Vince Connelly (Stirling, Liberal Party) Share this | Hansard source

One-in-five jobs in Australia rely on trade. We have for a very long time been a trading nation. That's why it's so important that we keep pace with changes as they occur, and that's where this bill, the Customs Amendment (2022 Harmonized System Changes) Bill 2021, and the related bill kick in.

We've had some very interesting contributions so far touching on the importance of trade and of Australian businesses, and I note the member for Brand's comments about truffles. My wife also is a massive fan and will be delighted to hear that we're making it easier for those wonderful Manjimup truffles to be enjoyed right around the world. There was also an interesting contribution on broccolini. It's an amazing growth product, very good for your health and probably balanced out well with a bit of truffle oil on the side.

I'm really pleased today to make a contribution to this debate and to highlight the importance of this bill. The purpose of the customs tariff amendment bill is to update Australia's tariff codes, in the Customs Tariff Act, to be consistent with the updated international 2022 harmonised system. The harmonised system is the common name for the Harmonized Commodity Description and Coding System that is set to commence next January. The system is updated on a five-yearly basis to reflect the changing trade pattern and emerging goods, and this update will ensure that tariff codes can keep pace with modern types of goods.

For example, there are changes to reflect the changing patterns of consumption. New classifications will be created for products with increasing or diversifying patterns of trade, and this includes edible insects. I did a bit of research. It turns out that First Nations Australians have been eating insects for tens of thousands of years. In fact, there are 60 native insects traditionally consumed by First Nations peoples. It is something the wider community is, largely, yet to tap into. Edible insects is a very promising industry and is flagged to help us feed the growing population in the face of climate change, disruptions to food production systems and the rise of the conscious consumer. A good source of protein, the likes of beetles, ants, bees, wasps, crickets, grasshoppers, moths, butterflies and even termites may be on our supermarket shelves sooner than we think.

According to the CSIRO, edible insects are the fastest growing alternative protein market in the world. It's expected that the global edible insects industry will reach a total value of $1.4 billion by 2023 and grow at 44 per cent annually by 2025. Normally, some insects try to eat us, but now the humans are biting back—I was pausing there for laughter but all I got was crickets! Not to worry, I'll put in some canned laughter on Facebook.

Changes to reflect technological change are also captured in this bill, where new classifications will be created for new and emerging technologies. This includes things such as drones and 3D printers, and classifications will be removed from products that are no longer commonly traded. Speaking of drones, I recent visited a facility in my electorate run by a company called Orbital UAV. They make the engines that go into tactical unmanned aerial vehicles, UAVs. There is a booming—I might say, skyrocketing!—industry for UAVs right around the world and it's wonderful to see local Australian businesses tapping into that export market.

These guys at Orbital UAV, at Balcatta, manufacture the propulsion systems and flight-critical components of military drones. The drones are used for intelligence, surveillance and reconnaissance in military operations and for other geospatial services. Orbital UAV has secured contracts with defence primes, and, with the UAV export market increasing, these updates will make it easier for businesses like this to get access to the goods they require to meet the challenges of a changing world.

Finally, there are also changes to improve the monitoring of goods. New classifications will be created to improve the monitoring of goods like e-waste, which is electronic waste, and chemicals. Australians are among the highest users of technology, and e-waste is one of the fastest growing types of waste. Millions of electronic devices, like televisions, computers and mobile phones, are discarded in Australia every year. This can cause significant environmental problems due to the toxic chemicals present in some of these devices, including lead, mercury and arsenic, which can pollute our soil and water and disrupt our ecosystems and, indeed, even our health. This bill will make sure that rules around the importation of these types of goods are tightened.

As a rule, changes implemented to our tariff code must be consistent with the updated harmonised system on a duty rate neutral basis—that is, whatever duty rate applied to goods under their old classification will continue to apply to the goods under their new classification. Three categories of goods cannot be updated on a duty rate neutral basis, and that includes flat panel displays, semiconductor based transducers and electronic waste and scrap. The Morrison government will create new classifications for these three categories of goods as part of the 2022 harmonised system. Goods will transfer to these new classifications from many different classifications, which means it's impossible to maintain all of the different duty rates. Rest assured duty rates for these three categories will be set as free to make sure that no importers are worse off.

As part of this system, we will also see a new classification of tobacco products intended for inhalation without combustion—that is, the products used in e-cigarettes. Changes will ensure this classification falls within the scope of existing border measures for tobacco products, meaning importers will continue to pay duty on these goods at the border like all other tobacco products.

All of these changes are going to help Australian businesses. Ensuring Australia's tariff codes reflect the most up-to-date version of the harmonised system will make it easier for our importers and exporters to trade with other countries. In this day and age, this could hardly be more important. Indeed, unfair and unwarranted tariffs imposed by China on Australian businesses have seen multimillion-dollar industries like the western rock lobster, wine and others being heavily impacted, and our farmers who usually export the bulk of their produce to China have also been hard hit. So we need to ensure that we are open to trading with other countries where our volumes of trade may traditionally not be as high. The Morrison government is absolutely committed to supporting just that: diversification of trade. Earlier this year we saw the Prime Minister establish, for example, the free trade agreement with the UK, increasing trade in goods and services, two-way investment, economic growth and job creation.

The sooner the amending legislation is introduced into parliament, the sooner Australian businesses can begin preparing for the new version of the harmonised system. In many ways, our world is greatly changing, and this bill will help us to keep pace with the changes that relate to the way we trade. It will also help Australian businesses to both import and export as we create the best future we can for all Australians.

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