Bills Digest No. 209  1998-99 Customs Tariff Amendment (ACIS Implementation) Bill 1999


Numerical Index | Alphabetical Index

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 and Copyright Details

Passage History

Customs Tariff Amendment (ACIS Implementation) Bill 1999

Date Introduced: 13 May 1999

House: House of Representatives

Portfolio: Justice and Customs

Commencement: A day fixed by proclamation or if no such day is fixed within 6 months of the Bill receiving Royal assent, at the end of that period.

Purpose

To reduce the rate of tariff payable on passenger motor vehicles and components by 5% from 1 January 2005, with the general rate from that date being 10%, and to allow ASIC credits to be offset against the amount of tariff payable.

Background

Refer to the Digest for the ACIS Administration Bill 1999.

Main Provisions

Item 1 of Schedule 1 of the Bill will reduce the general rate of tariff for passenger motor vehicle (PMV) components from 15% to 10% with effect from 1 January 2005. The rate for imports from developing countries will be 5% from 1 January 2005 compared to the 10% rate that will operate prior to that date, maintaining the 5% advantage for such countries. The Customs Tariff Act 1995 (the Principal Act) provides for two categories of developing countries, one subject to the DCS rate of tariff and the other subject to the DC rate., with the DCS rate applying to a larger number of 'more advanced' developing countries. In relation to the Customs tariff items listed in Item 1 of Schedule 1 of the Bill, the DCS and DC rates are both 5% below the general rate. From 1 January 2005 the DCS rate will be the same as the general rate.

Item 2 of Schedule 1 deals with imports of PMVs and certain PMV components, including certain engines and will reduce the general rate from 15% to 10% from 1 January 2005. The DC and Forum Island rate from this date will be 5%, while such imports from Canada will be subject to a 2.5% rate.

Item 3 deals with certain PMV components and will reduce the tariff rates in the same manner as Item 2 except that there will be no special rate for the Forum island countries.

Item 4 deals with another group of PMV components. The changes are similar to those implemented by Item 1 with the addition that the Canadian rate will be 5% from 1 January 2005compared to the current 10% rate.

Item 5 also deals with a range of PMV components and replacement parts. The effect of the amendments will be the same as Item 1 except that the rate for Canadian goods will be 0.

Item 6 deals with rates applicable to imported used or secondhand PMVs, where currently duty of $12 000 plus a percentage ad valorem rate. The later rate will be reduced by 5% to a general rate of 10%, a DC and Forum island rate of 5% and a Canadian rate of 2.5%. The $12 000 component will remain unchanged.

Item 7 will insert a new item 41E into Schedule 4 of the Principal Act. The amendments will allow any credits under the ACIS scheme to be used to reduce the tariff payable on motor vehicles, as described by by-law.

Contact Officer and Copyright Details

Ian Ireland
28 June 1999
Bills Digest Service
Information and Research Services

This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.

IRS staff are available to discuss the paper's contents with Senators and Members
and their staff but not with members of the public.

ISSN 1328-8091
© Commonwealth of Australia 1999

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 1999.

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