Bills Digest No. 168 2002-03
Customs Tariff Amendment Bill (No. 2) 2003
WARNING:
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
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Contact Officer & Copyright Details
Passage History
Customs
Tariff Amendment Bill (No. 2) 2003
Date Introduced: 29 May
2003
House:
House of Representatives
Portfolio:
Justice and
Customs
Commencement:
18
September 2002
To impose customs duty on fuel ethanol ethanol
blended with petrol at the same rate as the excise on fuel ethanol
and petrol.
Background
Background to the Bill can be found in the
Bills Digest to the companion Bill: the Excise Tariff Amendment
Bill (No. 1) 2003. The latter imposes excise on fuel ethanol at the
same rate as excise on unleaded petrol, now 38.143 cent a litre.
Customs duty is imposed at the same rate as excise duty to ensure
that neither domestic production nor imports is favoured. Rather,
domestic production is subsidised by a grant of 38.143 cents a
litre.
Schedule 3 of the Customs Tariff Act 1995 deals
with the classification of goods and general and special rates of
duty. Subheading 2207.20.00 relates to ethyl alcohol and other
spirits, denatured, of any strength . Item 1 of Schedule 1 repeals this
subheading and substitutes three new subheadings:
2207.20 replicates the wording of 2207.20.00
2207.20.10 refers to ethanol for use as fuel in an
internal combustion engine , and
2207.20.90 refers to other .
The effect is to identify ethanol separately.
The new customs duty on ethanol is the general rate of five per
cent plus 38.143 cents a litre.
Richard Webb
5 June 2003
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 2003
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Published by the Department of the Parliamentary Library,
2003.
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