Country if “DC” is specified in relation to the sign;
(e) the quota sign so set out applies in relation to a particular Forum Island Country or Developing Country if its name, or the abbreviation for it, is specified in relation to the sign; and
(f) the quota sign set out in a rate column applies in relation to Canada if “CAN” is specified in relation to the sign.
(2) Where “FI” or “DC” is specified in relation to the quota sign set out in a rate column, the sign does not apply in relation to a particular Forum Island Country or Developing Country if those letters are followed by a phrase that begins with the word “except” and contains its name or the abbreviation for it.
PART II—DUTIES OF CUSTOMS
Imposition of duties
(1) Duties of Customs are imposed, in accordance with this Act, on:
(a) goods imported into Australia on or after the commencement day; and
(b) goods:
(i) imported into Australia before the commencement day; and
(ii) entered, or again entered, for home consumption on or after the commencement day.
Rates of duty
Subject to sections 23, 24, 25, 27 and 29, the duty in respect of goods shall be ascertained:
(a) where the goods are not the produce or manufacture of a Preference Country—by reference to the general rate set out in the third column of the tariff classification under which the goods are classified;
(i) where a rate of duty that applies in relation to the Preference Country is set out in the third column of the tariff classification under which the goods are classified—that rate of duty; or
(i) where a rate of duty that applies in relation to Canada is set out in the third column of the tariff classification under which the goods are classified—that rate of duty; or
(ii) in any other case—the general rate of duty set out in the third column of that tariff classification.
Quota rates of duty
(1) Subject to sections 24, 25, 27 and 29, where the quota sign is set out in the third column of the tariff classification under which goods are classified and the sign does not apply, under section 20, to a Preference Country, the duty in respect of the goods shall be ascertained:
(a) where the goods are not the produce or manufacture of a Preference Country—by reference to the general rate set out in the third column of the subitem in Schedule 5 that applies to the goods;
(i) where a rate of duty that applies in relation to the Preference Country is set out in the third column of the subitem in Schedule 5 that applies to the goods—that rate of duty; or
(i) where a rate of duty that applies in relation to Canada is set out in the third column of the subitem in Schedule 5 that applies to the goods—that rate of duty; or
(ii) in any other case—the general rate set out in the third column of that subitem.
(2) Subject to sections 24, 25, 27 and 29, where the quota sign is set out in the third column of the tariff classification under which goods the produce or manufacture of a Preference Country are classified and the sign applies, under section 20, in relation to that Preference Country, the duty in respect of the goods shall be ascertained by reference to the rate of duty that applies in relation to the Preference Country that is set out in the third column of the subitem in Schedule 5 that applies to the goods.
Rates for goods with constituents etc.
(1) Subject to sections 25, 27 and 29, where the tariff classification under which goods are classified contains 2 or more phrases that describe goods, being phrases each of which begins with the words “In respect of, the duty in respect of the first-mentioned goods is:
(a) where the first-mentioned goods have as constituents goods to which 2 or more of the phrases relate—the sum of the amounts of the duty, as ascertained in accordance with subsection (3), in respect of each of the goods to which those phrases respectively relate; or
(b) where the first-mentioned goods are, or have as constituents, goods to which only one phrase relates—the amount of duty, as ascertained in accordance with subsection (3), in respect of the goods to which that phrase relates.
(2) Where the words “In respect of remainder” appear in a tariff classification under which goods are classified, those words constitute a phrase for the purposes of this section and the word “remainder” appearing in that phrase shall be taken to be a description of:
(a) all goods that can be constituents of goods that can be classified under the tariff classification; and
(b) all goods that can be classified under the tariff classification;
other than goods to which another phrase contained in that tariff classification relates.
(3) The duty in respect of goods to which a phrase referred to in subsection (1) relates ascertained in accordance with sections 22 and 23 shall be ascertained as if:
(a) the tariff classification under which the goods are classified were the tariff classification that contains that phrase; and
(b) the rate of duty, rates of duty, quota sign, or quota signs, specified in the third column of that tariff classification in relation to the goods to which that phrase relates were the only rate, rates, quota sign, or quota signs set out in that tariff classification.
Concessional rates of duty
(1) Subject to sections 27 and 29, where an item in Schedule 4 applies to goods and the amount of duty applicable to the goods under that item is less than the amount of duty ascertained in respect of the goods in accordance with sections 22, 23 and 24 that, but for this section, would be payable in respect of the goods, then the duty payable under this Act in respect of the goods is the amount of duty applicable to the goods under that item.
(2) For the purposes of subsection (1), the amount of duty applicable to goods under an item in Schedule 4 is an amount of duty ascertained:
(a) where the goods are not the produce or manufacture of a Preference Country—by reference to the general rate set out in the third column of that item;
(i) where a rate of duty that applies in relation to the Preference Country is set out in the third column of that item—that rate of duty; or
(i) where a rate of duty that applies in relation to Canada is set out in the third column of that item—that rate of duty; or
(ii) in any other case—the general rate set out in the third column of that item.
Indexation of rates of duty
(1) Where, because of section 6a of the Excise Tariff Act 1921, that Act has effect as if for the rate of duty set out in an excise tariff item specified in column 2 of the following Table (in this subsection called the
“original rate”) there were substituted on a particular day another rate of duty (in this subsection called the “substituted rate”), this Act has effect as if for each amount of money specified in each rate of duty set out in the third column of the heading or subheading specified in column 1 of that Table opposite to that excise tariff item there were substituted on that day an amount equal to the sum of:
(a) the amount specified; and
(b) the difference between the amount in the substituted rate and the amount in the original rate:
TABLE
(2) Where, because of section 6a of the Excise Tariff Act 1921, that Act has effect as if for the rate of duty set out in Excise Tariff item 6 (in this subsection called the “original rate”) there were substituted on a particular day another rate of duty (in this subsection called the “substituted rate”), this Act has effect as if for each amount of money specified in each rate of duty set out in the third column of item 35d in Part III of Schedule 4 there were substituted on that day an amount equal to the sum of:
(a) the amount specified; and
(b) the difference between the amount in the substituted rate and the amount in the original rate.
(3) Where, under this section, this Act has effect as if, on a particular day, another amount were substituted for an amount specified in a rate of duty, the substitution, in so far as it affects duty payable in relation to goods, has effect in relation to goods entered for home consumption on or after that day.
(4) Where, under this section, this Act has effect as if, on a particular day, another amount were substituted for an amount specified in a rate of duty, the Comptroller shall, on or as soon as practicable after that day, publish for the information of the public a notice in the Gazette advertising
the rate as affected by the substitution and the goods to which the rate as so affected is to apply.
Duty where goods consist of certain containers and certain contents
Where:
(a) goods consist of a container and the contents of the container;
(b) those contents would, if they were manufactured or produced in Australia, be subject to duty of Excise under the Excise Tariff Act 1921; and
(c) under the Interpretation Rules, the tariff classification under which the goods are classified is the tariff classification under which the container would be classified if it were imported separately;
the duty in respect of the goods shall be equal to the sum of the amount of the duty (if any) that would be payable in respect of the container if it were imported separately and the amount of the duty (if any) that would be payable in respect of the contents if they were imported separately.
PART III—MISCELLANEOUS
Repeal
(1) The Acts referred to in Schedule 6 and any Act, or Acts, passed in 1987 that amend an Act so referred to are repealed.
(2) Notwithstanding that goods were imported into Australia before the commencement day, duties of Customs are not payable in respect of those goods under an Act repealed by this Act if duties of Customs are imposed on those goods by section 21.
(3) Subject to subsection (4), the Acts repealed by subsection (1) as in force immediately before the commencement day shall be deemed to have been amended in accordance with Customs Tariff Proposals introduced into the House of Representatives in 1987.
(4) If, before 1 April 1988, either House of the Parliament, in pursuance of a motion upon notice, passes a resolution that subsection (3) is not to apply to Customs Tariff Proposals referred to in that subsection and specified in the resolution, that subsection does not apply to the Proposals so specified.
Transitional
Where:
(a) goods were imported into Australia, and first entered for home consumption, before the commencement day;
(b) the goods are again entered for home consumption on or after the commencement day so that duties of Customs are imposed on the goods under section 21; and
(c) because of section 132 of the Customs Act 1901, the rate of duty in respect of the goods is the rate in force when the goods were first entered for home consumption;
the duty in respect of the goods is the duty that would have been payable in respect of the goods if this Act had not been enacted.
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SCHEDULE 1 Section 17
CLASSES OF COUNTRIES AND PLACES IN RELATION TO WHICH SPECIAL RATES APPLY