SUMMARY OF ALTERATIONS

CUSTOMS TARIFF PROPOSAL (No. 6) 2022

Reasons for changes: To apply an additional rate of duty on the importation of goods from Russia or Belarus and to provide access to certain tariff concessions

Date of effect: 25 April 2022 and 25 October 2022

Alterations to the Customs Tariff Act 1995

On 31 March 2022, the then Prime Minister announced that Australia would join like‑minded countries in removing Most Favoured Nation tariff treatment by imposing an additional temporary customs duty of 35 per cent (the Additional Duty) on goods that are the produce or manufacture of Russia or Belarus from 25 April 2022.

As the outlook for the war in Ukraine has not changed, the Additional Duty has been extended until 24 October 2023.

This is implemented through applying an additional rate of duty to goods from Russia or Belarus in addition to the general rate of customs duty that would otherwise apply to these goods in Schedule 3 of the Customs Tariff Act 1995 (the Customs Tariff Act). The Additional Duty will be payable for goods that have left on or after 25 April 2022 for shipment to Australia and are entered for home consumption between 25 October 2022 and 24 October 2023.

In accordance with proposed section 18AA, goods are the produce or manufacture of Russia or Belarus if:

· the goods are unmanufactured raw products of Russia or Belarus within the meaning of the Customs Act 1901; or

· the last process in the manufacture of the goods was performed in Russia or Belarus.

Goods will continue to be the produce or manufacture of Russia or Belarus if the goods are exported to another country and undergo only minimal operations or processes of further manufacturing. This includes the following, or similar, processes: operations to preserve goods in good condition for the purposes of transport or storage and changing of packaging or the breaking up or assembly of packages.

Goods that are the produce or manufacture of Russia or Belarus are not eligible for a concessional rate of customs duty, except under items 9, 10, 14 15, 16, 17, 18, 19, 20 and 25 Schedule 4 to the Customs Tariff Act. Except for item 20, these items provide a Free rate of customs duty for certain goods that are personal effects, goods exported and returned to Australia and as required to give effect to certain international commitments. Item 20 provides for goods that are exported from Australia for repair or renovation and then re-imported into Australia, where these are goods from Russian or Belarus, a Free rate of duty will be applied to the original good and applicable general rate and the additional duty will be applied to the value of the repair or renovation. The re-enabling of these concession is retrospective from 25 April 2022, the date that the additional duty commenced.

The additional customs duty will not apply to goods that are originating under a free trade agreement between Australia and another country.

The extension of the Additional Duty will apply starting on 25 October 2022, to 24 October 2023.