SUMMARY OF ALTERATIONS

CUSTOMS TARIFF PROPOSAL (No. 1) 2021

Reasons for changes: To insert a concessional item into Schedule 4

Date of effect: 1 January 2021

Alterations to the Customs Tariff Act 1995

The Australian Government has committed to ensuring that Australians continue to have access to the range of goods needed to respond to the COVID‑19 pandemic by extending the concessional treatment of a ‘Free’ rate of customs duty for eligible medical and hygiene goods until 30 June 2021.

This is implemented through the addition of proposed new item 57B in Schedule 4 of the Customs Tariff Act 1995 (the Customs Tariff), which provides for concessional rates of customs duty for eligible goods.

New item 57B will provide a ‘Free’ rate of customs duty for prescribed goods that are:

a) medical products or hygiene products; and

b) capable of use in combating the novel coronavirus that causes the disease known as COVID-19; and

c) the time for working out the rate of duty on the goods is in the period beginning on 1 January 2021 and ending at the end of 30 June 2021.

The goods prescribed in by‑law No. 2020321 are:

· face masks;

· gloves;

· clothes or gowns;

· goggles, glasses, eye visors or face shields;

· disinfectant preparations classified to heading 3808 in Schedule 3 to the Customs Tariff, excluding hand sanitisers;

· soaps;

· COVID-19 test kits, reagents and viral transport media.

The ‘Free’ rate of customs duty will apply from 1 January 2021 to 30 June 2021.

Item 57B covers the same range of goods as proposed items 57 and 57A of Schedule 4 of the Customs Tariff, which collectively provided a ‘Free’ rate of duty for eligible goods from 1 February 2020 to 31 December 2020.