Clare O'Neil (Hotham, Australian Labor Party, Minister for Home Affairs) Share this | Hansard source

I move:

That this bill be now read a second time.

The Customs Tariff Amendment (Incorporation of Proposals) Bill 2023 amends the Customs Tariff Act 1995 to incorporate the measures in five customs tariff proposals and to correct references to new tariff headings and subheadings made by the 2022 Harmonized Commodity Description and Coding System (the Harmonized System). The customs tariff proposals were tabled in Parliament in August and November last year. The measures in the bill support improved access to essential hygiene and medical-related goods, greener technology, and respond to the illegal invasion of Ukraine and follow from Australia's international obligations.

The bill inserts into the Customs Tariff Act a new provision for the temporary application of a 35 per cent additional duty to goods that are the produce or manufacture of Russia or Belarus. The additional duty applies to goods imported between 25 April 2022 and 24 October 2023 that left for direct shipment to Australia from 25 April 2022. This duty applies in addition to the general rate of customs duty applicable to imported goods. Importers of these goods are able to access concessional treatment under certain items of schedule 4 of the Customs Tariff Act. This ensures that Australia is meeting its commitments under various international agreements. This measure commenced on 25 April 2022 for an initial six-month period and was subsequently extended for a further 12-month period. The measure and the extension are a response to Russia's illegal invasion of Ukraine, and the support provided by Belarus for this invasion. The measure and the extension are necessary for Australia's essential security interests as Russia continues to violate the sovereignty and territorial integrity of Ukraine and undermine the rules based international order. Australia is committed to upholding these principles that are essential for Australia's international, regional and domestic stability and security. Economic measures against Russia and Belarus are a necessary part of the international community's response to their flagrant violation of the Charter of the United Nations.

The bill incorporates a provision which provides for a temporary 'free' rate of customs duty for goods that are the produce or manufacture of Ukraine, other than tobacco, alcohol and petroleum products. The 'free' rate of customs duty applies to goods that are imported into Australia from 4 July 2022 to 3 July 2023. The measure complements the additional duty applied to Russian and Belarusian goods and seeks to assist the economic recovery of Ukraine.

The bill incorporates the extension and expansion in scope of concessional item 57 of schedule 4 of the Customs Tariff Act. This concession provides for a 'free' rate of customs duty for imported hygiene and medical-related products. The measure was first implemented in 2020 as a temporary response to the pandemic, extended on several occasions and was ultimately made permanent on 1 July 2022. At this time, the scope of the concession was extended to cover ingredients to be used in the production of certain medicaments and containers for medicaments, in addition to goods such as face masks and gloves. This permanent tariff concession ensures that Australians continue to have access to critical hygiene and medical-related goods.

The bill incorporates a measure that provides a 'free' rate of customs duty for new passenger motor vehicles with a customs value less than the luxury car tax threshold. The 'free' rate of customs duty applies to electric vehicles, hydrogen fuel cell vehicles and hybrid vehicles with an engine capable of being plugged in to an external source of power. This measure commenced on 1 July 2022 and complements other measures aimed at accelerating the uptake of these vehicles.

The bill will also amend a reference to the tariff heading for blood-grouping reagents in a note to chapter 13 of schedule 3 of the Customs Tariff Act and insert the correct tariff subheading for certain goods that are herbicides, antisprouting products and plant-growth regulators to ensure that these goods are subject to the correct preferential rate of customs duty as agreed under the Regional Comprehensive Economic Partnership Agreement.

I commend the bill to the House.

Debate adjourned.

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