Philip Ruddock (Berowra, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006 contains approximately 1,200 amendments to the Customs Tariff Act 1995.

These amendments implement changes that result from the third review, by the World Customs Organisation, of the Harmonised Commodity Description and Coding System, which is commonly referred to as ‘the harmonised system’.

The harmonised system is a hierarchical system that uniquely identifies all traded goods and commodities. This system is used uniformly throughout most of the world. Australia’s goods and commodity classifications have been based on the harmonised system since 1988 and are contained in the customs tariff for imports and the harmonised export commodity classification for exports.

As a signatory to the international convention on the harmonised system, Australia is required to implement the changes from 1 January 2007.

As with the last review of the harmonised system, which was implemented on 1 January 2002, this review has deleted classifications for goods where there have been low levels of international trade. Amendments have also been made to clarify existing descriptions and terminology in the harmonised system.

The current review of the harmonised system will also provide new classifications to separately identify a number of hazardous or dangerous chemicals, pesticides, or wastes such as chlorofluorocarbons, mercury compounds, aldrin and asbestos. This will facilitate the monitoring and control of international trade in these products under various United Nations conventions including the Rotterdam convention.

The third review will also introduce amendments to reflect developments in technology and changes in industry practices including the significant restructure of tariff classifications for a wide range of information technology and consumer electronic products.

While giving effect to the changes to the harmonised system, the Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006 ensures, to the greatest extent possible, the preservation of existing duty rates and levels of tariff protection for Australian industries and margins of preference accorded to Australia’s trading partners.

The Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006 also includes amendments that will impact on the concessional items contained in schedule 4 of the Customs Tariff. In addition, amendments will also be made to schedules 5 and 6 of the Customs Tariff which give effect to the application of customs duty on goods the subject of free trade agreements with the United States and Thailand respectively.

This bill will provide certainty for Australia’s importers and exporters, and ensures consistency with Australia’s international trading partners.

Debate (on motion by Mr Gavan O’Connor) adjourned.