SUMMARY OF ALTERATIONS

CUSTOMS TARIFF PROPOSAL (No. 4) 2022

Reasons for changes: To provide a ‘Free’ rate of customs duty for goods that are the produce or manufacture of Ukraine, excluding excise-equivalent goods

Date of effect: 4 July 2022

Alterations to the Customs Tariff Act 1995

In response to Russia’s illegal invasion of Ukraine, supported by Belarus, and consistent with similar initiatives from the United States, European Union and United Kingdom, a temporary decrease in the rate of customs duty, excluding excise-equivalent customs duty rates, for goods that are the produce or manufacture of Ukraine is proposed.

Where goods are the produce or manufacture of Ukraine and are imported into Australia during the period of twelve months commencing on 4 July 2022, proposed new section 18B provides that the rates of customs duty for goods that are classified to tariff subheadings in Chapters 22, 24, 27, 29, 34 and 38 of Schedule 3 of the Customs Tariff Act 1995 (Customs Tariff Act) for which a ‘DC’ tariff rate is listed, would be calculated as the lower of either the ‘DC’ rate in Schedule 3 or any concessional rate applying in Schedule 4. All other goods that are the produce or manufacture of Ukraine and are imported within this period have a duty rate of ‘Free’.

For the purpose of these proposed alterations, goods are the produce or manufacture of Ukraine, if they are the produce or manufacture of this country under Division 1A of Part VIII of the Customs Act 1901. For the purposes of this provision, Ukraine is to be treated as a Developing Country in accordance with paragraph 12(d) of the Customs Tariff Act.

The proposed alterations will maintain the alignment of the rates of customs and excise duty for imported fuel, alcohol and tobacco products and reduce the general duty rate on all other goods that are the produce or manufacture of Ukraine.

The changes to rates of customs duty for goods that are the produce or manufacture of Ukraine applies retrospectively starting on 4 July 2022.