Bills Digest No. 30 2002-03
Customs Tariff Amendment Bill (No. 2) 2002
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Background and basis of policy
Contact Officer & Copyright Details
Customs Tariff Amendment Bill (No.
22 August 2002
House: House of Representatives
Portfolio: Justice and Customs
The Bill has four
- Schedule 1, Part 1,
that deals with the duty-free treatment of non-recyclable oils and
lubricants, commences on 15 April 2002
- Schedule 1, Part 2,
that deals with the national scheme for low alcohol beer, commences
on 1 July 2002
- Sections 1 to 3, and
anything in the Act not covered elsewhere in the table of
commencement, commences on the day the Act receives the Royal
- Schedule 1, Part 3,
commences immediately after the commencement of Part 4 of Schedule
1 to the proposed Excise Tariff Amendment Act (No. 1)
legislative effect to decisions to:
- implement a national scheme for low alcohol beer
- remove customs duty on certain non-recyclable oils and
lubricants now subject to duty under the Product Stewardship (Oil)
- abolish the indexation of customs duty on Product Stewardship
(Oil) Scheme petroleum-based oils and greases, and
- implement minor related changes to the Customs Tariff
by amending the Customs
Tariff Act 1995.
This Digest should be read in conjunction with
the Digest for the Excise Tariff Amendment Bill (No. 1) 2002, which
makes comparable changes to the Excise Tariff Act
and basis of policy commitment
Background to the national scheme for low
alcohol beer, the Product Stewardship (Oil) Scheme, and the
indexation of customs duty on petroleum-based oils and greases
under the Product Stewardship (Oil) Scheme can be found in the
Digest for the Excise Tariff Amendment Bill (No .1) 2002.
Part 1 deals with the
excise-free treatment of non-recyclable oils and lubricants having
effect on and from 15 April 2001.
Schedule 4 of the Customs Tariff Act
1995 deals with concessional rates of duty. Part III of
Schedule 4 deals with 'other concessions for prescribed goods'.
Item 50 of Part III in turn deals with 'goods that a Tariff
Concession Order declares are goods to which this item applies,
other than goods classified under heading 3819.00.00 of Schedule
3'. Item 50 also specifies the rates of duty on such items.
Item 4 substitutes a new item 50. The effect is
that goods classified under heading 3819.00.00, which are goods
that are exempt from the Product Stewardship Oil levy, will be
subject to customs duty at the general rate of three per cent and
various concessional rates.
Item 6 adds a new item 72A at
the end of Part III of Schedule 4. The effect of this is that goods
classified under headings 2710, 3403 or 3811 of Schedule 3 and
exempt from the Product Stewardship Oil levy, enter duty-free if
they are entered for home consumption on or after 15 April 2002.
According to the Explanatory Memorandum, the exempt goods under
item 72A include food grade white mineral oils and aromatic process
oils. Item 6 also adds item 72B. This relates to
certain polyglocal brake fluids exempt from the Product Stewardship
Oil levy. The effect of item 72B is to make the general tariff on
such goods five per cent if they are entered for home consumption
on or after 15 April 2002.
Part 2 deals with the national
scheme for low alcohol beer having effect on and from 1 July
Items 7, 8 and
9 deal with different categories of beer and
establish new rates of customs duty on these goods that are
identical to the new rates of excise duty on comparable products
under the Excise Tariff Amendment Bill (No. 1) 2002.
Part 3 deals with the exemption
of petroleum-based oils and greases from indexation of customs duty
rates to the consumer price index.
Section 19 of the Customs Tariff Act
1995 deals with the indexation of rates of customs duty. It
contains a table with two columns. The first column has the customs
item numbers for different goods. The second column has the excise
item numbers for the same goods, that is, the goods are 'paired'.
Item 11 repeals the table in subsection 19(1) and
substitutes a new table. The new table omits the paired goods that
are subject to the Product Stewardship Oil levy. Consequently, the
customs duty on these goods will no longer be subject to
See the comments in the Bills Digest for the
Excise Tariff Amendment Bill (No. 1) 2002.
27 August 2002
Bills Digest Service
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